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Re: Bud Fox post# 6380

Wednesday, 05/02/2007 1:39:55 PM

Wednesday, May 02, 2007 1:39:55 PM

Post# of 8988
Afghanistan did a 3 zero lop to get where they are.
They had 13 trillion old Afghani that were exchanged for 13 billion new.
Iraq can do the same thing if they want to.
When Afghanistan had the 13 trillion Afghani out there, which is very comparable to what Iraq has now, the exchange rate was 3000:1

http://www.usaid.gov/stories/afghanistan/fp_afghan_money.html

Due to war, U.N. sanctions, and looting by the retreating Taliban, the value of Afghanistan’s currency – the Afghani– had fallen so low that boxes full of bills were needed to buy just a farm animal or an article of clothing. The old Afghanis could not be exchanged for foreign currency or used abroad - making it difficult for Afghans to conduct business, travel, or import goods. Even worse, warlords in the north and the west actually issued their own currencies.

USAID provided $8.3 million to help collect an estimated 13 trillion old Afghanis and replace them with new Afghanis, printed by Afghanistan’s central bank and each worth 1,000 times the old currency. USAID provided currency counters, shredders, helicopters, and planes to move the currency to remote sites, and more than 2,400 personnel to staff forty-two exchange points throughout the country.

Despite the winter of 2002 and poor transportation in the country, trillions of old Afghanis were turned in and destroyed. To prevent fraud, the old bills were shredded, burned, or dipped in carpet dye and replaced with the new bills, which were flown or trucked throughout the Texas-sized country.
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