The process clearly states that they will delete the by launching the “smaller, yet smaller category” notes and coins.
Then the CBI will monitor the economy for inflation for a period of time.
This part could take 3 days, 3 weeks or 3 months depending on how the situation develops.
The CBI needs to see the reaction of the economy.
They are looking for of course counterfeiting, money laundering, money exchange scams, and hyper inflation as the prices must also adjust and if not done correctly this could cause massive inflation to set in.
So, when the smaller, smaller categories do come out they will have to adjust the CBI rate.
So a 25,000 dinar note today is worth this much – 25,000 x .000833 = $20.82.
So if you drop the zeros you get $20.82 per a new 25 smaller, smaller category note.
So you see the VALUE has not changed if you compare it to the USD.
But now that you adjusted it the rate must also reflect the value to the new smaller note.
The CBI will essentially just move the decimal point over 3 places. 000832 to 0.832.
Remember this is all happening ONLY within Iraq.
We can not yet exchange.
This is still under the “fixed” rate to the USD.
They need to keep it under this fixed rate for some period of time to monitor for inflation and they can’t do this if it is under a float.
Once this 3 day, 3 week or 3 month period is over (to monitor for inflation) they plan to move the dinar to the global exchanges.
This process is called a “reinstatement’ because in 2003 the IQD was stripped from FOREX and all other global exchanges.
One of the most important reasons we know for sure they will significantly increase the rate upon the movement process to FOREX is that the CBI told us they plan to put the dinar within a basket of currencies.
This basket is the SDR basket of 5 of the leading developed countries in the world and that Iraq is most likely to conduct trade with them.
So, the rate must change or else this basket will not work which is the purpose of the basket in the first place – to put currencies “on a level playing field”.
The rate to reinstate will be essentially the rate prior to the invasion in 2003 with adjustments for equity.
We know that the CBI initially wanted to reinstate with this same kind of rate but could not without the banking reforms, the increase in oil production and the gold deposits since discovered.
This 3 days, 3 weeks or even 3 months is also significant in that it buys the GOI some time to get the article 140 referendum passed in parliament.
WE already have seen news they know this is a high priority and plan to do it early in this next session.
The HCL is already completed and has been passed since 2018, but not yet implemented fully and that is the problem.
This too must be implemented and not just a law on paper.
The new Iraqi constitution MUST BE FULLY IMPLEMENTED or they are not going anywhere in the mainstream of the global status.
From Dinar Iraq IQD & Dong Vietnam VND