KRsouthern

“He had worked on the original plan to install a new monetary system for Iraq after the 2003 invasion.” Wow, thanks for that info Laid Back. And Screwball.... Shabibi said up to $16 if my memory is correct!!!

No one seems to argue against those that say having 40 plus trillion IQD in circulation precludes an ri/rv, so I just wanted to open up a discussion about it.... and it has also been said that that 40 plus trillion is more than all the other currencies combined in circulation , which after a bit of study I conclude is HOG WASH. There seems to be about 2 trillion of usd in circulation, which after deletion of IQD zeroes is far above the 40 billion IQD. Allowing 5 billion that is in Iraq after RV, I would say there is plenty USD for our exchange, considering that maybe 10 % of exchange will be cash. I would think 90 % will be on paper/digital in the bank. So if there is 30 billion to be exchanged, at $3, then $120 billion will be needed to cover the IQD, leaving 800 Billion USD. Further;, USA is not the only country with IQD, Considering the oil credits at $30 /barrel, 4 billion barrels needed from iraq spread over ten years , no problem at pumping 4 million bpd. And at $50-70 per barrel on the daily market, USA is making money to further cover exchanges and accumulate NO DEFICIT. What do you think?

It seems true there is 40 plus trillion IQD in circulation in and out of Iraq. My take is that deletion of zeros, as discussed by GOI and CBI immediately reduces the value of the notes out in circulation to 40 plus billion IQD, and the efforts of the CBI in removing the 000 notes will further decrease the amount of notes in circulation, along with the current destruction of damaged notes, increase of bank usage and electronic systems payments creating/forcing bank usage. The currency reserves, gold, and oil Iraq possesses seems adequate to cover that value. Is my logic flawed? Some seem to argue the 40 plus trillion IQD in circulation is too much for Iraq to handle. I disagree in that in country circulation is considered to be in the area of 5 trillion, converted to 5 billion IQD after deletion of zeroes. Upon RI/RV In country dinar remains a dinar, no problem there the way I see it, value of purchasing goes up, price of commodities remains the same. Out of country the trillions held by countries will also reduce to billions and be traded for oil credits, citizens of those countries will be exchanged per the international exchange rate and paid by their country of citizenship, US Treasury paying USA citizens the exchange rate by electronic exchange for the most part, cash being restricted to certain amounts. Then the notes we hand in will be destroyed, our government receiving the oil credit. Makes sense and seems logical to me. PLease corrects my understanding of the situation.