[Oil prices are relatively stable, the price of gold is staying above $1300/oz and most likely going up. Iraq has plenty of both. With all that has gone on with Iraq this year: CBI talk, banking, more oil, more gold, security, government, IMF and UN aid, etc…things are actually looking promising. I know about your 10 cent stance, and…I was just curious if you’ve heard anything about a possible rate of 13-26 cents, like a few other middle east countries are currently valued at as well. Just so Iraq can be ‘on par’ with some of their neighbors, and take advantage of the resources they possess or have yet to tap into.]
Oil prices stable ish — yes…gold price staying above $1,300/Oz and heading higher — I sure hope so…Iraq has plenty of both —
Well we know for sure they have a lot of oil, how much gold they actually have at the moment is anyone’s guess. as for the rate — 1c , 10c , 50c, $50 per dinar or even the current rate, it really doesn’t matter to Iraq what the rate is life continues as normal, there are 120 factors that determine the value of a currency, everything from political stability to standard of healthcare, structure of the economy and population educational levels than the usual things like reserves, natural resources, workforce participation, interest rates, banking structure and policies, inflation rates and the volume of cash in the economy etc.
“on par with the neighbors” —
I’ve heard this one for years and there is absolutely no reason one country can value its currency at a higher rate just because another country close by is at a higher value relative to the dollar…that’s like me saying well bob down the road who is a CEO of his own company just got a new mustang … I should have one too, even though I work part time in pizza hut…with today’s crazy lending policies I probably could get the loan for it in this scenario but long-term it will destroy me just like if Iraq jumped the gun and set a rate too high based on a false belief in their ability to maintain that rate or deserve it. As mentioned above the factors that affect the value of a currency cannot be overlooked or dismissed just because one might want to keep up with the jones’s (or Muhammad’s in this case) its just an ego thing. I do think some day it will be on par, now whether that’s because the IQD increases in value or all out chaos engulfs the middle east and everyone else drops to Iraq’s current value I don’t know but time will tell.
