Article: “Central Bank: We have convenient foreign reserves capable of defending the exchange rate” That’s outstanding. Let’s say for some reason if the exchange rate starts to shoot up too fast and Iraq gets concerned about it. Then they flood the market with Iraqi dinars. Think supply and demand. If there’s a ton of them, then the demand isn’t there and the value will go down or maintains. If the exchange rate gets too low, then what you do is restrict the amount of Iraq dinar that’s in circulation, causing the demand to take place and the value to go up is what they do.
