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12-28-2015 *Kaperoni

Rumors, Chats & Guru Predictions from other Dinar Sites. IDC does not necessarily agree with, or endorse any of these posts.

12-28-2015 *Kaperoni

Unread postby Vixen » Mon Dec 28, 2015 12:21 pm

12-28-2015 *Kaperoni ~Article: "Parliament calls for reducing the financial value of the dinar against the dollar, rather than external borrowing" This is the same old story from a few months back, calling for the CBI to devalue the dinar to 1400 to save money on the budget rather than borrow from the IMF and WB (and the subsequent conditions) to fund the budget. The one caviot here is they claim they have sources in the CBI that are in agreement and planning to devalue the dinar. That being said...in the short term, a devaluation would save them some money. The problem is though that it would also destroy citizen confidence in the dinar, many would dump the dinar for dollars and further putting strain on the CBI's reserves. A devaluation also completely goes against the principles the CBI and government are trying to acheive to create a market economy. Strengthening the dinar, opening the banking system, freedom of movement of capital are all goals. A devaluation is counterproductive to this. Not to mention Ali al-Allaq made at least 3 appearances in the media stating the CBI has no intent to devalue the dinar. If this becomes a clear lie, it would hurt his credibility and the CBI's monetary policy credibility...Further harming the banking system. I don't buy it all...I would tend to think this kind of article comes from those who don't want to see the CBI succeed and want to further damage Iraq's economy. Time will tell.
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