Life is not a bed of roses that you sleep one day, and the other day, you get rich without investing your time, money and working hard to achieve something. Investment in anything is just like life. It is a compulsory part of an individual's life. Investment in currency provides a person with the financial security that not any other market can offer. Whenever the word "investment" comes to mind, the person's mind revolves around purchasing bonds, acquiring stocks, and buying shares.
However, if you are aware of the current market trends, you will know that the Dinar investment market is booming now than ever and are ruling the money markets once again. Some economists firmly believe that in the future, Qatari Dinar will get beaten by Iraqi Dinar as the foreign reserves for Iraqi Dinar are running low for quite some time now. Yes! Purchasing Iraqi dinars is a profitable investment for the near future because it provides a person "GET RICH QUICK" scheme. Iraqi Dinar will be the currency of the future, and who knows, it might cut Bitcoin down.
With newspapers and TV channels 24/7 reporting that the Iraqi Dinar's earning ability will leave you baffled, one starts thinking about the currency's prospects. The Dinar's valuation is high because Iraq has the world's 2nd largest oil reserves globally. In any case, while keeping in mind the politically unstable condition of the country, one must consider these things while buying Iraqi dinars
Always buy new dinars
Who knows about the condition or the life period of the old Dinars? The country might outright ban the older currency notes; that is why it is advisable to buy newer currency notes from a trusted seller and there are many trusted dealers out there, which offer you the best customer service at a reasonable price and gives authenticity of notes certificate along with the order.
Look out for investment trends of the market
You might as well keep a check on the recent investment trends in the market. You might be investing in something that might not get you the profits you want, and the other thing that you weren't betting your money on might win the whole race. Always lookout for what's trending so that you can maximize your profits.
Watch out for forged currency
While purchasing Iraqi Dinar, it is wise to check the security features of new Iraqi dinars. This will help you purchase the real Iraqi dinars, but you will also secure the potential future earnings from that as well. Otherwise, fake currency notes are not suitable for anything except making paper planes.
Get a currency purchase certificate
It is advisable that while making any purchase or acquiring Iraqi dinars, you must ask your dealer to send you a currency purchase or authenticity of currency certificate so that buying Iraqi dinars can be a legitimate deal and can become an agreement enforceable by law.
If you keep a check on these things, one thing is for sure that you will never be scammed and will benefit from it greatly.
The exchange rate is rising
Pro-Tip: You can always check the internet about the Iraqi dinars' exchange rate in 2019, 2020, and 2021. You can see that the exchange rate of Iraqi dinars has risen by almost 20 percent. Iraqi dinars are becoming personal favorites for large-scale investors as those people clearly see the prospects of this investment. In the first gulf war, Qatar's currency, i.e., the Qatari Dinar, went soaring up in the sky; the same is the case with the Iraqi Dinar. People now trust that Iraqi Dinar is a secure investment, and Iraq's central bank is backing up the whole scheme.
The currency of the future
Iraqi Dinar is the currency of the future, said top economist of Japan who compared it with Bitcoin and said that the second-largest country in terms of oil reserves will beat up all other currencies in the upcoming future because it has been undervalued for some time now, and it will pick up the pace. This is economics 101. Although Iraq's current condition is politically unstable, investment in currency might look dangerous to you, but this is what happened to Bitcoin. People didn't trust the idea of Bitcoin at first and are now rubbing their palms in awe.
If you want to reap the high benefits from your investments, invest in Iraqi Dinar, said a financial analyst at Newyork. Buying Iraqi dinars could lay out a rosy future for you, offering you a chance to earn and gain profit over the future potentially.
Foreign exchange is becoming more popular, so many investors are looking for currencies that can turn a lucrative profit. If you’re one of them, you’re in luck. The Iranian currency can be a wise investment, and we’ll discuss why.
What Is the Iranian Rial?
The Iranian rial is the official national currency of the Islamic Republic of Iran. It was first introduced to the public in 1798. In 1825, the rial was replaced by the Qiran at an exchange rate of 10 rials for 1 qiran. A little more than a century later, the Rial became Iran’s official currency. It replaced the Qiran in 1932.
As of writing, the said Iranian currency is made up of 100 subunits called dinars. However, dinars are not usually used due to the extremely low value of one Rial.
Iranian Rial has a forex code of IRR. This code is used by currency traders and investors when making transactions involving the Iranian currency.
How the Nuclear Deal Affected the Iranian Rial’s Performance?
Between 2010 and 2015, Iran had been sanctioned by foreign powers, including the United States and the European Union. These sanctions adversely affected the exchange rate of the Iranian Rial.
For instance, the US had instituted about four acts sanctioning Iran. These acts have had an adverse effect on the Iranian currency and the entire forex market.
Fortunately, in 2015, Iran agreed on a long-term deal with world powers including the US.
The so-called Nuclear Deal came after years of tension caused by Iran’s alleged development of nuclear weapons.
Under the agreement, Iran must limit its sensitive nuclear programs. The country must also allow international bodies to inspect its nuclear activities. In return, economic sanctions on Iran would be lifted. This equated to billions of dollars in sanction relief.
In particular, Iran gained access to more than $100 billion in assets which were frozen overseas. The country was also able to continue selling oil on international markets and use the global financial trading system.
After the Nuclear Deal was signed, investors’ confidence in the Iranian rial rose. Both local and foreign investors started buying Iranian Rial.
The Iranian currency became the best-selling currency shortly after the Nuclear Deal. Thousands of traders were buying it. Specifically, investors saw the Iranian Rial as a long-term investment.
How Trump’s Actions Affected the Iranian Currency?
Between 2015 and 2018, the Iranian Rial was doing well in the forex market. Both long-term and short-term investors gained profits by trading the Iranian Rial.
However, in May 2018, then US President Donald Trump abandoned the Nuclear Deal. In November that same year, Trump reinstated sanctions affecting Iran and the states that trade with it.
This led to a negative effect on the Iranian currency, pushing the Rial’s value to record lows. It also drove away foreign investors and triggered various protests.
In particular, the Iranian Rial to USD value decreased by 70% since May 2018. On the bright side, it seems that Biden’s presidency is about to resurrect the glory of the Iranian Rial.
Biden’s Bid to Restore the Iranian Nuclear Deal
One of Biden’s vow after winning against Trump was reviving the Nuclear Deal with Iran. Due to this, the future seems bright for the Iranian currency.
According to Bloomberg, the Iranian Rial had a 17% gain against the US dollar during the first few weeks of the year.
As of writing, the Iranian Rial has a total of 25% gain against the US dollar. The upward trend is expected to continue as Biden pushes to revive the Nuclear Deal.
In addition, Biden’s presidency opens the possibility that Iranian oil payments trapped in foreign bank accounts will be released. This will ease Iran’s foreign currency supply crisis and hopefully restore the Iranian currency’s glory.
Is Iranian Rial a Wise Investment?
Yes, it is. As stated earlier, both long-term and short-term investors gained significant profits after the Nuclear Deal was closed.
The same is expected to happen after Biden revives the said deal. While there is no certainty that the deal will be revived soon, the fact that Biden wants to revive it is making the Iranian currency’s performance better.
Furthermore, an increasing number of investors currently buy Iranian Rial under the table. This shows that people are gaining confidence and trust in the Iranian currency.
The Iranian currency is also a great option for those who cannot afford to acquire high-value currencies yet. For this reason, investors are seeing the Iranian rial as an affordable asset.
On top of that, the Iranian currency has low historical volatility. This means that the Iranian Rial’s value doesn’t tend to change quickly and unpredictably. It poses lower risks as well.
Additionally, the currency’s excellent performance is expected to continue and should become better once Biden finalizes the Nuclear Deal.
Given these data, the Iranian Rial is indeed a wise investment. In fact, we’re looking forward to your success via the Iranian Rial.
Here’s a summary of why the Iranian Rial is a great investment:
⦁ Iranian Rial to USD gain totaled 25% within the first 3 months of 2021.
⦁ Biden’s bid to restore the Nuclear Deal puts the Iranian currency in a great position.
⦁ Iranian Rial is an affordable asset.
⦁ The Iranian currency has low historical volatility.
⦁ Investors are gaining more confidence and trust in the Iranian currency.
Disclaimer: The Iranian Rial, like any other investment, involves risks. Carefully assess your finances before investing in anything.
Where to Buy Iranian Rial
Iranian Rial might be a great investment, but you have to be extremely careful where you buy it from. Only buy Iranian rial from legal and experienced companies. It is wise to wait Biden's admin to revive the Nuclear deal before stepping in any sort of investment with Iran's currency for the time being.
If you're looking for a new way to invest your money, the Iraqi Dinar is an excellent choice to consider. Hundreds of thousands of investors are moving their money into the Iraqi Dinar because they believe it will revalue and that they will benefit from windfall profits or unexpected gains from specific circumstances in the Iraqi economy. If you're curious about whether the Iraqi Dinar will revalue and how to be a part of the process, continue reading this article.
What is the Iraqi Dinar?
The Iraqi Dinar is the official currency of Iraq. The Iraqi Dinar is subdivided into 1,000 fils and issued by the Central Bank of Iraq. The Dinar was first released in 1932 and was the currency used to replace the Indian rupee. At the time, 11 rupees would convert to one Dinar. During the first 27 years, the Dinar was connected to the British Pound and then became permanently connected to the USD. The rates held steady until the mid-1990s, when the Gulf War began.
Swiss Dinar, or the currency printed before the Gulf War, was printed and valued over $3 per 1 U.S. Dollar. Once the war was over, the government printed more money, but it was not of high-quality. However, it continued to circulate around Iraq. The sanctions placed by the United States on Iraq during this time devalued the new dinar notes quickly down to 3,000 dinars per $1 USD.
In 2003, high-quality notes were printed by the Coalition Provisional Authority so that the country could use one currency. Holders of old currency could exchange them equally, except for Swiss noteholders who would receive 150 new notes for one Swiss note.
What Does It Mean to invest in the Iraqi Dinar?
Now that you understand the past of the Iraqi Dinar, it's essential to understand what it means to invest in the Dinar. Like buying other currency, stocks, or bonds, you can purchase the Iraqi Dinar for a certain amount of money, depending on the current fluctuation rate.
The idea is to buy before a significant amount of money before a rise in the currency occurs so that you can make money more money than you invested. For example, if you invest $1 now into the Iraqi Dinar, that number could increase in value and be worth more than $1 or decrease in value and be worth less than $1. The actual rate you'll receive back from your investment depends on the Iraqi Dinar's market rates.
How Does Revaluation Work?
A revaluation is an adjustment that increases the country's official exchange rate in comparison to a baseline, such as the price of gold, wage rates, or a foreign currency. A country can only change or alter its currency's value through its central bank or other government offices. Revaluations have a significant effect on the valuation of assets held by investors or foreign companies and the currency itself. It can also change the exchange rate between other countries and cash, so foreign investments need to be adjusted to reflect the change and impact of the exchange rate.
Revaluation can happen for many reasons, such as large-scale events that affect an economy's profitability, leadership changes, changes in interest rates, or other significant events that predict a market's ability to become more stable. An exciting way reevaluation can work is if there is a great demand for a specific currency. Essentially, big decisions that affect the economy or country's leadership can cause an Iraqi Dinar to Revalue.
When a currency is revaluated correctly, it will increase in value for those who hold the currency. The Kuwaiti Dinar was revalued after the Iraqi invasion and could become a high-valued currency. With the current rates, 1 Kuwait Dinar is worth 3.30 United States Dollars.
The Iraqi Dinar Could Revalue
Iraq has recently devalued the Dinar by 24% back in December of 2020 to cope with the COVID-19 pandemic and lower oil prices. This means that oil dollars are now converted into more dinars, which helped the government to run the country properly. However, with everything that becomes devalued, there is the ability for it to revalue later in the year. Here are some of the reasons why experts believe that the Iraqi Dollar Could Revalue.
Domestic Fuel Prices: Since 2007, Iraqi Authorities have worked hard to implement measures around the use of domestic fuel, increasing the amount of domestic fuel used in their economy. This has helped to eliminate all direct budgetary fuel sources, except for kerosene. Since the fuel is sourced in Iraq, this increases the number of jobs that have been created and profit being made in the economy. This is expected to increase jobs and profits in the market, thus raising the value of the Iraqi Dinar.
Raised Policy Rates: One of the past issues that have been associated with the depreciation of the Iraqi dollar is the lower interest rates, which did not help the value of the Iraqi Dinar rise. Now the Central Bank of Iraq has raised its policy on interest rates which has helped the Iraqi Dinar appreciate.
Exchange Rate is Rising: As these changes are implemented into the Iraqi economy, there has been a change to the Iraqi Dinar's return. Before any of these changes were implemented, the exchange rate in April of 2007 was around 1.270, and in 2020, it was around 1.190, which means there is a 6.5% positive return.
Annual GDP Change: The GDP in Iraq keeps increasing. In 2020 it was at 178.11, and it keeps increasing year over year. It's predicted to rise to 232.12 by 2024. With this increase, you can expect the value of the Iraqi Dinar to increase as well.
Oil Prices are Rising: As the demand for oil increases, so does the money Iraqi economies can make. Oil is the countries largest export, and as more people are starting to jump back into business and travel, oil is needed. With more money available in the oil industry from foreign markets, the better the Iraqi Dinar does.
Arguments Against the Iraqi Dinar Revaluing
Not everyone believes the Iraqi Dinar will revalue. While it leans towards revaluing in the future, it's important to understand the other side of the argument as well. Some believe that the odds are slim and that it would take years before there would be any type of investment gain in your Iraqi Dinar. Here are a few of the reasons that some believe it may not revalue.
Not Available on Global Forex Markets: The value of the Iraqi Dinar is set by its Central Bank, or government, instead of fluctuating like a regular currency does due to supply or demand. Alternatively, it follows an auction process. The rates can change at any time just because the government decides it wants to change the rate. However, it's improbable that it will be lowered anytime soon.
Iraqi Dinar is Heavily Circulated: Some experts believe that there is already a ton of Iraqi Dinar in the markets, making it hard to see an increase in the value. While there is a lot of Iraqi Dinar, not enough has been printed to overpopulate or over circulate the currency.
The Economy is Changing: The economy has been recovering since the attack of ISIS in 2014. The government holds many resources of their highest export, oil, in the areas controlled by Kurdish forces and ISIS. This makes it hard for the economy to grow when they are unable to distribute and sell one of its biggest moneymakers. Thankfully, the government has already worked to adjust for this by moving most of its export facilities away from ISIS or Kurdish-owned land. Plus, like any economy, you will see the ebbs and flows present.
Too Good to Be Ture: Some experts believe that the Iraqi Dinar is too good to be true. They believe that while the idea sounds great, it doesn't guarantee that you will become a millionaire overnight. While that may be true, it was never promised that anyone who invests in the Iraqi Dinar would become a millionaire. Instead, it's suggesting that the currency will soon revalue, which will increase the value of the Iraqi Dinar, thus making you extra income on your Iraqi Dinar. No matter what, it's still a viable currency that can be used to buy goods and services in Iraq.
Should You Buy Iraqi Dinars?
With all the information supplied in this article, you might wonder if it's a good time to invest or buy Iraqi Dinars. Right now, the value of the Iraqi Dinar is going to increase, and according to research, the GDP of Iraq is going to rise to 232.12 by 2024, which means that the Iraqi Dinars will rise as well. It's a good time to buy Iraqi Dinars to get ahead of other investors. Plus, at such a low entry cost to obtain a good chunk of Iraqi Dinars, you're not going to lose either way. To sum up, no one could cast the right Iraqi Dinar future prediction and all all is left to the prejudice of the investor to weigh things out and see which investment is good for him/her and which is not.
Every person from civilians, unwise investors, special servicemen, and contractors are investing in the Iraqi dinar. However, only a few know what consequences lie if you invest in the currency. When it comes to investment in Iraqi dinar, the procedure is the same as any other investment process.
You pay a certain amount of US dollars to get Iraqi dinars. Like other shares, bonds, money, and investment opportunity, you invest in the Iraqi currency with a risk. However, you expect a price for the particular cost of the Iraqi dinar.
There’s no harm in investing your money where you like. But the Iraqi dinar scam has victimized a lot of investors. The genuine question here should not be ‘Can’ but ‘Should you buy Iraqi dinar?’
Investing in the Iraqi dinar — Iraqi dinar to USD
Investment in Iraqi dinar works like purchasing bonds or stocks. After buying the dinars, investors wait for the IQD value to go up so they can claim the price they expect to get. It is relative to shares because you predict that the future value of your investment will be worth more than what you had invested.
While it is not illegal or a crime to invest in currencies, we should learn the future consequences of a risky investment. When it comes to Iraqi dinar investment, many currency gurus have convinced thousands of people to give it a shot. While we know they are scammers, they claim it is a sure-fire shot to invest in Iraqi dinar and get a high return on investment.
To go into the depth of the Iraqi dinar controversy, we will discuss the fundamentals of Forex.
The Fundamentals of Forex
Forex refers to currency pairs (such as Iraqi dinar to USD) and digital money trading. Say, for example, that the Forex trading speed for the following currency pair is 1 USD for 1,160 Iraqi dinars. If you spend a total of $1000 with the current trading speed of the currency pair, you will most likely get up to 1.16 million Iraqi dinars.
If you follow the trading pattern for a higher return on investment, you can predict the future IQD rate and get more than what you have paid for.
Now let’s say this case comes true and the IQD rate or the exchange rate increases dramatically into a hypothetical value. If you get 1 US dollar for 1 Iraqi dinar, the IQD rate will have your investment worth more than $1.16 million.
So, the theory is, the investor could become a millionaire overnight if the IQD rate increases. By investing a moderate value of 1000 US dollars, he would be getting a million dollars in return.
Is this investment opportunity a hidden profit prospect or a hyped scam?
We will commence with the advantages of buying Iraqi dinar:
The Iraqi dinar investment has had a fair share of dirt on and off the internet. We had heard about all the speculation ideas that were moving about. However, several trading reports suggested a spike or a slight increase in the IQD rate.
The IMF came forward with the first announcement about the IQD/USD rate in mid of 2007. While the report is old and came in the post-saddam Hussein era, the news was shaped in many ways. The following announcement supported another spike report from the Iraqi dinar currency and money trading.
The article mainly spoke about the Iraqi government, the gradual increase in domestic utilities. At the end of the article, it was also suggested a remarkable structural reform plan to make a change and turn the market of Iraq into an economy-based hub.
To combat inflation, the action plan was initiated by the Iraqi government comprising three fronts in total. To begin stabilizing the economy, the central bank of Iraq allowed the value of the dinar to rise a bit.
Other than that, it announced to increase its interest rates. These steps were initiated to control the financial conditions and to give control to the central bank so that the market could be de-dollarized.
The effect of the announcement on IQD/USD rate
Just before the action plan, the exchange rate of Iraqi dinar was more than 1270 (in April 2007). As of August 2020, the IQD/USD exchange rate was declared up to 1190. In light of trading, it turned out to a favorable yield. However, the current prospective developments and the Iraqi dinar future predictions depended greatly on the high turn-over of the IQD/USD exchange rate.
Are Iraqi dinar gurus scamming us?
Even though the future prospects say otherwise, the truth is, most dinar gurus continue to scam thousands of investors. Like other financial or trading scams, the gurus use various techniques to source hard-earned money from the investor’s pocket.
Many dinar gurus are not sure if the Iraqi dinar investment is worth the time and effort. As of now, this opportunity is neither lucrative nor a sure-fire shot to a high return on investment.
Fortunately, we have compiled several red flags that you can watch out for:
If the Iraqi dinar guru promises an astronomical return on investment on a measly amount, he is likely to be a scam
If your dinar guru is a stand-alone agent or works for an unknown trading company rather than working for a known trader, he would definitely turn out to be a scam
If the dinar guru is promoting himself through internet banner ads and unsolicited telephone marketing instead of establishing communication through social media, he is expected to be a huge scam
A little knowledge about the forex trading world can save you from a huge scam. For instance, Bank of America and other established financial organizations do not offer forex trading in IQD to USD. Why? Because the Iraqi dinar is volatile due to increase inflation and currency devaluation.
Moreover, several US states, such as Oklahoma, Alabama, and Utah have issued warnings against Iraqi dinar investment because its market is volatile and unstable.
How do Iraqi gurus scam the investors?
Gurus have command in using the forex trading platform. They use foreign exchange to cover their shady or scam deals. Forex trading refers to buying currency. In this case, gurus scam the investors by convincing them to buy Iraqi dinars for US dollars.
We all know that the forex trading platform is a legitimate forum for investment. It is as safe as investing in a stock market. The forex trading is stable because it is rarely disturbed by military conflicts, weather conditions, and natural disasters. Therefore, the currency exchange rate is pretty steady there.
However, the return of investment in forex trading would not make you as happy. They are stable but not the best. Investing in foreign currency is an easy way to make post-retirement money. In some countries, it is considered a lucrative business and career opportunity for baby boomers.
How do gurus use forex trading for Iraqi dinar scam?
Gurus scam by overpromising the returns on Iraqi dinar investment. To convince people to invest more US dollars, they convince the investors that the IQD/USD rate will increase in the mean future.
For instance, a scammer will connect you to an Iraqi dinar agent who would convince you by giving multiple hypothetical values of high returns. They will provide you with the current exchange rate and will convince you by giving a strong postulate on the value of the IQD/USD exchange rate in the future.
That being said, if you wish to invest $1000 at the exchange rate of 1160 for $1, you would be getting a total of 1.16 million IQD.
After giving you a postulate on the exchange rate, they would convince you that it will increase in the upcoming months. The void promise that the IQD rate will grow is a red flag we all should be watching out for. One can’t expect to invest $1000 and expect it to turn $1.16 million in the next few months.
Every step of the Iraqi dinar investment process is a scam as no currency can grow to equalize the US dollar, especially if the inflation rate is high. Moreover, there’s no sure shot on any investment, be it purchasing a bond, stocks, shares, or currencies. If a guru is assuring you, he is most definitely a scam.
Iraqi dinar future prediction
Regional fights, civil war, and no allies are current issues of the country, Iraq. In the future, there’s an extreme possibility that Iraq will split into three regions. If such a tragedy happens, the day to eat the fruit of investment will never come for the investors. In short, the value appreciation won’t happen if the civil conditions of the country do not get better.
Does Iraq have the potential to rise again?
As there are abundant oil reserves in Iraq, there’s a possibility that the country will rise again, establish and spring back to develop a stable economy and market. If we talk about the past, the country managed to spring back after a long-term war with Iran.
However, Iraq lacks a promising and peaceful business atmosphere to establish the confidence of the investors. If the trust of the investors is restored, the country’s economy and the market will revive and increase the IQD/USD exchange rate.
But the conditions do not seem always seem favorable. There are convincing red flags that Iraqi dinar investment is nothing but a hyped scam. However, there’s a strong reason to pass a statement as harsh as this.
The Iraqi dinar investors trade in the black market of the forex instead of trading desks and established institutions. The supporters and the dinar gurus confuse two economic terms; redenomination and Iraqi dinar revaluation.
Iraqi dinar revaluation and redenomination
When it comes to revaluation, it is an adjustment officially made to the exchange rate of the country’s currency. The rate is often relative to a standard baseline (US dollar or gold). After a successful Iraqi dinar revaluation, the currency will become more expensive. As the rate changes, so do the purchasing power of the base currency.
On the other hand, redenomination is a confirmed plan of action that the Iraq government will not revalue its currency but redenominate it. If the Iraqi dinar revaluation does not occur, there will be no change in the IQD/USD exchange rate.
Reasons not to invest in the Iraqi dinar
Iraqi dinar revaluation rumors continue to attract a substantial number of investors. Dinar gurus have convinced the investors that they will be making windfall profits if the exchange rate grows in the future.
Here are some reasons why investment in Iraq dinar is not a wise decision:
The Iraq economy is struggling
The Iraq economy had been on the verge of falling for years. Now, the only way to redevelop the economy is to make use of the oil reserves. However, the significant oil reserves located in the south are still controlled by Kurdish forces and ISIS. Therefore, it might be impossible to develop trade with foreign countries.
With the economy already falling, the last thing this country needs are the challenges due to massive Iraqi dinar revaluation.
Iraqi dinar investment is not done on established financial institutions and global forex markets
The value of the Iraqi dinar is currently set by the central bank. The established financial institutions, regular banks, and global forex markets do not trade this currency. That being said, it is a freely traded currency and the dealers can charge any exchange rate they desire.
Several US states have issued warning against Iraqi dinar investments
Several US states including Alabama and Oklahoma have issued warning against the scams involving Iraqi dinar investments.
Iraqi currency is already in circulation
With the current exchange rate, it is imperative that Iraqi currency is in a great deal of circulation. However, there’s a slight possibility that the central bank of Iraq might drop 3 zeroes to create a new currency. This approach is known as redenomination and it will have no effect on the IQD/USD exchange rate in the global markets of forex trading.
Iraqi dinar investment is an uncertain bet. Due to external factors involving international markets, trading currencies is always risky. You can’t predict or control the market. Unless you are trading through a regular bank or an established financial institution, you should be considerate when investing in Iraqi dinar.
A number of Iraqis demanded that their country's currency be returned to its normal state and raised its value against the US dollar, which made the hashtag # I want_Denary among the most discussed topics on Twitter in Iraq. The Central Bank of Iraq announced a reduction in the exchange rate of the Iraqi dinar against the US dollar, last December, in the first such measure in half a decade, and coincided with a stifling financial crisis plaguing the country as a result of the collapse of oil prices.
A statement by the Central Bank of Iraq stated that the new price of the dinar against the US dollar was set at 1450 dinars instead of the previous rate of 1190 Iraqi dinars per US dollar. And the Ministry of Finance promised, at the time, that "the decision to amend the exchange rate will be a one-time only and will not be repeated in the future."
After the issuance of the decision last year, the Iraqi government reassured its citizens about the decision to reduce the value of the official currency, stressing that it would not affect the classes that depend on local goods, but experts and observers criticized the move and believed that it would increase the already high poverty rates in a country experiencing the worst economic crisis in decades . The Iraqi Ministry of Finance attributed the decision to the government's attempts to address the stifling crisis that Iraq is witnessing as a result of low oil prices, to ensure the protection of the economy and to achieve the reforms that it promised several months ago.
The decision sparked a wave of anger in the Iraqi street, but Prime Minister Mustafa Al-Kazemi defended his government's move and said that he had two options, "either the collapse of the system and the entry into complete chaos, or we enter into a Caesarean section for reform."
Since the collapse of oil prices earlier this year, Iraq has faced an unprecedented liquidity crisis. The oil-exporting country was forced to borrow from the bank’s reserves in dollars to pay off nearly $ 5 billion a month, representing public sector salaries and pensions.
Author / Mazhar Al-Ghaithi The West deals with strategy, and it is a mistake not to try to understand what they are trying to do with us through gathering information, analyzing it, and deducing future goals and plans for them so that we can confront them through tight, easy and reluctant planning that depends on loyalty to God and trust in Him and relying on His success. Here we will discuss one of the challenges that are the focus of the hour’s talk, which is changing the exchange rate, and summarize it accordingly: 1. Many observers are confused about the real reasons and motives behind the Al-Kazemi government’s feet to sell dollars at a high price to the people for reasons. Let us think out loud and say is it:
A- To withdraw cash or cash from the people, which exceeds the financial potential of the state, as it is known that the monetary properties in circulation in the market or in the possession of people are higher than what the state owns, and this in itself poses a threat to the state’s financial sovereignty and loss of its balance and threatens the failure of the financial system B - Did the instructions come from America in this regard in order to control the people and the Shiites in particular like this and simply to make it easier to fight them and implement all kinds of plans that they want to implement on them? 2. Is it that the families controlling the global economy want internal control over the Iraqi economy through the window of the World Bank, since it is arbitrary and now in the implementation of a loan to Iraq worth 5 billion and perhaps the intention is to exhaust Iraq economically and this in itself is a harbinger of affairs and has serious repercussions as:
A- Iraq owes the World Bank large sums and benefits will be imposed on it in the next stage. Iraq cannot get out of this crisis and it will be bargained for to implement their plans in Iraq. B - Is the goal of these families is to control Iraqi money, and that will not be done for them except after distorting the reputation of Iraq abroad and reducing its economic power to the bottom through its relationship with the World Bank and keeping Iraq indebted to them for longevity, and this will affect the choices of future generations as they do not They allow Iraq to deal with other countries in financial matters, in order to develop and boost its economy.
3. This stage represents the preparation for the next stage, which is the new global economic system. If the Iraqi financial system and economy are restricted and shackled, it will be soft at the hands of governments and governments, which are controlled by the royal families and they are already infiltrated. 4. If Iraq were to regain its strength and there was a possibility to strengthen the Iraqi dinar, it would be the first in the region and it would be a good supporter of the economy and vice versa, and it would overcome the region’s currencies and economies and would be a global power, and for this there would be no interest for the region’s countries to support the Iraqi dinar and save it from the system’s hegemony. Globalism.
5. America and most of the dominant forces in Iraq deliberately keep Iraq under the terms of pressure in order to be safe in their future in the event of revolutions, especially as they are frequently repeated. Finally, if you collect everything that has been said and put with it what will happen in terms of a shift in the digital currency, especially in the dollar and digital dealings in buying and selling, in addition to some of what we have previously mentioned about some manipulating the financial balance between Baghdad and the region, it is certain that the clues and features of the next phase will be revealed to you. My brothers who have the word and fair people in Iraq and the region, the solution is simple. We know our patriotic men who defend our rights. Our salvation is by pushing them to power, and any negligence in this matter will lead to the completion of the Tamer rings that will lead not only to the families of our word, but to the shackling and families of our children and grandchildren as well.
Salah Hassan Baban "I lost my seat in Parliament after I received more than 3000 votes in the 2018 elections, because I did not pay three million dollars to the head of the bloc that I ran with, so another losing candidate won by paying the same amount." With this "opportunistic treatment" with the candidates, SA (45 years old), a former candidate for the parliamentary seat, is likely to hold the next parliamentary elections. He says, "There are two main sources of financing party budgets for the elections, the first is through corruption in the ministries that they seize, and the second is from external support, especially Iran and Saudi Arabia."
With renewed hopes for holding parliamentary elections on October 10, talk about sources of funding for Iraqi parties in parliamentary elections has returned, raising doubts about the existence of common points or link between the depreciation of the Iraqi dinar against the US dollar and the preparation of influential Iraqi parties to finance their election campaigns, through Several outlets, the most vital of which are private banks, at a time when statistics issued by the Independent High Electoral Commission indicate that about 300 political parties and blocs have so far registered their participation in the upcoming elections with the possibility that the number of political parties and blocs will reach twice what it was in the 2018 elections, which reached 204 parties and blocs.
The political parties ’evasion in Iraq helped the law that stipulates that the parties’ work must be regulated and their sources of funding announced and not disclosed to the public opinion and the voter, provided that they have more than one source of funding, among internal sources, mainly related to ministerial contracts and investment projects that the parties obtain after their participation in The formation of the government within the political quota system in effect in the post-2003 period, specifically the large blocs, and between another external source, where candidates receive financial support from their regional sponsors, especially Saudi Arabia and Iran. While the candidate affirms p. A to “Darj” that the first step in the electoral race has really begun for the big parties by distributing some valuable gifts such as pistols and the like, in addition to food, clothes and various gifts with the purchase of the debts of some media professionals, writers, poets, as well as clerics.
S.A. believes that the political parties resorted this time to a new trick to achieve greater financial gains through lowering the local currency and raising the dollar, which would bring them huge profits, especially since most of the parties own private banks.
The Iraqi government started with the initial steps to implement the terms of the white paper that it launched and marketed a lot over the past months to support its economy by raising the price of the dollar against the local currency from 1184 dinars to 1450 dinars to the dollar at the selling prices approved by the Ministry of Finance of the Central Bank, and this step was negatively reflected on the prices of goods, commodities and needs. The daily percentage of the citizen is not less than 25 percent.
Doubts and many questions have been raised about the possibility that the influential parties in Iraq would stand behind the decision to reduce the local currency against the dollar after the collapse of the dinar, in order to benefit from it to fill the deficit of the government in which it participates and to be able to pay the salaries of its employees in addition to strengthening its budgets as the elections approach, but the Al-Kazemi government and an extension of its failure In the political, security and health files, in addition to her fear of revealing the killers of the demonstrators as she promised before her arrival to the prime minister, although they are known to her, her monetary policies caused employees to lose about 25 percent of the value of their salaries.
Political writer Ali Al-Baidar agrees with S.A. about the existence of many political parties that own private banks that have lent to the government knowing the poor conditions of the country at the current stage, and they do not have any other means to recover their money with the interest resulting from that, which reached 13 percent, It is thus pressuring the government to force it to take this step, without having any other option to redress bankruptcy, spending on state institutions, salaries of employees and retirees, and a social protection network that includes 8 million beneficiaries.
Al-Baidar describes the Iraqi Central Bank’s submission directly to political interference as “the biggest and greatest mistakes” committed by the political system, and stresses the necessity of keeping this financial institution away from political interference, as it exercises a basic task, which is drawing and implementing monetary policy.
A former employee of the Independent High Electoral Commission, who was among the cadres that supervised the polling process in 2018, confirms that the candidates' campaigns cost about 60 thousand dollars at least for each of them, and sometimes more than two and a half million dollars for the prominent leaders of the first row in the parties The window, 60 percent of it is spent on purchasing aid for the destitute groups who live below the poverty line, especially in the central and southern regions of the country and the capital, Baghdad, while the other percentages are distributed on organizing various festivals, seminars and celebrations to support the candidates' programs.
No two people disagree that the decline of the dinar and the rise of the dollar reflected on the life of the simple citizen, increased psychological and economic pressures on him, and his life became more bitter, especially with the rise in food prices, electricity and water services, and the pressures of the Corona epidemic on the social and economic situation.
Journalist Hana Riyadh believes that the argument that the government relied on to approve raising the dollar and reducing the salaries of state employees and international borrowing, due to the impact of the Corona virus on the overall economic situation in the world as a whole, is no longer useful. Oil prices have risen again and exports are still in effect. The market was already affected and led to a recession in global markets, but Iraq suffers from complex problems, including the problem of financial mismanagement and corruption. She asked: “How can we absolve the government of creating a crisis? In fact, there is manipulation and intentional to confuse the citizen, and to follow a policy of trauma treatment.
And whether Al-Kazemi is responsible for the collapse of the local currency, Riyad believes that the prime minister did not come with a popular nomination, but rather party consensus, so he is dependent on those parties.
Sure you are confused about the Iranian rial and toman. You are surely thinking that those are two different words with different meaning. These are the Iranian words that are used for their currency. So, there is no difference between rial and toman. Official currency in Iran is rial. The word toman is used by the local people, especially in the daily based payments and for sure, sometimes it is confusing for the ones that are not Iranians. The common bill these days is 10 000 rial bill, but the local people use tomans, which is deducting one zero. A 10 000 rial bill is called 1000 tomans bill. So, 10 000 rial is equal to 1000 toman and that is approximately $1 . We have to say that official dollar exchange rate is somewhere between 1030 and 1040, which fluctuates a bit up or down. The fluctuations are bigger in the free market. The common types of rial bills are 500, 1000, 2000, 5000, that are available both in coins and bills, and just available in the bills there are 10 000, 20 000, 50 000, 100 000. When the tourist are coming and the passing by travelers are exchanging they usually change the most in 50 000 bills. Before there were available the 100 and 250 bills and coins. Today, you can sometimes, still find here and there these 100 and 250 bills or coins. They were used to function as dime and quarters. For example, we will make you a clear image. For example, one hamburger costs 2000 tomans, which is equal to 20 000 rials and that is equal to $2. A mineral water bottle cost 500 toman = 5000 rials = 50 cents. And the exchange rate market is making quite easy and simple to pay for food or any other service when you are a tourist or a traveler in Iran. But one thing you have to remember. Never mix up the rials and toman. They are same but not same at some point. In back and official working places the official currency is rial and that is only acceptable currency there. In the everyday life, and in free market the toman can be used properly.
Finally, we come to cheque Rial which came as a result of the sanctions imposed by USA against Iran back in Trump Era. These are inflation cheque money and there are two cheque Rial denominations: the 500K Bill and the one Million Bill ( which is the largest denomination of Iranian currency. These two bills came to cover the market need for a large bill increase purchasing power.
Iraqis suddenly woke up to the decision to lower the exchange rate of the Iraqi dinar, and were hit by a monetary shock they had not experienced in decades. They were under the illusion that their currency had reached the shore of stability, and that the fluctuations that their dinars had previously known would not witness, which generated emotional and emotional reactions in their depths that made them launch a wave of tweets in which they criticized the government decision intensely, including the hashtag #Banks_the thief, their Twitter accounts, and the demonstrations went out in protest against This decision, which afflicted the poor classes that suffer from the current economic crisis, made them worse by the process of reducing the price of the dinar against the dollar, where one fifth of Iraqis live below the poverty line.
If we review the history of the Iraqi dinar, we will find that it represents the history of Iraq, with all its fluctuations and storms, as its conditions fluctuated with the fluctuations of the summer, winter, autumn and spring seasons, and its first effect was the abandonment of coins from coins and their disappearance from circulation until the paper currency prevailed in the square. It is known that the dinar went through various political eras, as Iraq continued to use Ottoman banknotes for four centuries from 1534 to 1920, until the advent of the British occupation, which replaced this currency with the Indian currency represented by the Anna and the metal rupee, which bears the image of the British King George V to be The only currency in circulation, both paper and metal.
In the thirties of the last century, coins were issued from all denominations, bearing the image of the face of King Faisal I, and printed in Britain. A year later, the Iraqi dinar was issued, which was linked to the British pound, and then it was decided to peg it to the US dollar without changing its value. After the second Gulf War, and due to United Nations sanctions, previous foreign-printed dinar issues, known as the Swiss dinar, were no longer available. A new banknote bearing the image of King Ghazi I was issued, and then coins bearing the image of King Faisal II were issued. With the republican era, the value of the Iraqi dinar decreased and deteriorated after the Iran-Iraq war, until its value reached low levels, and one US dollar was equal to 3 thousand dinars in 1995. After the fall of Saddam Hussein's regime, the Coalition Provisional Authority issued an Iraqi dinar that was printed at Delaro's presses in Britain with specifications that are difficult to forge, and the Iraqis approached the dream of stabilizing their dinar. Thus is the journey of the Iraqi dinar from the top until what it reached from a permanent turbulent history that has never calmed down, and the reasons for its collapse are known at the present time, which is primarily the dependence on the rentier economy and the slackness of the state apparatus with employees and retirees, which made the government lose its control over the Iraqi dinar as is the case In losing its control over arms and the economy, this economic crisis has nothing to do with the Corona pandemic or with the drop in oil prices, as the government is trying to justify its crises in its inability to find solutions since 2003.
The recent reduction in the price of the Iraqi dinar came, by a decision from the Minister of Finance and in agreement with the ruling parties, explaining this by implementing the white reform paper as a magic wand, that is, raising the dollar exchange rate to 1,450 dinars after it was 1,120 dinars, considering it an approved price for sale from the Ministry of Finance to the Central Bank And the promotion that this reform paper had received support from the major countries, the International Monetary Fund and the World Bank. The main reason for this reduction is due to the Ministry of Finance borrowing from banks and re-deducting them with the Central Bank in large sums, under the pretext of paying salaries, and meeting other spending needs related to services provided to citizens who are essentially non-existent.
What increases the current crisis is the fact that Iraq imports almost all of its goods and needs, and makes payments in dollars. In this, the central bank is imagining that the new price will address the crisis, that is, it will act as a balance to meet the government's needs for liquidity without studying the fundamental causes of the great economic deterioration that the Iraqi economy suffers from, and without assigning the sensitive jobs in finance and banks to experts in this field. These talents and experts have always warned about the necessity to move away from the rentier economy and move towards agriculture and industry, supporting small businesses and so on.
Reducing the dinar will not contribute to achieving development that lacks scientific plans. Rather, it would exhaust the Iraqis and increase their troubles in circumstances in which dollars are smuggled into Iran, as this contributed to the exacerbation of the crisis after the imposition of sanctions on it, and Iran is the only beneficiary of the decline The Iraqi dinar against the dollar.
Iraqis fear that the value of the dollar will continue to rise to record numbers, and here the history will repeat itself, that is, the specter of the days of the siege on Iraq looms on the horizon, as the conditions of the Iraqi people have become complicated, and the past of the economic collapse of the recent past is still present, and it is possible that the dollar is equal to about three Thousands of dinars, after the Iraqi dinar was equal to three US dollars in the seventies and eighties. There is no guarantee in the future to stop the deterioration of the Iraqi dinar.
Undoubtedly, lowering the exchange rate of the Iraqi dinar has negative repercussions on the citizen and the economy alike, because the dinar has lost 20% of its value, while the local market depends on imported goods, which will lead to higher prices, which in turn will increase the number of Iraqis who live without The poverty line is where Marx's maxim is fulfilled: the poor get poorer and the rich get richer.
Baquba (NINA) Economic specialist Jamal Shaker ruled out dropping zeros from the Iraqi currency because it leads to the collapse of the country's economy and the Iraqi dinar. He told the correspondent of the Iraqi National News Agency (NINA) today that removing the zeros from the Iraqi currency needs a strong economy and a hard currency in order to be able to re-evaluate the price of the dinar, and this is unlikely in light of a collapsed economy, but the only treatment to gradually strengthen the exchange rate of the Iraqi dinar is an economic plan and exploitation Natural resources, activating investment, controlling outlets, developing oil fields, and completing the large FAO project. He added that floating the currency does not serve the Iraqi economy and causes great harm to the market