Inflation, unemployment, demand, political stability, supply, future prospects…all play a part in the currency exchange rate Is inflation down They’re saying it was at double digits last couple years although every time I look at it it’s in single digits.  Unemployment is not under check…Demand for the currencyThere is none. People want the dollar.  That’s why the market rate is so much different than the official rate.  Political stability No.  We just watched Iraq go through an entire year of bickering about who is going to run the government.  SupplyThey have nothing to offer the outside world, not yet, but they definitely need a lot of things in country.  Future Prospects?  …over 65% of the people in Iraq over the next couple years will be of working age.  That’s perfect.