Mnt Goat
This Iraqi dinar reinstatement is not a revaluation...The rate only changes to something we all want when it is reinstated. We call it the RV for short because the rate will jump from artificially suppressed rate (1320) to the nominal rate ($4+) since it will have to change accordingly with the new peg.
This is a very straight redenomination process, unlike other redenominations done in many other countries...as Iraq won’t be facing hyperinflation and resetting their currency to combat this inflation. But rather resetting to get back to pre-sanction era days (1991). It will be a resetting so they can reinstate the currency at a much higher rate...
Iraq still waits for a breakthrough in the election cycle. Meanwhile the Central Bank is still moving ahead with its banking reforms.. .
we know that the Central Bank is ready to move ahead with the currency reform project and make tangible evidence to us. They are ready right now! Yes, the Project to Delete the Zeros still sits in the wings waiting the election to show positive results. Certainly, if Iraq insists on Nori al-Maliki...this process may take some more time. If he backs down and al-Sudani is nominated we could see the rest of the process fly ahead very quickly.