IMF Report quotes: “The government will gradually remove remaining exchange restrictions and multiple currency practice (MCP) with a view to eliminating exchange rate distortions…”
As a first step, the government will, by end February 2016, draft and adopt a by-law to set up a mechanism to comply with the relevant AML/CFT international standards.” PEG TO USD AND REMOVE EXCHANGE RATE DISTORTIONS AS THIS WILL SEND A POSITIVE MESSAGE TO INVESTORS — THAT WOULD MEAN THAT INTERNATIONAL INVESTORS WOULD BE ABLE TO TRADE.
THIS IS FEB 2016 AND THEY ARE TO REMOVE ALL DISTORTIONS OF THE EXCHANGE RATE AND ALSO ADOPT ALL INTERNATIONAL COMPLIANCE. THESE REPORTS ARE PROBABLY IMO WHY SOME ARE SAYING THAT IT IS CLOSE.
[So Does Reform include to Revalue the currency?] THE REQUIREMENTS LISTED BY THE IMF OR SHOULD I SAY ORDERS TO BE DONE DO INCLUDE THE REMOVAL OF THE DISTORTED RATE AND COMPLIANCE WITH INTERNATIONAL STANDARDS.
THIS WOULD BE THE CALCULATION OF THE TRUE VALUE. [removal of all distortions of exchange rate…does that mean that they will give the real rate?
IT MEANS THAT THE RATE THEY HAVE IS DISTORTED AND THE CALCULATION FOR GLOBAL PRICING INDEX WOULD HAVE TO DONE — ACCORDING TO MACRO-ECONOMICS AND TO PRODUCE FAIR TRADE WITH THE WTO AND THE GLOBE THEY NEED TO HAVE A PRICE AND CURRENCY RATE THAT WOULD PRODUCE THE ACTUAL VALUE OF THE DINAR (THE PRICE OF THE DINAR) TO BE DONE.
GOODNESS THIS IS EXCITING AND IT HAS BEEN A LONG TIME …SEEING SOMETHING LIKE THIS IN A FORMAL DOCUMENT…
I’M HOPEFUL THAT THE PASSING OF THE AMNESTY LAW AND FED COURT ACT WILL START TO BRING SOME FORM OF HEALING TO THE COUNTRY. AS WE ALL KNOW MANY ISSUES RE THE KURDS STILL LINGERING – HOWEVER I HAVE SEEN SOME ARTICLES INDICATING A POSITIVE MOVEMENT TOWARDS WORKING ON THE PASSING OF HCL – REMEMBER THEY’LL STILL NEED A CENSUS ONCE AND IF THIS LAW IS PASSED. I STILL HAVE NOT SEEN PROOF THAT THE FEDERAL REVENUE SHARING LAW IS PASSED (YET) THESE LAWS WORK IN CONCERT.