Sunday, 17 March 2013

Iraqi Dinars - Get the Facts

It has gone through hypes and depressions alternately due to mistakes sometimes committed by Iraq and sometimes by others. In 1959, one Iraqi Dinar attracted an exchange rate of 2.8 US Dollars and in 2013 one US Dollar fetches 1166 Iraqi Dinars.

Till 1932, Indian rupee was the official currency of British occupied Iraq since the world war-I. The new Dinar, which exchanged at 11 rupees, was at par with British pound till 1959. But, the US Dollar was fixed at 2.8 Dollar for 1 Dinar. Then the Iraqi Dinar rose to a high of 3.37 Dollar per Dinar before it was devalued 5% to quote at 3.21 Dollar and remained almost static till the Gulf war in 1989. After the war in 1991 Iraq faced UN sanctions and the Swiss printed Dinar notes went out of circulation. Excessive Government printing of new notes brought down the value of Iraqi Dinars to 1 Dollar for 3000 Dinars, although Swiss dinars, still in circulation in the Kurdish region, did not devalue at all.

Following the end of Saddam Hussein, Iraqi Governing Council printed Saddam dinar notes to sustain money supply for daily use till a new currency was introduced for the whole of Iraq. In 2003, the Coalition Provisional Authority issued new Dinar notes and coins with modern technique and anti forgery measures. These new Dinars exchanged at par with Saddam Dinars but at 150 new Dinars for 1 Swiss Dinar.

Meanwhile, Iraqi Dinars were in hot demand among the speculators and currency traders. Oil export rose in 2012 and world economic experts were of the view that Iraq may become the second largest exporter of oil soon. The speculators rumoured that the Iraqi Dinars are going to be rerated upwards. So Iraqi Dinar RV will bring in windfall profit as the exchange rate against the dollar will rise greatly. International Monetary Fund is in charge of rebuilding Iraq after its repeated destruction in wars and under a despotic rule for a considerable time. So this rumour about improved exchange rate of dinars remains confusing. The Central Bank of Iraq sports a home page on its website with a quotation of 1166 dinars for a US Dollar. The IMF too quotes Dinar at 1200 per a Dollar, and it remains static, Most of the transactions are still in US Dollars, and the Dinar stays exotic.

Iraqi Dinars are now steady, and not much of a downside is visible in near and remote future. If you discount the rumours spread by the currency traders, you may still invest in Iraqi Dinars as the reconstructed Iraq will be wealthy as ever. Its oil production and export will always follow a rising curve, and you can participate in a developing economy.

Iraqi Dinar News is a steady currency. An OPEC country under reconstruction with IMF supervision and a wealthy oil trade gives Iraq an edge over other countries and its currency a hope for upward movement.more information please Click here

This article has been taken from http://dinarexchange.wordpress.com/2013/03/18/iraqi-dinars-get-the-facts/

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