Thread: What about this?

Everyone talks about how lower denoms need to be in place for an RV otherwise there will be no small change for things like cokes and McIraqi burgers. Let's assume for a minute that I fell and hit my head on the pavement and I now believe that there will be an overnight, multi-thousand percent RV of the dinar. American currency is legal tender over there so why couldn't they use American currency for the small stuff after an RV until they do get the lower denoms into place? This way they wouldn't need lower denoms in order to RV.

A very plausible scenario that I've seen discussed elsewhere. It makes sense to go this route, if they didn't plan for mass wide distribution of their own lower denoms. As you pointed out, US Dollars are still legal currency. So if someone were to buy a coke for 1 dinar, and all they have is a 50 dinar note, who cares if they get back $49, or 49 dinar? It's all the same. Banks are used to dealing with both currencies, and I'd be surprised if the markets/shops/stores/whatever aren't as equally familiar with both currencies as well.

Originally Posted by SeaRayaWaitin'

Everyone talks about how lower denoms need to be in place for an RV otherwise there will be no small change for things like cokes and McIraqi burgers. Let's assume for a minute that I fell and hit my head on the pavement and I now believe that there will be an overnight, multi-thousand percent RV of the dinar. American currency is legal tender over there so why couldn't they use American currency for the small stuff after an RV until they do get the lower denoms into place? This way they wouldn't need lower denoms in order to RV.

Do I sense a "changing of mind" SeaRAy? Good question and I believe this could be a very plausible answer if there are in fact no lower denoms in place. But maybe there are lower denoms in place. Who knows? Not me.

This is very plausible. Last year when I visited Niagra Falls in Canada for job training, everyone there accepted both Canadian and Amrican currency. Some only offered change in Canadian, but most offered both. I'm sure that it could be reversed where businesses accept NID and only offer the forign currency (USD) as change for purchases, at least for the time being. I do have some concerns if the Dinar does raise significantly in value:

I only own physical dinar (in hand). The only thing that concerns me is whether or not there is a possibility of the exchange rate going up substancially to the point that one may want to cash in, but most banks still are not exchanging the NID.

Also, if the denoms of higher notes get taken from circulation. They will (I'm sure) give the Iraqi citizens a time period to exchange for lower denominations...as they did the Saddam Dinars. But what happens if we have 25000 & 10000 Dinar notes in our hands in the US and no banks to convert to lower denom notes?

Some who know me call me a perpetual worry wart. I am a little (to say the least) naive when it comes to all of this stuff that is currently making my head spin.

thoughts?