Well… not sure where you get the 1 cent from. From my post ½ a cent looked more like the tops.
Here’s the problem though… as Iraq’s economy, GDP increases, and as they add foreign currency reserves, they can increase their money supply. Almost surely they will do that mostly by increasing circulation and M2 amounts with some small increases in exchange rate.
Look at the past years
End of 2004, M2 was 12.2 T
End of 2005, 14.6 T
End of 2006, 21 T
End of 2007 27 T
End of 2008 35 T
End of 2009 (as of Sept) 43 T
So… and of 2004. M2 12.2 Trillion, exchange rate of 1460.
So their money supply was $8 Billion at the end of 2004.
Currently… 43Trillion x 1170 exchange rate.
They now have a money supply of $36 Trillion.
So since 2004 they have had a 450% increase in money supply.
During that time the exchange rate went up 25%.
