The CBI has an IQD denominated liability in respect of the currency that has been issued. This liability is underpinned by assets but the bulk of the assets are foreign currency denominated. If the IQD were to rise in value the liability would increase but the asset value would remain the same. There is only about 8% equity in the CBI accounts so it would not take much of a rise in the value of the IQD for the CBI to be bankrupt.

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