Iraq is definitely, opaque, irrational, unreliable and unpredictable.
But, that’s why there’s a process, Iraq’s not the only country in the world who’s gone through this phase of dictatorship and sectarianism, that’s why everyone has to conform to a certain set of standards, procedures and rules, it levels the field and offers transparent, rational, reliable and predictable activities.
Do country’s always follow the IMF/WB rules?
Nope, and for that there are consequences.
That’s why we have the Article IV consultations, Treasury Dept. assistance and other groups helping Iraq.
These tools clear up any misconceptions…and allow us to see the true facts regarding Iraq’s financial situation, which includes their currency.
We know, through transparency, rational and reliable sources why Iraq hasn’t moved their currency forward, the IMF tells us at least twice a year:
A) Eliminate Exchange Restrictions
B) Control the MCP within a 2% band. No mystery here, these are very simple, easy to understand issues that Iraq can’t or won’t address so they can move the currency to Article VIII, which we’ll need to have value added to the currency. Different principles apply to the economy, but they’re just as easy to understand.
If a country creates an economy where imports are purchased, demand for their currency will increase which causes the value of the currency to rise. Super simple. Iraq needs to move to an open market economy… IMO.