I will not do any formalities today and will go right to the information because it is so good.
First let me say I wanted to give you an update over the weekend however the news was extremely hard to get out of Iraq and I could not reach my contacts. Finally yesterday I got through to Iraq.
So why have we not seen the RV already? Its July 1st already I stated.
I asked this question to my contact and here is what I was told- (I will try to quote as much as possible)
The National Meeting was a huge success on Saturday and all the politicians made their grand speeches. The Federation Council was activated.
It was apparent at the meeting that Maliki was stepping back and not really in control any longer. Some small groups of people lingered in the streets late in the night after the meeting and celebrations tampered down and became to get angry as they expected to see the new rate immediately (and he laughed) after the meeting.
What hold up? said my contact. We are just fine over here. All is well over here. The currencys' new rate has been activated mid Monday. It is $3.44 now as shown on posters in the windows at the banks.
I also have a freind who tried to use the ATM to get cash and could not yet do it however the new rate was showing. The cards are activated as others are using the machines successfully.
The new lower denoms are but being rolled out according to type of payout. People were told on the TVs a schedule to watch for their activation. Tarriffs are implemented as the TV news is also telling us over here.
So I asked myself...If it is activated in Iraq on Monday then why have we not seen it yet in the USA?
I don't know said my Iraq contact. Thus I made yet another call to my contact in the IMF. He is telling me that any country that is not fully Basil III compliant will cause a delay in activation until the final requirements are ironed out.
The USA is one of these countries. I was told this issue is now resolved (he told me how but I will not repeat it since you would not like the politics involved). I also agreed not to talk about it.
The important part is the USA should see activation sometime during the next couple days.
Please don't shoot the messenger. Like you, I surely hope this information is true. Let's see how it all plays out in the next couple days. I think we will all be at the bank on Weds or by the end of the week for sure.
Peace and Luv to ya all.
Posted by John MacHaffie at 11:56 AM