When Will the Iraqi Dinar Revalue?


One needs to remember that Iraq is a strategically located Middle Eastern Country. A valued asset of Iraq is its numerous oil wells. Therefore it is in the best interest of the other Middle Eastern nations, as well as the Western nations, for Iraq to establish a stable economy. It is a political truth that no country whether it is Western or Middle Eastern is going to allow the natural wealth of Iraq to fall into the hands of corrupt government leaders or radical segments of the population.

Iraq has a very high quality crude oil which is extremely cheap. Since there are very few impurities or hindrances in drilling crude oil, the cost of production is very minimal compared with the other oil producing countries. That is the profit margin of oil production in Iraq is considered to be highest in comparison with the neighboring countries. Therefore, once the economy stabilizes, the potential GDP rate is going to be very high compared to the rest of the region.

It is also worth mentioning that financial entities such as WTO (World Trade Organization) and IMF (International Monetary Fund) along with other world banking organizations like the World Bank are working in conjunction with the government of Iraq to stabilize the financial system and also make it in par with other countries. Once this happens, the value of the Iraqi Dinar will increase in value. It is also believed that with an increase in the value of Iraqi Dinar, there will be more investors and currency traders in the financial market and this will create a free-flowing financial market. The combination of a better infrastructure, increased security, and more domestic and foreign investment will allow Iraq to continue to grow and prosper. With success of the people, government, and economy, the currency of the nation will increase in value.

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