Drifter

I think I'll ban myself. Not waste any more time where facts are ignored so people can feel good. Gosh, I didn't know investing was all about feelings. I certainly don't invest that way. Good luck to you all. Bye.

Simple really, resources in the ground aren't counted toward currency reserves. And CBI Key Financials report proves IQD is barely covered 1x. If they keep printing IQD it will drop below 1x. And no I'm not interested in arguments that CBI is reducing IQD in circulation. KF report shows they're not.

If you invest based on hopes and dreams that are contrary to the facts, I would question the wisdom of that.

GOI has no reserves period. None. Why they're borrowing money.

No problem, let's just sit back and see what they do.

If real world facts are negative, then ok, I guess I'm negative. Issuing sovereign bonds takes GOI into the real world where hope doesn't fly, just facts.

Not conjecture at all. Established proven verifiable facts. Google "sovereign bonds" and you can learn all about it.

GOI has no reserves. Why they're borrowing money.

No back door stuff. Sovereign bonds are simple and rigid or they don't get international buyers, simple as that. International bond market doesn't play games. It's the real world with smartest financial people on the planet. Iraq tries any funny stuff and the market for their sovereign bonds would disappear.

Yep, starting point for borrowing money. Why is GOI borrowing money if RV is right around the corner?

IQD bonds would be specific number of dinar. 1 billion IQD bond means 1 billion IQD must be repaid regardless of IQD exch rate. If they RV 1,000 X then GOI is repaying 1 billion IQD at 1,000 X the value of what they borrowed. Of course they wouldn't do that.

I think I've already answered that point. CDS at 539 bp means credit rating won't be good.

Pay back 1,000 times more than they borrowed? No way GOI would do that. They just won't RV till bonds are paid back, probably 10 years. And if they're rolled over it'll be another 10 years. Sorry, but issuing bonds pretty much squashes any RV possibility for a long time.

P.S. And Iraq CDS at 539 basis points means nobody in the financial world has any confidence in GOI. Doesn't look good for any RV.

Then it doesn't affect IQD at all, certainly doesn't mean RV. And it proves Iraq will keep using USD in foreign banking & trade for a long time. Foreign buyers of Iraq bonds want USD repayment not IQD. They won't touch Iraq bonds if there is any possibility Iraq would try to repay in IQD. It would be illegal anyway if bonds are denominated in USD.