5-11-2012 SWFloridaGuy: According to reports, Iraq's economy is improving at an exponential rate. According to the SIGR's (special inspector general for Iraq reconstruction) quarterly report sent to the US Congress, the IMF and the CBI both project GDP to grow by 12% in 2012.
Crude oil reached its highest production in decades and foreign commercial activity jumped 40%. The CoR (Council of Representatives) who among other things pass federal laws, ratify treaties, and approve nominations of specified officials, recently approved the largest budget in the country's history.
Here's the problem, as Shabibi just stated a few days ago: a resolution to the current political crisis is imperative to economic growth, the implementation of removal of the zeros project and the raising of the IQD's exhange rate. This is further illustrated by this SIGR report that states Iraq's currency reform project, the goal of which is to remove the zeros from the nominal value and raise the exchange rate of the IQD to a level close or equal to the USD, has been postponed due to political tensions.
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However, they know the political crisis is fast approaching a resolution and we are witnessing a pattern of preparatory steps being implemented. There has been an urgency for the adoption of the advancement and modernization of the Iraqi economy, banking sector and infrastructure.
Iraq is making strides to improve their communications by participating in a regional fiber-optic cable project that would link Middle East countries with Europe in a high-speed international telecommunications network. The Director of the Private Banks announced a partnership between Iraqi banks and the International banks who have been directly involved in an ongoing transfer of global banking technologies to Iraq.
Now back to the current political situation, Maliki is fighting for a National Meeting to save him from a no-confidence vote. We're not sure yet which direction this will go. If they believe they have the necessary 163 votes to unseat him, they'll move ahead with the no-confidence. If not, then they may prefer to reach an agreement with Maliki after he meets their terms and we'll see a National Meeting as early as next week.
One way or another it will be resolved and, upon reaching that stage, the CBI will proceed with the restructuring of their currency and the revaluation we've all been anxiously anticipating.
You can find some of what I have addressed referenced in this report: