Why would Iraq be working so hard to create a market economy and get private investment if they did not plan to follow the IMF directive to float the dinar? I believe that is why we have not seen the CBI do anything as of yet. The conditions for the float are not in place…meaning the laws and investment. People tell me all the time. We don’t trust the IMF. Or what proof do we have the IMF is in charge. etc. Well, my question is…when has the IMF been wrong with Iraq? When has Iraq not done what the IMF asked?
[Ultimately isn’t it the CBI that makes the decisions?] Yes the CBI has to do it. But no because Iraq has to follow the Stand By Agreements they signed in exchange for loans over the years with the UN, IMF and WB…And the IMF became the Trustee of the CBI in Dec 2015 per agreement signed. Therefore, I see the IMF directives going forward. And if you look at the success of the CBI since Dec 2015 there has been several successes including reducing the spread to within 2%, maintaining a stable exchange rate for over a year, and significant progress on money laundering.
[I don’t care how it gains value as long as something happens!] Well hopefully it will start in the next 3-6 months. Everyone…should be hoping that come the first of the year, the laws are passed and international investors are lined up to bring money into Iraq to rebuild and support a market economy. One thing is sure…Iraq expects 70 billion from private investors in 2020. 70 billion USD is a lot of potential pressure for the CBI.