1-18-2012 Guru Doc Could the RV be announced at "any moment"? |
Has the RV occurred or has it not? The CBI did change the exchange rate from 1170 to 1166 on Thursday. This is a change from the program rate but hardly the ultimate RV value. The CBI is continuing to remove dinar from circulation. There are numerous articles stating that the Iraqi citizens prefer USD. As one article stated even the butcher is dealing in USD. This easily could be part of the master plan to remove as much dinar as possible before the true RV. If we think about it its much cheaper for the CBI to remove dinar at 1166 or 1170 per dollar than 1 dinar per dollar. Moving the exchange to 1166 may entice a few more citizens to cash in. After all from the citizens' perspective they now can get a few more dollars for their dinar. It would not surprise us to see a few more minor movements in the exchange rate by the CBI over the next several weeks. Our guess to the "official" explanation is it reflects the overall weakening USD or it is being tested by allowing it to float in the market.
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