There’s absolutely zero chance of any significant overnight RV/RI occurring with in excess of 42 + trillion dinar in circulation and over 70% of that out of the banking system known as “chunky.” There is no way in my opinion to physically reduce the note count and money supply in Iraq until they get off the peg, move to a more liberal exchange rate regime/float and allow the currency begin to rise gradually. Doing so would allow them to collect the currency … Brietling thinks the CBI is reducing the note count.
First, they cannot because it would create demand and the daily auctions are based on a balance between dinar and dollar. Secondly, it’s a known fact that over 70% of the currency in Iraq is “chunky.” Meaning it’s outside the banking system in homes of citizens, Etc. As it re-enters the banking system and is turned in. This would be a slow gradual process that simultaneously could work at the same time that dinar goes up in value but that all takes time and it would only occur as a result of the prosperity of the market economy. I challenge any one…at any time to discuss monetary policy with me.