The currency was issued following the aftermath of the fall of the Saddam administration in the year 2003. Before the gulf war, it was on record that the Kuwait’s Dinar was traded to equal $3.55 of the US dollar. During the invasion of Saddam, the Kuwait Dinar dropped to an astonishing low rate of 6 pennies to the Dollar. People with sound predictions and predictions bought the currency, and raked in huge profits when the price stepped up a year later to its value prior to the war. Before the Second World War, the Iraqi Dinar was sold between a range of $.33 to $3.35. So, the possibilities are obvious. That is to say that, even if there is shift to just one penny, you will still profit for sure. In a speech, G.W. Bush stated: “We also want to leave the Iraqi people with a strong Dinar”. The 15th of October 2003 ushered in the creation of the New Iraqi Dinar. Ever since that time, the international demand for the new currency has steadily been on the increase.
Strong Asset Base: Iraq, being the second largest producer of oil in the world, has reserves of over $10 trillion quoting the current market value. Consequently, the US government is spending billions in creating a vibrant Iraq capital economy. Pepsi is also taking advantage of the inherent opportunities in the oil-rich nation and is starting commercial business in the country. No doubt, the economy is fast recovering! Communications Infrastructures too are not left out as AT&T, Motorola and Lockheed Martin are waxing stronger in their operations. The American University training too is on-going in Iraq. General Electric is also raking huge profits from its operations.
Given that the strength of a country’s currency is a function of the economic status, indications are that the Iraqi Dinar will be waxing stronger. Right now, over 400,000 jobs have been created for the Iraqis by American programs. In addition to the local firms currently stationed there, big firms from all over the world are trouping into the country to help build a new Iraq. As a way of stabilizing the financial system and make it of high international standards, financial entities such as the World Trade Organization (WTO) and IMF (International Monetary Fund), with other banking organizations like the World Bank are working tirelessly with the Government of Iraq.
Once this aim is achieved, the value of the Iraqi Dinar will be outstanding. The belief is that with a boost in the Iraqi currency, more investors and currency traders will be lured into the financial market, so that there will be a financial market that is free-flowing. The presence of improved infrastructure, enhanced security, viable domestic and foreign investment boosts the chance of Iraq to continue to grow and flourish. With total commitment and success on the part of the people, government, the nation’s currency will appreciate in value. Iraq is reputed for a top quality crude oil that is affordable. Compared with the prices of other oil producing nations, the cost of oil production is very affordable because, there are only a few impurities or problems associated with the crude oil drilling process. Therefore, the profit margin of oil production in the country is highest compared to what obtains in other surrounding oil-producing regions.
Once the economy is stabilized, the GDP rate will increase, so high that no other oil-producing regions will surpass the country.
Iraqi Dinar Revaluation ~ Projections for the Future
Economists and financial experts are of the view that the Iraq economy will rise back to greatness so that the currency will approach a value of three Dinars to a dollar. They are of the opinion that the Iraqi economy will approach enviable heights by the year 2013. As at now, the value of a million Iraqi Dinars is not up to one thousand US dollars. History has it that the worth of one million Iraqi Dinars was once equal to 3 million US dollars. It is remarkable that Iraq possesses huge deposits of crude oil despite the fact that vast areas of the land have not been geologically discovered with the latest sophisticated seismic technology. Currently, Iraq boasts of at least 115 billion barrels of crude oil reserves according to the surveys done in the past.
Nevertheless, the Iraqi government has publicized its claims that the country has massive reserves of petroleum which could be the largest on the planet. Financial analysts believe that even if the equivalent value of an Iraqi Dinar is equal to $0.26 (US Dollar), the lowest valued currency in the Mainstream Middle Eastern Countries, then a million Dinars will be equal to 260 thousand US Dollars. According to studies in late 2003, the Iraqi economy has been recovering so that there is a steady rise in natural resources conversion.
Consequently, there has been a steady increase in the value of the currency. It is also worthy of note that there is a worldwide shortage of oil leading to soaring prices of crude oil in the global market. Currently, currencies in the oil-rich Middle Eastern countries surpass the Iraqi Dinar in value. The Chinese and Indian economies are waxing stronger and will continue to do so. Therefore, there is bound to be increase in the demand for oil and in addition, the value of the currencies. As a result, there are indications that the Iraqi currency will increase in value so that its value will need to be re-evaluated to commiserate with the economic growth of the country. From the look of things, CBI is taking part in a study to find out how the value on the Dinar can be raised.
