The rate, for the sake of explanation, will be $3 per dinar. That makes the 25,000 note which is now a 25 note, worth $75 USD instead of $25 USD. There is the “Purchasing Power“…The Iraqi’s will be elated. This leaves the issue of “Out of Country” Dinar. All Dinar out of country will have the exact same value of $3 USD per Dinar. Remember the “Law of One Price”? This obeys that law so no laws are broken. Our 25,000 IQD will now be worth $75,000.00 USD. Everyone gets the same rate so this dispels the mythology of “A Contract Rate”. There is a minuscule amount of Dinar held out of country so this dispels the myth of “Bankrupting the Bank” due to a high revaluation amount. [Post 2 of 2]
