The IMF is not in the position right now, nor do they want to mess with Iraq’s economy or currency.
Here’s the math….I’ve got to go back through a lot of papers and research about how I got to that number but if the IMF took control tonight and tried to get their money/investment back they could actually raise the value of the dinar like .27 cents and that’s it.
That’s all the management rights they have from the loans that they gave. That’s a default.
Iraq is paying the interest on their loans and they can get refinanced if they have to. So there is no handling by the IMF right now.
If the oil market goes down and they have to adjust their budget and they have to change their payments with the IMF…guess what?
The IMF is more than happy to do that. They do that all the time…they don’t care…they always adjust.
So the IMF would only get involved in Iraq if they default and stop paying and if the IMF did take control they could revalue the currency up to around .26 to .27 cents.
Very easy but they are not in that process right now.