Dinar News The Exchange Rate of Foreign Currency in Economic Feasibility Studies

[XXX]

Not sure what the date is on this but I find it interesting...........

The Exchange Rate of Foreign Currency in Economic Feasibility Studies

Below are the central controls related to the exchange rate of the foreign currency to convert the project inputs and outputs from foreign currency to its equivalent in the local currency, and that is by calculating the net discounted present value standard and the internal return on investments in economic analysis that governs investment projects that costs excess one million dinars.

Estimate the shadow price of foreign currency:

1. It is necessary to put central controls to amend the official exchange rate * to reflect the shadow price of the foreign currency, and that is considered one of the necessary requirements to implement the net discounted present value standard and the internal return rate on investment in the economic calculation stated in the instructions, paragraph nine.

The central controls for adjusting market prices distinguished a group of outputs and inputs traded internationally, where the projects production or usage of them is reflected on the abundance of foreign currency in the economy and thus project outputs or inputs used of such are considered purely foreign currency outputs or inputs.

* What is meant by exchange rate: the number of units of foreign currency, expressed in dollar per one dinar.

In particular the following outputs and inputs of foreign currency were distinguished:

[carlablum]

Great find! Thank you!

[Tess]

this is the link that ronscarpa posted earlier and we beleive it is about 2008 vintage. But good information. But really hard to believe they would post an actually amount. Honestly if they did I would thinl folks would buy this stuff. Just sayin!!!

[Chip Chandler]

Yes, the Ministry of Planning that put this out in 2008 has alot of good info on their website. www.mop-iraq.org/ (click for English at top right)

chip