Kaperoni: "they have to float the currency first and make it internationally recognized so that they have an alternative to the auctions before they could ever reduce the money supply" (Really? LOL) 7/20/21

by **RamblerNash** Tue Jul 20, 2021 9:46 pm

Kaperoni

[via Zig] There will never be an RV of the Iraqi dinar it's just not how monetary policy works and as I've already mentioned there's too much currency in circulation. In the talk of reducing the money supply, it can't be done because they currently use the auctions to maintain the exchange rate which is a balance between dinar and dollar. The only way they can reduce the money supply is to float the currency and allow it to gradually rise over time, and at the same time they could reduce the currency...

...but again, they have to float the currency first and make it internationally recognized so that they have an alternative to the auctions before they could ever reduce the money supply. I don't expect anything to happen this year because Iraq doesn't pass the laws and create any condition for investors to come in. If you read any of the articles or news coming out of Iraq you will see it is nothing but complaints about how difficult it is to do business with Iraq...