8-20-2012 Dalite : I am painfully aware of that rumor, as is everyone in dinar land. All of the improvements in production, and they still can't feed their people, and the GOI runs deficits. Why, or how could they afford to take in less for payments than they currently are now, and still continue to develop.
The CBI is required to back the exchange rate at 100%. That is what all the noise about increasing Foreign Reserves is about. They are finally able to do so, with additional reserves left over for future expansion.
Currently, if they abide by the restrictions placed on them by those they have borrowed from, they can support the value by approximately 130%. If you figure on 1200 dinar to a dollar, the value could be supported to the level of 1200 - (1200 x .30).
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I believe that would work out to a new ratio of around 800:1. A 30% increase in value at one time is a very large revaluation. That is 400 dinar increase for every dollar invested, and it should increase periodically after that.
Currently, there are no other bank generated profit options with that great of a return that I am aware of. Even with the gold that is touted in the similar rumor that started this thread; think about it...
Iraq is in the middle of the area that is a part of the oldest reported history of the world. They have had longer to mine and produce gold than any other area in the known galaxy.
There is great potential, but absolutely minimum cooperation at doing anything that is beneficial to the country, at the expense of lining the leader's pockets. And this is not a new dynamic.
Iraq has more experience at being a failed civilization than any other failed civilization in history. The US and China are far more likely to forge any three way deals with Kurdistan, where civilization isn't as much of a foreign concept as it is in the rest of the country. Sadly, they haven't.
The rumor that the UST would pay for the RV in exchange for gold, according to all unfurnished proof, is nothing else than social engineering for profit. The country has tremendous potential; the same great potential that they have possessed since Biblical times.
Yet, against all historical precident, they harness less of that in the 21st century than they did in the time Christ walked the earth. There is a vast opportunity for them to increase the value of the currency, but they have to put the groceries in the bag; before anyone can tote it home.
There are truly enough tangible assets for them to have future wealth, without having to resort to unfounded rumors to justify a belief that the currency value will eventually increase. But it is far more likely to happen the proven way; improving production and the plight of their people first.
It is hard to produce the economy that is touted to be the richest in the world, depending on a population that is potentially on the edge of civil war.