[Adam Montana] we are a little shorthanded this morning, so no warnings will be given. Kind of like warning shots at my house… ammo is too expensive to give warning shots
[Adam Montana] Now for the latest in the Iraqi Dinar
[Adam Montana] As you know if you’re tuned in to the forums lately, things are picking back up! I said last week that the lull in news was nothing to worry about, and I’m glad to see they didn’t make us wait too long for some action
[Adam Montana] unfortunately, no significant SOLID news at this time, but the momentum is picking up, so I am hopeful to be reporting big stuff soon. With that said, we have some good questions this week. Let’s get to them!
[Adam Montana] First one is from RUM I believe
[VIZIOIRAQI] RUM Several counties we are familiar with purposely keep their currency value low for competitive reasons. Concerning Iraq we are told their reason is to facilitate the rebuilding of the infrastructure more cheaply. What is the incentive in Iraq to changing this policy any time soon?
[Adam Montana] The observation is astute, and that’s a good question. The answer is… NOTHING. There is really no reason for Iraq to keep it’s currency falsely low… which is why I still believe in the investment. When they are ready to raise the value, they definitely have more reason to raise it than to keep it low. :twothumbs:
[VIZIOIRAQI] BETTYBOOP Morning Adam. We seem to have had a lot of really good news again this week. The Iraqi parliament seems to be working at full throttle. Do you think John Kerry’s visit had any influence on them actually getting some work done and do you this the U.S. still has a strong influence in Iraq. Additionally, what do you see as being the next move in all of this? Do you think the INF / WB has set more deadlines for them to complete this considering the mess of the world economy? . Sorry for so many questions
[Adam Montana] Hi Betty – I think you meant “IMF” instead of “INF”, but no worries. The world economy is indeed a mess, and they do seem to have a habit of setting “deadlines”… but deadlines have never seemed to be much of a big deal. Iraq does what it does when it wants to do it So – the next step remains the same. Chapter 7, HCL, RV – not necessarily in that order, but definitely close together in time. When we see one, the rest are not far off! :twocents:
[VIZIOIRAQI] Kimjackie My question is in regards to IRAN. They are now more than ever ingrained in Iraq and the US has very little power now. If Iran is in there then is our dinar still going to RV. Thanks
[Adam Montana] Kimjackie, Iran is not something we should ignore by any means, but they are not a deterrent to an RV. In fact, quite the opposite – Iraq needs to get out of Chapter 7 in order to fully be able to defend itself from threats like Iran. Chapter 7 and the RV go hand-in-hand. And finally – if they RV and Iran tries anything, the US, Britain, and many other countries will be there to protect Iraq. We all have a lot to gain by protecting Iraq, and you can bet that will happen.
[VIZIOIRAQI] Blessing Lot of usual postings that RV is imminent, but Iraq is still not secure in most oil regions. What are they doing about securing the oil? Wont this effect the economy?
[Adam Montana] Hi Blessing, I would have to answer that Iraq is working towards Chapter 7 and being a fully sovereign country, which goes tandem with securing their oil. And you can bet it will indeed have an impact on the economy – in a good way! :twothumbs:
[VIZIOIRAQI] ladyGrace’sDaddy Good morning Adam, thanks for remaining the sole voice of reason in all this. Do you think it is possible for Iraq to come out of ch 7, as stated by the IMF , and not RV? If so what do you think the ramifications of such an action would be?
[Adam Montana] it is possible… but why wouldn’t they raise the value?They are in charge of their rate, not the IMF. Thank you for your question, and also for being a great part of this site. I appreciate your posts as well :tiphat:
[VIZIOIRAQI] Uncle Barkie Hi Adam and thanks for all you do! My question is more of a two cents thing…. If they do come out at a low rate ,let’s say 10 cents , and give a 90 day “cash-in” period, what’s the likelihood that the rate would rise in that 90 period? I know they would want to keep it low as they set the price ,but wouldn’t all the currency exchange activity surrounding the dinar, at that time, affect the exchange rate internationally? Thanks in advance, as I’m just trying to understand a few things myself. Sincerely, Uncle Barkie
[Adam Montana] If that’s the way it comes out, I do not think they will allow it to raise. I think the goal at that time would be to pull in as much of the cash as possible, allowing people to make a modest profit but limiting the “cost” of the RV to them.
[VIZIOIRAQI] Benelli Thanks for taking our questions. I have always thought that Maliki was a hurdle for the RV for various reasons. His last term is supposed to be up soon (I thought in April), but I have not seen any news about elections or his possible successor. Could you fill us in as to where Iraq stands regarding the PM and elections?
[Adam Montana] At this time, it’s a bit tough to say how Maliki’s term will…. or WONT… end. With all of the changes taking place in the country, I believe it depends on who has the tightest grip on the purse strings. If Maliki is someone’s “man”, I wouldn’t be surprised to see him take another term, in spite of the current “law”. The ending remains to be seen for us and for Iraqis.
[VIZIOIRAQI] TomRiddle General Amnesty Law appears to be around the corner. Once this is passed, in your opinion, what’s next?
[Adam Montana] Hey Tom… If we are talking about the same General Amnesty Law (which relates to criminals and the amount of time they can be held without a charge or trial), I don’t think it has a major impact on the RV.
[VIZIOIRAQI] rendog A Jordanian friend invested today, and suggested the worst thing Iraq could do to us is re-print the currency, making all we have bought obsolete. The possibility has not been mentiuoned in some time, and so I thought I’d ask … again.
[Adam Montana] I still don’t see it happening. For starters, it would be nearly impossible to have an “in country” reprint, instantly making all outside currency obsolete. The logistics are just too crazy. But I would agree… that probably would be the worst thing that could happen to us. 😆
[VIZIOIRAQI] waitingondinar Adam, I read an article that stated the revenue numbers were rigged to throw off the IMF. Can you elaborate on this and tell us where we stand currently with progress towards RV. Are things still on track or does it look like things might drag out again. Thanks
[Adam Montana] 😆 “rigged”… well, I don’t believe half the numbers that come out of the CBI, but I don’t think they are rigged just to fool the IMF. I believe the CBI rigs their numbers to throw EVERYONE off. The more “in the dark” the public is, the easier it is to manipulate the rate… and they are very good at that Good question though!
[VIZIOIRAQI] NeedRv Hi Adam. First thanks for keeping us grounded here for so many years with this “Lottery ticket” investment….. My question is with all the recent articles coming out talking bout Iraq wanting to RV/RI to a higher rate (which most could of been Guru babble), in YOUR OPINION (and we all know you dont give rates/dates) do you see the dinar coming out at something decent around a buck and some change….? because wouldn’t Iraq WANT to have their currency on par or a tad higher than the USD to get the Iraqis to use Dinar instead of USD?
[Adam Montana] NeedRv, I understand your thought process and it makes sense to ask the question My thoughts on the rate have not changed… despite all of the news and developments, I’m happy to say that nothing has happened to change my mind.
[VIZIOIRAQI] Freedomwish Hiya Adam! Here’s a quick question, how does the May 22nd deadline which is I believe the said expiration date of the Development Fund for Iraq, would help motivate or influence the “push” of things being signed/approved/removal regarding Chapter 7 and the HCL?
[Adam Montana] Freedomwish, thanks for the question. That “deadline” has came up before, and gets changed every time… I don’t think the “deadline” matters a hill of beans. Iraq is like a kid that you threaten to punish but never follow through. If the DFI actually DID do something, that might be different… but the DFI, UN, etc only make empty threats and therefore Iraq and every other country with a “deadline” or “warning” simply ignores them all. It’s ridiculous, but true.
[Adam Montana] Iraq has complied with all of the Chapter 7 sanctions, but on their own schedule. Iraq will comply with all of the IMF requirements… but on their own schedule. Rather than risk losing control of Iraq and access to it’s vast resources, the IMF will always make “exceptions” in order to stay on the good side of that very valuable country
[Adam Montana] on the positive side – Iraq can’t be far away from (in their own sweet time) being ready to re-enter the global economy as a powerhouse… and that includes a higher valued currency. :twocents:
[VIZIOIRAQI] RobLe Hi Adam, I have been reading on the smart card in Iraq. From what I have read, the use of the smart card will actually nullify the need for cash. People will pay their bills with the smart card. They will use the smart card to buy and pay for anything that they need.
The card keeps complete track of their bank accounts, debts etc. So, by implementing the smart card… there won’t be a huge need for cash money. So my question is, could this be why all of the dinar are being removed from the marketplace?
We have been reading about removal of the dinar and the shortage. People tie this to the RV. But I now see that there might not be a need for the Dinar. What are your thoughts on this?
[Adam Montana] Good question… here are my thoughts : smartcards are definitely the way of the future, but that is not coming immediately. In the next 5-10 years (or more) we will continue to see heavy use of cash, and we have nothing to worry about regarding our physical bills
[Adam Montana] Ok everyone, great questions this week! Like I said, things are picking back up and I am looking forward to reporting better and bigger news soon. Until then – adios!