Whats the Answer....?

[Coldstone]

There have been a lot of statements saying that there is too much money in circulation for a high revalue. OK...got that. My question is "What are some things they can do to reduce the amount in circulation?" The Warka guy speculated that this is what he thought would happen...and yes I know he may be trying to keep coustomers....but, thought I rembered that someone posted where they removed 1.8 trillion from the supply in December in the span of two weeks? (not sure about that) It just seems the amount of money in circulation is whats fueling the nay-sayers. Any thoughts?:rolleye03

[Phil S]

Remove the larger denominations from circulation and intoduce smaller ones.

All banknotes get withdrawn from circulation at one time or another, doesn't seem a problem

PHIL S

[cabrio]

http://www.iraqdirectory.com/files/a...article053.htm

My Arabic is not that good, but here's a try:

The Iraqi Central Bank... Six trillion dinars is the net mass of cash in Iraq.

An official source in the Iraqi central bank revealed that the net mass of cash in Iraq reached 6 trillions of Iraqi dinars. The size of circulating cash is 4 trillions dinars.‏
And the source said that the central bank seeks now limitation of inflation that occurred in the time of bygone regime throughout random and unstudied mechanism Of the central bank and that caused a big rise in prices level.‏

He also clarified that the bank managed the reduction of inflation level through last April and hopefully a continuous work will cause eradication of more than 20% of inflation level in order that through coming five years the Iraqi economy enjoys balanced market with active economy.‏
And he pointed that the Iraqi economy is not submitted to budget but to total local product.
The bank now is capable of reinforcement the value of the Iraqi dinar with respect to other currencies.

( Translated from Arabic )