Reply #9: From your October 2000 note.

[dipsydoodle]

The subsequent changes may have been kick started by Iraq changing their reserves from $'s to Euros that year. The changeover cost the USA a huge bundle becuase they had to buy Euros in volume, instead of just churning out more unbacked $'s,to pay for oil via the UN oil for food program - as did everyone else who didn't already have high Euro reserves. Iraq made the changeover at loss but subsequently made a huge windfall profits as the Euro gained strength.

There are many links to the subject, here for example : http://socrates.berkeley.edu/~pdscott/iraq.html