Rockfl9: A digital account i.e. passbook account is a liability to that bank. It must be supported by an equivalent asset somewhere..That asset is the CBI reserves.
Until the amount is recovered it would have to be treated as a loan. A high risk loan. If the RV is 1 cent the value of Iraq's M2 would become $720Bn.
The $72Bn would be gone in seconds just to cover demand deposits within Iraq's local banks! I don't think the FED/UST/FDIC would allow a US bank to take that risk.
Freebird: I don't think it's a coincidence that just today the FAA (US) ended its 16-Year Ban on Commercial Flights to Iraq. Department of transportation Docket No. FAA-2003-14766
The final rule says this action is taken to allow U.S. civil flight operations to and from Erbil and Sulaymaniyah International Airports in Northern Iraq by any United States (U.S.) air carrier or commercial operator, any person exercising the privileges of an airman certificate issued by the FAA except such persons operating U.S.-registered aircraft for a foreign air carrier.
Read More Link On Right
LoriC: Ban Ki-Moon of the UN and Iraqi leaders are speaking of a "historic time for Iraq." Not only will they be removed from Chapter 7 after years of being under the UN's thumb but they will also become financially independent and once again have an internationally traded currency.
In my opinion they can sustain anywhere from a 1-3 dollar rate. The timing is the big question. The CBI has said January 2013 since early 2012.
They seem to be on track and although I like Shabibi, I think the overhaul with the CBI happened to ensure they stay on track this time.
Mountainman: I'm trying to contain my excitement but it's very hard to at this point. After years of being invested in Iraq's currency it finally appears they will be released from sanctions and we will see their currency recover shortly.
I'd say they certainly appear to be on track for a significant rate change by the beginning of 2013. Fingers crossed.
Dtard: Iraq outta 7!!!! WOO HOO. BREAKING NEWS. Maliki : Iraq fulfill his obligation regarding UN resolutions. Prime Minister Maliki said Iraq has fully met his obligations regarding the international resolutions which were adopted under Chapter VII of the UN Charter.
He said at a joint press conference with his guest the UN General-Secretary Ban Ki-moon that Iraq had fulfilled all its obligations stipulated by international resolutions which were issued under Chapter VII of the UN Charter, stressing that Iraq's position requires get him out of the jurisdiction of this Chapter.
We are witnessing some major changes and Iraq is re-entering the international stage. They are being released from sanctions, wrapping up loose ends with Kuwait, opening airways and last but not least - dropping the artificial exchange rate. I feel we are truly close now. Keep the faith.