Kaperoni

The CBI is now allowing consumers in Iraq to get cash back from point-of-sale transactions up to 2 million Iraqi dinar per day with a small fee. Now why would they do this if there was a RV or RI about to happen? They wouldn’t! There is no RV or RI.  As I’ve said over and over and over again monetary policy just doesn’t work that way.  Once the CBI accepts IMF Article VIII they will get off the peg and move to some kind of a float which will allow the dinar to gradually rise over time. The pace of that rise is yet to be determined.  Could the Iraqi dinar ever rise to a dollar in value? Yes I believe it could but it’ll take time. The process to raise the value will be based on sound monetary policy not some overnight event.