[Tlar] The CBI announced that the new dinar and the old dinar will both be circulating in Iraq for two years after the change. The CBI told us numerous times what will change is the nominal value which is defined as the exchange rate.
The FC [Finance Committee] told us that they will delete the LEADING zeros. LEADING zeros are not found on the currency, they are only found on the exchange rate.
The FC in three articles told us they wrote the 2014, and estimated the 2015 and 2016 budgets based on 1.16 dinars equal one US Dollar. Doing the math that's 86 cents per each dinar or deleting the zeros. If this is truth then they can't open the 2014 budget without changing the value of a dinar to 86 cents.
For instance, a budgeted program or project that is earmarked to get 1 million dinars at 1.16, value is earmarked to receive 860,000 USD equivalence in dinars.
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If the currency is still at 1166 per dollar, that project will still get the same1 million dinars, but the USD equivalency would be 860 dollars instead of the budgeted 860,000 USD.
They can't open the budget written at 1.16, if the currency is at 1166. The currency must match the budget. This why I've been saying for 2 months watch the budget.
I think it is the key to our investment. If the budget is written at 1.16 as told to us by the guys who wrote the budget, I believe we will see an .86 dinar, or the budget cannot be opened when it is passed.