If we believe that today 1 IQD is not truly valued at $0.00085 why would the CBI enter the world markets at something that is not reflective of their true value?
This is why I continue to ask this question:
What is missing in the following list of currencies?
1 Egyptian Pound = $0.13
1 Jordanian Dinar = $1.41
1 Qatar Riyal = $0.27
1 Bahraini Dinar = $2.65
1 Israeli Shekel = $0.26
1 Saudi Riyal = $0.27
1 United Arab Emirates Dirham = $0.27
1 Omani Riyal = $2.59
1 Kuwaiti Dinar = $3.31
1 Iraqi dinar = $0.00085
What is missing?
A true value for the IQD.
If the world trades the Omani Ryal at $2.59, which they do, and Iraq has an economy 1,000% greater, then the true value of the IQD is not $0.00085.
We don’t know what the true value is…however, we can look around the region and see a comparison of other countries and none of them are at $0.00085, except for Iraq and the world knows that the IQD is programed/imposed/not true…
Any thing greater than 1182 ($0.00085) is an increase in purchasing power…
The question is how great can Iraq leverage the IQD…and IMO, that is what we will see.
