Think about this scenario
Quote:
Originally Posted by
greatstuff
I'm surprised you say this - I've always thought the opposite was true. Price changes, etc. would have far less impact if most people are using dollars - the prices in dollars wouldn't change. Also, the dinars they're hoarding can be sold at the new price which will keep circulation down and provide dollar backing at the new rate. They keep saying they want to make the dinar the currency of choice but their attempts have been pretty feeble, haven't they?
If you were an Iraqi who had saved money over the years, and for stability converted all your savings to, say, $5000 (5000USD).
If the CBI suddenly RV'd at 1:1, for example, you would still have $5000.
But if you had converted your $5000 to IQD the day before, you would have approx. 6,500,000 IQD....Which would NOW be worth approx. $6,500,000!!!
Can you imagine how upset you would be if your government did not give you opportunity to convert your USD to IQD. Now multiply that time millions of people and businesses. There would be unrest and chaos far beyond what we are now seeing....They MUST give some type of notice, which I agree is highly unusual, but definitely needed in this case.
That is why there have been strong hints of an impending RV. It's MUCH clearer within Iraq then from the conflicting news reports we are allowed to see. They want to keep us off balanced and unsure, but not their people. They want the Iraqi people to be sure and act accordingly. On the "streets" it is below 1000:1. ...They know something.