Iraq’s tumultuous history and recent political and military upheaval has subjected the country’s currency to significant speculation and devaluation of their currency. With a decision to reconsider the presence of coalition forces in the nation, there is much speculation that the IQD would be revalued. Considering the situation in the region most indications are that a revaluation is not imminent.
Today, the IQD, or Iraqi Dinar, stands at 1170 Dinars to the U.S. Dollar. Although this is the official rate, the Dinar is exchanged at anything between 1100 to 1200 Dinars to the Dollar on the street. Some of the factors that influence a currency’s revaluation are a stable government and a solid fiscal policy. Currently, the International Monetary Fund specifies the exchange rate for the Iraqi Dinar. Until The Central Bank of Iraq finds a stable political environment to exercise its financial policy, the Iraqi Dinar continues to remain in a fiscal hinterland.
A safe political environment fosters a stable economy, through the creation of jobs. Goods and services from these jobs earn money in the world market and the money that comes from these jobs can be used to give people more jobs. This stability cannot happen with the Sunni-Shia conflict in the region and until the extraction and export of oil in Iraq finds its way into the world market. Rumor mills are rife with speculation about the ‘imminent’ revaluation, leading to large trades in IQD. There has been news of Japanese investors being targeted by fraudulent brokers to buy large volumes of Iraqi Dinars and similar schemes in other countries. If Iraq does revalue their currency in an upward direction, it is likely to be after one or two years of a stable economy. With a war-torn society, struggling to cope with the massive damage that multiple trade embargos have done to the economy, perhaps the Iraqi Dinar will need to wait a little longer to see better days.
Today, the IQD, or Iraqi Dinar, stands at 1170 Dinars to the U.S. Dollar. Although this is the official rate, the Dinar is exchanged at anything between 1100 to 1200 Dinars to the Dollar on the street. Some of the factors that influence a currency’s revaluation are a stable government and a solid fiscal policy. Currently, the International Monetary Fund specifies the exchange rate for the Iraqi Dinar. Until The Central Bank of Iraq finds a stable political environment to exercise its financial policy, the Iraqi Dinar continues to remain in a fiscal hinterland.
A safe political environment fosters a stable economy, through the creation of jobs. Goods and services from these jobs earn money in the world market and the money that comes from these jobs can be used to give people more jobs. This stability cannot happen with the Sunni-Shia conflict in the region and until the extraction and export of oil in Iraq finds its way into the world market. Rumor mills are rife with speculation about the ‘imminent’ revaluation, leading to large trades in IQD. There has been news of Japanese investors being targeted by fraudulent brokers to buy large volumes of Iraqi Dinars and similar schemes in other countries. If Iraq does revalue their currency in an upward direction, it is likely to be after one or two years of a stable economy. With a war-torn society, struggling to cope with the massive damage that multiple trade embargos have done to the economy, perhaps the Iraqi Dinar will need to wait a little longer to see better days.
