Frank26
Can Iraq be internationally recognized with an exchange rate of 1310?
The answer is, yes. Here's an example: What's the exchange rate of the Vietnamese dong? It stinks. It's not at an international level... Is their currency international? Yeah.
[Iraq] has the potential to come out at a ridiculous exchange rate just like Kuwait did 30 years ago when they went through a re-denomination and a revaluation of their currency...about $15. But it only lasted for about a week and it went back down to 3 to 1 ...I
MO it was a window created for the whales and sharks to take advantage of...Iraq has learned from Kuwait mistakes. If you come out at a high rate like that...you destroy everything you worked to create the security and stability of their currency. And it would destroy their economy, GDP, economic reform, monetary reform. Inflation would go up. I don't think we're going to see a ridiculous rate at the onset. But I think we'll see the same rate that is floating in the Middle East which holds the most powerful currencies in the world at 3 to 1 to the dollar.
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