Iraqi Dinar Discussion Board

[Aerospace]

HCL and revalue of the dinar.

There’s a lot of talk lately about the HCL triggering a revalue of the dinar. I just don’t see it.
The dinar is valued where it is today because the money supply is at 23 trillion and their currency reserves are at $21 billion. The HCL will not effect either of those numbers. In fact it could be seen as detrimental. Currently all money from oil sales go to the government… who allocate it as desired… some to the budget, some to currency reserves. The HCL will dedicate oil revenues… large amounts to oil companies and large amounts back to the local area governments. So there will be less money available to add to currency reserves.

What the HCL will do is tremendously expand Iraq’s oil business. It will create many Jobs. The more jobs created the higher salaries go, higher salaries mean more spending which will lead to more jobs, higher salaries, more spending, more jobs, higher salaries…. In other words a growing economy. It takes time… lot’s of time.
HCL…. Could be great for the economy… but I don’t see any impact to the exchange rate.