Smaller notes signify only one thing. A note valued at less than 250 dinars is considered worthless at the current exchange rate. A government issues such a note only when it anticipates a change in the rate…Baghdad plans to introduce a banknote that is illogical at the present rate. It will be smaller than the 250-dinar note, which is the smallest denomination currently in circulation among Iraqis. At the official exchange rate of 1,310 to the dollar, a 250-dinar note equates to approximately 19 US cents…A 100-dinar note can purchase 7 cents, while a 50-dinar note is worth less than 4 cents…No government in the world produces paper currency that has no value. The cost of the ink alone exceeds that value. Such a note would result in a financial loss…A government issues a small denomination for a specific reason: because each unit is expected to have purchasing power. It is not minted based on the current value of the dinar. Instead, it is minted in anticipation of the dinar’s future value.
These are Iraqi Dinar Guru Updates, News, Opinions, and Intel Dinar Opinion
