BobbyC says it doesn't matter if they float or peg

by **Ponee** Thu May 27, 2021 8:42 pm

BobbyC

I get the fact that they are not ready. Some say that if they were going to re denominate, why not just do it. Reasoning is they still have to have a monetary and economic policy that supports such a move. Monetary wise ya have to look at the weakness of the Banking Sector and amount of currency in and out of those Banks. Economy wise look at the dependency on oil revenue and no economic growth. So if they were to place the IQD as a currency reserve why a Peg? Now could they Float once they see stability within the exchange rate? Of course they could, countries do it all the time. Both the CBI and the IMF have stated a Peg to the USD is working and in my opinion, will work if and when the IQD becomes a reserve currency. Now...does it really matter if they Float or Peg once they become a reserve currency? No. Once that happens we will see 2 options in front of us and our decision will be made. A re denomination, or...a gradual increase...