Economic Outlook: Iraq's government will need time to surmount economic hurdles

[DaddyDinar]

http://www.gulf-news.com/Articles/Business2.asp?ArticleID=125528

Economic Outlook: Iraq's government will need time to surmount economic hurdles




By Ahmed Mustafa

Special to Gulf News


A lot has been written about the challenges facing the interim government in Iraq.

Security issues and political stability are the main concerns, but the needs of the people are of mounting importance. This means that the economy is as important as security and politics.

The economic legacy of Iraq's 13 months under the custodianship of L. Paul Bremer and his Coalition Provisional Authority (CPA) offers little encouragement for the interim government.

[heather]

I looked at the artical but I didnt see a date any where on the link either

[Marilyn]

You can see the date if you bring up the "printable" version..
I think it's July 6th.. could be June 7th though.

Economic Outlook: Iraq's government will need time to surmount economic hurdles
| By Ahmed Mustafa, Special to Gulf News | 06/07/2004 | Print this page


I have heard a reference to the 1500 once before in a budget document. I may have it still... I'll post it.

But the 18 months is new to me.... Anyone else hear anything about a planned exchange rate of 1500 ?

[Marilyn]

Here it is...


"Iraq's Botched Currency Reform," Central Banking 14 (3): 39-45
(February 2004)

Steve Hanke and Matt Sekerke
(Johns Hopkins University, Baltimore, Maryland, USA)


"...The 2004 budget prepared by the Ministry of Finance and the Ministry of Planning does not rely on debt issuance or the CBI (Central Bank of Iraq]'s printing presses. But the budget is highly sensitive to the dinar exchange rate. The 2004 budget is prepared on the assumption that the dinar exchange rate will be 1500 to the dollar. . . . This is an extremely important assumption, because most of the government's revenues are in dollars, and most expenditures are in dinars."

http://www.pwc.com/extweb/newcoweb.nsf/docid/C11698DD3B8DDFFB85256E630069E4A4?OpenDocument

[bert]

That Just Sucks,but Everyone Said It Would Be 3-5 Yrs.wipe Out The Debt And The Timetable Might Improve?