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:
- End of the Road for the Dinar Scam?
- ISIS and the Dinar Traders
- Iraqi Dinar Investments: Opportunity Or Scam?
- Iraqi Dinar Revaluation Enthusiasts are Unaware of Bernie Madoff’s Fame
World Bank Questions Iraq Currency Peg http://t.co/ZOc8GjLmig
World Bank Questions Iraq Currency Peg: By John Lee. A report published on Thursday by the World Bank focuses … http://t.co/RINcHkNdBL
World Bank Questions Iraq Currency Peg: By John Lee. A report published on Thursday by the World Bank focuses … http://t.co/9ahsONCCey
DTN Iraq: World Bank Questions Iraq Currency Peg: By John Lee. A report published on Thursday by the World Ban… http://t.co/x0MTl5slX5
#Iraq Business News: World Bank Questions Iraq Currency Peg http://t.co/fPzAl4hMGs
World Bank Questions Iraq Currency Peg: By John Lee. A report published on Thursday by the World Bank fo… http://t.co/D2Uwn1LhwH #Iraq
@goingglobal2
Hey Lake, sounds like it’s time to peg to a multi-currency pic-a-nic basket!
yep a WEIGHTED BASKET OF INTERNATIONAL CURRENCIES BASED ON IRAQ`S MAJOR INTERNATIONAL TRADING PARTNERS JUST LIKE KUWAIT BAHRAIN AND JORDAN!
World Bank Questions Iraq Currency Peg http://t.co/5zJCSCkf3C
#WorldBank Questions #Iraq #Currency Peg
#CBI #IQD #USD #defacto #economy #FX http://t.co/AjN3j8Q0cx