Public statements right up until the move were calm and reassuring. No plan to change the rate. The adjustment was presented as a technical and prudent step to better reflect economic reality, not as a dramatic revaluation. This is one of the cleaner recent examples of a Gulf country with strong oil fundamentals and a managed peg deciding to shift exchange rate regime without telegraphing it in advance…Iraq’s done that before. Many countries have done this before. They telegraph one thing and then they do another…Iraq is possibly going to do the same…Countries, including wealthy oil rich Gulf neighbor like Kuwait have publicly denied plans to change the exchange rate and then done so relatively soon after when internal conditions were deemed right. Militia Man [Post 2 of 2]
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