[KAPERONI] -- First we need to go to the IMF and look at what they asked Iraq to do.. They did not ask them to RV the dinar..they asked them to chose an "exchange regime."
There are only three choices for an exchange regime..free float, managed float, or pegged.
The reason they will come out low is there is 6-10 trillion dinar that needs to be accounted for outside Iraq. Iraq cannot fund a RV at 1 to $1 with that much dinar and no central bank is going to buy the Iraqi dinar at that rate taking the risk that it would fail.
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The only way that can occur is if the world (investors/central banks, etc) drives up that rate over time via a float and supply/demand in essence funding the rise in the value of the dinar.
In essence making our dinar, a reserve currency held in central banks around the world (as Saleh stated).
The incentive for Iraqi’s is that the dinar is gaining purchasing power over the current rate.
Some may ignore the incremental rise and choose to continue to use USD for daily transactions, but that will change once the dinar is worth more than the dollar.
Keep in mind most Iraqi's use the dollar now.
As for Kuwait, Iraq shares a port now. Last I checked the Kuwait dinar is 3+ while the Iraqi dinar is 1166. Exchange rate has nothing to do with sharing a port.