Potential Windfall for IMF Member Countries???
Quote:
Originally Posted by
EJAMM
Not quite. Not all of the debt was relieved only portions of it (most relieved 80%), which would indicate that the countries still have a vested interest (20%) in Iraqs future. In most cases, like in Jordan, the debt was relieved based on deals. Jordan gets oil at a discount and is allowed first crack at some contracts for reconstruction. The country's involved in debt relief will not be "surprised" by a reversion, they actually have to approve the rv. The IMF will allow a par value change of the dinar if 85% of the member country's vote yea. Good luck.
Debt relief goes toward Iraqs balance of payments (Capital and Current accounts).
My thoughts
What is the time frame from when those countries that have to approve a par value change (hence, a reversion / RV) and its' actual implementation by the CBI? My concern is how would a lid be kept on this type of incredibly sensitive data to avoid a run on the dinar just prior to them (CBI) pulling the trigger. Unless there is something in place to address this, it is logical that an undetermined number of member country's key players would likely buy billions of dinar if they knew (and apparently, they would) that the CBI has the green light to revalue their currency. The only unknown factor is when or in Iraq's case IF the CBI would execute the strategy. To me, this could be viewed like inside trader information in stocks but to a potentially much higher and more lucrative windfall. What piece am I missing here?