[kaperoni] Ok, I am going to explain a big piece of the puzzle
02/02/13 [kaperoni] Ok, I am going to explain a big piece of the puzzle …It’s time to show you facts that this will be a free float.
[kaperoni] Some months ago I showed you quotes and articles from documents. Quotes such as…
[kaperoni] “He Alkrasna adopt all of Iraq, Tunisia, Algeria, Mauritania and Sudan system "floating orbit of exchange", where value is determined currency in the market, according to the forces of supply and demand,
and the government to intervene when necessary to re-route the exchange rate, in line with a set of criteria including the status of the current account and currency reserves foreign, depends both Egypt and Yemen floating exchange system.”
Read More Link On Right
[kaperoni] That’s a free float (floating orbit of exchange=free float) people that Iraq has chosen to move forward with.
[kaperoni] Now you not convinced and still need proof?
[kaperoni] This is from 2 weeks ago at the Iraqi Banking Conference – power point presentation….
[kaperoni] “Maintain monetary stability in the framework of the National Development Plan 2010-2014 towards achieving comprehensive development and the commitment to achieve targeted economic indicators. -
Achieve stability in the exchange rate of the Iraqi dinar in the context of a flexible exchange rate system orbit.”
[kaperoni] Again, the CBI is now directly telling everyone, were going to free float the dinar (flexible exchange rate system orbit is a free float).
[kaperoni] Now, how do I know? Because this is called an “exchange regime”
[kaperoni] So what is an exchange regime and can they still RV? No, an RV is not part of a exchange regime.
[kaperoni] From Wikipedia…
[kaperoni] "An exchange-rate regime is the way an authority manages its currency in relation to other currencies and the foreign exchange market. It is closely related to monetary policy and the two are generally dependent on many of the same factors.”
[kaperoni] “The basic types are a floating exchange rate, where the market dictates movements in the exchange rate; a pegged float, where a central bank keeps the rate from deviating too far from a target band or value;
and a fixed exchange rate, which ties the currency to another currency, mostly more widespread currencies such as the U.S. dollar or the euro or a basket of currencies."
[kaperoni] Under the IMF, an exchange regime is a form of monetary policy. There are only really 3 choices for any country (some variations are allowed)…but here they are…Free Float, Managed Float, or Pegged.
[kaperoni] We know Iraq has chosen a free float from the numerous articles and documents I provided over the last 6 months including the two I quoted above.
[kaperoni] This is direct from the IMF…
[kaperoni] Choosing Exchange Regimes in the Middle East and North Africa
[kaperoni] Exchange rate regimes in emerging markets have been discussed in a number of Middle Eastern and North African (MENA) countries, especially in the aftermath of the Asian crisis.
A number of MENA countries have made progress in liberalizing trade, opening up their financial systems, and adopting market-based monetary policy instruments. Exchange rate regimes in the region currently range from a hard peg (Djibouti) to variants of float (Iran, Egypt, and Yemen),
but pegged regimes are predominant (see Table 1). The six members of the Gulf Cooperation Council (GCC; Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates) have agreed to establish a monetary union by 2010 with a single currency pegged to the U.S. dollar.
[kaperoni] Now this is where it gets good…
[kaperoni] The IMF has stated a condition of the Stand-by-Agreement is…. “The extension will, in particular, provide time for discussions on fiscal policies for the remainder of 2012 and on measures to improve the functioning of the exchange regime.”
[kaperoni] Therefore, what we are seeing here is the plan coming to a head. That the CBI needs to “improve the functioning of the exchange regime”…IMO, that means implement their choice…the free float.
[kaperoni] If you look at the IMF quote, we can see clearly this must occur..as the definition is critical to Iraq’s investment and move to a free market economy…
“in liberalizing trade, opening up their financial systems, and adopting market-based monetary policy instruments.”
[kaperoni] I will give you all more information Monday on our Conference Call.