Just throwing this out there:
Wouldnt the Iraqi Government simply destroy as many dinar as needed to get their monetary supply in-line with any revaluation?
The US Federal Reserve 'calls' for our paper currency to be collected at Reserve Banks for this very reason when new dollars are issued. I think the expected life-span of a US $1 bill is something like (up to) 1 year...and a $50 or $100 bill is only expected to 'live' for about 18-24 months. They are burned. Otherwise, we would eventually be getting dollars in our change that resemble tissue paper.
So, Wouldnt this be a way for the Iraqi's to simply (in effect) perform a "stock buy-back" of their "outstanding shares"???
There would be an exchange period for new Dinars, just like what happened with these DeLa Rue printed Dinar. There was an exchange period for the previous Swiss-made notes that were present during the Saddam era.
I do think that if the current US Dollar was honestly revalued it would only be worth about $ .62. The US has been able to keep a high valued currecny based on credit and industry potential for many decades. An advantage the Iraqi's will have is first based on their oil and then other industries as tangible assests that the US lacks.
wylde1
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