Sounds like you guys are in for the long haul. Nothing is going to happen soon.
According to these latest two articles posted by Rick and Rasica.
The one article says no lop for now, but it may happen in the future.
He then also says that no big revaluation will happen because in his words, "it's not consistent with economic reality"
Leaving open a possibility of a lop in the future also kinda dispels any notion of huge revalue. If they were to go with this "out of touch with reality" revalue of 1:1 they would have to issue 1,5,10... low denominations. They couldn't lop those in the future.
The other article states they are sticking with the current monetary policy to fight inflation. That sounds like they are very concerned about inflation and that's probably the reason they are not lopping at this time. The dinar is by all accounts very stable at this point. So, no real action required... and according to economic EXPERTS, countries lop AFTER inflation has been bought under control. I think they are still too concerned about inflation to lop. A lot of their inflation is from the dollar decline, just like the rest of the oil producing countries have reported. It may be interesting to see what happens when the dollar settles and even starts to regain value. That might be when the lop happens.
Of course... that's just the latest. What's out in the last week. Who knows what heck will be said this week.
Baghdad life - 05/08/08
An official source at the Iraqi Ministry of Finance, the money supply more than 8 trillion dinars (about 6.67 billion U.S. dollars), and rolling them over 6 trillion dinars, and it features real purchasing power and stable.
The source ruled out the idea of lifting three zeroes from the dinar, as did Turkey and Italy, saying that, even if it happened in future, will not affect the value of payments, or make it more easily in circulation.
And the possibility of lifting the value of the dinar against other currencies, particularly the dollar, he pointed out that this process is beyond the balance of the market economy and capacity currently, because raise the value of the dinar is not consistent with economic reality and its applications, especially at a time when industrial production did not exceed the 25 Iraqi percent of the real energy, while the unemployment levels to about 38 percent.
He attributed the source who reviewed the report of the Baghdad Chamber of Commerce, rapid improvement in the value of the dinar a year ago to speculating in foreign currencies, which will improve emergency leave only if the recession.
The source confirmed the Central Bank of Iraq dinar rate stability before foreign currencies.
Adviser of the Iraqi Central Bank, Dr Mazhar Salih, confirmed the continuation of the monetary policy aiming at reducing the size of inflation in the national economy, leading to a stable environment for growth. Salih said in a press statement that the economic recession which is expected to occur in the U.S. economy in the next term will not be of much effect on the national economy, according to some economic reports. Salih added that Iraq and its trading partners are working within the dollar zone, which links them to the economic impacts in the United States, but he clarified that the relationship between the decline in the dollar and the high oil prices will contribute to modify the impact on Iraqi economy. He expected the emergence of a third economic power in the world within the next 20 years, to establish a state of economic balance in addition to the two American and European powers, which will be represented by the emergence of a special currency to Asian countries which are growing economically, or as Salih called it by the " Chinese World currency."
Prepared & Translated:
Iraq Daily Business Updates
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