The largest financial market in the world is the foreign exchange market. It enables currency conversion for investments and trades worldwide with its massive trading volume.
People are able to exchange, speculate, buy, and sell on currencies through the foreign exchange market and they are able to optimize their profits by investing in the forex market.
History Of Iraqi Dinar
Decades ago, Iraq’s economy and the currency had hit its greatest peak. The economy was rapidly growing, the treasury was increasing with foreign exchange and value of Iraq’s currency has been stable and strong. Saddam Hussein’s legacy created a long-term effect on Iraq’s economy and currency, and it continues to remain to this day.
On July 16th, 1979, Hussein became the president of Iraq, and this became the nation’s downfall economically and politically. Iran’s economy deteriorated. The value of Iraqi dinar collapsed and worsened. Declines in GDP and hyper-inflation increased since there was no foreign investment but a huge debt. By the year 2000, the gross domestic product of Iraq was less than half of what it was back in 1980. Mass destruction and violence was prevalent and continued throughout the period.
The American military was transferred from the United States of America to Iraq. American soldiers eventually found Hussein hiding in a hole of a farmhouse after searching several times. After the invasion, the government of the United States has established a Coalition Provisional Authority to govern Iraq.
All throughout the reign of Saddam Hussein, the value of Iraqi dinar greatly suffered and eroded. Numerous amounts of wealth from Iraq was stolen by Hussein. The Central Bank of Iraq and the government repatriated the lost funds by all means.
The Rise Of Iraqi Dinar
Iraq’s economy started to reset little by little when Hussein was executed and no longer in power. The Central Bank of Iraq was instructed to print more dinar notes in order to ensure an orderly financial transition. Beginning in 2004, the new dinar notes that were issued by authorities started using anti-counterfeiting techniques.
Iraq’s economy skyrocketed upward since 2007. Ninety-five percent of the revenues in the country were derived from oil sales. On the other hand, the attacks and sectarian violence of ISIS have threatened Iraq, yet the oil industry still thrives. The financial services of Iraq have grown dramatically after countless foreign-based banks started to compete in Iraq’s marketplace. Regional Arab, Lebanese, Turkish, and European banks have been joining since 2004 up to the present.
Iraq’s neighboring countries, such as Turkey, Syria, and Iran were the country’s largest import partners that supplied consumer products that have not been manufactured in Iraq. The country also became a partner of the United States, India, Italy, Japan, South Korea, China, and the Netherlands. Iraq’s exports had risen to $50 billion by the year 2010.
Iraqi Dinar Revaluation
The history of the Iraqi dinar is very devastating. People are expecting an Iraqi dinar revalue. There is a possibility of an Iraqi dinar revaluation in 2019 as the demand for oil increases and the economic and financial status of Iraq has improved because of its recent and past developments. The Iraq Stock Exchange started making advancements to see an increase in Iraqi dinar currency.
Major changes regarding the Iraqi dinar can occur on very short notice, even if it may seem unlikely based on its history and the circumstances the country faces today. It is crucial for Iran to protect its economic, political, and global situations. A single disruption in its economy and government may start a domino effect that could cause conflicts and bigger problems.
Iraqi Dinar Investment
People are claiming that the Iraqi dinar will be one of the highest valued currencies in the next decade because of its healthy and blooming oil production and resolved issues. The citizens of Iraq are still recovering from Hussein’s reign and influence, yet they see the currency’s future potential.
Iraq restored its oil field infrastructure and is now part of the global oil market. The country is hopeful that it will be one of the biggest oil suppliers that could generate billions of annual revenue in the next few years.
To sum it all up, the Iraqi dinar has the potential to increase its value in the future. Iraq’s authorities aim to build a new monetary system and encourages foreign investments. The country’s economic outlook is expected to grow due to its improved investments and security.
Cover photo credit: YouTube