TLAR: This has been a banner week for our investment. Iraq seems to be getting ready to do something maybe as early as this month with their currency. We have been waiting for the tariff law to be implemented for four years. It was implemented January 2nd. The tariff law by itself, without an increase in the dinar is inflationary because it will add between 20 and 50% to selected imports. Iraq has to import everything it needs because it has yet to start to develop its manufacturing and markets. They have stated that the products to be included at first will be mainly luxury items and that future products will be added over a four year period. It still going to raise the prices of everything except basic food stuffs which is inflationary.
Iraqi parliament has been busy removing thousands of laws on the books that the Saddam regime had put in place which were hindering investment and a free economy. We have been waiting for over a year to see new legislation designed to encourage investment and free enterprise. Well guess what? They had passed those laws a while back but never told anyone. Those laws are now being implemented. The first article below shows that these laws were passed but not in the news and they are now being activated. They slipped another one by us. (Article 1)
MORE GOOD NEWS
Read More Link on Right
Iraqi parliament has been busy removing thousands of laws on the books that the Saddam regime had put in place which were hindering investment and a free economy. We have been waiting for over a year to see new legislation designed to encourage investment and free enterprise. Well guess what? They had passed those laws a while back but never told anyone. Those laws are now being implemented. The first article below shows that these laws were passed but not in the news and they are now being activated. They slipped another one by us. (Article 1)
MORE GOOD NEWS
Read More Link on Right
The Bank of International Settlements (BIS) is this month for the first time accepting the dinar as deposits.
The new smart card is being issued which will allow for Iraqis to get paid in something other than cash. They will be able to make purchases and use the ATM's when they need cash.
Iraqi's working for the government will have their salaries doubled soon retroactive back to Jan 1 of 2014.
This is also the month Iraq becomes a donor nation. (IMF)
The WTO met to determine whether or not Iraq will be admitted for full membership on Dec29th. There has been no announcement of the results of this meeting as of yet. Remember the WTO had told Iraq in 2010 that they wanted to see the dinar close to the value of a dollar before they would be admitted to full membership.
On the 7th of January the CBI will start selling bonds for the first time since the Saddam era. This is an important "monetary tool" which is one of the three tools that ultimately will replace the auctions. The other two tools are the tariffs (implemented Jan 2nd) and the Exchange rate not implemented yet. Bond sales are a necessary vital tool for the CBI in order to support the currency and control inflation. (Article Two)
Kurdistan has started sending oil through the pipeline into Turkey with Bagdad's blessing. This means that the numbers have been agreed upon as to revenue sharing of oil profits. It sets the stage for the budget to be passed. The COM has just released the budget to parliament today to be voted on. With Bagdad and Kurdistan in agreement, it should pass quickly.
Article 140 was agreed upon by making it its own province that eventually will be under Kurdistan influence.
So what does all this mean? For years all of this legislation has been tied up. All of it is coming together this month, January, and the really interesting thing is BIS now accepting the dinar for deposit this month to be used shortly for international settlements. The dinar to be used INTERNATIONALLY. They have not yet declared IMF Article VIII, but they must be very close.
Here's the deal if they don't. BIS can't use their currency until they declare Article VIII for international settlements. Nobody will accept Iraq's toilet paper which is only good in their own country. The WTO will not let them in as a permanent member with the currency as it is. The tariffs will be inflationary. The budget is written at 1.16 dinars per US dollar but will have to be refigured again. Without a currency their economy and all the press recently touting about Iraq's economic rebirth in 2014 and the explosion of a free market, will again be wrong. The economy will continue to be stagnant unless they introduce the new Iraqi dinar internationally. 2014 is our year and it may be as early as sometime this month. They can do it anytime this month and make it retroactive to January 1 just like everything else. Anyway everything looks like it is finally falling into place after years of waiting.
Just a side note. The whole country of Iraq has pulled together and is fighting al-Qaeda. Sunni militias are fighting along with Shiite militias as well as the Iraqi Army along with the US soldiers and Iran Quads. They have stamped out 80% of the al-Qaeda organization in two weeks. They have as of yesterday killed the leader in Iraq of al-Qaeda. In another week it should be settled. Al-Qaeda tried to make a move in Iraq. Most coming through Syria. By the time the opposition to them organized they had made some gains. They are on the run now. Interesting though, Iranians fighting on the same side with the US, Sunni's and Shia's.
The new smart card is being issued which will allow for Iraqis to get paid in something other than cash. They will be able to make purchases and use the ATM's when they need cash.
Iraqi's working for the government will have their salaries doubled soon retroactive back to Jan 1 of 2014.
This is also the month Iraq becomes a donor nation. (IMF)
The WTO met to determine whether or not Iraq will be admitted for full membership on Dec29th. There has been no announcement of the results of this meeting as of yet. Remember the WTO had told Iraq in 2010 that they wanted to see the dinar close to the value of a dollar before they would be admitted to full membership.
On the 7th of January the CBI will start selling bonds for the first time since the Saddam era. This is an important "monetary tool" which is one of the three tools that ultimately will replace the auctions. The other two tools are the tariffs (implemented Jan 2nd) and the Exchange rate not implemented yet. Bond sales are a necessary vital tool for the CBI in order to support the currency and control inflation. (Article Two)
Kurdistan has started sending oil through the pipeline into Turkey with Bagdad's blessing. This means that the numbers have been agreed upon as to revenue sharing of oil profits. It sets the stage for the budget to be passed. The COM has just released the budget to parliament today to be voted on. With Bagdad and Kurdistan in agreement, it should pass quickly.
Article 140 was agreed upon by making it its own province that eventually will be under Kurdistan influence.
So what does all this mean? For years all of this legislation has been tied up. All of it is coming together this month, January, and the really interesting thing is BIS now accepting the dinar for deposit this month to be used shortly for international settlements. The dinar to be used INTERNATIONALLY. They have not yet declared IMF Article VIII, but they must be very close.
Here's the deal if they don't. BIS can't use their currency until they declare Article VIII for international settlements. Nobody will accept Iraq's toilet paper which is only good in their own country. The WTO will not let them in as a permanent member with the currency as it is. The tariffs will be inflationary. The budget is written at 1.16 dinars per US dollar but will have to be refigured again. Without a currency their economy and all the press recently touting about Iraq's economic rebirth in 2014 and the explosion of a free market, will again be wrong. The economy will continue to be stagnant unless they introduce the new Iraqi dinar internationally. 2014 is our year and it may be as early as sometime this month. They can do it anytime this month and make it retroactive to January 1 just like everything else. Anyway everything looks like it is finally falling into place after years of waiting.
Just a side note. The whole country of Iraq has pulled together and is fighting al-Qaeda. Sunni militias are fighting along with Shiite militias as well as the Iraqi Army along with the US soldiers and Iran Quads. They have stamped out 80% of the al-Qaeda organization in two weeks. They have as of yesterday killed the leader in Iraq of al-Qaeda. In another week it should be settled. Al-Qaeda tried to make a move in Iraq. Most coming through Syria. By the time the opposition to them organized they had made some gains. They are on the run now. Interesting though, Iranians fighting on the same side with the US, Sunni's and Shia's.
via Dinar Recaps - Our Blog http://www.dinarrecaps.com/1/post/2014/01/tlar-sunday-post-emailed-to-dinar-recaps.html
No comments:
Post a Comment