IMF Report – Dinar May Be Over-Valued??

32. The lack of data and large structural changes in the Iraqi economy preclude any
meaningful estimation of the equilibrium real exchange rate. A very crude assessment
suggests that the dinar is broadly in line with fundamentals.4 With the drop in oil prices, it
appears that a possible prior undervaluation has disappeared, and that the dinar could even be
somewhat overvalued.

33. The authorities are committed to a liberal exchange regime and to removing all
restrictions under Fund jurisdiction. Iraq has a generally unrestricted current account
regime and a significantly liberalized capital account. However, four measures have been
identified to give rise to exchange restrictions subject to Fund approval. Three relate to a
requirement to pay all obligations and debts to the government before relevant payments are
transferred abroad, and one to an inoperative bilateral payments agreement with Jordan. The
authorities are considering measures to remove the identified restrictions, with a view to
accepting Article VIII of the Fund’s Articles of Agreement, but it may take time to resolve
the last restriction because of the pending resolution of Iraq’s debts to Jordan.

Full Report Here:

http://www.imf.org/external/pubs/ft/scr/2010/cr1072.pdf

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2 Comments

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2 responses to “IMF Report – Dinar May Be Over-Valued??

  1. Pingback: IMF Report – Dinar May Be Over-Valued?? » Iraqi Dinar News

  2. Iraqi Dinar

    Iraqi Dinar is very real, but the pitch many Dinar dealers try to send your way is far from reality and designed to get you buy from them. Some of these dealers even go as far as to explain that they are trusted by the government and supply you with a document to reinforce this illusion.

    First, the US government requires a business (or anyone for that matter) to register with them when selling any kind of currency. Once you register, the US Government will send you a letter confirming your registration. IT DOES NOT mean that they trust or vouch for the company, only that they complied with the law.

    Read More:http://www.dinariraqi.net

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