That USAID article was written in Nov of 2005. The Iraqi dinar was introduced in Oct of 2003… in the 3 month exchange period they exchanged about 4.5 trillion… if my memory serves… sure I could find a link. I find it pretty hard to believe that in two years the number didn’t increase at all. Their was also the report that Iraq deposited 5 billion dollars into a federal reserve bank in New York, the report also claimed that most of that money resulted from selling dinars. That would be about 5 trillion, added to the original handout of 4.5 trillion. That kinda dispels the USAID claim.
Money is taken out of circulation to strengthen the currency.. Supply and demand....If you have too much money in cirulation you have higher inflation and a weaker dollar..so in essence ,that is good for the dinar..
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