DFI (Development Fund for Iraq) runs out June 30 2011, this is not rumor:
http://articlesofinterest-kelley.blogspot.com/2010/12/june-30th-2011-times-up-iraq-and-un.html
CBI Country report from march, states that the revaluation of currency has to be done before the end of June of 2011, search the document for revalue:http://articlesofinterest-kelley.blogspot.com/2010/12/june-30th-2011-times-up-iraq-and-un.html
http://www.imf.org/external/pubs/ft/scr/2011/cr1175.pdf
There is a bunch of stuff they need to do after the currency revalues, so yeah, has to happen real soon. They can not wait till the last minute and still get the work done that has to be done after the RV and before June 30th.
The UN Recognizes the Iraq currency as a viable up and coming international currency, but they will not post a real Rate change until it actually happens:
http://treasury.un.org/operationalrates/OperationalRates.aspx
Just being posted as having an operational exchange rate is a solid indication that it will become an international exchange currency. This chart will reflect that value change after it happens.
There are numerous contracts that have to be paid and these are being filled by international companies, they are not going to continue for too long getting paid in currency that they can not spend outside of Iraq, especially when they are dependent on bringing in materials from the outside to fill these contracts.
Don’t be fooled by estimated rates for future planning. These are rates that are being used to make planning closer to ball park figures. http://www.mop.gov.iq/mop/index.jsp?sid=1&id=308&pid=295&lng=en
This site is as it says so that they can make future plans with an estimate of possible revalued dinar. An actual RV will supersede these rates. This is significant as we get links to contracts and budget information that is based on this standardized estimate until the currency really assumes it’s true value, like:
http://dinartrade.org/the-recent-iraq-2011-budget-may-have-leaked-the-coming-currency-revaluation/
or the Dam contract for 11 Bln IQD
These are based on feasibility estimates which will be lower then the actual RV in order to secure the feasibility of the project after the RV. If they did their estimates based on say 7 USD to 1 IQD and the RV came in at say 4 instead of 7 they would be way under budgeted and come up short on being able to pay off projects after the RV, so the estimate is low in order to insure the feasibility of being able to accomplish the end results post RV.
Thought I would do a preemptive post before someone tried posting the RV is going to be 1.134 or 1.168 USD to 1 IQD. Any post that states the RV is coming in this low or lower is bad intel based on official public documentation.
The feasibility article actually explains the justification for using a rate lower then 3.20 an accepted estimated rate of exchange, also not the RV rate.
You can not plan or estimate feasibility on “I don’t know what it is worth” so they have set low-ball figures to be able to begin planning that has a reasonable chance of success.
The Rate will be absolutely higher then the Estimated feasibility rate and probably higher then the additionally quoted estimated rate, when the RV actually happens.
I am no Guru, and have no inside sources, this is not protected secret information, just using reasonable logic to analyze public information.
Based on Iraq Government and Banking documents posted in public view, we should see an RV before the end of June, probably as soon as they can now and the rate should be over 3.20 USD to 1 IQD. This is not based on inside information or some hidden inside source, this is based on Public documentation. No guess work, it is what the Iraq government and CBI have already told us.
If this does not happen, it is not bad intel received by a guru, it is the government and the bank of Iraq that will have failed to achieve their publicly stated plan of action. If this does not happen it does not mean it will never happen, just that the plan may fall behind schedule. Ask any contractor, they make their estimates on large projects padding cost and time, then adding a percentage to make sure they can get it done in budget and on time, but sometimes things happen and they still go over budget or past the project deadline, life is not perfectly predictable. I wonder if Vegas has a spread on the DATE and RATE …
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