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Guru Pimpy: "That doesn't make sense...It goes on to say why the hell would Iraq lower their exchange rate that's the opposite of what they should be doing" 3/15/20

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Guru Pimpy: "That doesn't make sense...It goes on to say why the hell would Iraq lower their exchange rate that's the opposite of what they should be doing" 3/15/20

Post by RamblerNash Sun Mar 15, 2020 10:08 pm

Guru Pimpy

Article: "Reducing the Iraqi dinar exchange rate - determinants and alternatives" ...what they're saying is if you devalue the Iraqi dinar then its gonna kill them on imports...They have to spend more money for raw materials. That's not what they need...they need to increase the value of the Iraqi dinar so that they could get the raw materials needed to rebuild that country. If you decrease it it's only gonna hurt them. It's gonna cause inflation because I'm gonna have to produce more money in order to buy more materials...if oil prices are dropping and it's causing your deficit to go up. If it's causing your budget deficit to increase why would you then turn around and lower the value of your currency? That doesn't make sense...It goes on to say why the hell would Iraq lower their exchange rate that's the opposite of what they should be doing. I'm gonna agree with this article...they go on to make this case that decreasing the value of the currency is the wrong move. It should be increased...

3/15/20

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