“New exchange rate from CBI”
This minor adjustment does not concern me even one small bit. In fact…this appears to be a “repositioning” for the takeoff. The 1% drop is insignificant in the long run but it does help to adjust the official rate closer to the street rate.
I doubt that the IMF would suspend its own rules for Iraq on the 2% requirement for 90 days. Therefore, I conclude that the IMF itself made this recommendation to the CBI, even though reluctantly.
In doing so it positions the CBI to be able to meet the IMF guidelines and may actually improve their financial position slightly by reducing the auction some.
I like to think of this as “backing up to leap forward.” I sincerely feel that this is a repositioning that is being made just prior to an official change of the exchange rate regime to a float.
Think about it this way: If they move the official rate closer to the street rate then there is less stress on the official rate and a lower chance that it will fall, rather than rise, when the exchange rate regime moves to a float.
In other words, it is a stress relief measure just prior to the official release to a float. That is how I see it. Bottom line: all good!