[They wouldn’t need the auctions if the people trusted in the banks internal borrowing.]
Not so. They need the auctions because as of today Iraqi businesses are unable to conduct international commerce with the IQD.
The auctions are a means of putting the IQD into the economy so that Iraq can conduct business outside of Iraq.
[So really they can’t get rid of the auctions unto they have a rate?]
No…they could end the auctions after they can tell the world that they are compliant with IMF Article 8…but at 1182 Iraq would be at a huge disadvantage.
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