An uninformed dinar guru now admits that manipulating the market is a good thing. The dinar guru says that Iraq is trying to control the amount of US dollars that are in Iraq. The statement is false from this guru, and not surprising.
In Iraq, all oil sales have always been denominated in US Dollars. It would be difficult to “control the amount of dollars in Iraq.” Iraqi citizens and banks are holding onto the US dollars because the dollars are more stable and stronger than the Iraqi dinar. People in Iraq now are requesting and wanting the US Dollars, and they have been for a long time. The preferred currency is the US Dollar when completing private or public projects in Iraq.
The Iraq Central Bank is not in any way trying to manipulate the US Dollars in the country. They are trying to implement a plan to stop the capital flight of the hard currency from Iraq. The restriction of the dollar auctions to $75 million per day will not be sustainable in the long term. It is because most projects in Iraq are in US dollars. The Central Bank cannot afford to slow down of payments for these construction projects. The street rate for the Iraqi Dinar is currently 1220-1235 Iraqi dinar per one US Dollar.