12-23-12 Randy Koonce: Under the circumstances with Talabani, he will be out of the picture; he’s gone. He was a buffer between Maliki & Barzani. Maliki is now meeting with Barzani.
They have to come to an agreement regarding Erbil. 90% of the oil is coming out of Kurdistan.
Maliki wants out of chapter 7 that’s why he is interested in making a deal with Barzani. We are waiting on an agreement, I think within 4 or 5 days, then we will be sitting pretty.
There is extreme pressure for Iraq to get things done. They can’t open their budget until they RV because they don’t have enough money, enough weight, this is another pressure point.
From what I heard, the rate could be adjusted maybe a little higher, no less than $3.41, a managed float. This thing is coming to a head. We should see a lot of good things in the next few weeks.
12-23-12 LoriC: The article from the CBI is encouraging. However, it does not directly signify a float. The CBI made a decision authorizing the CBI governor to reduce the sale price of the dollar as the market demands.
This could apply to many different large appreciation scenarios including a RV/RI. We know that they would never RV to the goal rate because then they would lose their opportunity to buy back at profits.
Also, they could RV then float. They can’t tell us they are going to RV. No country has ever announced to the world they were going to RV prior. If they changed the peg this could apply to the new rate also. If you look at what different options the CBI has in raising the rate, of which there are many, you will see that raising the rate as the market demands is a very common element. Everyone needs to do their homework on the subject.
If I don’t get a chance to post again, I just wanted to wish everyone a very Merry Christmas and a Happy New Year!!!