So, the questions on everyone’s minds are: 1) will we get the reinstatement in early 2021? 2) has the CBI truly been planning for this event…? Well…to answer these questions…the CBI is, in fact, planning to reinstate the Iraqi dinar. The plan has not changed and this is a necessity…this is at the heart of the financial issues they are now facing in not doing it earlier. So, what do we know as FACT? We know they had planned to complete the project to delete the zeros by mid-year 2020 and they told us this was their goal a year ago in news articles and from my CBI contact, but this did not happen. So, it may not seem like it, but the CBI is on a timeline. This timeline keeps getting bumped or pushed out due to circumstances.
What are my feelings if this reinstate will happen in early January 2021? If you look on the surface and didn’t know any better you would say Iraq is in chaos and the economy is about to crash. You might say there is no way they will raise the value of the dinar over the dollar. First, you must understand that the sole de facto peg of the Iraqi dinar to the US dollar is part of the problem too. The IMF and the World Bank wants desperately to re-peg the dinar to a basket of currencies and out it on a FLOAT to control it better and level off it’s rate. This way the global community determines the rate and not the average citizen in Iraq who is open to rumors and speculation. They want to open the dinar up to the world and let the investors determine the rate.