Article: “The central bank issued banknotes fifty thousand Dinars category”
I guess I’m waiting to actually see the note, I’ve looked at several sites for confirmation and haven’t found anything. I won’t be surprised to see a retraction by the CBI tomorrow, there’s no official attached to this news, like Keywords for instance.
My position as to why they’re printing the notes is the same, they’re going to increase the money supply in Iraq if they print these bills.
For me, it makes no sense to print larger notes to reduce note count, in fact, it’s never been done in the history of fiat currency.
However, if they do remove the dinar from the peg and allow a currency that’s not in article VIII compliance to float, they’re going to need these larger notes when the value drops to 1500-1.
Taking away the auctions is going to remove the biggest tool the CBI has to maintain the value and it’s going to cause the dinar to crater.
How can I be so sure? Because I watched what happened in February when they capped the auctions at 75 million. It will be even worse with no auctions.