Kaperoni

  In Kaperoni 

Iraq is doing what is asked of them by the IMF and WB (though 3-6 months late) to prepare the banking system for international integration with the financial system.

Iraq needed to make these changes, along with several others (including reducing the spread)  to set the stage for acceptance into IMF Article VIII.

Remember the goal here as stated in the SBA is to accept Article VIII to “create a favorable business climate” for investment.

Accepting Article VIII will give freedom of movement of capital in and out of Iraq (so investors can get profits out), make the dinar convertible worldwide through the banking system, and most importantly allow the CBI to stop the daily auctions and let the market and world set the value for the dinar (they will stop the peg).

This is all about creating the conditions for a market economy.