,
DINARESGURUS.BLOGSPOT.COM_________________

Sunday, August 12, 2018

KAPERONI UPDATE, 12 AUGUST

..the dinar cannot be international at 1190 $1...Sure it can and it will!  At least start there...for how long it stays there I have no answer but it'll rise based on supply and demand and economic principles...people...are going to be extremely disappointed when the CBI moves from fixed to float and the exchange rate is 1190.  The value of the Iraqi dinar will be directly related to the amount of investment that flows into the CBI's capital account, that economic pressure will create inflation which the CBI will raise the value to counter...the rate is 1190 until the CBI decides to change it.
 I do expect it to rise fairly quickly over a 6 months to a year.  But again that'll be directly related to the amount of investment that comes in to participate in the reconstruction of Iraq.

...Iraq would be just fine if they were in Article VIII with an 1190 valued currency. Yes we all know it deserves to be higher...many experts believe it is extremely undervalued. But that is what floating a currency is all about allowing market forces to dictate a country's exchange rate.  So we will all find out if the Balassa Samuelson effect is in play and large amounts of capital come into Iraq to rebuild and investors around the world believe that the currency is undervalued.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.