In Kaperoni

Frank26 keeps talking about a sovereign currency, as if Iraq doesn’t have one. They introduced the Iraqi dinar in 2003 they are a sovereign country with their own currency, he just doesn’t like the value LOL. But 1190 is the value. There is no RV.  The Iraqi dinar is globally recognized oh, they do follow the IMF Charter. It just isn’t really accepted internationally because they haven’t moved the banking system from Article XIV to VIII.  Part of the charter of the IMF is that countries that have developing banking systems are always aspiring to engage with the world financial system and be in Article VIII.  If you read the Article IV Consultations with Iraq you will see that they have encouraged Iraq to meet the obligations of Article VIII and move to Article VIII to send a positive message  to the global investment community.

The real problems are structurally with in Iraq. When the authorities are ready, they will move the financial system and pass the laws to encourage foreign investment. This has nothing to do with the value of the currency.  The value of the currency will be determined by the success/growth of the economy and the pressure created on the financial system as a result of significant investment…nothing is arbitrary or random in monetary policy.