On the ground in Iraq during the past few days there has been some chatter in the local communities to the effect that the currency will soon be worth more, somehow. And, over the past couple of weeks, it’s also becoming apparent that local suppliers and contractors increasingly prefer payments in Dinars rather than Dollars. I think it’s indicative of an impending Dinar revaluation, perhaps in the form of a “sneak revaluation” during the Western holiday season. All the pieces seem to be coming together – The relatively new Abadi government has made great strides in a short period of time, the Muslim Ramadan holiday season is over, Kurdistan and Baghdad are working together constructively, ISIS is withering away, and the budget for 2015 will ultimately be agreed and met, even if the 2014 budget has already fizzled out. Within the past few days, we’ve also seen the CBI “shuffle” its senior staff. And, the hush-hush monetary policy talks in Switzerland seem to have produced results. Everything points to rate change. As a Christian focused on the upcoming Christmas holiday, a Dinar revaluation over the holidays – Xmas to New Year’s Day – is against my business instincts, but it could happen…. It will be less disruptive to the Iraqi and regional economies if the blessed RV is announced then immediately implemented during the financial holidays being celebrated in the US, UK and Europe. In fact, even though I rationally believe that the RV will happen early next year, still, I’m hoping to wake up Christmas Morning with a Dinar RV surprise in my stocking…
*** Removed Link ***