MNT GOAT : "A BURNING ECONOMIC DEBATE.. IS RAISING THE EXCHANGE RATE THE MAGIC CBI SOLUTION FOR THE IRAQI ECONOMY?", 21 FEB

 MNT GOAT

"A BURNING ECONOMIC DEBATE.. IS RAISING THE EXCHANGE RATE THE MAGIC CBI SOLUTION FOR THE IRAQI ECONOMY?"

"Raise the exchange rate On the other hand, Deputy Governor of the Central Bank of Iraq, Ihsan Shamran, believes that "industry will not rise unless the state finds itself in it,

 and neither will agriculture unless the exchange rate is changed, as the current

rate is unfair, and the Iraqi exporter sells goods at any price and makes a profit because the dollar is very cheap." Shamran added in a press statement that "the cheap dollar is 

pushing some exporters to sell any commodity inside Iraq in exchange for the dollar, as the exchange rate should be between 2,000-2,500 dinars per dollar, considering

that the Iraqi currency is very strong due to its high balance." 

No, raising the "official" exchange rate to 2,000 - 2,500 is not the solution. In the article they actually mean lower the exchange rate making it less valuable. You have to read this last paragraph carefully. It would only cost more to buy.

 How would this help the consumer? 

The solution is to get off the sole peg to dollar. Then re-peg the dinar to a basket. What are they waiting for?

Their words not mine.....