Question: “How does 1190 or even 1000 [rate for the dinar] give the people more purchasing power?” The Iraqi people lost 260 dinars [1190 to 1450] in the rate change compared to what it was before…21.8% of their purchasing power was lost…although to you, you’re like ‘This isn’t purchasing power! This is nothing!’ …If you’re living in Iraq and you’re trying to budget…and you’re not making that much, an increase of 21.8% would be a huge gain to you…the difference between the old rate to the new rate was a loss of 21.8% of their purchasing power. Bringing it back to the original 1190 would give them back 21.8% of their purchasing power.
Let me put it another way…Let’s say you’re making $1000 a week and then all of a sudden they take away 21.8% of your check. Now instead of getting $1000/week you get $782/week. See the difference? …You’re not looking at it through the eyes of an Iraqi person who actually lives off the dinars…somebody takes away 21.8% of your money now you’re only making $782 you would notice that. You would be pissed off. Imagine they gave that back to you. How happy you would be. What could you do with $218 more per week? …to you the change from 1190 dinars to 1450 is no big deal so if it comes back to 1190 dinars it’s still no big deal to you but it is if you live in Iraq and you live off of the IQD.