Say the cut to 1500 is the first move….A step down that is followed by a step up does something an ordinary devaluation never does. It makes leaving the currency expensive.
An Iraq that wants its people to save in dinars instead of dollars has to teach that lesson at some point and this is how it is taught…Is this the plan?
It is our theory. Nobody at the Central Bank of Iraq has said it…If the dollar…falls back toward the bank’s price the theory is working and everyone who fled [the dinar] on Tuesday, sold the currency this plan was built to lift.
