[Post 1 of 2….] On the contracts…The way I see it, the two most important factors are 1) the guarantee’s, and 2) the fact that these countries and contractors have faith in Iraq to pay for the work they are doing. Let’s say I want to do an electrical contract for Iraq. I want 1 million dollars for it. I don’t care what the exchange rate is as long as the payment I receive is worth 1 million DOLLARS. They are using dinar to pay…since January 1…A sovereign nation must use sovereign currency to pay their debts or they are in violation of the multi currency practices(MCP) that the IMF abhors.
Deepwoodz [Post 2 of 2] Using the current rate, I would be owed 1,310,000,000 dinar. Actually, the banking system will do the conversions automatically. I won’t even see any dinar. I will receive dollars in my American account. Or euros in my European account. Or pesos in my Mexican account …using whatever exchange rate belongs to the country involved. Like I said,
doesn’t matter to me as long as the rate translates into my 1 million dollars. Now, the importance of these guarantees and the fact that corporations are pouring in to do work after all these years. They now know Iraq is serious about paying their debts…[and] have the means to make good on their payments.
