Kaperoni says -- Only with the success of Iraq's economy can the Iraqi dinar go up in value.

Kaperoni   


Yesterday, direct from the Finance Minister when referring to the exchange rate stated this... "The current price of the Iraqi currency against the US dollar after its devaluation will continue for a long time, and a full float may occur in the future, but the...central bank will now work to maintain the current exchange rate level for as long as possible."  I think that is pretty clear. And as I stated before, a float is how monetary policy works. Only with the success of Iraq's economy can the Iraqi dinar go up in value. With the recent passing of the 2021 budget, we have to hope this is the beginning of a prosperous Iraq.

Actually there is only one reason that has ever been stated for raising the value and that's inflation.  They only raise the value when forced to do so in order to bring the inflation rate down.  Obviously that's not a problem these days because they did a major devaluation in December.  A successful economy might result in a spike in inflation which could trigger a revaluation of 10-30% but that's not gonna turn much of a profit (if any) for most dinarians.  The idea that a booming economy is going to take the value from $.00068 to $1 is ludicrous.  Even a penny is out of the question.  At most the value could go up to about $.001 and that's a crazy long shot.

It appears that when the Finance Minister of Iraq and Kaperoni talk "float", it means 2 different things...

Kaperoni wrote:And as I stated before, a float is how monetary policy works

Article Quote wrote:The floating of the Iraqi dinar came in order to bridge the budget deficit and provide the operational budget, according to the concerned authorities, as it had a negative and dangerous effect on the poor citizen

https://www.dinardaily.net/t99125-despite-its-negative-impact-on-the-citizen-the-dollar-rose-continuously-and-rapidly-against-the-dinar