At the minimum, Iraq could raise the rate 30-40% and move to Article VIII. This would allow the government to implement the taxes and remove the subsidies for the ration card and fuel products and satisfy the WB and IMF’s requests.
The citizens could afford the increase because of the offset raising of the value and then Iraq could begin to move forward on monetary and economic reform as well as reap the rewards of an additional revenue stream not attached to oil.
I hope that’s not the way they go, but at this point, any forward movement for me is welcomed, continuing to flounder around and watch the reserves dwindle isn’t the answer, that much I know.
It’s pretty clear that if they unpegged from the dollar and floated the dinar today, the value would drop, maybe as low as the projected 1500-1, which would be disastrous for the citizens.
Stopping the auctions and implementing the tariff’s would clear up a ton of financial corruption. Purchasing imports with the dinar would eliminate the need for dollars and the good ole boy network wouldn’t exist any more, everyone would have access to purchasing Turkish tomatoes without going through the auction process.
I honestly believe that’s why we haven’t seen changes yet to the currency, there’s too many wealthy Iraqi politicians making money off the existing system, the last thing they want is a fair, balanced and transparent system to compete in, the auction game is rigged for their benefit.