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Kaperoni - What is the 2% Rule? 12/4/18

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Post by Ssmith Wed Dec 05, 2018 9:29 am

The 2% rule has nothing to do with the choice of float…the 2% rule has to do with stability within Iraq and keeping the dinar exchange rate consistent within the country…the 2% rule is meant to eliminate MCPs within the country…not related at all to the nominal exchange rate of the currency…unfortunately many people do not understand the terminology used by the IMF and others related to monetary policy…an example is MCPs or Multiple Currency Practice…MCP does not mean two currencies or dinar and dollar as some like to say. It means the price of an Item in one part of the country vs the price of the same item in another part.

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