2Cents: hope this post helps many. I wanted to revisit the post of WS (walkingstick) as it seems there is still confusion here. It always bothers me as the underlying fundamentals of this "investment" are so sound. It is the confusion that always blurs the facts. WS posted:
ftti: 12 ------> 9 .. Trillions to Billions .... RD coupled with RV ... moving forward -----> RI ... Follow, the Turkmenistan model..
IMO, he is saying exactly what I have previously posted. We are waiting for the next step, taking their currency from trillions to billions just as they have said they will do.....this is the Redenomination (RD) just as they said they would do....the caveat here is that they MUST change the rate significantly in order to make the new redenominated currency functional (coupled with RV)...think about it,
1 IQD is valued currently at less than 1/10th of a penny and they plan on bringing out fils down to 1/40th of an IQD. Ask yourself why they have not yet even released the 250 and 500 they told us they were going to release with the new 1,000. At the current rate, they would have to carry 100's of them just to amount to anything.
This would cause them to be ripped, torn dilapidated quickly. Look at some of the pics that DELTA brought of the condition of some of the new 1000's already.
This stage is in all likelihood not a move from Article 14 to Article 8 and therefore this will mean the rate is considered as it is today meaning the currency is not for "use" outside Iraq.
Banks in the world may or may not buy/sell at this stage but I anticipate the brokers will as they do now but at the new adjusted rate +/- their "spread"....
Then, "moving forward" we should see the RI. This will be the official move from Article XIV to Article VIII....this may or may not be associated with another change in rate. This, however, will be the official release to allow the IQD for "use" outside Iraq....therefore, banks that deal with foreign currency exchange now(excluding dinar) will begin exchanging IQD for the currency of their country at that time as they see fit. Not a big deal for them to do.
They already do it with other currencies. All they need is to see the bank's going rate to buy/sell the IQD. It will just show on their computer with all the other currencies they accept for exchange.
IMO, I do not look for the RI.......I look for the RD!!!...This is also the time we should expect to see the famed "Article 2"....All other steps will follow
As an aside, look at all the meetings Barzani is having.......He hasn't yet stomped his feet and headed out......good times ahead!!!!
MilitiaMan: Well done 2 Cents, thanks.. The Barzani meeting seems to me to be a very good sign, he showed up and the oil is flowing..
TSM: and the price of it is CRASHING.... what does this do to their big plan of higher oil prices to support the dinar?
MilitiaMan: Lol The price crashing in one way yes it is. Yes, it has come down hasn't it? $59 brl for Brent $50 ish for WTI. Did you know they increased their oil reserves by 66%? Did you know in the ME under circumstances they consider the value based on assets not just backed by assets? There is a difference. My view, is if they value of crude comes off the high recent high of $80 and we are now at $60 real close is a 35% move, thus, being asset based they are still ahead of the curve.. imo.. So imo their BIG PlAN is as good as GOLD (another story) .. lol imo ~ MM
Sunkissed: This is a most interesting post to me... because of your wording MM.
"So imo their BIG PLAN is as good as GOLD (another story) .. lol imo ~ MM
If my memory serves me the IMF encouraged Iraq last year to not rely solely on their oil (BLACK GOLD) to back their currency.
Check out this article because it appears they have followed the IMF directive to increase their YELLOW GOLD reserves. I can't find any more current information than September 05, 2018. If you or anyone else does, please share with the rest of us!
Iraq ‘s economy boosts gold reserves to 96 tonnes
September 05, 2018
The Central Bank of Iraq announced the strengthening of reserves of gold by (6.5) tons to become a total balance of gold 96 tons.
This comes within the framework of the Bank’s reserve management policy in diversification of investment assets.
An authorized source at the Central Bank of Iraq said the bank had invested in the fall of precious metals to carry out the purchase of the additional quantity, which was carried out in cooperation with the French Central Bank.
MilitiaMan: Lets not forget what WS told us about mining.. The miners are in country now. Well imo, some have been for many many many years now. In fact there are some of us that know there is a world class shallow gold deposit not far outside of Baghdad. Gold as in AU. A Mountain of Gold & (Oil).. Iraq has literally both of the base assets, gold is money, oil is too.. imo ~ MM
Frank: "WS: Is there anything else you want to tell me about Donald Trump?
WS: Umm…there’s an investment law being passed and approved that he is pushing
tremendously right now.
FRANK: What is it?
WS: It’s an investment law – a precious minerals and metals to bring in companies to
establish the mining in Iraq.
FRANK: More wealth?
WS: Yes, so that more wealth can be spread.
FRANK: Well, that’s right – that’s under the HCL, right?
WS: Yeah." ~ Frank26 & WS