wmawhite says There will be one international exchange rate for the IQD which is only applicable outside the country.

by **Ponee** Mon Aug 17, 2015 8:46 pm

wmawhite

Article quote: "the largest category of cash is Al25,000 dinars, which is equal to $ 22, in the case of deletion of zeros and converted to 25 dinars Vstsawi of $ 75, this process will give the larger size of the local currency and reduce the use of the dollar in the domestic market." ...out in the communities the local shops take both the USD and IQD...they prefer the USD.

Currently, the 25K is equal to $22.35, but the shop owners do not make change so they see the 25K note as $25.00. So that article was telling the citizens that they should expect to have additional purchasing power equal to $75.00 where it used to be only $25.00...additionally, they are being reminded that the large notes will gradually go away...but they will have 3 times the purchasing power.

the CBI has over and over emphaized that the three zeros notes will continue to be legal tender...but has to [as the?] prices in the economy are reduced the need for the large notes go away and are replaced with LDs.

The discussion about what type of notes are used on the streets is totally different from a discussion about the yet to be announced international exchange rate.

There will be one international exchange rate for the IQD which is only applicable outside the country.

That will in turn determine the type and size of the note to be used in country. Folks, what you can take away from this discussion and that article is that the citizens are being told to expect changes in the currency they will use on the streets and why?

Because, the IQD will be put on the world currency market and the new value of the IQD will affect the type of note they will use inside Iraq.

Plain and simple.

[If the IQD does float, will there be value added & then it floats or will it float from 1166? If it floats from 1166 will there be demand for the IQD at that level?]

The CBI will never tell what they will do until after it is implemented. We will know the same time the rest of the world currency markets know.