Fnu Lnu
In order for Iraq to do business with other nations, under the current regimen (SWIFT), they must use Nostro / Vostro accounts...Nostro comes from the Latin word for "ours," as in "our money that is on deposit at your bank." Vostro comes from the Latin word for "yours," as in "your money that is on deposit at our bank."...These are to be placed on deposit with a designated bank in each and every nation for cross-border payments... .
How much Iraq has on deposit in other countries depends on how many countries with whom they intend to do business. As we have recently seen, there are quite a few Nations with whom they...have deposited Dinar in their banks and the Nations that will export to Iraq have money in the CBI. Nostro / Vostro accounts have no bearing on the International exchange rate of the Iraqi Dinar.
I'M BELIEVING THAT THE DINAR WILL REVALUE AND VERY VERY SOON. IT ONLY MAKES SENSE THAT IT WILL COME OUT HIGH, PERHAPS $10, AND THEY WILL ALLOW IT TO SETTLE. THIS GIVES IRAQ A BIG ADVANTAGE FOR BUYING RECONSTRUCTION MATERIALS AND PAYING CONTRACTORS AND THEN ALLOW IT TO SETTLE DOWNWARD TO REACH AROUND $3.90 - $4.20.
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