Pimpy
I've heard this story a zillion times - It [the Iraqi dinar] used to be $3.22 so if you adjust for inflation it's going to be much higher. If that was the case do you understand how much higher the Kuwait dinar would be?
It's around the same as it was 7,8, 10, 20 years ago.
You don't see them go, 'Hey this year we raised a whole other dollar because of inflation.' No. That's just ridiculous. I've heard that all before. It's not adjusted based on inflation...There is no currency exchange out there right now that you can find that's even remotely close to $4 let alone $7...
Iraqi dinar is pegged to the US dollar. If the dollar starts to lose value because the interest rates are being cut, then is this the time for Iraq to de-peg away from the dollar?
...No, you just don't do it. You have to weigh the pros and the cons of it. Yes I would like to see Iraq de-peg from the US dollar but I also want to make sure they are set up to do so before they do that...Sure the value of the dollar is going to drop, should Iraq de-peg itself and be independent and make their own decisions with the possible risk of it losing value instead of it gaining value?
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