1-31-2013 Delta: The CBI is now connected to all the banks in Iraq, this was a huge announcement in Iraq. This gives us an indication that the CBI is ready to go. They announced that they will open a free market zone in 3 areas in Iraq. They will do a lot of trade between Saudi Arabia, Kuwait, Jordan and Iraq. This was huge. Iraqi Airlines – Kuwait got their money, 500 million dollars and now Iraq is going to start flights to Germany, Sweden & basically all over the world.
The budget will be approved on the 5th. It doesn’t look like there will be any problems or issues with the it. Looks like they are all happy. Can they revalue before they have a budget? Yes, they can.
They can revalue before or after the budget. We have confirmation from the IMF that the Standby Arrangement will not be extended anymore. They did not say anything about an extension of the DFI funds. It will expire in May. If they revalue their currency they will not need an extension any more. All indications is Iraq will have to basically support themselves. They will have to start paying their debts. They will have about 80% of their debt erased but they will have to reach certain benchmarks.
One of the benchmarks that Iraq has to meet with the sponsor of the World Bank & the IMF is to restructure their currency. Will they do it? They don’t have a choice.
It is not in Iraq’s hands, when the time is right the The World Bank & the IMF will do it. The big announcement is: We are going to see the revaluation of the Iraqi dinar in February. This comes from 3 high sources. Everything is ready to go. Don’t know the exact date. They may do it before the budget. We don’t know the rate.