Ask those questions one at a time, and simplify them. I’ll answer them on the blog, they are good questions.

Thanks for the info. IF I understand this correctly. When we trade in our money with the bank. Who is is left holding the dinar? If I understand this correctly, Iraqi citizens are left with the same value. But here in the United States. IF you have a million dinar and it goes to 2. Then you have two million U.S. Dollars. And then the bank or the federal reserve is short. How does that work? Thanks in advance.

If it is floating and we take your advice of waiting a few days, won’t the rate fall with the massive supply of Dinar entering the market from people who aren’t so patient?

Thanks!

The Dinar is the primary unit of currency the way the dollar is our primary unit of currency as say, oppoed to the dollar. A primary unit is efficient if it takes less than ten of that unit to buy a sandwich and a drink.

By attempting to do both at the same time, they are both making problems for themselves…but with the hope of an attractdive currency.

The Iraqis have already swapped out the Saddam currency for the new currency, so they have some idea of how many dinar are out there. They are now attempting to back the currency with gold. Theoretically you just divide the entire number of dinars into the ounces of gold times the USD value of a gold ounces.

This assumes the currency is entirely backed, of course.