Iraqi Dinar Revaluation – Projections For The Future

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Iraqi Dinar Revaluation – Projections For The Future

Economic experts are of the opinion that the economic condition of Iraq will increase once the Iraqi Dinar transforms to value of 3 Iraqi Dinar for every US Dollar. Many financial experts believe that the Iraqi economic condition will ascend good heights by the year 2013. As per current market condition, a million Iraqi Dinar is less in value to a thousand US Dollars, far from the three million US Dollars as compared to a million Iraqi Dinars, which it once was.

Planned Reconstruction Of Iraq

WHY THE IRAQI DINAR?

The Iraqi Dinar Summary

Issued by the Central bank of Iraq, Iraqi Dinar is the legal currency of Iraq.

Old Iraqi Dinar

In 1931, the Iraqi Dinar came into circulation and was equivalent to the Pound Sterling. The Indian Rupee replaced the Iraqi Dinar, which was the currency of Iraq when it was still under the British’s rule. It was disassociated form the Pound Sterling after the year 1958 but it was still valued highly.

Positive Changes in Iraq

There have been changes in Iraq since the reign of Saddam Hussein, mainly political and economical. The political changes coupled with the new building of infrastructure will stabilize the tumultuous nature of the region. The newly elected government has made the monetary system in such a manner that it welcomes international investment. With such changes and many more positive changes coming up in the near future, experts are of the opinion that this will seriously increment the exchange rate of Iraqi Dinar. 
More Treasury Bills on the Way More treasury bills are going to be issued soon by the Iraqi government. The CBI in an auction gave away Treasury bills in July after many years. So far local banks have acquired some 900 billion Iraqi Dinars, which translate to 628 million US Dollars. The CBI is planning to increase the foreign-currency reserves to increase the exchange rate of the Iraqi Dinar. A feasible domestic capital trade will ensure the decrement in the debt that had been incurred by Iraq before the war. This along with the debt-reduction offered to Iraq by the Paris Club agreement will push forward Iraq’s economic growth.  more

Iraqi Dinar said to be the Next Microsoft of our lifetime

 

Iraq’s Oil Reserves: Untapped Potential
Iraq’s Oil reserves are worth over $11.6-Trillion dollars, with 143.1 billion barrels of oil which rank Iraq the second largest oil reserve in the world after Saudi Arabia. What you might not know is up to 90 percent of the country remains unexplored because of all the years of war and sanctions. Iraq has every potential to be the largest exporter and reserve of oil in the world. Only about 2,000 wells have ever been drilled in comparison over 1million wells have been drilled in Texas alone.

Iraqi Dinar is the new currency issued after Saddam Husseinwas defeated in the year 2003. The currency conversion rate of the Dinar was in the range of $3.55 US Dollars to every Kuwait’s Dinar before the Gulf War I, during which it fell to $0.06 to 1 Kuwait Dinar. The time during the Gulf War I and Gulf War II, it rose and fluctuated in the range of $.33 to $3.35 for 1 Kuwait Dinar. People trading in Forex, who were able to hypothesize the fluctuating rate during the post and pre-war stages made great profit, buying and selling. Former US President, George W. Bush said during a speech, that they wished to leave the Iraqi People with a strong Dinar.

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Breaking News : Why Invest in Iraqi Dinar

Trump Big Buy Into Iraqi Dinar

James A Smith Senior Financial Officer at JAS Financial United States real estate mogul Donald J. Trump has been diversifying and moving East with his properties and it now appears he is in the Far East buying Dinars, $30 Million US Dollars. “It’s time for all of us to diversify our assets and take back the American dream” Donald J. Trump.

Iraqi Dinar it’s Limitless Resources

Iraq does not only have a large resource of crude oil, but it is also very easy to drill to access the natural oil resources. The purification of crude oil into more useful products is also quite easy, as Iraqi oil offers very low impurities. Due to this reasons, the amount of production cost of is extremely minimal, which in turn causes the profit ratio to increase substantially.  It is believed that this low cost of generation of oil, which is quite low, compared to the neighboring countries of Iraq, will increment the GDP of Iraq as compared to the regional countries.

Iraqi Dinar Revaluation

Many international entities, such as World Trade Organization, International Monetary Fund, and The World Bank are doing their best to raise the economic condition of Iraq. The moment the Iraqi economy strengthens, the currency of Iraq will also rise. It is believed that a Free-flowing market can be created once the Iraqi Dinar increases in its value. A better infrastructure and increased safety will increase the investments made in Iraqi Dinar, both international and local, which will substantially heighten the economic strength of Iraq and which in turn will cause the Iraqi Dinar to increase in value.

HISTORY OF IRAQ: THE IRAQI DINAR TIMELINE

1932

1000 Fils or 20 Dirhams unit of currency. It came into being when it was formally introduced at the end of the British mandate in the year 1932. The Iraqi Dinar was associated with the British’s Pound, which then was equivalent to 4.86 US Dollars.

1932–1949

1949–1971

During the year 1932 and 1949, the Iraqi Dinar was equal to 4.86 US Dollars, which after its devaluation in 1949 equaled 2.80 US Dollars spanning the years 1949 and 1971.

1959–1967

In the year of 1959, Iraqi Dinar was disassociated form the pound sterling following its independence. It however retained its equivalence to the pound till the British’s pound was devalued in 1967.more

IRAQI DINAR FREQUENTLY ASKED QUESTIONS

1. I don’t understand why the cost of 1 million Dinars in 25,000 notes is priced differently than 1 million Iraqi Dinars in other denominations. Is it now or will it be more difficult to exchange certain denominations of Dinar?

The differences that arise in the price of the Iraqi currency between different denominations are due to the following reasons. Notably, it takes lesser notes for a million Iraqi Dinar if the denomination is 25,000. If we use 25,000 banknotes, then 1 million only takes 40 notes. In case of notes of 5,000 denominations, it takes 200 notes. This increment adds to transportation cost and shipping charges. Also, the more the number of notes, the longer it takes to verify each of the notes as authentic. Another issue is whether the particular denomination is available or not. Notes of lower denomination are hard to acquire because we have to acquire unused notes which have not been in circulation. The denomination however, does not cause any problem with exchange of currency. The problem that a note of higher denomination might cause you is the amount that you can exchange at one point. With notes of lower denomination you have larger flexibility of how much you wish to exchange.

2. How fast will the value of Dinar go up?

The international rate of exchange was last set before the commencement of Operation Iraqi Freedom, which was 0.31 US Dollar to a Dinar. After the new Iraqi Dinar came into being, the rate of exchange was a single new Iraqi Dinar for the old Saddam Dinars and 150 new Iraqi Dinars for the Swiss Dinars. This exchange made sure that the people of Iraq had the same amount of Dinar that they had before. The new Iraqi Dinar is quoted to be about 0.001 US Dollar to a Dinar. This means that the Iraqi people received the newer currency which was at the same rate as the old ones then, after exchange. It is expected that the Dinar would soon reach back its previous value. The question is how long it will take until then. It might be easy for people here to buy out millions of Dinars in Iraq; however, this is not true for the Iraqi people. How long would it be until you can exchange your Iraqi Dinar to US Dollars? If the rate of exchange returns to 0.31 US Dollar to a Dinar, you can easily exchange it all then. Most people plan to exchange some of the Dinar then and holding onto the rest for further growth in value of the Dinar as production oil increases in Iraq. If you intend to sell your Dinar at a value of 1 US Dollar or larger then you should expect to hold onto your currency for as long as 10 years, as that is the expected time-frame it would take for the oil production in Iraq to run at full potential. This is of course assuming that oil prices and that of natural gas stay where they are, if there is increment then the Iraqi Dinar would be appreciated further.

3. Where will I be able to exchange my Iraqi Dinar?

Any major international bank or money exchanger would trade with you to exchange your Iraqi Dinar to United States Dollar once the international rate of exchange is finalized. Do keep in mind that such institutions generally charge a 4% fee for the exchange.

4. What if Iraq decides to change their currency again?

It is possible, because anything is possible; however, it is not very probable. Iraq has no reasons to be unhappy with its new currency. The new Iraqi Dinar has brought increased stability, as many Iraqi people who held onto dollar previously have traded them for the new currency. Iraq is now combined by a single mode of currency. The Iraqi people are proud of their new currency and it was printed it such a manner that it avoided any political or religious images and reflected the history of Iraq. The new currency has been extremely well received and smaller denominations have been given for print as the value of Dinar increases.

5. How can I follow the changing value of the Iraqi Dinar? The CBI (Central bank of Iraq) will give you the weekly exchange rate.more

Iraqi Dinar: Buying Dinar, Revaluation & Changes

There are many speculative people who say the Iraqi Dinar will not go up in value or that it is all a big scam. First of all the Iraqi Dinar like any other currency is not a scam and is something that anyone can invest in. Many Iraqi Dinar dealers will try to spoon feed you a bunch of information that is not true or even sell you counterfeit Iraqi Dinar, there are so many people online selling fake Dinar that you must be very careful when making any purchase. The other type of Iraqi Dinar dealer does not sell counterfeit Iraqi Dinar but steals your money and does not send you anything. This brings us to our final point. Some time in our near future several things will happen that will be key indications of a revaluation at hand. The first thing is that the country of Iraq must establish a new government, the second being that it must remove UN Sanctions, the third is that it must become an internationally traded currency which is regulated by the WTO and the IMF. Iraq has stated it will not join the WTO until there is a lower unemployment rate and living conditions are improved.

Everything that Iraq is in the process of doing is to have the highest possible redenomination all at one time so it is not a progressive currency that must build over years because in the eyes of Iraq, if the Iraqi Dinar is strong and there commodity is oil, they will make money quicker if the Iraqi Dinar is stronger all at once to sell oil. All of these things are creating a perfect storm for the Iraqi Dinar including but not limited to an inflation rate that has gone down from to 80% to 2.7% and interest rates from 20% to 6%.  Also think about this, Iraq being the second largest oil reserve of the world has the second sway vote for OPEC oil pricing and distribution, if the Iraqi Dinar does not revaluate at a par level with other oil producing countries it can distable the oil market creating more international problems.

Iraqi Dinar Is Pegged To The U.S. Dollar

The Iraqi Dinar is tied to the U.S. Dollar, the U.S. Dollar would benefit from an Iraqi Dinar revaluation. Think of this ! U.S. Currency is not tied with any backing such as gold, it is tied to oil which in some sense is black gold because all oil must be traded in dollars internationally. The more oil is traded the more the U.S. Dollar are in use internationally. By Iraq stabilizing and removing sanctions the Iraqi Dinar will become strong not only because of it’s oil reserves but by it’s upcoming GDP but because like Saudi Arabia it will have the ability to create a new price of oil in the international market. Currently the only other country that exists that can do this is Saudi Arabia. All of these things point to a symbiotic relationship between the U.S. Dollar and the Iraqi Dinar.