* micmoney (New Kap chat…shows how close we are): BLC 1/17/12
kaperoni: Tonight’s chat is a “where we at chat?” I felt with all the recent rumors and rates, I should discuss this and as well bring out some recent articles. I will stay clear of the Government of Iraq tonight and stick just to articles that pertain to the RV.
kaperoni: First article…
kaperoni: Panel discuss with representatives of the World Bank and the ministries concerned progress in the implementation of projects financed from the Bank in Iraq – Tuesday 17-01-2012
kaperoni: Quote…
kaperoni: “Find an adviser in the Office of the Prime Minister during the regular meeting of the Commission on monitoring the implementation of projects financed by the World Bank on grants and loans, progress in the implementation of projects financed from the Bank, and ways to address the constraints and difficulties facing the implementation mechanism,…”
kaperoni: This is great news. The World Bank is staying on top of the plan. Making sure these guys do what is asked of them. I love it when I read “monitoring the implementation”.
kaperoni: And another quote…
kaperoni: “…discuss the reasons for the existence of gaps between planning and implementation…”
kaperoni: Good quote. They want to know WHY these guys are behind. Why they cannot get along and move the reforms along on schedule. IMO they are trying to rein them in. Get them back on track.
kaperoni: And this article…
kaperoni: Consumer society: Iraqi call for activating the disabled Consumer Protection Act since its enactment in 2010 – Tuesday 17-01-12
kaperoni: This article slipped out and few saw it. This is a great article for us.
kaperoni: Quote…
kaperoni: “Iraq society Director drew for consumer protection need to activate my Al-Mussawi, the consumer protection act and supporting the national economy this year.”
kaperoni: This organization is calling for the economic reforms. Specifically the tariffs and policies associated that overall when implemented provide higher quality products to the public. But the key is this next quote…
kaperoni: “Added: improved purchasing power of the citizen and consumer protection plays in the economic situation,…”
kaperoni: We all know “improved purchasing power” is related to the exchange rate of the dinar. And they are calling for it. To improve the “economic situation” Pretty straightforward and highly needed in Iraq.
kaperoni: Next article…
kaperoni: Central bank: the high price of the dollar will affect the Bank reserves – Sunday, January 2012
kaperoni: For weeks now we have heard conflicting reasons for the large currency auctions and subsequent dollars being pumped into the market. In reality, it dos not matter what the reason is, just that it is happening.
kaperoni: Quote…
kaperoni: “Central Bank of Iraq marked increase in the price of the dollar for the sale and purchase against the Iraqi dinar (b fierce attack) on the currency in Iraq, stressing that the continued rise will impact negatively on bank reserves from the dollar.”
kaperoni: This is very true. The auctions in recent weeks have ranged from 200 million to 300 million. That is lots of USD going back into the banks in iraq. And subsequently lowering the CBI’s reserves. Reserves that just a month ago, Shabibi himself was telling everyone he had amassed 60 billion.
kaperoni: Another quote…
kaperoni: “The rise in the price of the dollar was expected”
kaperoni: Well this is interesting…IMO you take this then as this activity is part of the plan. As if they where saying…we knew the dollar was to become stronger, forcing the dumping of the dinar. So then most of the articles about the recent auctions could be a “cover” of sorts for what is really happening?
kaperoni: Another quote…
kaperoni: “…the rise in dollars during this period may be to fund the needs not of the Iraqi economy, but needs outside of the Iraqi economy,…”
kaperoni: This is an example of the possible cover to explain the large auctions and dollarization. Or maybe not. But again, the point is that it is happening, not so much why.
kaperoni: And another…
kaperoni: “He stressed that “the rise will affect the central bank reserves,…”
kaperoni: Clearly confirming what I stated. That these recent auctions, and the dollarization going on is going to effect the CBI’s reserves. So then the question is..How long will Shabibi tolerate this? Would he be willing to lose his reserves over this? Or would he just RV, and reverse this activity? Let’s get more confirmation…
The * micmoney (New Kap chat…shows how close we are): BLC 1/17/12 by Dinar Daddy's Tidbits, unless otherwise expressly stated, is licensed under a Creative Commons Attribution-ShareAlike 3.0 Unported License.
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