article from the UN going back to 2003 says the dinar should revert to 15-1 or .06 to 1 dollar
The link below is the UN site. If you click on it go to page 20. That is what is copied and pasted below. 15 : 1 is what is in this. Heavy Dinar is mentioned. I haven't read it all yet as Ali just informed me of this. He sounded very enthused about it. Enjoy-Neno
AN ARAB ECONOMIC AND SOCIAL VIEW REPORT WORKSHOP ON IRAQ AND THE REGION AFTER THE WAR BEIRUT, 9-11 JULY 2003 United Nations
i. To rehabilitate and increase the efficiency of technical ministries and autonomous agencies of the Government; ii. To implement fiscal decentralization; Separate institutions for reconstruction create many bureaucratic bottlenecks and do not allow for full financial transparency; it also prevents accountancy of the reconstruction institutions that could always blame mistakes, delays and over costs on other concerned institutions (domestic or international). (c) Preserving the unity of the budget This has already been mentioned previously. If flexibility is needed in the payment processes, this should not be done by bypassing control and monitoring procedures. (d) An efficient tax system The reconstruction process always yields big profits for the private sector, any new tax laws should not exempt private companies of income tax as an incentive to invest and work in the country. In all Arab countries, the number of tax holidays granted to companies under various forms have had a very negative effect on the level of State receipt without really contributing to attract more Arab or foreign investments. (e) Monetary and banking issues Some of the issues that Iraq will face to establish a sound and dynamic monetary and banking system are outlined below: (i) The new system should not be based on a dual currency system like in Lebanon or Argentina, with the dollar and the Iraqi dinar being both used as legal tender. This is distorting the economy and encouraging speculation against the domestic currency. Given the flow of oil resources, the Iraqi dinar should be reinstated as a strong currency and to create a new “heavy” dinar whose rate should be around 15 dinars to one dollar; (ii) If the independence of the Central bank is a highly desirable aim, such independence should not be conducive to deflationary policies that might prevent economic growth and dynamism as has happened in various countries; (iii) For several years to come, Iraq will face a difficult period of adjustment and its foreign exchange needs will be quite substantial. To face this challenge, the monetary and banking system should not be a burden on the Iraqi economy as has been the case in Lebanon and Argentina; a. The banking sector should be oriented towards financing productive activities and not only trade and real estate transactions. Inspiration could be found in South East Asian experiences on how to stimulate the local productive capacity and export oriented industries; b. Micro-credits should be made available to the poor strata of the population and capital venture funds to professionals that would like to create new productive capacity in the country based on their own knowledge and capacity. __________________
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