Wow ReVbo! Give me your take on that? Love to hear it!! Quoting: calin
Don't see that on DV
Yeah, I can't believe this hasn't gotten more play. My take is pretty straightforward. I think Turki's comments speak for themselves. He says Iraq's wealth will be reflected in their currency, and that said wealth will strongly affect their economy. That doesn't happen with a few billion l-word-ed dinars. The l-word, as has been mentioned ad nauseum for years, is a neutral event that has zero effect pro or con on the local economy.
He says they are currently in the process of taking measures to "assign or instill" the "correct value of the currency," which, to me, means the current value is artificial and, when they have finished their preparations, we will see the real rate.
He refers to other major sources of wealth. I assume he's talking about the gold, phosphorus, and other resources, which will all contribute to backing the currency, and he says, specifically, that they will "soon" apply this wealth to back the currency. There's your asset-backed currency that has long been debated.
It's still a question of when and how much, but this is as close to confirmation of an increase in value at some future date as we're going to get until it actually happens. In fact, I'd say this is actual confirmation, not just close to it.
Still not completely sure about the 5%. Kap seems to think banks will get 85% of it, and the 5% means they have already collected most of the in-country physical dinar from the population. Banks still hold a lot of digital dinars, though, so they would, naturally, receive the vast majority of the new dinars.kaperoni on the 5%:
IMO they are talking about the distribution of the new lower denominations of currency in Iraq. He seems to say that the local currency traders will get this currency (about 5%) of what was printed. 10% will be held back for replacements, etc. and 85% will go to banks.