We still await for the “official” word from the CBI to allow the distribution of the new lower denominations.We know this must first be accompanied with a significant increase in value and we are told it will be a 1:1 par value with the US dollar.
This is NOT the RV but an inflation adjustment and only an incentive to “dedollarize” the economy and reverse the trend in demand from the US dollar to the Iraqi dinar thus increase the demand for the new lower denominations.
This would thus allow Iraq to withdraw or “de-dollarize” their economy as they would suck up US dollars are replace them with the lower denominations. This would happen because the citizens would migrate towards the new dinar since it would be worth more than the dollar.
Do they need a very significant increase in order to do this? NO! All they need in-country is a value to the new dinar to be just over a dollar to create this incentive.
Is this the RV we have been waiting for? NO! – This move to a 1:1 par with the US dollar is just an inflationary measure they will undertake.
The full RV ($4.00+) we are waiting for will come later in about 7-14 days and will depend on how stable the economy is and how this whole process works out. It may take longer or it may be shorter.
I personally believe we may see the 1:1 value pop out as the lower denominations are circulated sometime before now and the end of the year.But I do not expect to be at the bank before sometime until mid to late January 2016.
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