Iraq does not revalue the Dinar to escape crises of this severity BUT sink-or-swim is the only thing that historically forces Baghdad to move on structural files that have been stalled for years. The solution that will provide a boomerang towards the revaluation of IQD. 1. Real expenditure rationalization and non-oil revenue expansion. 2. Acceleration of the long-delayed Oil & Gas Law/Hydrocarbon Law framework… 3. Banking-sector cleanup, better customs collection (ASYCUDA push), and tighter control over regional revenue transfers…4. Possible formal borrowing authority that comes with conditions or oversight… 5. Serious corruption cleanup and recovery of public/stolen funds…It strengthens reserves, reduces the need for printing or emergency borrowing, and signals that the system is finally being cleaned. Ross [Post 1 of 2….stay tuned]
