Some interesting items colliding this week, beginning Mon Feb 9…

09
Feb
09 Feb 2015 In IRAQ, GLOBAL ECONOMIES Comments Off on Some interesting items colliding this week, beginning Mon Feb 9…

Let’s start with Abadi’s recent published statement.
Stressed Prime Minister Haider al-Abadi, Saturday, he will announce next week a new initiative aimed at strengthening the Iraqi economy through the support of the private sector, pointing to the allocation of funds in the federal budget to repair the devastation caused by “Daash” a number of cities in Iraq.
Abadi said in a speech on the sidelines of the Munich Security Conference, “The government will work to reduce burdensome regulations and the privatization of some companies owned and encourage domestic and foreign investment,” adding that he would announce “next week for a new initiative to strengthen the Iraqi economy through the support of the private sector.”
Abadi added, “We seek to repair the devastation caused by Daash Although we in the midst of war with the organization,” noting “the allocation of funds from the budget to complete it.”
Now, let’s observe.
1. The 2015 Budget has to be open to fund Abadi’s “surprise.”

2. Staying in the historical cycle for Gazette publication dates, the next date for such publication is Feb 9, if the recent pattern is to be repeated (and funding is required soon [24 hours] after such publication).

3. Empowering the Private Sector & underpinning a market economy requires internationalization of the Iraqi currency.

4. It is unlikely Iraq will internationalize its currency at a program rate of 1166, or at an exchange rate in dollars of $0.10.
Accordingly, it would appear logical items 3. and 4. above would include reinstatement of the value of Iraq’s currency.

Further, it would also seem likely Iraq would reinstate it’s currency at a rate with some historical significance to its last international rate of $3.22, plus an inflation factor. Finally, since Iraq is drawing oil from the same “pools” as Kuwait, to balance Mid-East trade through currency exchange, doesn’t it make sense that Iraq’s RI would be consistent with Kuwait’s rate?

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