I think Iraq's reserves are around $50 billion, M0 money supply is at least 30 trillion dinars and when you add in the ISX and other things, the M0 is roughly 60 trillion dinars, or a ballpark of 30-60 billion dollars worth of dinar at the 1182 rate. But what happens if you raise the rate to say 0.10? Now, that same 30 trillion dinar is worth $3 trillion dollars, that's nowhere close to 150% coverage of the curency in reserves. I'm all for the float but hopefully Iraq will get the currency into Article VIII first.
mike (Currency Chatter)
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