Dinar is the currency of Iraq and eight other Arab countries. In 2007, Central Bank of Iraq had formed a new strategic project known as “Iraqi Currency revaluation”. It had been decided that currency will be re-denominated by removing zeros from it to ease the cash transactions. It has been suggested to remove three zeros from the Dinar note by keeping the dinar’s actual value same. But it is very difficult to relate Dinar re-denomination with Dinar revaluation. Estimating the fluctuation of dinar revalue in the Iraqi market is very complicated process.
Dinar Revalue: Process
The value of money in Iraq is very unstable because of its various political and security issues. Iraqi government need to pay attention towards the Dinar revaluation in the foreign exchange market and in the global economy.
Dinar revalue will bring certain changes in the Iraq economy but the major focus is whether Iraq is geared up for such a change or not. To cope up with this change it is very important that Iraqi people should be educated and most important the verbal education. Later on when they achieve a certain standard in the economy they can become better educated and live a standard quality of life.
Dinar Revalue: Current State
At present, Iraqi Dinar is 1175 to 1 USD. But with a Dinar revaluation it is predicted that Iraqi Dinar would stand at 3 Dinars to 1 USD. It is anticipated by economists that investors who have invested in Dinar will yield good profits in near future after Dinar revaluation. There are lots of positive signs which reflect that many oil companies and nations are signing contracts with Iraq for oil reserves.
There are chances that Dinar revaluation will occur after June 2011 or later in 2012. It is predicted so because of following reasons:
• UNSC has abandoned Iraq’s appeal for an expansion of DFI protection of a year.
• Article 110 of the Iraqi constitutor needs parliament approval.
Dinar Revalue: future
People looking to invest in Iraq currency, Dinar, should first of all look for the Dinar revaluation process. Iraqi Dinar has experienced a huge low during wars, unstable political climates and economical environments, which has caused concerned for the Iraqi government to go through a Dinar revalue. Iraqi residents spend most of their dinars in purchasing the little necessities of their everyday life which is bringing great blows for the economy. This reason has pressurized the Iraqi government to go for a Dinar revaluation and enhance the Dinar value against the US dollar.
Iraqi economy has started to stabilize and its oil exports assure that the Dinar will get revalued and it will reach levels where it can compete with the US dollar. Under Presidential order 13303 US citizens have the right to invest in the new Iraq and Iraqi Dinar just like an Iraqi citizen. On the whole, the Iraqi Dinar is determined to be a controlled currency and is not accepted by international banks. It is prohibited to be traded on any forex exchange. Only authorized currency dealers have the rights to sell and purchase Dinar bank notes that are already in circulation. So, wait for the time when Dinar revalue process is completed and after it gets official recognition in the foreign exchange market.