Wednesday, November 20, 2013

11-20-2013 Newshound Guru Doc

11-20-2013   Newshound Guru Doc   A second article is quoted as ""We expect that the first issuance will be in the value of 3 billion Iraqi dinars ($2.58 million)," said Abdul-Basit Turki Saeed. This is referring to the issuance of domestic bonds in dinar.  We will not dwell on the importance of this in that it is necessary monetary tool for interest rates and moves Iraq a little ways away from USD dependency.  Our opinion is this is the initial test case.  3 billion dinar represents less than 0.01% of the money supply.  With that it will take some time for the bond program to have a substantial impact on monetary controls.  However, if the initial launch is successful it could become a significant factor fairly quickly.  We see this as another piece of the infrastructure that will support a stable healthy currency in the long term.  [post 1 of 2....stay tuned]