I started thinking about something. Right now Iraq is mostly importing. This is a time when a country would want to increase their exchange rate. This gives them more purchasing power. But that’s not what is happening over there in Iraq…I was wondering why don’t they just increase the exchange rate? This would give them more purchasing power and would help them as far as dealing with the deficit because if your exchange rate if higher then you have more purchasing power…Increase in the value of the Iraqi dinar means the imports that they pay for would be cheaper because they would have purchasing power…
