Saturday, June 16, 2018


6-16-2018   Newshound/Intel Guru Mnt Goat  Question:  ...WHEN WE EXCHANGE DOESN’T THE US TREASURY HAVE TO COME UP WITH BILLIONS OF DOLLARS. ACCORDING TO THE SCENARIO YOU JUST DESCRIBED   THEY WON’T GET THIS MONEY BACK UNTIL OVER THE NEXT 30 YEARS. HOW CAN THE US AND OTHER COUNTRIES AFFORD THIS? [Reference Guru Mnt Goat post 6-16-2018 below]  Have you ever heard of “electronic banking”? The US Treasury is funded already to cover these projected amounts. The massive profits to be made at all levels of the transfer of the dinar once it leaves your hands, as the investor, boggles the mind.  First there was the money made on a spread when the online currency broker or bank sold the dinar to you. Second is the money you make as the investor on the initial exchange.  Third...    [post 1 of 2....stay tuned]

Newshound Guru Kaperoni   Great news! The CBI has officially met the IMF 3-month requirement to maintain the official rate/ market-rate spread at 2% or less.  This requirement was a prerequisite to acceptance into IMF Article VIII.  They must continue to maintain that until they make the decision to move to Article VIII. If they fall out of compliance they will have to begin the 3-month requirement again.  Many believe the CBI will not take that risk and will write the letter to the IMF requesting and accepting Article VIII right away.  Personally, I don't think the CBI will move until the new government has been formed. Others disagree but we'll just have to wait and see.  Accepting Article VIII has significant benefits to us as investors. The dinar becomes internationally-recognized and convertible and would also require the CBI to move off the peg to some type of float to counter inflationary pressure created by investors/investment.  Since Iraq has yet to hold their annual Article IV Consultation with the IMF I expect that will occur at the same time as them accepting Article VIII.

6-16-2018   Newshound/Intel Guru Mnt Goat   The banks will gladly accept the Iraqi dinar because they know they can broker the currency to the US Treasury with a spread (mark-up). Some of it they will hold themselves and trade. The US Treasury will then take the dinar and transfer it over to the Iraqi CBI, where credits for oil at future market price is locked in and already agreed to years ago. Some say at $32/barrel. I am not certain if this is true or not but I now it is substantially below the projected market price over the next 30 years.  So you see the more dinar that is exchanged, the better it is for the economy of the country exchanging it back to Iraq. So I would not worry about the volume of currency going back to Iraq. This is all well planned out.  [post 2 of 2]

6-16-2018   Newshound/Intel Guru Mnt Goat  THERE ARE SO MANY NOW INVESTED WITH DINAR. HOW CAN IRAQ AFFORD TO PAY FOR THIS EXCHANGE?  Iraq will pay for the currency exchange through oil credits. In simple terms only countries that participated in the wars will benefit from oil credits, unless they managed to buy them from a country that did.  Question: How will these oil credits work?  Under normal times any bank would not want to handle this much exchange of any middle eastern currency. It would be way too risky. ...But these are not normal situations for the Iraqi dinar...   [post 1 of 2....stay tuned]

6-16-2018   Newshound Guru Kaperoni   Is Iraq on the cusp of currency reformNow that they've met the latest IMF requirement they could be close to beginning to raise the value.   It makes little sense for the CBI to wait since ending the currency auctions, opening up to investors and putting people back to work all benefits Iraq.  All at the risk of falling out of compliance and having to start the 3-month 2% or less requirement over again.

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