Around the globe, people are investing in this form of currency because of the promise of it providing wealth in the upcoming years. When you research this form of currency as a method of investment, there are some things that you need to know.
1. The value of the dinar is low
2. There is going to be a revaluation
3. Iraq holds the second largest oil reserve
All of these are reasons why it’s important to invest in the Iraqi currency now. People from the United States, Europe, and elsewhere are already investing in this currency because they see the value of what’s to come in the next few years. There is a lot of speculation in terms of people being able to “get rich quick” because of how the Iraqi currency may increase significantly in the next few years.
Look at the Facts
There is a lot of Iraqi dinar news out there. Before you read about all of the negative aspects that people like to focus on, you need to know the facts.
Fact: Iraq holds the second largest oil reserve in the world. There is the prospect of doubling the oil revenues in the next 10 years.
Fact: When there is a currency redenomination, there will also be an Iraqi dinar revaluation. This is likely going to result in a significant increase in the value of the dinar.
When there are too many zeroes on a bill, the currency will be redenominated as a way of making it easier to process. This revaluation will create a stir in the financial world because it will suddenly be of a higher value. Those who have already invested in the currency will see their investments pay off – and this can result in a lot of people making a lot of money.
What People are Saying
In order to determine if the Iraqi dinar rate is going to be a good investment for you, it’s a good idea to find out what people are saying in terms of why you shouldn’t invest.
The debt forgiveness has already happened. Approximately 80% of Iraq’s debt has been forgiven. This includes the debt from the United States as well as the Paris Clubs. This has reduced debt by over $45 billion in the past decade.
Iraq has less debt than ever before and this makes it easier to focus on the oil reserves – which are where the country is going to turn its economy around. This is where the focus is. The debt has nothing to do with whether or not the Iraqi currency is going to strengthen. It’s only a matter of time before it goes up in value because of the oil reserves, not the debt.
The Status of the IQD
Since 2009, the IQD has been virtually a flat line across the board. This is as a result of a weak currency. While the Iraq government has tried to focus on an increase, much of it has to do with the export of oil. As more oil is exported, external currencies are brought in – and this can strengthen the Iraqi currency.
At the end of the day, there are various reasons why the Iraqi currency can go up. It certainly cannot get much lower than it is and when the oil has the chance to double its revenue over the next decade, this is only going to work to strengthen the currency.
The government is already aware of the issues that it faces and is working hard to strengthen the Iraqi currency in order to compete more effectively with the rest of the world.