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.
please keep me inform of any changes of the iraqi dinars.
James J Jernigan
i have 40 25,000 dinar > I bought in 2010 .im hoping to make a good return .
Notify me of revaluation please.
What is value of dong?
Keep me updated on Iraq dinars
Delilah E Green
I have dinar, what are they worth right now
if i have a dinar that says 25,000 on it and the exchange rate is 11.90 how do i figure the value?
I would appreciate continuing to receive updates on the Iraq Dinar revaluation.
Please keep me informed
Requests update of reevaluation
Thanks for the info
Please keep me informed of any revaluation.
Don’t be fooled by this scam, if you have already been fooled by it, you were an idiot.
I have 216,000 that I purchased in Bagdad in 2004. I hope the revalue happens before I die.
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