Wednesday Evening Guru Opinions @ 7:57 PM CST - 2/12/2020

ronscarpa · February 13, 2020

2-12-2020 Intel/Newshound Guru sandyf I would agree with most of what Kap [Guru Kaperoni] says, (see Kaperoni's Opinion below) some of the detail is questionable, the latest statement from the CBI shows currency issued at 50T rather than 42T, as for "Chunky" that is something else. As Kap says, the liability on the CBI just cannot support any revaluation in the order that is being suggested. Many countries have deleted the zeros over the years, why should Iraq be any different. If there is to be any return on this venture it will not be the result of anything done by Iraq.

2-12-2020 Newshound Guru Kaperoni [The CBI has stated on several occasions that the deleting of zeros is two fold. Three zeros off the exchange rate and three zeros off the notes. 25000 note becomes a 25 note worth the same amount. No change in value.] If they delete the zeros it is a LOP. Parliament would have to approve. Luckily, they have postponed all such attempts so far. Hopeful for float and gradual appreciation. Remember also the IMF is also recommended that the CBI get off the peg and allow the currency to gradually appreciate. Go market economy..! {Reposted for Sandyf comment above}

2-12-2020 Guest Newshound Guru Pimpy ...I talked about the currency that was being bought by Iraq from the public. They were spending somewhere between a billion to $1.5 billion per month in oil revenues to buy currency off the open market and at that time that was 70% of the currency that was out there...what I recently learned was...they destroyed 70% of the currency...we know that less than 5%...is in the country. I still think it's lower than that...if you look at all the goods they have and you try to come out with a rate...you're probably looking at 4 or 5 cents. That's not unrealistic...in the paperwork I saw a rate of $1.34...The BTI report shows you two rates...$1.71 and $1.13. There's good arguments why you shouldn't trust those. It has to do more with the money supply that's out there...I think the rate's gonna be $1.34. It's gonna be locked there for about 3 years...