From another board... he makes a good point..IMO.......--------------------------------------------------------------------------------
Good points Wardy. We know they intend to dedollarize and once they implement the budget, (if they ever do at this rate!) then the dinar will be the preferred currency.
I made a couple of points yesterday on another forum which had to do with the current artificial rate and why they need to move away from the programme rate. They cannot achieve any buying power to allow them to import goods at 1270. Everything is costing them 1270 times whatever if it revalued at say 1 to 1.
The other point was, when they open the doors to the big oil companies and pay workers, contractors, their own people in dinars they would inevitably have to print up more dinars. For example if you paid someone say $300 per week, with a reval of 1 to 1 this would be 300 dinars. But at th current rate they would have to pay someone 381,600 dinars, PER WEEK. Now if a particular company were paying say 200 staff, and for arguments sake they were all on equivalent of $300 per week, then in dinars that would amount to 76,320,000, and this is per week for 1 company! See how they would need to print more dinars? The budget of 54 trillion will run out within 3 to 4 months IMO unless........
A joke, am sure you would agree???
IMO the FIL is on hold until they reval. Will it be before IC? Perhaps, but am leaning more to before Oil Summit once the Article IV meeting has taken place in mid May. One thing is certain, the HCL NEEDS to be passed before the Oil Summit end of May.
________________Got to go to work.. later all__
