posted on Jan, 27 2004 @ 08:26 AM
I have not been able to find any substantiating links on this as of yet,..
Iraq was selling oil for Euro Bills almost exclusively since about 2000. This amounts to Billions of Euro's !!!
Much of the income from this oil was put in safe storage in the 'oil for food' program setup after the first gulf war.
Since the end of the second middle east war, it has been reported that billions of US currency has been recovered in cash but about 150 million in
Euro's have been discovered.
I know that the Euro's are still in the bank so to speak, with a French organization, and has been appreciating greatly with interest in comparison
to USD holdings.
Now my question is this.
As the control is returned to the Iraqi people, are the Euro's going to be returned to the Iraqi peoples and gov, or are they going to be converted
to USD prior to re-distribution.
And if they are converted who will do the exchange.
The dollar has fallen considerably in value since the start of the war, and the Euro has appreciated greatly in the same time period.
My suspicions are that the US will exchange the Euro's via and only allow the USD to be returned to the new Iraqi government when they become more
This will probubly happen at an 'old' inflated exchange rate that is not tied to market conditions, or if at the market rate, where will the
interest profits go? Additionally I suspect that this would be a great way for the USA to 'hedge' against the currency exchange rate, and better
prepare themselves for buying oil in Euro's with currency obtained at a greatly reduced cost, if any.
After doing some googling, I have yet to find any references to the thoughts above..
Anyone have thoughts on this , or links I have yet to discover?