Monday Evening Opinions @ 7:44 PM CST - 12/28/2020

ronscarpa · December 29, 2020

Good Evening DV, here's a few opinions & comments that might be of interest to you. Remember, no one really knows what will happen, or when. They're simply stating their opinions based on what they perceive to be happening in Iraq. RON

Jeff Iraq has now officially announced to us that they have implemented the reforms as of Sunday December 20th when they devalued that rate...they've got to change the rate by the end of March...Now that they've devalued the Iraq dinar they have now told you they've officially started the reforms.

Kaperoni ...There are no arbitrary reevaluations or reinstatements...that's not how monetary policy works...the Central Bank of Iraq has to follow strict rules as well as rules and process from the IMF...This is a very complicated time for Iraq...It's going to take Iraq several months to get back on track and move forward...

Jeff Article: "Employees complain: owners of K-Card outlets in Mosul distribute salaries in dollars at the new exchange rate". You know what they're doing? They're injecting and defusing more of the U.S. dollar to get the dinar out of circulation on top of the fact that they've devalued it to squeeze more three-zero notes out of the citizens from their mattresses...this step to reduce the note count needs at least 90-days to be effective...they implemented this step on December 20th exactly 90 days before Kuwait historically changed the value of their currency which was March 24 of '91. That same day today would be Sunday March 21st of '21...

Breitling What's happening in Iraq, what's happening with their currency is only good news...I know people are in panic mode...I've got email from people asking "Should I get out? Is this over with?" That's furthest from the truth. It's the complete opposite...Iraq is in debt. They want to get out of debt...one of the strategies of getting out of debt is lowing the value of the currency. Then you pay at a lower price. Then when you're done making those payments guess what? You add value back to your currency. And that is what Iraq is doing...

Pimpy Article: "Today, Sunday, relative stability in the exchange rate of the dollar in the local markets" ...The rate was changed to 1450 dinars for every 1 dollar but the exchange rate on the stock exchange it's actually performing pretty good. It bounces somewhere between 1410 and 1430. That means the dinar is stronger than they had pegged. So it's doing very well in the markets.

MilitiaMan The focus is on their reserves and that there is strength to the dinar. The recent devaluation was on purpose for a purpose. That purpose is to have liquidity to support the public finances while they de dollarize the country...Modifying the exchange rate is on the table with House of Representatives this next week, as early as Tuesday - Wednesday... Lets see what they do. imo.

:tiphat: