Replies to post #19914 on Iraqi Dinar Discussion Board (IQD)

[Aerospace]

The dinar is backed by foriegn currency reserves and a little gold. Their foriegn currency reserves are dollars. So if the dollar devalues then the dinar devalues. That is how pegged currencies work.

[strongtower]

I think you totaly missed the post. My point was if Iraq ever did re-evaluate and kept a peg to the dollar it would get a weaker rate as compared to if they pegged to another currency or better yet a basket peg.