If they RI at 1 to 1…the iqd is already in use inside of the country, what they are looking for is a better value than 1190 it’s sitting at now. CBI said the value will be 1 QD will equal 1 USD. That’s for the inside of the country. The Reinstatement…thats for Iraq to have bragging rights to the world. This will be seen on Forex, CBI website, and at your local bank. If Iraq was reintroduced to the world at a rate of 1 USD per 1 IQD, what would happen? Yes, many of the Dinarians will jump off the train and head-on with their lives. CBI is expecting that in any case. But more importantly, there were several laws that were put into place…and this allowed them to be International…of which has more value than being under sanctions, therefore, it’s highly probable that we won’t ever see 1 to 1. Iraq will always see, in-country, that 1 USD is 1 IQD. But it’s the value that counts.
Once it’s International and if it came out at 1 to 1, Forex would get a hold of this, and the currency market would be in a flurry. The only reason Forex would get a hold of it is because it would be international. With that labeling comes Laws, that offers protection to both Iraq and to International investors. As an International Investor, you would want International protection… and this is offered with the laws. What kind of International Investor would purchase large amounts of IQD once it’s International? Hedge Fund Firms…if they see that the IQD is at 1 USD and comes with legal protection, you can bet they would try and buy every single IQD possible because once it hit $4 per IQD (speculative), they would have made 3 dollars profit on a 1 dollar investment.
It is, for this reason, I do not see 1 IQD be 1 USD on Forex. I expect more. Yes, it will fluctuate at some point but everyone has to decide how long they want to be in it for. Liberal Hedge Fund firms will take a chance on getting involved with something speculative in hopes of striking it rich. Conservative firms will generally stick with a tried and true process, but they don’t make as much, per se. My guess, with the number of people that hold the IQD at this moment, 80+/- percent will exchange at a dollar (if it’s even available at that upon entering the International arena)…and it wont take two weeks, probably more like 1 week. OK, more like 4 days max. The other 20 percent will probably exchange a note, set themselves up, pay off bills and start their plan while they wait and watch…just a guess…Imo, of course.