Serious Questions on the Appreciation of Iraqi Dinar

The Iraqi Economists Network (IEN) has just published a new report from our Expert Blogger Dr Amer K. Hirmis:

Mudher M. Saleh’s testimony re: the appreciation of Iraqi Dinar in 2006-8, raises serious questions?

The purpose of this note is to shed light, and comment, on two views expressed recently in relation to the appreciation of the Iraq Dinar (IQD) in 2006-2008.

Muhammad Tawfiq Alawi (henceforth M. Alawi), former minister of communications in Iraq, gave a talk on December 13, 2019 in Washington D.C. to an Iraqi audience, in which he mentioned the appreciation of the Iraqi Dinar (IQD) during 2006-2008 as an example of lack of economic planning in Iraq.

Mudher Muhammad Saleh (henceforth M. Saleh), former deputy governor of the Central Bank of Iraq (CBI), and currently finance advisor to the outgoing prime minister, responded the following day, in an article published at the ‘Iraqi Economists Net.’

This note focuses on two observations, set out below:

Firstly, that the “independence” of the CBI was compromised in negotiating and signing a ‘Stand-By Agreement’ with the IMF in late 2005.

Secondly, by following the IMF programme in Iraq, the CBI’s administration focused its attention on limited instruments of monetary policy as dictated by the IMF, and much less on contributing to national economic growth and leveraging badly needed major structural changes in the economy.

Read Dr Hirmis’ full report here.

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3 Responses to Serious Questions on the Appreciation of Iraqi Dinar

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    MJ Ludwig
    2nd February 2020 at 22:21 #

    I have followed this since 2009 and wished I had not done so. It is very difficult to comprehend something that should be simple...... but has taken people (dummy) like myself on a ridiculous rollercoaster ride of pure chaos and non-decisional Leaders and Lawmakers?? It is ridiculous and do not see anything happening soon.

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    Garay De Ryder
    20th February 2020 at 21:30 #

    There appears to be a Dicotimy of Interests and Priorities between the Agenda of the IMF and the Agenda of Prime Minister Allawi. Iraq has vast Resources of Real Gold and New found Oil Reserves that run into the $ Trillions of Dollars. Surely more than enough Real Resources to Financially back a Currency Revaluation in Iraq ? The Question has to be asked - WHY ? is the IMF not moving to Re Instate the Iraqi Dinar on the Forex System. ? If Iraq is now compliant with IMF Regulations why has the Dinar not Revalued ? What is the HOLD Up at the IMF > What is the reason for the IMF holding up the Dinar Revaluation ?

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    C LO
    17th March 2020 at 21:31 #