SANDY INGRAM
The CBI must carefully manage the timing of revaluation...[Iraq] has over $100 billion in foreign currency reserves. The IMF has continually said Iraq needs more income streams to offset the oil industry. The Development Road Project and several other manufacturing projects are all a part of increasing Iraq's income streams.
These are some of the major factors holding up the Iraqi dinar revalue...There's a lot at stake...First...Iraq relies on its oil export for revenue...If oil prices were to decrease suddenly, it could cause a drain on Iraq's foreign exchange reserves as they try to stabilize their currency's value...Second...Iraq's political stability and security issues... Uncertainties make it challenging for investors to trust...making them hesitant to buy the dinar...
Thirdly...A sudden and significant increase in their currency's value could adversely affect their exports and trade balances. It could also lead to inflation... Balancing the exports and trade revenue is one of the key factors in deciding and implementing a currency revaluation.
Furthermore...Neighboring countries may retaliate by imposing tariffs or restrictions in response to Iraq's higher value in currency...A sudden revaluation potentially could destabilize other currencies...
Iraq could have a domino effect on the economies and currency values of countries like the U.S., China and Russia because these countries hold significant amounts of dinar in their reserves... The central bank of Iraq is under tremendous pressure to fit in when it comes to the revaluation of its currency.
https://dinarevaluation.blogspot.com/2024/02/rv-update-by-sandy-ingram-6-feb.html
Kuwait receives oil revenue in its currency. Wrong. Kuwait is a member of OPEC and receive its oil revenue in US dollars just like Iraq. It's all about how you spend your profits. This is why the IMF encourages Iraq to create more streams of income...
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