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monetary policy


rockfl9
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The basic rule for countries wishing to attract investment and increase exports IS TO KEEP THE EXCHANGE RATE LOW>>>>>>China and India have been doing that for years. Investors entering a country  usually with hard currency want to get as much local currency  in exchange as possible.,  NOT LESS.  I am sure that CBI/MOF and  any  real economists in Iraq know that.  They also need laws that are conducive to investment.  I am not sure the politicians know that. China and India are mostly socialistic and were able to rubber-stamp investment deals to get things rolling initially and as we see now were able to use low wage workers and attractive investment environments to bring in investors with the know-how to kick start industries. Set aside OIL ,  what do we know Iraq has to offer.  A skilled, highly motivated working class.,  NO.  Abundant useful  raw materials . NO,. Ample water and electrical power. NO.  I cannot see any international  corporation interested in taking such a gamble.

Another requirement for foreign investment is low local interest rates.  If a company enters a country it usually only wants to invest the startup costs , it expects to borrow locally the major part of the total costs particularly where land and/or   buildings  are the major investments. Note that the international oil companies operating in Iraq do not own anything there ,  they drill the wells and pipelines but they bill Iraq for all the material in the ground. 

Iraq needs to develop industry to reduce dependence  on imports and produce some kind of profitable export.  Iraq is expecting someone else to come in and do it for them.  and they dont expect to pay for it !!!

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