The next thing I asked myself is, can Iraq afford it? Surprisingly enough the answer is yes…Iraq’s foreign exchange reserves are between $90 to $110 billion in recent years. Even $1 billion currency replacement would represent only 1% of its reserves…So, yes, Iraq could afford to reprint their currency. Now, Why would Iraq reprint…? Reprinting the currency would automatically give the Central Bank of Iraq control over the Iraqi currency…Reprinting the currency would not automatically change the exchange rate but it would enable an adjustment right around the corner of the Iraqi dinar…They could increase the value of their currency so much faster, so much easier and with more confidence if they reprint their currency…That is exactly what Zimbabwe did…Zimbabwe gave everybody a 21-day swap window…Sandy Ingram [Post 2 of 2]
