7-2-2012 Milndollarbabe: The single most important report I think I've seen in this venture is the Ministry of Planning feasibility study. I think if anyone is doubting right now, this is a good reminder it's in print and says "real exchange rate," meaning off the programmed rate.
Specifically speaks to investment planning, so its applicable. They list rates for feasibility studies with contracts etc in black and white!! That study was originally done in 2007 I believe.
A lot has changed since then, more gold, more natural gas, more oil found and more debt being relieved.
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I believe that there is a range that is projected and presented to the IMF and depending what has been accomplished regarding debts and natural resources calculated that the IMF approves the rate either on the low side or the high side.
This study can give us a peek into the thought process on the ranges being discussed in this report. Justifications for exchange-rate adjustment: there are a number of important and powerful arguments which support the view that the official exchange rate reduces the real value of foreign currency for purposes of calculating the economic national profitability for investment projects and hence for the purposes of investment planning.
It is demonstrated in this context to call for assessing the dinar for less than (3.208) dollar (official exchange rate) when assessing project outputs and inputs of traded goods of exports, substitute imports and imports etc.
Estimate the amended exchange rate of the Iraqi dinar to be used in technical and economical feasibility studies and for (1.134) dollar per dinar. This price should be approved for 3 years until re-appreciation by the competent authorities. Read more