Fnu Lnu
when you sanction a country so badly that they have children starving and practically no medical supplies, let alone a currency that was worth less than toilet paper, people will do as they must...This is why Iraq has such a problem with criminal activity. Two generations have grown up in the shadows doing what they must to be able to eat and have medicine...Prosperity is the only remedy for a criminal nation. When people have jobs, make money, can feed their families, and have pride in their lives, they seldom turn to crime. This is where Iraq is now. Only a speedy and sufficient revaluation of the currency will bring Iraq back to the land of the living.
They do not have a massive amount of Dinar with which to deal. Small incremental increases of value over time will guarantee failure and all the many billions of dollars spent, and man-hours wasted will for naught. It is more likely they will come out high on the exchange rate and let it fall until it finds equilibrium instead of creeping upwards in 2% measures every 90 days over decades. Meanwhile everyone loses faith in the GOI, riots, and starves to death. Small increments over time makes absolutely no sense and is illogical.
Article: "The Central Bank of Iraq announced the approval from the US Federal Reserve to supply dollar cash in 2024, as part of efforts to stabilize the Iraqi economy and its currency ."
Quote: "The decision came after officials from the Central Bank of Iraq held a meeting with representatives from the Fed and the US Treasury in Dubai. " As of last Thursday, the official market recorded an exchange rate of 1,296 dinars per dollar. It appears the UST is helping Iraq to stabilize.
The Dubai meetings concluded with praise for the bank's strategies in reducing dollar transactions in the local market. Iraq could end the parallel market activity by simply revaluing the Dinar above one USD and the black market activity would come to a screeching halt.
So why haven’t they? Are they stalling for some reason?