Kaperoni

Kaperoni – Dinar Guru  People need to get over the idea of a “revaluation” of the Iraqi dinar.  It’s not happening.  Not how monetary policy works.  Just look at other emerging markets.  Iraq plans to include the significant increase in spending ($70 billion) in its 2020 budget.  But will investors come and participate?  Iraq has about 4 months to pass the laws needed to encourage investment along with passing the 2020 budget.  We will see if they can get this done. So what happens if they pass the laws and budget and nobody invests in rebuilding Iraq?  Interesting question.  Time will tell if the free market economy is a flop or not.  In either case (investment or not) there will be no overnight “RV or RI” of the dinar.  What we can expect is similar to Egypt..which is a gradual increase (8-15% a year) via a float. But only if investment comes and creates pressure on the banking system.

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