Dinarhopeful1256

Here's the link http://bit.ly/xzBgg1

I also feel they need to have value to support the RV but, I dont believe the sole source of backing comes from the foreign reserves. The true value of the currency is represented in natural resources, which as of right now, is not represented in the current "dirty float" rate. IMO, foreign currency reserves are being used as a tool to reduce the money supply and manage the current exchange rate. Do they need to have sufficient reserves in place to help support an RV? Yes, I believe so but, natural resources are what will back a hard RV at 1-1, not reserves. Food for thought.

Yes they do take quotes for both talking about the project. How can they have the same currency hold different value?? That makes no sense and seems unreasonable. I don't believe what you are saying is accurate, thats just my opinion. The idea is to reduce the money supply by having ALL (not some) of the currency (larger & smaller notes) available at the same rate....as people exhange the higher denominated notes for the lower notes, they are drastically reducing the money supply with the exchange. My thought is they've been managing this currently with the daily auctions; however, most of the reduction is money supply will come from the exchange period. IMO, they'll RV around $1, and as the money supply shrinks via the exchange, the rate will gradually increase (as money supply decreases) to be on par with Kuwait but, that will take years.

If this was Shabibi Saleh being quoted I might agree with you. This is someones opinion. The fact is the new lower denominated notes are going to co-exist with the larger notes......how can they LOP or "delete the zeroes from the currency" when the large and small notes will co-exist?? That would be a devaluation of their currency. This is a money supply issue and the CBI has come out and said they are reducing the money supply....= increased exchange rate. Look at what the CBI says directly, not someone's opinion on how the project will be conducted.