Kaperoni "No Shortcuts" 5/30/17

by roxy22222222 Tue May 30, 2017 8:49 pm

The important thing to realize...is that currency (in this case the dinar) is directly related to the success or growth of the economy. There are no overnight events... The IMF has made it very clear that the path for the dinar will be a float or gradual appreciation of the dinar based on the growth of the market economy. This is known as the Balassa-Samuelson effect... In order for the dinar to appreciate in value, Iraq needs to create the conditions that allow investors to come in and invest, participate in the economic resurgence of Iraq. When that happens, we will see the dinar appreciate. There are no shortcuts.

by **Scotchie** Tue May 30, 2017 10:51 pm

Very logical post.

When the dinar floats, it can also flow downward, with no appreciation. If Iraq cannot or does not diversify its economy away from oil, the float, or value of the dinar, will follow the price of oil, imo.

Keep in mind, the IMF is still loaning Iraq billions.

Investors will not come in to Iraq until ISIS is gone and Iran and Turkey pulls their troops and advisers out.

Iraq needs to be a sovereign nation before anyone will invest.

Iraq also needs a stable government, with Maliki out of the way.