Wednesday, February 28, 2018

Kaperoni "It's Up to Iraq. IMF Wants Them In",28 FEB

Funny how nobody cared what was in print from the IMF for years and finally now think they may be something to it.   Despite the daily rv calls, the IMF is running the show. And until the CBI gets in compliance with them, there is no Article VIII.  ...an IMF document states that once they get the spread within 2% they must hold that for at least 90 days. That is documented.  The last Article IV had a comment about compliance...specifically that they did not recommend accession without meeting that criteria. I did state that i though they might wave the timeframe (90 days), but who knows.  ...it was not recommended to wave the 2% ...which they have not...but since the world is waiting, maybe the IMF will wave the timeframe.  [MAYBE ONE DAY soon.]  Maybe...Hopefully yet this year.  It's up to Iraq. We know the IMF wants them in. 

From the IMF last Sept...  "25. The government will gradually remove remaining exchange restrictions and a multiple currency practice (MCP) with a view to eliminating exchange rate distortions. Such a move towards acceptance of the obligations under Article VIII of the IMF’s Articles of Agreement will send a positive signal to the investor community that Iraq is committed to maintain an exchange system that is free of MCPs and restrictions for current international transactions and thus facilitate creation of a favorable business climate."   So it's coming.  That should perpetuate a new exchange rate regime as well causing the dinar to rise.  ...I believe once it starts, it won't take more than a year to rise to a value we are comfortable with. 

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