Monday, October 2, 2023

"RV UPDATE" BY KAPERONI, 2 OCT

 Kaperoni 

  The Central Bank announced that approx 90% of the  currency transferred for imports was done electronically at the official rate, which is a good thing as it shows the implementation of the electronic platform is working.

Question: "What if anything is Iraq doing to reduce the note count...isn’t a reduction of the note count required before a float can occur?"   It's very difficult for Iraq to reduce their money supply due to the current monetary policy.  Remember, the currency auctions are a balance between dinars and dollars in order to maintain the exchange rate...Using dinar in international transactions would give them the freedom to unpeg and end auctions.  I think the most important thing for Iraq to do is to diversify their economy...

...In order for Iraq to go international they'll have to be IMF Article VIII compliant.  They're not close with a current market rate of 1152 which is over 18% from the official rate. Well out of compliance.

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