Source: Dinar Daddy’s Tidbits
Delta: I’m so excited…a lot of good news! They must have a credit rating to sell the bonds. Standard and Poors…one of the requirements to get a credit rating is that your currency MUST be international…That is a fact. …re-read what I brought in…one of the points about getting a credit rating is they must have an International currency – which is Article 8.
They must come up with a rate that is agreeable with the IMF (not 1166) – something that is agreeable for everybody. Iraq is having a BIG, BIG problem with liquidity…they have no cash in hand and they need to sell those bonds ASAP!
Let’s talk about the 50,000 and the 100,000 dinars. Iraq CANNOT come out with a 50,000 or 100,000 dinar note! …they would have to have an inflation rate of 30 to 40%. You don’t do that when your inflation rate is like 1 or 2 percent. Why would you spend the money to produce a 50,000 dinar note when you already have the same thing with just two 25,000 dinar notes?
The plan is to print 50, 100 and 200 dinar notes and introduce them to the market…but before they do that the rate has to change first! The 50 dinar note after the revaluation will be worth around $ 43. The new 50 dinar note and the 25k notes will coexist for a while. So they will come up with a 50 dinar note after they revalue (.85) after they drop the 3 zeros.
It is impossible for Iraq to introduce a 50,000 or 100,000 dinar note! If they did…no one would buy their bonds! Everyone is waiting for the rate. The window of opportunity we are studying is before Ramadan – June 17th. Iraq must be in Article 8. We know they have a holiday coming up on Wed/Thursday. In my opinion…nothing will happen this week…due to the holiday (I hope that I’m wrong)…then starting next Sunday we should start hearing something. We are very, very close.