Iraqi Dinar Discussion Board

[Aerospace]

The average Iraqi has no savings and lives paycheck to paycheck, and that’s if they are lucky enough to have a job. The average Iraqi makes about $2000 dollars (or about 2.5 million dinar) a year. If they were to magically revalue to 1:1 the average Iraqi would still make about $2000 dollars a year, which would now be 2000 dinars also. A massive increase in the exchange rate would not force employers to pay a higher wage. It would be no tangible change in income no matter what currency they are paid in.

Example: Say I own a bike shop in Iraq. I import bikes from the US… lol… excuse me… China. These bikes cost me $100 a piece from China. I sell the bikes for 162500 dinars ($130) a piece. I have two Iraqi bike salesmen. By time I pay all my expenses I’m able to pay my average Iraqi guys 2.5 million dinar a year.
If the exchange rate moves to 1:1... The bikes still cost me$100. How much can I sell them for? Certainly no longer 162500 dinars… I will be able to sell them for 130 dinars. My two bike salesmen will not all of sudden make $2.5 million a year.

The only ones that would make out would be the ones with savings and of course all the speculators. I don’t think the “average Iraqi” falls into either of those categories.