cshessman » March 20th, 2013, 1:06 am •
Frank’s CC Notes 3.19.2013
Frank reports that the USA hasn’t had a budget since 2009 but our government announces they will pass one around the end of this month. Funny how Iraq is saying and doing the same thing….amazing….isn’t it? Kowinkydink? Think…not!
Frank says keep eye on USD value. It’s growing. In Frank’s opinion we should see the USD around 83.73 By the end of the month.
Please honor our Vets!
Frank and Team26 are watching the VND very closely and studying the possibility of the rumor that it could split its value.
Example of this might be like having a gallon of milk and you pour half into another container and you still have a gallon of milk; now you fill the containers the rest of the way with water. Now you have 2 gallons of milk, diluted; you still have milk but now it’s 2% milk. Frank will tell us more if we see the VND split. Watching it closely.
Italy Considers Kurdistan the gateway launching point of Iraq.
Chapter 7 Kuwaiti delegation in Iraq the first week of April. Notice all the chapter 7 articles that came out today.
WF no longer mentions Chapter 7 as a stipulation to speak with us; now they also…look for a rate!
CBI is going to send 4 Billion dollars to the Egyptian banks to bail them out of their economy. Only fighting about either a one-time deposit or in installments? How would you like your money??? 4 trillion dinar??? Right..chump change…right!
This is an insult to our intelligence
They are setting up a mechanism to protect Iraqi funds abroad??? WOW! What about the DFI???
Don’t exist to protect us any longer. AoP kicking Iraq out of their nest? Yes they are!
Cyprus – New Zealand is next. O.o
Announcement that came out from the CBI. Important! Delta wants to share how important this is for us. Delta reads in Arabic first.
Also came out first on Iraqi TV. This is are really HUGE, HUGE article basically the?trade or train?
Announcement from the CBI.
The CBI is closely watching the changes in the market place. The CBI is in the process of implementing the directives of the Board of Directors. Remember back in Dec. the Board of Directors met behind closed doors and came up with 6 decisions, one being giving Turki the power to increase the value of the IQD when the timing was right. They are also saying that those decisions they agreed upon back in December….they are about to implement ALL of them….NOW!
Why are they saying now? Remember back when they were talking last year about deletion of the zeros, raise the value, all kinds of talk regarding this, they also made mention that before they did anything they would give a “heads-up” of a couple, three weeks; we are not going to do this suddenly. It’s not going to be a surprise. We are going to tell you in advance and give you a chance to get things worked out and be ready.
They are saying they are about to do this to get the government, financial community, exchange offices, currency traders, ISX a heads-up that it’s coming and to prepare themselves and be ready.
The announcement came out on the 14th. They are probably giving everyone about 2 weeks to get ready Delta believes so that when the change happens it won’t shock the business and financial communities.
You might ask how is going to affect the financial and business community? We know that 40 – 50% of Iraqis use the USD. If they are about to revalue and don’t have some form of warning, they will lose big time. Perhaps something around 75 – 80% loss once the IQD revalues or more.
In this announcement they are really announcing the revalue of the IQD. Remember back when Shabibi made the 4 PIP movement from 1170 to 1166. This change was ONLY against the USD! The other currencies remained the same. BUT in THIS announcement…they are talking about a “change” ALL ACROSS THE BOARD! This time it’s going to be ‘AGAINST ALL FOREIGN CURRENCIES!’ REVALUATION.
They also mention this “change” that is coming, is going to be “TOTALLY DIFFERENT” [the exchange rate] from the “expected” market value “HAS BEEN”.
They are giving us warning right there! Delta says he’s never heard of a Central Bank giving “warning” or pre-warning that they were going to make a change in their exchange rate.
Delta states in his opinion we are really very, very close and will share what he believes is coming and going to happen very shortly.
Secondly, on the CBI Arabic side, the M2 figures; on the English side in November the M2 figures showed 6.03 of their money supply growth. They have now updated this information on the Arabic side up to January 2013 showing a change over 2 months’ time down to 4.58 and we are still missing 2 months of data family! So, you can see they are doing a REALLY good job of reducing the money supply; especially, the hard cash liquidity on the street. This is almost a 1.5% drop over 2 months. That might not sound like much but it’s actually A LOT of Dinar they have moved off the streets of Iraq. Then if you calculate or speculate from January to present….this tells us also that we are again VERY CLOSE to see a rate change!
Thirdly the budget. On the 7th Parliament approved the budget. The constitution states that he will have 15 days to ratify the budget. But the 15 days start when he “receives” the budget. The President of the Parliament delayed sending the budget for 10 days. But as we saw now that the Presidency of Iraq has not received the budget the past couple days. It’s sort of like it has arrived to the White House. Doesn’t mean that Talibani has it. We know whomever is in charge of signing the budget into law, ratifying it now has it and there should be no further issue with the budget.
Technically he has until the end of the month to sign the budget legally. If he doesn’t sign it, it still becomes law after 15 days and will be entered into the Gazette. But Delta does not feel there will be much waiting. In Delta’s opinion we have a 50/50 chance of seeing a rate change this week. Delta says the 21st is the first of spring and their Holiday [Islamic New Year] of Horus is taking place. Parliament will likely suspend everything next week to allow everyone vacation time for celebrating the New Year.
Some elections might be put off for 6 months due to recent bombings. Will not affect what we seek.
Kuwaiti Prime Minister is coming first part of April. It’s been said a long time ago, that if and when we see the PM of Kuwait, and Delta believes this HIGHLY, that we would not see the Kuwait PM come over to Iraq unless the value of the IQD IS GOING to GO UP!
Delta mentions the order of things to come; the revalue, Chapter 7, then Maliki and politics, but these don’t matter; it’s only the rate we need to see now. It’s all a ONE WAY street! They are committed; they are not going back…it’s already and has been moving…ONLY Forward! They cannot go back. Delta sees not issues or problems for us not to see a new rate.
Frank mentions that Christine LeGarde of IMF made a speech but we are not seeing it yet. They are waiting to release it because it talks about Iraq. Frank senses perhaps they are doing a few more things before they allow the speech to be made public. Ex. How is it possible they can lend 4 billion to Egypt at this point in time??? With toilet paper??? That move tells us they have a new rate!
They walk and talk with a new posture. They also show that they don’t fear Maliki either. That is HUGE.
Frank says we are as close to the RV as breath is to us. Delta agrees.
Delta mentions when the MoP spoke with the MoF and announced that Iraq was to become a “Donor Country!”
Frank says unless a lot of nations enjoy toilet paper; we don’t expect a low rate. These things are all examples of telegraphing what is about to happen with the IQD.
Dessert from Delta
You won’t see this in an article. Remember when the IMF met with the delegation from the MoFinance and MoPlanning; the IMF got ALL of the final accounts for the previous year from Iraq and they have given their blessing to Iraq and they are happy about it! Remember before you can release the new rate they had to have an audit from previous years for all the accounting aspects. Likely from 2003 – 2012.
When they met in Jordan, the IMF approved everything. They have given Iraq all the way to the end of this month to increase and release the rate.
Look at the timing; between the 5th – 7th the IMF and Iraqi Delegations they met for final review of the 3rd and 4th review of the accounting audit 2003 – 2012. The IMF is VERY pleased with all the accounting. They got the green light to move forward. Delta was told they got the rate as well but it was not imparted to him. But Delta was told they did in fact get the new rate and the IMF approved that rate! The rate already exists but we don’t know what it is. Only certain people know what it is.
We don’t know the date and rate. The budget will trigger this new rate!
Again look at all the timing; 5 – 7th IMF and Iraq delegations
They pass the budget on the 7th; then on the 14th the announcement shows up from the CBI about changing the value.
PM of Kuwait coming the first of April
The UN dividing the borders was shown on TV and it’s already done. It was VERY important but it’s all done now. Kuwait is extremely happy!
Delta reiterates that this announcement from the CBI was a pre-announcement of the change coming to the exchange rate of the IQD compared to all other foreign currency not just the USD.
This means the IQD is going INTERNATIONAL! TA DA!
Delta says Team really expects this to happen either between now and the end of this month or at the end of the month!
Delta doesn’t expect really to happen this week due to the holiday but next week will be HOT! HOT! HOT! Tuesday thru Thursday! 26 – 28th!!! Looking back in history they normally RV T- TH but it is still possible to happen on a day we might not expect says Delta.
Frank mentions to Delta how they are coming out with articles that say they belong to the WTO now.
Tariff law will come into effect and the subsidies are being removed says Delta. And the currency has to come up to par with neighboring countries.
Being a part of the WTO will boost the Iraqi economy.
Delta said we should be SO HAPPY and SO GLAD; all we are waiting for right now is to see the official change of the rate of the IQD on the CBI website!
The monetary policy HAS to move forward!!!
Delta answers some caller questions.
End of Delta’s report
God bless and God night!