Deepwoodz
On the contracts...The way I see it, the two most important factors are 1) the guarantee's, and 2) the fact that these countries and contractors have faith in Iraq to pay for the work they are doing. Let’s say I want to do an electrical contract for Iraq. I want 1 million dollars for it. I don’t care what the exchange rate is as long as the payment I receive is worth 1 million DOLLARS. They are using dinar to pay...since January 1...A sovereign nation must use sovereign currency to pay their debts or they are in violation of the multi currency practices(MCP) that the IMF abhors.
The parallel market rate is an illegal, “black market” rate. This is the rate they have been trying to get rid of andwe all know how they can easily get rid of it, and that’s by adding value to their national currency. A value that is much higher than the dollars they have used for 20 years. I believe the way they are doing this is kind of like building all the financial infrastructure FIRST, that when all else is done, will be able to support the worlds most valuable currency rate. They are doing it right. Not just flipping a switch. That very last part of the cake, is the icing. The best for last.
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We used to get articles all the time about the need to pay salaries. I haven’t seen these much lately, if at all. Something else missing has been the START of new contracts and their costs...With the added 400 billion in new agreements Sudani spoke of. That’s billion dollars too by the way. Convert that to dinar if you like and see if you think Iraq has ever had that many dinar printed.
Then we have the HCL rights which are defined in the constitution as well, but still nothing on paper. Obviously Sudani’s government is keeping a secret. I wonder what that could be? Wouldn’t these three items be dependent on a NEW value to their currency? I have no doubt.
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