Thanks Markinsa for the thread... I did read it and see the error in my thinking, which I actually knew, so that means I'm an idiot for putting it out that way (won't be the first or last time, I get passage into the idiot club)
So to reframe....
Currency exchange is noted in the relationship between two currencies.
There is a USD:IQD relationship being shown on various forex analytical sites, which one uses to analyze whether or not to buy.
The change in the relationship we see between the IQD and USD pair, is the result of the change in the USD, as the IQD is not traded on forex as of yet.
The "value" of the IQD remains as is stated on CBI, and its value is not changing....
It nonetheless seems to me, that in watching this relationship if the dollar remains on a downward spiral, and even if the IQD rate is 1168 (or whatever)... that we could nonetheless conclude that it takes less USD to buy IQD at the CBI rate? And continuing the downward spiral of the USD, that if it really hit the fan, ..... even if IQD is not on forex, that number could mean the IQD is worth more than the USD if that pair hit something like -1.10 or something?
Understood, I'm not watching the value of IQD increase, I watching the USD decrease.... ughhh btw
I still want to know:
- What is necessary for a currency to be "internationally recognized"
- How do we know it is, or is not (is there an announcement, what is the process... blah blah, etc)
- What is necessary for a currency to be included on forex for trading
- Does inclusion on forex mean its recognized... meaning is the fact you can trade it, the indicator it is recognized?
I can take my IQD to the bank right now and exchange it. My PB knows I'm all over the world and said sure, bring it in. The same is not true for the pile of Italian lira I forgot to exchange. How is the recognition of the dinar different from the recognition of the lira... Is IQD kind of internationally recognized? Maybe I should ask my PB next time we re arrange things...
Anyone have any ideas or thoughts?