Debt will be written off

[wing]

USA Today - "Risks for investors are enormous. If Iraq inflates its currency or otherwise devalues it, dinars could get demolished. Further civil strife also could clobber the currency. Speculators who bought dinars early are sitting on big losses."

I'm a newbie here, so forgive me if this has been answered before but why would iraq want to further devalue it's currency? That would mean adding a '0' to the exchange rate so that the current exchange rate ($1=1,460 NID) would turn into this ($1=14,600 NID).

[kujikiri]

The reason to devalue your money is simple, to pay off debt. If I owe you $100 and the dollar devalued by a multiplier of 10, then the $100 I owed you is now effectively $10. The dinar is riding on all the debt that Saddam built up. The Bush administration seems to be pushing very hard for meaningful debt relief for Iraq, their success in that is a huge factor in how much all these closet dinars will be worth in a year.

[kujikiri]

Everything I read about it looks like the debt will be written off. The major creditors are France, Germany and Russia (who was it that opposed ousting Saddam again?) Looks like these companies will give in with both the idea of a stable, west-friendly Iraq and probably some kind of deal on oil. Kuwait is also loking for reparations for the 1990 invasion, but they dont really NEED the money and would probably deal that away on a pipeline, or other oil shipping deal with Iraq. Remember a big part of the Iran-Iraq war was that it was being fought over a swampland that Saddam could have turned into a deep water port to export his oil, just as the Kuwait invasion would have given him the ports he needed. Iraq only has 1 deep water port and it's up a river from the gulf, making assembly line shipping operations difficult at best. They may have the largest potential oil supply in the middle east, but Iraq will need help to get it to the world market and everybody wants in on the deal.

[Psycho for Dinar]

Tony, could we start a thread which would be completely on the debt. More less, how much the initial debt was and start subtracting as countries forgive debts............Just a thought :rolleye03

[QQQ]

http://www.busrep.co.za/index.php?fSectionId=&fArticleId=2144363

[Blake]

Tony, could we start a thread which would be completely on the debt. More less, how much the initial debt was and start subtracting as countries forgive debts............Just a thought :rolleye03
Ummm....how about this site that does it for us. ;)

http://www.jubileeiraq.org/blog/index.html

I listed here but i think it ended up being a bit hidden...

http://www.investorsiraq.com/showthread.php?t=85