Iraqi Dinar Discussion Board

[Aerospace]

When will you stop posting that crap?
This explains why the auctions were set up.
It clearly states, just as I have told you 1000 times, that the auctions are to buy back the dinar to fuel the budget and put back into the economy.
Here it is in black and white...
SO STOP LIING TO THE PEOPLE ON THIS BOARD!!

http://www.mees.com/postedarticles/oped/v48n18-5OD01.htm

Without a mechanism to rechannel dollars to the economy, there would have been two consequences:

A shortage of dollars could hit the dinar exchange rate, leading potentially to a very sharp depreciation;
A dollar shortage would also cut off import supply, pushing up prices sharply. (Large amounts of dollar expenditure by the CPA and MoF had, predictably, fed through to a huge increase in imports, as previously suppressed demand could now be satisfied.)
Associating the introduction of the ‘new’ currency with sharp depreciation, cutting of the supply of consumer goods, and a hike in prices for those goods still available would have been disastrous.