If BlackRock were to publicly support or encourage Iraq to revalue its currency, the Iraqi dinar, it could have some pretty significant ripple effect…While BlackRock itself doesn’t have any formal authority over a sovereign nation’s currency policy, its global influence as the world’s largest asset manager [$11 trillion] means…such a statement would carry enormous weight in financial markets. Markets would likely interpret BlackRock’s position as a signal that Iraq’s economy is stabilizing or that major investors expect future growth. This could spark a surge in demand for the dinar especially among speculative investors who are hoping to profit from a revaluation…If BlackRock backed a dinar revaluation it wouldn’t directly cause it, but it would likely accelerate the conversation, impact global investor sentiment and put political and economic pressure on Baghdad to act…
