Iraqi Dinar Is Ripe for a Revaluation
|December 18, 2010||Filled under Uncategorized|
A growing wish list of individual investors outside of Iraq looking in is, will Iraq’s currency, the Iraqi dinar, significantly appreciate in value versus other currencies in the world in the near future?
As more and more new investors buy into this strong investment possibility, they tell their friends about it. And as their friends buy into it, those friends tell other friends about it, and so on. A point is reached where there are so many individual investors that have bought and are holding Iraqi dinars in their possession, waiting for the day on which the value of the Iraqi currency will soar.
When the new currency began to be printed in 2003, it was estimated that about 5 trillion dinars were printed for circulation. Overtime, so much of this money landed in the hands of investors around the world. New reports have suggested that about 25 trillion dinars have now been printed and are in circulation. And of course as time progresses, more and more dinars leave the country and are ending in more investor’s hands hoping to cash in big one day.
The Iraqi banking system has come a long way since 2003 to become more modern. Many of today’s internet financial transactions are taking place and the actual notes are not required. The Central Bank of Iraq (CBI) monitors this issue to a maintain a balance between the needs of paper cash in circulation for the citizens of Iraq to do daily business. One of the ways it controls a balance of cash on hand is to have daily auctions of foreign cash to trade back to their own currency.
During and after Saddam Hussein was in power, the main population of Iraqi citizens remained very poor. However, its citizens have experienced tough times before and can see their future in a growing Iraq as a reason to stay. The Iraqis have a strong sense of staying the course, because Iraq belongs to them. They have a strong core belief in their country as shown during the March 2010 elections. Many threats of violence was in the air that they could be risking their lives if they chose to go out and vote. But the Iraqi people showed up to vote.
When Saddam Hussein was still in power, many citizens were tortured and poisoned by the dictator, and he was unable to overcome them. When the war in Iraq began in 2003, Iraq was very frightening for it’s citizens. “But the war did not defeat them, and they weathered the storm. Even Iran terrorized the citizens of Iraq and tried to bribe their politicians. The Iraqi’s have survived all this. Iraq has become the bright shining star in the future in the Middle East at the forefront of a new democracy in that part of the world.
The most recent political elections March, 2010 is their second such elections since the new Iraqi government formed in 2005. It took lot of time for the election committees to complete their count. Every day in every major global news site, there’s a lot of news headlines on the progress of Iraq forming a new government. The whole world is watching and waiting for every word of every article. Why, because there are so many individual investors around the world that are invested in the new Iraqi dinar? (If you found this article, it’s probably because you were looking for it, for example.) Perhaps this is partly the reason. And maybe a lot of the reason why news like this coming out of Iraq is so important is because of all the potential for crude oil that they have.
Iraq has the third largest known oil reserves in the world. (Some believe that it is actually the second largest). There is more oil to find in Iraq than anyone can imagine. Every week there is a new story in the news about a another oil field discovery in Iraq. And also, it seems like every week there is a news story about another country or major oil company signing a contract with Iraq for the rights to a piece of the oil reserves. Iraq gets revenues from every gallon of petroleum that comes out of the ground. This revenue is really starting to escalate. And the world needs crude to sustain life as we know it and it’s beginning to make Iraq a very rich country.
Many Optimistic Signs!
In September 2005, the new Iraqi government signed their new constitution into Law. Since then, the presence of Iraq’s military, with the help of large foreign military alliances, made the country more secure, with only a small amount of terrorism still lurking in the shadows. There is finally a perception that security is now under control, and in late 2010, the foreign military alliances will begin to withdraw from Iraq as they will be able to manage it with less help.
The Iraqi economy has started to spread its wings and their stock exchange has gotten off the ground. Many of the necessary utilities such as electricity and water have also improved over time.
If you began investing in the Iraqi Dinar from 2003 to 2006, you would have realized at that time that the currency was a investment long shot, but it just had enough potential to peak your interest. And if you have remained in this investment or are just getting in it now, the chances of this investment paying off has greatly improved compared to before.
Here is a quote from a newspaper ad I saw in 2006.
“Stability is the keyword in Iraq. Democracy is taking over and the Iraqi people are free. It is only a matter of time before the Dinar is released on the foreign exchange and many experts feel that Baghdad could be a mirror image of Kuwait City but on a much larger scale.”
The United States government believes Iraq is worth it, because it uses its tax dollars to help the Iraqi economy to get going. An oil company executive who requested anonymity, who bought dinars saying, “If you think the U.S. will let the second largest oil producing country in the world fall into the hands of bandits again guess again. That is not going to happen”.
Recently, the Iraqi government said, “we have promised the people of Baghdad and Iraq that the next four years will be the phase of construction and greater economy, and we will fulfill our promise”.
So, to answer the original question above, is the Iraqi dinar ripe for a revaluation?
Vehemently, YES! Because a new government is in place, and old oil fields are getting back on line, and new ones are being discovered, and security has been restored. Iraq also had a lot of debt piled up unpaid to many other countries. And most of that debt has now been forgiven by those countries. What will keep the Iraqi dinar revaluation from happening now? It is no longer a question of “If”, but “When” will it happen!
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