Iraqi Dinar Discussion Board

[Aerospace]

Not exactly sure what your point is…. But from your post…

Fixed
There are two ways the price of a currency can be determined against another. A fixed, or pegged, rate is a rate the government (central bank) sets and maintains as the official exchange rate. A set price will be determined against a major world currency (usually the U.S. dollar, but also other major currencies such as the euro, the yen, or a basket of currencies). In order to maintain the local exchange rate, the central bank buys and sells its own currency on the foreign exchange market in return for the currency to which it is pegged.

If, for example, it is determined that the value of a single unit of local currency is equal to USD 3.00, the central bank will have to ensure that it can supply the market with those dollars. In order to maintain the rate, the central bank must keep a high level of foreign reserves. This is a reserved amount of foreign currency held by the central bank which it can use to release (or absorb) extra funds into (or out of) the market.This ensures an appropriate money supply, appropriate fluctuations in the market (inflation/deflation), and ultimately, the exchange rate. The central bank can also adjust the official exchange rate when necessary.

Obviously… the United States has a floating currency.
Iraq’s currency will be pegged to the Dollar (maybe a basket peg)… but, it will not float.
Notice the highlighted part above.
Foreign currency reserves are just that… currency… I think they also allow gold and other precious metals to be considered currency reserves. Anything that could be sold off fast. Oil in the ground does not fall into this category.
Iraq has about $17 billion in Currency reserves right now.
$17 billion divided by the 20 trillion equals .00085 or 1176:1
Been doing that calculation for the last 2 years and it’s always been remarkably close to the current exchange rate.