BLC Admin tlm724 Chat 07/17/2015 Yesterday at 2:29 pm
tlm724 O.d.abdalhasin Anbuge *: Iraqi dinar exchange rate ...
The exchange rate of the basic economic variables that change per day continuously in response to the forces of currency supply and demand.
And the importance of the effect of the exchange rate in economic performance varies from country to country according to the country's circumstances and the type of economy
and the stage through which the ladder of development and the nature of the economic structure of the country and the diversity of income and wealth sources in it,
and therefore the exchange rate once be independent variables affect the dependent variables and once again be the same
He changes holds in other variables variable, and there is no one to do with the deltoid causality of the exchange rate trend,
I have personally I ask not to raise the dinar exchange rate since 2006 and I wish I stayed (US $ 1 = 1500) to the economy was put on the best and we have provided a reasonable level of protection the domestic product and provided funds of the general budget of the state.
First: General features of the philosophy of the exchange rate in Iraq:
Tlm724: Thank you emmaduke for posting this. Sorry it's taken so long to respond but life has a tendency to interrupt at times.
This is a good article in so far as laying out the current status of the Iraqi economy with a good comparison to Jordan and how they have structured their economy.
It basically states that Iraq has a ways to go according to the author in so far as setting the stage for conditions that will support the dinar and any value that we hope to see.
Iraq has not built the infrastructure needed to show us real growth outside the government structure ie: state owned industry etc..
The author points that the workforce in Iraq is so used to not actually working that they have become complacent and have no individual desire for growth.
That said we have known since the time of Dr. Shabibi that the private sector needed attention and that would in essense support the country.
We have seen the plans for a massive influx of liquidity from the CBI still to be released to the tune of 1 trillion dinars. That will go far in boosting the local economy.
Economic growth is and will happen as Iraq grows out of the infancy stage they are in. As I have said time and time again they let the bus run.
There was little to no growth in the sectors that can really propel Iraq into a market economy.
We are seeing strides in these measures and with legislation that will support this sectors all the better for them as well as us ! The investment law is ready and that will be a shot in the arm as far as bringing money into Iraq instead of money fleeing Iraq !
It seems to me that Iraq is finally waking up to the fact that if they allow the continued corruption and allowing the economy to stay in this stall that they will fall and fall hard.
The oil price drop and ISIS invasion has been a huge wake up call and IMO they are heeding that call ! They have gone so far as to agree to have the World Bank help them restructure the economic reform !
This brings me hope for Iraq and despite the devastating security situation we see them making strides against the terrorist.
Iraq has been through a three phase shock so to speak. Corruption, political apathy and terrorism ! One is bad enough but all three combined has created a most extreme situation.
Iraq has asked for help and they are receiving it. They are wise enough to understand that they cannot continue on this path.
Their currency can and will reflect the true wealth of Iraq. We cannot expect overnight success with so much on their plate at once.
They will show us the true value of the dinar WHEN it reflects the supply and demand. In order to have demand their must be an economic plan that will create the demand.
The World Bank is there, right now ! The US Treasury is there, right now ! The United Nations is there right now ! All with a commom goal in mind. To help Iraq SUCCEED !
When they succeed we succeed !
The entities are there with a plan and this new government, to me at least, seem receptive to the plan. This means that things are moving forward for us !
The economy predicates the dinar value not the dinar makes the economy ! Once it shows a value and surpasses the use of the dollar then it will play a supportive role . Thanks
tlm724: Per Shredd :
The author does well to state the case for a float and also describes the imbalance in the economy around oil being the only real contributor to Iraq's GDP.
I agree that if the rate were to float it wouldn't be a good rate and that the CBI's involvement in the dinar's stability has been unsuccessful.
I don't think there is very much confidence in the CBI based on recent actions, their leadership issues and the ongoing stability problems.
Nothing is for sure regarding the future of the dinar, the use of the dollar and the calming of the security problems.
Mdmtexas: Ok I am very uneducated on the subject, I am hoping this doesn't sound stupid. What would happen if they raised the currency to say fifty cent to the dollar. Wouldn't they benefit especially market wise and purchasing. ?