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  1. #1
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    Post World Bank Questions Iraq Currency Peg

    By John Lee.
    A report published on Thursday by the World Bank focuses on the implications of low oil prices for eight developing countries — Egypt, Tunisia, Lebanon, Jordan, Iran, Iraq, Yemen and Libya — and the economies of the GCC (Gulf Cooperation Council).
    The Plunging Oil Prices report questions the practice of pegging the Iraqi dinar to the US dollar, noting the that value of the dinar has been falling against the dollar in the parallel market:
    Iraq pursues a policy of a de facto peg to the U.S. Dollar, and therefore monetary policy is constrained in tackling the current shock.
    “The Central Bank of Iraq (CBI) had kept the Dinar steady through January 2009.
    “In 2014, the nominal exchange rate in the official market remained stable against the U.S. Dollar at 1,166 IQD/1 USD, but the rate in the parallel market increased.
    “The CBI has recently taken steps to simplify foreign exchange market regulations, but has not eliminated all existing exchange restrictions and the multiple currency practice.
    “With the peg, fiscal policy carries the burden of macroeconomic stabilization, but in this case does not have the space to do so.
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    Source: Iraq-BusinessNews.com.

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  2. #2
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    Lmao

    Quote Originally Posted by InvestorsIraq News View Post
    By John Lee.
    A report published on Thursday by the World Bank focuses on the implications of low oil prices for eight developing countries — Egypt, Tunisia, Lebanon, Jordan, Iran, Iraq, Yemen and Libya — and the economies of the GCC (Gulf Cooperation Council).
    The Plunging Oil Prices report questions the practice of pegging the Iraqi dinar to the US dollar, noting the that value of the dinar has been falling against the dollar in the parallel market:
    Iraq pursues a policy of a de facto peg to the U.S. Dollar, and therefore monetary policy is constrained in tackling the current shock.
    “The Central Bank of Iraq (CBI) had kept the Dinar steady through January 2009.
    “In 2014, the nominal exchange rate in the official market remained stable against the U.S. Dollar at 1,166 IQD/1 USD, but the rate in the parallel market increased.
    “The CBI has recently taken steps to simplify foreign exchange market regulations, but has not eliminated all existing exchange restrictions and the multiple currency practice.
    “With the peg, fiscal policy carries the burden of macroeconomic stabilization, but in this case does not have the space to do so.
    Read also:





    Source: Iraq-BusinessNews.com.

    Post your commentary below.
    Translated 'Why has the rate not moved back to 1400 dinar to usd' First official article I have seen where Iraq is being questioned on whether the rate is now faux.
    ---------------------------------------------------------------
    "Sumerian News", that "the real value of the coin is the value of goods received by the individual and on the strength of the national economy"

  3. #3
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    ...or why don't they start thinking about pegging it to something else like a basket of GCC currencies..
    "I have nothing to offer but blood, toil, tears and sweat." - Sir Winston Churchill

  4. #4
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    1:1 ? i am not surprised.... even before my friend told me that 1:1 need to be happen

  5. #5
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    Quote Originally Posted by dinar_dude View Post
    ...or why don't they start thinking about pegging it to something else like a basket of GCC currencies..
    Maybe because most GCC currencies are also pegged to the dollar. http://www.gulf-daily-news.com/NewsD...storyid=394834
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