The topic of lowering the value of the dinar has been bouncing around for months now. It’s not new.
I know we have “assurances” from the CBI, but this move would save the GOI billions on payroll alone, and it’s pretty clear what the motives of the GOI are.
They have very little regard for the common man in Iraq… Instead of moving the country forward with monetary and economic reform, these guys want to beg, borrow and steal to maintain the status quo.
And that’s not an opinion, that’s a factual statement based on the actions of the GOI for the past 5 years I’ve been in this “investment.”
Even if they managed to coax dinars out of the mattress and lowered note count, I don’t see how it’s going to raise the value of the dinar based on demand, let’s face it, the only place a dinar is useful is in Iraq.
Until they move to Article VIII how can there be any real demand? My biggest concern right now is if Iraq begins the float without the move to Article VIII, the dinar will then probably drop to the 1400-1 rate.
The only hard and true backstop Iraq has is what? The reserves. Apparently, even the Iraqi’s have finally figured this out, they know, without change, the reserves will erode until there’s nothing left and the country becomes insolvent.
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