Kaperoni

by **Ponee** Wed Oct 30, 2013 9:17 am

10-30-2013 Newshound Guru Kaperoni I am going to further break down that paragraph from the IMF report. I think this is important to clearly see what the IMF is saying. This paragraph is amazing in that is echos exactly what we have said for months... "In the medium term, staff encouraged the authorities to consider creating the conditions which would make possible a move to a more flexible exchange rate policy. Such flexibility could allow a predictable and gradual appreciation of the nominal exchange rate, triggered by strong oil revenues and the Balassa-Samuelson effect, to accommodate a possible real exchange rate appreciation while keeping domestic inflation low.”

Now here is the same paragraph but i put it in laymans terms..."In the medium term, staff encouraged the authorities to consider creating the conditions which would make possible a move to a more flexible exchange rate policy (this is the IMF asking the CBI to leave the currency board exchange regime and enter the new float exchange regime). Such flexibility (this new float regime) could allow a predictable and gradual appreciation of the nominal exchange rate (the new regime would allow the dinar to rise based on supply and demand), triggered by strong oil revenues and the Balassa-Samuelson effect, to accommodate a possible real exchange rate appreciation (if you pump more oil and diversify your economy, the dinar will rise fast) while keeping domestic inflation low.”

Read more: http://www.dinarguru.com/#ixzz2jD8CSQxf