Iraqi Dinar Discussion Board

[Aerospace]

Iraq has a 50 Trillion dinar budget for 2008.
In order to keep m2 and currency in circulation numbers down and maintain dinar value where it is Iraq is FORCED to buy back dinar at auction to fund that budget.

http://www.iraqdirectory.com/DisplayNews.aspx?id=3048
"Mr. Ali Al-Yasiri, one of the dealers with the Bank, explained that sales offers will rise with time because of the entry of the Ministry of Finance to the auction to sell the dollar for the dinar, which is needed to fill the components of the budget".

So if Iraq is buying back 1 to 2 trillin dinar a month, lets say 1.5 triilion, that's only 18 trillion for the year. The budget is 50 trillion... that leaves them 32 trillion short.
I'm sure most of that dinar shortfall is covered with dollars. Practically anything in Iraqs budget that deals with them buying goods or services from a foriegn company or country would be handled in dollars.
But as the CBI financials show... M2 along with currency in circulation is growing, so the 1 to 2 trillion bought back at auction along with a little more is put right back into the system.