Posted on 06/22/2005 3:25:31 PM PDT by Wiz
BAGHDAD: If Iraqis have one solid economic achievement to hold on to amid their many problems, it is the strength of their currency, which some feared would be devalued out of existence in the months that followed the fall of former Iraqi President Saddam Hussein in March 2003.
The dinar's current value of 1,465 to the benchmark U.S. dollar is virtually unchanged from January 2004, when the introduction of new banknotes to replace the Saddam-era denominations was completed.
Sadoon Hamoud Kathir, professor of economics and administration at the University of Baghdad, attributes this remarkable level of stability to sound government policies - specifically the transformation of the Central Bank of Iraq (CBI) into an independent body, which took place at the same time the new banknotes were issued.
"The most important move the Cabinet made was to separate the authority responsible for monetary emission from the government and to make it independent," said Kathir.
"The CBI's goal is to restore the stability of the Iraqi dinar against other currencies," said an official from the bank speaking "I'm very optimistic about the current situation," he said. "And I have confidence in the economic policy of the new government."
Apart from the fact that Iraqis are generally comfortable using their national currency because they can reasonably assume the exchange rate is not going to suddenly rocket out of control, dinar stability brings other economic benefits.
(Excerpt) Read more at almendhar.com ...
pong
One word, "Dollar"
That is why, my friends, but still good news.
Just my 2 cents:
About 8 months ago I purchased 750,000 new Iraqi Dinar with the express intent of supporting the new Iraqi government, and the rebuilding of their infrastructure. I felt that if we're going to back the new government, might as well invest in it---if the government tanks, so does my investment.....
But if Iraq rebounds and becomes a great nation again (which I think will happen) then 750,000 dinars might well be worth something...
And I am still very upbeat about our involvement there.
p.s. Every now and then I give some new Iraqi dinars to my lib friends and family, and watch them squirm...
Dromedary prezels, only half a dinar.
Tuscany fried bats.
Wolf nipple chips, get 'em while they're hot, they're lovely.
ping
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