There are two stages of the devaluation … you had Saddam Hussain under the old currency and at it’s peak without the note count being messed with it was $3.25 at 1 billion notes.
When they introduced the new currency they actually introduced so much in the market … let’s say they went back to the original note count with the economy Iraq was in after the 2nd Gulf War.
It was estimated that it would have been around $1.25 because of supply times velocity, the economy, they weren’t pumping out the oil … that was the economic state they were in.
So it was about $1.25 but they didn’t do that what they did was they started pumping out dinar right off the bat…tons of it.
So the currency isn’t devalued…it is not a market based devaluation it’s an economic strategy devaluation.
And it’s held at this price for a strategic purpose…Iraq has hit every point they need to hit with their currency and the way they’re adjusting it to build their economy and then they get it to a certain point and guess what?
They are going to begin to reduce the note count and they’ve done that.