Iraqi Dinar Discussion Board

[Aerospace]

The government’s revenue is predominantly in US dollars, from oil sales. To this extent, Iraq’s position is similar to that of many countries in the region. And in common with many countries in the region, its expenditure is largely in domestic currency, in this case Iraqi dinar. The Ministry of Finance therefore needs to sell dollars for dinar.

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

In otherwords... they have to buy back dinars because there expenditures are in dinars. Budget, saleries, rebuliding programs... most everything. If they were not buying back dinar the M2/ currency in circ would be growing by 60 or so TRILLION dinar a year. that's what the budget was lasyt year. They buy it back and recycle it back into the economy and that is what has allowed them to keep the M2/Circ money from growing out of countrol. But it is still growing per the CBI and any attempt to tell you otherwise is a bald faced lie from a known pupmer.