I found the steps Iraq would need to take in order to reinstate its $3.22 rate…Stabilize the economy by addressing issues such as inflation, unemployment and corruption…diversifying the economy beyond oil dependence…Monetary policy – To reinstate a specific exchange rate the Central Bank of Iraq would need to implement appropriate measures…like interest rates, reserve requirements and open market operations. Third, Foreign Reserves – Iraq’s foreign reserves…The more they get the better it is for them…particularly the US dollar would provide the CBI with the necessary resources to support the desired exchange rate…
