MilitiaMan -- They have no liquidity to pay salaries and they tell us they have two choices...Austerity or float the currency.

by **Ponee** Mon Sep 14, 2020 8:43 pm

MilitiaMan

We see that in...articles that are out lately that the reform papers and budgets are being talked about. They talk about not only the 2019, 2020 and 2021. They will not hopscotch around any of them... They are to be in-sync and in order. They feed off each other. The Finance Minister has shown the 2020 Draft to the parliament days ago. The draft has the exchange rate at a program rate, as it has been not voted on it yet, a not normal thing at all. But they tell us that the budget can be changed or delayed. In other words the 2020 budget can be amended. I believe there is support that it will be amended away from a program rate. Because, they are not able to borrow at a program rate or they would have already. They have exhausted all avenues with the IMF, WB, countries, etc...imo...

...We know the goal is to go to a social market economy. A Market economy is free to trade across borders. A program rate doesn't get into the free markets. But, an international rate does get them into a market economy...Where they can borrow in effect from themselves with leverage from the value of the new exchange rate/currency. Just as the IMF and World Bank have told them. We see a clear theme lately that is pointing to that Iraq is backed into a corner. They have no liquidity to pay salaries and they tell us they have two choices...Austerity or float the currency. ...So from the looks of things the cards will be on the table soon enough to see if any of this is pertinent or not. My bet is what is in print supports they will see the reforms through now...The solutions is to raise the value (financing by inflation) and floating the currency. imo.