> Bruce wrote:
> So lets say in 10 years the Dinar is strong, and
> you can cash in your $1,000,000.00 Dinar for say $500,000.00 or more, and
> everyone starts cashing in. Won't that hurt their economy?
>

Super complicated question.  Basically the way it works for a currency
to be "strong" all other countries need to demand their products.

So, for example, if a currency is allowed to float (unlike China's)
then if Country A wants more goods from Country B than Country B wants
from Country A, then Country B's currency will be stronger RELATIVE to
country Country A.

To sort of answer your question, if everyone dumps Iraq's currency
then that means there's more supply than demand and the value of
currency relative to other currencies will fall - maybe dramatically.
However if demand for Iraq's, say, oil keeps that demand high then it
won't.

Here's more info: http://en.wikipedia.org/wiki/Arbitrage

Anybody who bought Dinars (my brother did by the way) is/was taking a
massive risk.  It should be regarded like playing the lottery.

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