Iraq has passed through many struggles during the last 10 to 12 years. The country has seen the NATO invasion, the end of the Saddam Hussein era and the killing of hundreds and thousands of people in sectarian violence. These events have left drastic effects on the Iraqi economy as well as the Iraq currency. At the time that the American and coalition forces invaded Iraq, the Iraq currency “Dinar” was extremely devalued against dollar. One dollar was equal to 2000 dinar, as the war progressed the dinar further devalued and reached 3500 dinar for a single dollar. But after a brief period of violence things are starting to settle down. The interim government is starting to function and the rebuilding process of the Iraqi economy, as well as the Iraqi currency, they have created a new Iraq currency which was introduced in 2004. With the help of the international community, the newly introduced currency was slowly and gradually becoming more stable against other currencies of the world. But the process is very slow and it could took some time to bring it back to the pre 1991 time when one dollar was equal to 2.80 dinar.
Iraq Currency: Stabilization
At the present time, the new currency is quite fragile and unstable. Now for the last few years the law and order situation has improved and in the same way the Iraqi economy has also shown signs of gradual improvement. With this we could see improvement in the new Iraqi currency and its exchange rate. It is pertinent to mention that the county is one of the biggest oil producers and the country has the potential to quickly revive its economy. But having said this, there are number of areas which require development, such as needing to rebuild its infrastructure, needing to improve technical services, hire new skilled workforces, and continue to promote a peaceful environment and foreign or local investment in the Iraqi currency and the economy in particular. Lets suppose there is peace in Iraq over the next ten years and the Iraqi government manages to rebuild their institutions and they are able to produce a highly skilled workforce, the Iraqi economy, as well as its new currency, will go up like a rocket in the sky.
Iraq Currency: Potential
The potential is immense. Now the question is how to make it possible? The current government of Iraq can do number of things to not only improve its economy but also keep its new currency in a stable position. One of the measures needed to be taken is to facilitate foreign investors to invest in Iraq. When the foreign investment comes to Iraq, the economy will flourish as well and the currency will grow. The other thing they could do is to develop their existing oil wells as well as to export oil and generate revenue. Once they have the cash in hand then they could do a number of things for the betterment of the Iraqi people.
The new Iraqi currency is passing through the process of rebuilding and development. If you are an investor and want to invest your money in Iraq, I think it would be a great idea but I would suggest you to use the dollar in place of dinar for now. Once the Iraq currency stabilizes, then it would be a great investment for the future.