Tlar: Hmmmm. Sorry. Just clearing my throat and listening to you guys. The dinar is stable. Don't worry. Iraq's debt is low compared to other countries as the reserves they have including gold could pay all their bills if no income came into the country for longer than the IMF requires.
Yes that are facing a budget crisis. So as far as their ability to cover imports and debt for three months as required of reserves, that's a no brainer.
As far as backing the currency goes, the CBI has made sure that the dinar is so well backed both short and long term if in fact dollarizing their economy has reduced the circulating dinars to what I truly believe, less than a trillion.
Even at the 2 trillion level the currency is backed at present how many times?
Gold, BIS, foreign currency, we don't know the real numbers but we do know that it is way more than what this guy says it is.
Even using his numbers, 2 trillion which is equal to 1.75 billion backed by 60+ billion dollars in reserves hardly makes his premise a potential reality.
We have seen Iraq on the verge of civil war followed by terrorists attempted take over. What has remained stable and strong is the Dinar. In fact it has gained in strength.
So I don't think I am going to worry too much about what this analyst says about the short term oil pricing or short fall in the budget as it effects the currency. Iraq's problems have always been short term waiting on real leadership and management to resolve its problems.
Iraq is an emerging economy and if they can set the rules to play fair by, and those rules are fair for everyone, and they can demonstrate that they are controlling the corruption and graft, Iraq will walk through these problems in short order.
The world is waiting on their doorstep to dump money into their economy.
I believe Abadi and gang are trying to get the door open. The currency is safe and as anybody who ever looked deeply into this investment knows. It is undervalued plain and simple.
At this time, name another currency you would rather hold a currency investment in expecting to see significant growth in in 2015. Not Russia. Not Japan. Not the Euro. You get my point. tlar