…two main issues concerning the monetary policy…The first issue is about the cash outside of the banking system…that the percentage of cash outside the banking system reached 91%… they already told us they have plan to retrieve this money… as investors in the dinar…part of the 91% also includes our dinars. They told us this money is desperately needed in the banks…But how will they get ours, as investors? So, the answer is…the CBI will have to revalue the dinar enough to a significant level to get us foreign investors to run to the bank and turn it in. Within Iraq, however it is much different and they only need to overcome the parallel market rate of the dollar and these notes will come flowing back in to the banks. This is also when they can begin the swap out to the newer lower denominations… [Post 1 of 2….stay tuned]
