Thread: ICI/Sharm Conferences-Iraq Economy Implications

First, I believe/hope that there will be a decent revalue (1 dinar=.32 USD). However, I am starting to have a few concerns. We keep anticipating a reval based on debt relief (and other factors obviously), but what if all this debt relief and grants actually hinders a reval?

During the conference, some of Iraq's debts were canceled by a number of creditor countries, while others were reduced. A $5 billion grant was also awarded to Iraq.

If all these countries write off Iraq's debt, and billion's of dollars are awarded in grants, why would they need to revalue. If Iraq accepts these grants, debt relief, and then revalues at a high rate, wouldn't that possibly be double dipping the worlds financial pocket book? How well will this sit with other countries? Is this politically correct, and has it been done before?

This brings us back to Iraq possibly stabilizing at a rate of 1000:1 and then revaling very slowly over the next couple years...thoughts?

I would imagine that it has been done before and could all very well be part of the plan to jump start their economy, let's hope!

Originally Posted by Caviar Dreams

First, I believe/hope that there will be a decent revalue (1 dinar=.32 USD). However, I am starting to have a few concerns. We keep anticipating a reval based on debt relief (and other factors obviously), but what if all this debt relief and grants actually hinders a reval?



If all these countries write off Iraq's debt, and billion's of dollars are awarded in grants, why would they need to revalue. If Iraq accepts these grants, debt relief, and then revalues at a high rate, wouldn't that possibly be double dipping the worlds financial pocket book? How well will this sit with other countries? Is this politically correct, and has it been done before?

This brings us back to Iraq possibly stabilizing at a rate of 1000:1 and then revaling very slowly over the next couple years...thoughts?

I remember reading and being dicussed on here a few months back that Iraq had received numerous loans, grants, etc, but had not used any of this money. I'm not sure if these are just symbolic or if they don't know what to do with them.
Kind of a "hey-thanks for the good will gesture. We won't be using this money, but we will remember you when we get our financial act together and the oil starts flowing."