"RV UPDATE" BY MNT GOAT, 9 SEPT

 Mnt Goat 

 ...I have to tell you the currency rate of 1/6 of a penny (IQD 1320 = USD 1) absolutely does not reflect the currency rate of the dinar. It is being “artificially suppressed”!   But most importantly...many other financial wizards, much more knowledgeable than I, also feel this way.

 To make a very good comparison one only needs to compare Iraq to Kuwait to see the imbalance and inequity happening  (KWD 1 = USD 3.45).

 I believe there is nothing more for the CBI to do but to issue the lower denominations and them to watch for inflation over a period, as their plan states they will do, and if all goes well, they liberate their currency to the global markets as in FOREX.   I thought we needed the Oil and Gas Law passed first?  Yes, I still believe they do and we might have to wait for it.  

 But there is a chance that based on how fast the economy is growing they may just put that on the back burner and rethink it (remember that Dr Shababi in 2012-2013 did not have this law passed, yet he was moving forward). We must remember the past.

 I address this question to guru Kaperoni who still thinks Iraq has to grow their economy first to get the current TRUE VALUE of their currency reflected in their rate. 

 SO grow it to what standard? What is the benchmark when they would turn on their currency? Did they shut it off because of the war and so the war has been over for 20 years. Yes, that is Obama’s plan not Dr Shabibi and it is a bad plan and will not work.  Iraq needs its currency to grow the country and its economy.  

 Iraq records the highest oil revenues since the start of 2023 which is also 2/3 more oil pumped than in 1991. The dinar rate in 1991 was over USD $3.  So why is the currency still being under valued? Yes, it is important to get out of a “rentier economy” based solely on oil and this will also create yet more wealth. But what about right now...

I am talking about today!   Doesn’t the oil wealth mean anything? Doesn’t the 113 billion in reserves and 132 tons of gold mean anything? Not to mention all the minerals and agricultural products being exported. So why still at 1/6 of a penny?