10 reasons why the IQD will not LOP
1. Monetary policy was a success talking inflation from 35% or higher to around 7% currently.
2. Any type of currency devaluation (LOP) is considered a failure of monetary policy. Dr. Shabibi has not failed.
3. Lesser value notes in circulation such as 50, 250, 500. Devaluing the larger 3 zero notes would make them worth less than these lesser notes.
4. Iraq wants the dinar to be an international reserve currency. Cannot devalue the notes in reserve (25,000), circulate them as payment, or traded amongst countries.
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5. Iraq holds arguable the second largest oil reserves and is mineral rich. They are too wealthy to not honor the value stated on the notes.
6. Iraq has stated..They want the “strongest currency in the Middle East” Any such type of LOP would be a devaluation and therefore not considered strong.
7. US holds dinar as a result if funding the CBI initial reserves. This dinar will eventually payoff the war debt.
8. One of the authors of the currency exchange plan - Assistant Professor Dr. Fadel states in his documentation, “We must emphasize the extremely important issue is that if you remove three zeroes from the currency should not affect the actual value thereof to be trading in the old currency…
”9. In 2003 when the NID was introduced at it’s initial rate, the previous currency was in essence devalued taking all wealth from the country to prevent funding of terrorism. Raising the currencies value will in essence, return that wealth now that the GOI is stable and economic conditions have improved.
10. The CBI has stated “both currencies will co-exist” and the process will not change the “monetary value” of the dinar.