Iraqi Dinar – Dinar
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 Dollars. 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’s, far from the three million US Dollars as compared to a million Dinar, which it once was.
Iraq has vast resources of natural oil, something in the range of 115 billion crude oil barrels. However, this is according to the old survey. And many places in Iraq have yet to be explored with modern surveying seismic technologies. The government of Iraq has stated in public that it has a huge reservoir of petroleum, possibly the largest in the world. There has been a steady increase in the economic condition of Iraq post 2003, as natural resources have been steadily and increasingly converted into commercial products, which has led to the increment of the value of the Iraqi Dinar.
Prices of crude oil are ever increasing and will continue to increase in the foreseeable future. India and China are increasing their economic strength by leaps and bounds. And the need for oil will only increase with higher demand, which in turn will increase the cost of crude oil. As such speculations are high that the Iraqi Dinar will only continue to rise in value.
Change Is Coming For Iraq, Oil Price Demand Is Increasing & Oil Price Is Going UP
People who have been following the fluctuation of the value of the Iraqi Dinar know how the budget of the Iraq’s government has been hit by the up and down in the value of the oil. A portion of the budget had to be lopped off thrice due to the decrement of oil prices, as the cost of 1 barrel of crude oil fell from 150 US Dollars to something below 30 US Dollars.
This fall of value of crude oil negatively affected the economic condition of Iraq, which in turn caused the value of Iraqi Dinar to fall. However, the currency value keeps on fluctuating and prices of crude oil increased to 70+ US Dollars to a barrel. Financial analysts are of the opinion that this price will only continue to rise further, as the United States Dollar continues to fall in value. Some financial analysts who are doggedly following the situation are optimistic with the recent turn of events and believe that prices of crude oil can soar up to as much as 250 US Dollars to a barrel.
Iraqi Dinar- Is it a Good Investment? Or Iraqi Dinar Scam
The Iraqi Dinar came into distribution in the year 1931. It has seen some varied changes over the years from GBP to US Dollars. CBI (Central Bank of Iraq) has now introduced a new a new currency into circulation, many analysts believe it be a good opportunity. The Iraq Dinar was formally introduced after the fall of Saddam Hussein, by the government that was set up following the war. There has been some massive fluctuation in the rate of conversion of the Iraqi Dinar to US Dollars. From a measly four thousand Dinar to a US Dollars it has increased to less than a thousand Dinar per US Dollars. This is massive rate of fluctuation has sparkled hope for investors and has opened doors for international investors. However, is the promised return on the investment is really feasible? There has been plenty of scam in the internet by con-man who has used the attraction for higher gains with low investment as a means to rip people off their money.
The Attractive Investment
What makes the Iraq Dinar such a good investment? What makes it so popular for international market? When Kuwait was invaded the value of the Dinar fell to a low ten US cents to a Dinar. Since, January of the year 2003, though, the value of Iraqi Dinar has only increased to a maximum of 3.34 US Dollars to a Dinar, which makes it the highest value of a currency in Iraq. So, for anyone who had invested a 10,000 US Dollars in the Iraqi Dinar before the invasion of the country no stands to gain something in the range of over three hundred thousand dollars, which makes the yield return above 3200%. Expectations are high that Iraq’s economy will soon catch up under the supervision of USA. It is believed that this would also help increase the value of Dinar, making it an ideal investment with high return.
Virtually Worthless Currency
This is also true that not everything that one hears about the fantastic growth of Iraq’s economy and the high chances of the increase of the Dinar’s value may be factual. One of the biggest problems that plague people while attempting to invest in Dinar is the cost of the currency. The IMF has a standard conversion rate with the CBI, at 1449 Iraqi Dinar to 1 US Dollars. However, this value fluctuates widely in the real market, with the conversion rate for 1 US Dollars to Iraqi Dinar is anything between 1050 US Dollars to 1356 US Dollars.
Liquidity Is King
For those trading in Forex, investment in Iraqi Dinar has several hindrances. While you may easily buy or sell most major currencies quite easily, trading with the Iraqi Dinar is not quite so easy. Due to the fluctuating conversion rates of the Dinar, banks tend not to deal directly with the common man. Big institutes trade the Iraqi Dinar at the stable price fixed by the IMF, which however creates difficulty for the retail trader, as they have to buy the Dinar at different rates. The biggest problem that this creates is in the liquidity of the currency. Since, neither the local dealers buy back the Iraqi Currency, nor do the banks in US trade at the retail level.
Political Upheaval
Another important factor to keep in mind is the political upheaval of Iraq’s government. While Iraq is definitely functioning under the US, autonomy has been allowed to the local elected government. This has created a void which has led to problems with separatists and fundamentalist who fight the government. This upheaval reflects on the currency value of the Dinar and causes it to fluctuate. Time is another factor to take note of. Until the government is able to stabilize the country from the insurgents, further economic development will be difficult.
Internet Fraud
And finally, it should be kept in mind that fraud is highly prevalent in such investments, as many scammers have swindled their customers. While buying Dinar many traders have known to insert old and useless versions of the Dinar with the current ones, which decreases the value of the currency. There have also been cases where the trader has vanished after taking the money from his customers.
Summary Of The Iraqi Dinar
It is indeed true that investment in the Iraqi Dinar is considered to yield high returns, trading on the internet for the Iraqi currency is not at all secure. It does not mean that there are no gains, however, the ratio analysis of the risk and profit is quite minimal. This has kept many people and institutes from making an investment.
Why Purchase the New Iraqi Dinar?
Iraq’s currency value will increase simultaneously with the growth of Iraq’s economy. Increment rates show that the value of the Dinar has increased for 25% at the end of war to over 45% by the end of the year 2004. The value of Iraq’s new currency has increased tremendously from something in the ranges of 4000 per US Dollars before early 2003 to 1240 per US Dollars in 2007, January. USA has promised a huge budget to the development of Iraq, in several sections, military, civilian, economic sections for the country to reach its full potential.
The price of oil has increased to $85.12 dollars a barrel.
Iraq has a high ratio of educated people, who have just received freedom from a dictator. An Iraq economy at its full potential can reach a 70 billion US Dollars a year. Many countries have established bases in Iraq to provide logistics support to the country’s infrastructure. Money has been poured in for the country to develop to its potential.
Iraq Is Making All The Right Moves. WTO – World Trade Organization
A member of the World Trade Organization is required to have a fully exchangeable currency. Iraq is trying to become a member of the organization and as of March 2008 has nearly completed all the pre-requisites.
Iraqi Debt & The Growth of Dinar
Iraq is very nearly free from any form of debts. The debts that were owned under the Saddam Hussein governance by Iraq was nullified by the Paris Club agreement.
FIL – Foreign Investment Law & The Selling Of Iraqi Dinar
The Foreign Investment Law has made it easier for people to invest in Iraq as by the terms of the law foreigners are allowed to own businesses in Iraq and move money into and out of Iraq.
HCL – Hydro Carbon Law (Oil Law) Stabilization & Dinar Revaluation
This is a vital law that specifies the sharing of revenues between the various sections of Iraq. Chances are that it will soon be implemented.
CBI – Central Bank of Iraq & Dinar Currency
The various political factions in Iraq do not hinder the Central Bank of Iraq, which is an autonomous b body.
Iraqi Dinar & The Iraq Monetary System.
The new Iraqi monetary system encourages foreigners to make investment. This is a key policy towards strong economic growth.
ISX – Iraqi Stock Market.
2 billions of shares were in transaction when the stock market opened, increasing the stock prices.
Stock Market Going Electronic & Iraq Is Moving Forward
The Iraqi stock market is expected go a complete overhaul within Mar-Apr 2008 and become fully electronic.
Iraqi Bond market, Stabilization & Dinar Revaluation
CBI circulated its very first treasury bonds with wide involvement of private institutes in Iraq.
Property Prices / Real Estate Market Dinar Revaluation
The property market is making tremendous progress. It is mainly due to the low prices of the by gone government, which has allowed people to buy property that were earlier held in reserve by the regime.
Regional Agreements & Iraq Is Moving Forward
Attempts have been made by the Iraqi government to establish diplomatic ties with its neighboring nations for faster export of oil and gas reserves through already established pipelines.
Oil Production, Stabilization & Dinar Revaluation
The current government has started rebuilding infrastructure and has signed many contracts with foreign companies to develop its many unutilized oil fields.
Iraqi Stabilization & Dinar Revaluation Is A Long Term Investment With High Rewards
In a span of a year or two it is believed that oil reserves would give sufficient output to build the base for strong revenue. And within a span of five years to a decade it is assumed that Iraq will be able to keep a strong foothold in the world as a powerful economy.
Are Iraqi Dinar investment risks worth taking?
Investments always carry risks. And investment in Iraqi Dinar is no exception. If somebody says that buying and selling Iraqi Dinar is a sure shot way to earn riches then it is not informing you of the complete truth. It must be understood that rewards cannot be gained without risks being taken. The higher the chances of gains the higher will be the potential of risk.
One must thoroughly know the prevalent condition in Iraq and what are the chances of its fluctuation in the future. This site tries to answer some of the basic questions that will enable you to grasp the present situation in Iraq and hypothesize the foreseeable changes in the future.
What is YOUR Investment risk tolerance?
Are you financially secure enough to take the risk? If you spend 100 US Dollars to purchase 50,000 Iraq Dinar, then can you afford to lose that 100 US Dollars. Financial analysts say that the value of Dinar is expected to increase between anything from 3000 and 8000 percent. Chances are you will make a gain, however, if you do not, can you take the risk of losing 100 US Dollars.
Do you think that Iraq has already reached its economic potential?
Economic experts agree unanimously that Iraq has a great potential. However, they also agree that that potential will take its time to be achieved.
Are you willing to wait long enough to see the currency appreciate?
There is a high probability that you will make a gain of something in the range of millions of dollar if you can invest at the right time and sell out at the appropriate moment. Despite that however, there are many variables in the equation and chances are that it will take a long time for Iraq to reach it potential.
