Ariel (@Prolotario1): Iraq was Given an Ultimatum
I will give you something directly from one of my sources for the 1st time without any input from me. You can play around with the math on your own time.
Anon- As of February 2025, Iraq’s foreign reserves stand at approximately $740.7 billion USD, per Central Bank of Iraq (CBI) reports and IMF audits from January 2025. The redenomination outlined in the document involves introducing a new IQD supply of 17.3686 billion units, with 10% backed by reserves. At 43.13 USD per IQD, the backing covers $173.686 billion USD of the reserves (10% of 17.3686 billion × 43.13), leaving $567.014 billion USD for other economic needs (e.g., oil exports, debt repayment).
Adjusting to 42.00 USD per IQD: To achieve 1 IQD = 42 USD, the CBI would need to slightly reduce the value of the new IQD relative to the USD lowering it from 43.13 USD per IQD to 42 USD per IQD. This would mean recalibrating the total new IQD supply or the reserve backing. For example, if the supply remained 17.3686 billion new IQD, the reserve backing would adjust to: 17.3686 billion new IQD ×42 USD per IQD = 729.282 billion USD
17.3686 billion new IQD×42 USD per IQD=729.282 billion USD
This exceeds the $740.7 billion reserves, but Iraq could offset this by reducing the new IQD supply (e.g., to 17.6369 billion units) or increasing reserves through oil revenues, which hit $11.5 billion in January 2025 alone, per OPEC data.
Now do I personally think this is possible? Well only Iraq can answer that as they seem to have a good strategy in place. A 10, 17, 20 or 30 rate doesn’t matter to me at this point. I am just glad this is about to be over with. Iraq was just given an ultimatum today. They have to choose between America & Iran and they only have 24 hours left to make that decision. And it seems they already know the answer just based on the announcements today.
Many forget about this part. This tells you these figures are not coming out of nowhere. Why does it align with my post from my circle if I am pulling your leg?