Re: Tuesday, June 7, 2016

Iraq is indeed making great progress, but joining the WTO takes a while and does not mean it will increase the value of its currency before its accession. For example, Vietnam has been a full member of the WTO for a long time--without revaluing its currency. The dong is still around 21,000:1 USD.( The WTO site shows its history.) Other full members are the same: accession with little or no increase in the home currency value, before or after joining. Accession is lengthy because a working party, made up of representatives from full members, must work with and guide an observer member in reviewing its laws, then making any changes needed to ensure that its trade laws meet the WTO requirements. Once that is done, the working party will present a final report to the general council for approval (which might or might not happen the first time). Then, at a full membership conference, usually held every year or two, the full members will vote. Iraq would need a favorable vote of 2/3 of the full members. Then it would have up to 90 days for in-country ratification of the accession.

All the recent progress would surely have taken the WTO accession into consideration, but the WTO membership is not an indicator that the value of the dinar will increase. All that said, however, Iraq could increase the value of its currency and then become a member. WTO accession is a neutral event, as far as any increase in the value of the Iraqi dinar. All of these facts of the process is provided on the WTO site.