Depends on what your expectations are.
If you take the time to do the DD and compare Iraq to other countries… Kuwait, Saudi Arabia, Bahrain, Jordan, Iran, and others… look at Foreign Currency Reserves, GDP, Money Supply (Currency in circulation and in deposits) and it will become crystal clear that the Iraqi dinar is very fairly valued at what it is today. Iraq has 20 Trillion as a Money Supply figure. The countries that have an exchange rate of 1:1 or there about all have a Money Supply between 10 to 30 Billion. Iraq has a money supply 1000 times greater than those countries and it explains so clearly why they have an exchange rate about 1000 times higher.
In my opinion… based on comparing Iraq to numerous other countries… here are the possible outcomes I see.
They continue on like they are… the dinar may… MAY rise in value to 1000:1 over the next 3 or 4 years and they may join the GCC and switch to the GCC currency if that ever comes to fruition. 1000:1 is about as high as I see it going.
The other option they have… if they really want their currency valued at 1:1… they have to return the money supply number back to about 20 Billion. That would put them in line with the other countries that have a 1:1 or better exchange rate and would also return them to the money supply number they had in the 80’s when they had a favorable exchange rate. That would be the dreaded zero lop… where your 25,000 dinar notes would be exchanged for 25 dinar notes.
