mike

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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.
So, there seems to be two camps in Iraq, one wants to move forward with economic and monetary reform, the other wants to maintain the status quo.
Over and over again Iraq has refused to do the right thing and move the country forward, why would de-valuing the dinar be so hard to believe and accept?
I’m not going to be surprised at all if Iraq drops the rate to 1400-1, I’m just betting and hoping that the good guys somehow find a way to succeed and move this country forward and talk about lowering the value and 50k’s evaporate as the lower denoms come out with value under Article VIII.