Is the Iraq dinar really backed by American dollars in the Central Bank of Iraq?
Monday, March 29th, 2010
jay asked:
I read on a website that the Iraq Dinar that started to be printed in 2004 after the new democratical Iraq government was formed is backed by American currency. it stated the ratio was somewhere around 1200 Dinars for every American Dollar. The money was allegedley lent to them by either The United States or the US Federal reserve bank thou it didn’t specify with the intentions of giving the economy a boost since the original dinars that were being circulated were worthless since Saddam regime was printing them out like newspapers so much that it inflation devalued it. I thought this made sence because I seen on tv on some show that said that the the 6 main goals that Bush wanted the new Iraq government to do is fund the local governments with atleast 1/4 of funding federal 1/4 aswell and 1/4 to the people and 1/4 for surpulus. 5 get the oil drilling online and back in busness, and 6 have the Iraq oil be sold by the dollar which give more back up for newly printed dinar notes!
I would think this makes alot of sence because if Iraq’s Central Bank was finaced by our Federal reserve then they may of agreed to terms that would limit there authority to dictate the ration of dinars that can be printed to Dollars . If this is the case then the government of Iraq would have a sybotic relationship with the American dollar because they will need american currency to back the Dinars that The Central Bank Of Iraq will print. And it would be in the best interest of the Iraq economy to sell Oil on the world market in America dollars that way the Dinar will be worth more because it is backed by more dollars. and it would beneft America because there will be a huge oil market available free of exchange rates that are the cause of soaring Gasoline prices currentley.
I read on a website that the Iraq Dinar that started to be printed in 2004 after the new democratical Iraq government was formed is backed by American currency. it stated the ratio was somewhere around 1200 Dinars for every American Dollar. The money was allegedley lent to them by either The United States or the US Federal reserve bank thou it didn’t specify with the intentions of giving the economy a boost since the original dinars that were being circulated were worthless since Saddam regime was printing them out like newspapers so much that it inflation devalued it. I thought this made sence because I seen on tv on some show that said that the the 6 main goals that Bush wanted the new Iraq government to do is fund the local governments with atleast 1/4 of funding federal 1/4 aswell and 1/4 to the people and 1/4 for surpulus. 5 get the oil drilling online and back in busness, and 6 have the Iraq oil be sold by the dollar which give more back up for newly printed dinar notes!
I would think this makes alot of sence because if Iraq’s Central Bank was finaced by our Federal reserve then they may of agreed to terms that would limit there authority to dictate the ration of dinars that can be printed to Dollars . If this is the case then the government of Iraq would have a sybotic relationship with the American dollar because they will need american currency to back the Dinars that The Central Bank Of Iraq will print. And it would be in the best interest of the Iraq economy to sell Oil on the world market in America dollars that way the Dinar will be worth more because it is backed by more dollars. and it would beneft America because there will be a huge oil market available free of exchange rates that are the cause of soaring Gasoline prices currentley.
Does this seem reasonable or am I just clueless?
