This is encouraging news. I think it was never a question of IF but WHEN! As I said before I was told that once the GCC countries revalued then Iraq would have to do something or choose to do something in the right direction sometime after.
Hope he was right.
The percentage I was told is almost the same as has been discussed here as well.
I wouldn't be too surprised if they do it sooner though. The amount of speculation that will be ploughing into these countries (NOT IRAQ) will be massive. If you had £100 million and you invested it in Dirhams which is a very safe currency to buy. You would get a return of £8,000,000 in a month or two that would seem like an easy no brainer to me. The currency isnt gonna devalue any time soon is it?
Thats why when I always say that big investors will not jump on the Iraqi currency until it hits close to 1-1 please understand what I'm getting at. If you all had 100 million to put in, to get a return of 8 in a couple of months investing in a currency that is extremely stable what would you do? Big investors always like as close to a sure thing as they can get. You wont see them putting in a 100 million if they thought it was gonna go backwards 8% Im sure!
Bet they revalue sooner, or issue a disclaimer trying to deter speculation. However it is inevitable that a REVAL will happen in my opinion.
Once they do, I cannot see Iraq sitting on a rate of 1214 either for long!
ITS AN UNREALISTIC ARTIFICIAL VALUE AS IT IS.
Following the GCC would be a smart move and show the world and Iraq that it is moving in the right direction.
Better to have lived one day as a lion, than a lifetime as a lamb!