Iraqi Dinar Discussion Board

[Aerospace]

I don’t think it will any time soon, if ever. No middle east countries are free floating on the FX. The future GCC currency that is planned for the region will not be a free floating FX currency. It will start as a fixed currency and they say it may free float sometime in the future.
This talks about free floating currencies.
http://www.foreignexchangecenter.com/free-floating-currencies.html
1. “In other words, the currency may be traded by anybody and its value is a function of the current supply and demand forces in the market,”
2. “When a currency operates under a free floating exchange rate, its volatility rises. This is especially dangerous for emerging economies”

My take on number 1. As I’ve stated before. Currency gets it’s value from Supply and Demand. Iraq has a MASSIVE supply and practically no demand. That’s why their currency is 1000:1. If they were to go on the FX the value would be 1000:1. It's also funny that none of the so-called internet Dinar experts ever even mention supply. It's half of the equation for value, and they ignore it. In fact... on many dinar sites you will get banned for talking about supply.
Number 2. It states a free floating currency would be dangerous for an emerging economy. Iraq certainly is an emerging economy… an will be an emerging economy for many many years… and that’s if things go well.