I’ve been really interested in the IMF threatening pulling funding due to political lag…
that was a huge part of their loan, to get to a market economy…
the FC and planning need to make a move soon…
The dinar will represent true value and the power to boost it to far above where it is has been in place from the beginning.
Politically, laws that have long been needing to be passed must be.
Economically, the float needs to be engaged as part of moving to a “market economy”.
Planning, needs to plan the timing and process around keeping money supply at the necessary level…also, good to see that article…about the trip to Washington to discuss increasing the rating…
if nothing else, this shows us the plan to bring international investment into Iraq is still a priority.
[It’s good to see the wheels are still turning on the efforts of the WB and IMF.]
Iraq must be compliant with having a true representation of value behind their currency.
It’s not a matter of they can or should but they must be compliant.
A falsely held down rate is not compliant nor is a “dual currency” model.
I am glad to see this continued pressure…clearly the deadline to their patience is near.
[Do you think the value of the dinar will increase this yr?]
What will cause the value to increase is of course moving to a market-driven float which is a requirement in a market economy by definition.
When that move is made, I believe the value would certainly gain from where it is.
So, for timing…if this pressure by the WB and IMF works, then I certainly think we could see change…
first, how soon will parliament respond…
second, how long will it take to implement…
and third, how will the value emerge and grow…so much yet to be seen…
I’m encouraged.
We’ll have to see how this plays out.
