Ariel: This is an Easy One for the Normies and Investors alike
Ariel: This is an Easy One for the Normies and Investors alike
8-19-2026
Renee:If millions of people are holding large amounts of dinar and suddenly every 25,000 dinar note can be exchanged for tens of thousands of U.S. dollars… Who absorbs that liability? That’s the part I want explained. WHO. PAYS. THE. MONEY? Bring numbers.
This Is An Easy One For The Normies & Investors Alike:
I Got This Answer Way Back In 2013.
Nobody “pays.” A liability is created and held across three layers. The dinar doesn’t get redeemed for existing dollars sitting in a vault somewhere. New dollars are credited against new asset valuations on Iraq’s balance sheet, and the difference is absorbed by a combination of sovereign revaluation, U.S. Treasury swap lines, and critically the Federal Reserve’s ability to denominate dollars as ledger entries against foreign sovereign reserves.
But Let Me Give You An Answer From A More Polished Player In This Field
Let’s Call This Guy Sean
LAYER ONE Iraq’s Sovereign Balance Sheet
Iraq’s proven oil reserves: 145 billion barrels.
At $80/bbl, that’s $11.6 trillion in ground value.
At the post-RV pegged rate (projected $3.71–$4.20 IQD/USD depending on which internal model you use the Treasury’s Currency Stabilization Desk has been running both), Iraq’s M2 money supply of roughly 120 trillion dinar redenominates to a valuation between $31–$50 trillion USD equivalent.
Wait that sounds insane, right? Iraq’s GDP is $250 billion. How does a country with a $250B GDP back a currency worth $30+ trillion?
It doesn’t have to back it. It has to peg it. And the peg is enforced by the asset floor oil, gold, mineral rights, reconstruction contracts, and sovereign bond issuance against future extraction.
The CBI (Central Bank of Iraq) doesn’t write you a check. The CBI issues a standing swap facility to authorized exchange banks (Tier 1 banks JPMorgan, Wells Fargo, Citi, BofA, US Bank). Those banks credit your account in USD. The CBI owes those banks dinar-denominated sovereign obligations. The U.S. Treasury backstops the swap line.
So as you can see this is why I repeatedly told you all to stop focusing on who is paying for this. Because what you have in comparison to the whales who have been exchanging for years on the private backend is peanuts. And they were doing this while Iraq is still in the old program rate era.
Source(s):
• https://x.com/Prolotario1/status/2089849547271127481