Reasons the Dinar won't LOP

Many
people believe
the way the articles have
been written that Iraq is going to LOP
their currency, here are several reasons they won't!


1. Their using a large amount of US dollars in their regular transactions, if they lopped, the Dinar would still not be used in replacing the US dollar in daily transactions.

2. They have to have a currency that has a value significantly higher than the US dollar or they will never flush the US dollar from their economy to be able to use strictly the Dinar.

3. Iraq has come out and said they will have the strongest currency in the region, that means higher than Kuwait, Saudi Arabia, or the United Arab Emirates.

4. They can't jump start their economy without a significantly higher value Dinar.

5. They have stated emphatically they want to get back to the old rate of the Dinar equal to the 1980's rate which was 3.22 or above.

6. The World Trade Organization has set standards for Iraq in order for them to become a permanent member, one of which is they have an open market economy and currency that is nationally recognized. Here are the latest excerpts from a symposium they had recently on this very subject. See whats highlighted in red. What they haven't said was that the WTO won't let them in right now because of those reasons...not that there's any debate on whether they should join.

He sees Faleh Al Alwan, who attended as Mhazer that the accession of Iraq at this time the organization has many disadvantages, for reasons including the economic situation in Iraq does not allow for the time being the fact that the infrastructure is not ready for such Transitional, as well as the industrial and agricultural sectors are not eligible So, too, as he put it. You can read all about it on my web page Iraq and the WTO.

The position of the Ministry of Planning in conformity with the official views of some experts, when he called on the ministry’s spokesman to wait to declare Iraq’s accession to full membership at the moment, on the grounds that Iraq needs a lot of changes on the economic situation before they have the full membership.

7. If you compare the GDP of Iraq with its neighboring oil supplying countries, it's a no brainier to see they will make their currency equal to or greater than the others.

8. Dr. Sinon Shabibi of the Central Bank of Iraq wants to give every local Iraqi a stronger Dinar as he has stated many times.

9. Not a single investor with any sense will want to invest in Iraq with a currency that isn't worth it's weight in oil.


10. You get articles like the following... How do you rid a country of foreign currencies? By making yours more valuable!

Economist Opinion: Rid Iraq of foreign currencies to achieve economic stability


 
Comments