Ariel on X.
Iraq IQD opinions 12.27.24
-- He's quoting Dr Shabibi, the original financial architect of Iraq's financial reforms. Pay attention. This isn't "pie in the sky" fluff. It's based on logic & reasoning ~
Ginger of the Liberty Lounge ©️
💢 Ariel on X: 🇮🇶The news is just coming out at rapid rates. Speaking of rates. I need to reiterate something. If $3.22 in 1980 was equivalent to $12.34, that’s a 283% increase due to inflation 12 years ago when Dr. Shabibi first brought this up.
If the exchange rate reflects the cumulative inflation from 1980 to now, Iraq cannot simply restore their currency to pre-2003 levels without adjusting for inflation over those decades.
The baseline value of the dinar must reflect the erosion of the dollar’s purchasing power over time, which suggest that a direct reinstatement at older rates would undervalue Iraq’s economic position.
If $3.22 in 1980 is now $12.34, applying a similar inflation multiplier (around 3.8x) to the pre-2003 exchange rate of 1 IQD = $3.22 would place the new rate between $12 and $16 per IQD.
However, geopolitical factors, resource control (oil), and economic growth could justify rates exceeding even $16 per IQD to reflect Iraq’s current reserves and output.
Do you know what that means if you just have only 100,000 IQD? That is atleast 1.6 million. People this is just basic economics. Not throwing some dream rates out there for a dopamine fix. Just something to think about.
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