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Posted 15 September 2010 - 11:56 PM
Posted 15 September 2010 - 11:59 PM
I saw this a couple of days ago, it was just above neutral. Most of th news is a review, but a good overview of why this is going to happen very soon. (IMHO)
Update: RV-O-Meter upgraded to High Grade Warning to Prepare for Cash In as of Sept 15, 2010
Posted: September 15, 2010 by Justhopin in Investment Tips, Iraqi Dinar/Politics
Tags: Iraq, Dinar, Revaluation, IQD, revalue0
As of September 15th, Currency Newshounds RV-O-Meter has upgraded the RV-O-Meter to a high grade warning to prepare for Cash In.
At the recent moment Iraq’s government has yet to form and settle a six month debate over who should be Prime Minister of Iraq. Even though each of the factions or blocs appears to have bonded in ways…nothing fruitful has evolved. It was rumored that Sec. of State Clinton would visit Baghdad this week however as of today it would appear she is in the neighborhood (Middle East) however focused on the Middle East Peace talks. Over the past few days we have seen more political maneuvering suggesting that the National Alliance will soon name a candidate likely within the next few days…but who will it be..Maliki or Mahdi? My best assumption would be Mahdi as he is the best fit politically. Perhaps there is a plan already in the works…
How does this effect Allawi? Well according to recent articles published over the past week it would appear that Allawi may be ok with Mahdi assuming the role as PM as long as Mr. Maliki is miles from the PM slot ruling the country. UN Representative Melkert was in Iraq yesterday (maybe even today) talking to leaders saying more or less…its time! The UN is tired of the run around. Melkert said he offered suggestions on how to form a government and advised the leaders to have an inclusive government representing all blocs. So, that being said I think we have reached a boiling point in Iraq and the Iraqi politicians have a short undefined window of opportunity to form a government or we will soon see the UN take this over (like they should have months ago).
Today, parliament representatives are wanting to reconvene congress next week to close the open session in order to end the political issue. If this is actually agreed upon – I would expect political leaders to be in a full on press to settle this issue.
That being said. The positive news coming out this week and over the past few weeks have all been related to Chapter VII, OFAC, WTO, and even the Dinar itself.
It is apparent that the United States, the United Nations, etc are all working in concert to prepare Iraq for release from Chapter VII sanctions. Weeks ago we heard Kuwait was working hard to agree with Iraq, settling border issues, oil agreements, reparations, etc. Over the past week Iraq agreed to pay $400 million in reparations to US citizens used as human shields by Saddam Hussein – this was a major step to sanction release. Furthermore this week the US Department of Treasury – OFAC removed all or part of the Iraq sanction regulations - which essentially means Iraq is no longer seen as a terrorist or military threat to the United States – another huge step to Chapter VII release. And now there is word that the Oil for Food agreement will soon be resolved at the 3rd Quarter of 2010 – one of the last IF not the last bit of sanctions still pending for Iraq.
An article was released earlier this week which indicated that Iraq was ready to join the WTO soon…this was great news considering that Iraq must have a tradeable currency in order to become a member of the WTO (Word Trade Organization). Furthermore this article mentions the dinar as well…saying the committee’s main task was to reduce the difference between the USD and the IQD.
Over the past 48 hours two articles was published mentioning the “Deleting the Zeroes”. However these articles were not the redundant print we have seen in the past. Actually the first article indicated that this deleting of the zeroes would not take place until a government is formed. The second article was an interview with an Iraqi professor in which he suggested that by deleting the zeroes on the Iraqi currency the economy would improve along with the value of the Dinar!
Over the next few days the UN will be having meetings discussing Iraq and assumeably release from Chapter VII.
Considering these recent events involving Chapter VII sanction items and even though a PM or government has yet to form, I feel compelled to upgrade the RV-O-Meter to a high grade warning to Cash In. It is my personal opinion that the revaluation of the Iraqi Dinar is within close range..maybe tomorrow, a few days, or even a few weeks but it is close. I also realize this is Iraq we are dealing with and anything can set us back a step or two and therefore I hold my option to drop the meter if warranted.
At this time and at this level on the RV-O-Meter I would suggest that you have a plan in order. Prepare for time off from work, know phone numbers and locations of banks or location of exchange, have contact information for attorneys and/or CPA’s, know account numbers, trust accounts, etc. From what I understand the exchange rate could fluctuate greatly and therefore if you have your affairs in order along with documents in hand and a simple plan – hopefully your cash in experience will be fruitful and without delay. And as always say a prayer and put God first in your big plan.
Posted 16 September 2010 - 12:47 AM
Posted 16 September 2010 - 02:14 AM
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