[winalot] hmmmm... cbi has not posted updates for today as of yet
[cherryberry] winalot good morning, remember they made today a holiday
[winalot] cherryberry oh shoot.. that's right- another one.
[cherryberry] winalot yes too frequent
[ cat-in-the-hat] Remember Shabbie said he would need a holiday ... prior to the rv to get ready ... he said that 1 year ago.
[winalot] cat-in-the-hat yup. he did
[SWFloridaGuy] Is anyone awake yet? I have some news. :)
[SWFloridaGuy] This Saturday could be a huge day for Iraq's Finance Committee/CBI/GOI/CoR. Today a committee member said that they are going to approve the budget in the next week and that they had agreed to extinguish the debt of the final accounts for the previous years between the CBI & Finance Ministry. Although there is no direct correlation to a new, revalued IQD rate referenced anywhere in budget numbers, we do believe that there will be a provision made for it.
[SWFloridaGuy] This is the budget proposal that Maliki initially opposed when he pushed for the introduction of the new infrastructure bill but it now appears that within the next few days that Iraq will approve their most prodigious budget ever.
Read More Link on Right
Now keep in mind, this is also why we are seeing concerns being raised over how they will be able to operate under the burden of a large amount of newly acquired debt. But it appears that the CBI has a plan to not only address this but also previous accounts held as well, which to me is extremely encouraging if true. Here is a new article released a few hours ago describing this development.
[SWFloridaGuy] I want to make it clear that this next portion is strictly just my opinion after having researched this extensively over the past couple of years. I believe that it would advantageous for Iraq to have a more valuable currency at this time if they are truly serious about moving forward with a national economic reform and recovery (like they are claiming) while also extinguishing debt without creating inflation. The 17 private banks and two main state banks were hurt by embargos just before the turn of the century but more recently have removed restrictions on international bank transactions and freed up the CBI from government control.
[SWFloridaGuy] The CBI has said Iraq’s large foreign reserves, which have risen to a record $60 billion on the back of high oil prices, will shield its financial system from damage. Their economy is still very centralized but I am looking for early 2013 as a great opportunity for those investing in Iraq. I see a large currency appreciation on the horizon for the IQD in the very near future but if it's a historic revaluation (50% - 100,000% or higher) then most likely the CBI will struggle to sustain those measures and stability in the long run.
[SWFloridaGuy] But this is of little consequence to us because we'll be long gone by then and will have converted our IQD into other forms of currency. Barring further legislative changes and assuming they stick to the currency reform plan, I see things progressing relatively quickly and a good first step would be to pass these reforms over the next week. This would also be a great opportunity for Iraqi leaders looking to consolidate support for upcoming elections. Should be very interesting, stay tuned.
[SWFloridaGuy] Sorry that was so long. I know I have a tendancy to ramble on (as Led Zepplin would say). :)
[RSK] SWFloridaGuy Great post ...thanks. any truth to the chinese currency reval to 2 to 1?
[SWFloridaGuy] RSK Many rumors floating around about China but they have resisted raising their currency up to appropriate levels in the past because they thought it was in their best interest to do so. Maybe that is changing, I really don't know
[RSK] SWFloridaGuy It was a rumor posted in recaps but no change on Forex...Thanks [SWFloridaGuy] RSK Yeah I wouldn't be surprised to see a revalue there as well. I'm just not knowledgeable enough to really give you a good opinion on China.