The basket of currencies is what they intend to peg to instead of just pegging to one currency – the USD…This is what the CBI and the GOI has stated…If they are pegged to just one currency, if the value (purchasing power) of that currency drops significantly, so does the value (purchasing power) of the IQD. If they are pegged to a basket a currencies, if one drops the others keep the IQD “propped up”. This is extremely important to Iraq as they are predominantly an import country. This is precisely what they stated years ago…Bottom line, the pegging to a basket is to maintain the purchasing power and stability of the currency and not a singular event to increase the IQD purchasing power.
