Posts Tagged by Iraqi Dinar Revaluation Soon
|March 19, 2010||Filled under All Dinar Trade Articles|
The Dinar Trade- March 19, 2010 Iraqi Dinar Revaluation Soon A growing question by individual investors outside of Iraq looking in is, “Will Iraq’s currency, the Iraqi Dinar, gain value compared to other world currencies soon?” As more and more new investors buy into this speculation, they tell their friends about it. And as their friends buy into it, those […]
Iraqi Dinar Revaluation Soon
A growing question by individual investors outside of Iraq looking in is, “Will Iraq’s currency, the Iraqi Dinar, gain value compared to other world currencies soon?”
As more and more new investors buy into this speculation, they tell their friends about it. And as their friends buy into it, those friends tell other friends about it, and so on. A point has been reached where there are so many individual investors buying and holding the Iraqi Dinar in their possession waiting for the day when the value of the Iraqi currency is going to skyrocket.
When the new currency began to be printed in 2003, it was estimated that approximately 5 Trillion dinars were printed for circulation. Overtime, so much of this currency ended up in the hands of speculative investors all over the world. New estimates have been reported that approximately 25 Trillion dinars have now been printed and are in circulation. And of course as time goes on, more and more dinars are leaving the country and ending up in more speculators hands hoping to cash in big some day.
The Iraq Banking system has come a long way since 2003 in becoming more modern. Many current internet financial transactions are occurring, and are not requiring the actual paper currency. The Central Bank of IRAQ (CBI) monitors this issue a maintains a balance of needed paper cash in circulation for the citizens of Iraq to do day to day business. One of the ways it controls a balance of cash on hand is to have daily auctions of foreign cash to trade back for their own currency.
During and since the Saddam Hussein in Power days, the main populace of Iraqi citizens have remained very poor. However, its citizens have lived through hard times before and do see their futures in a growing Iraq as a reason to stay. The Iraqi’s do have a strong sense of staying the course, because Iraq belongs to them. They have a strong core belief in their country as shown during the recent elections. Many threats of violence were in the air that they could be risking their lives if they chose to go out and vote. Yet the Iraqi people showed up to vote.
When Saddam Hussein was still in power, many citizens were tortured and poisoned by the dictator, and he failed to overcome them. When the War on Iraq began in 2003, living in Iraq was extremely frightening for the citizens. But the war did not beat them, they stayed and weathered the storm. Even Iran terrorized the citizens of Iraq and tried to bribe its politicians. The country of Iraq has survived all of this. Iraq has become the bright shining star of the future in the Middle East leading the way as a new democracy in that part of the world.
The recent political election on March 7th, 2010 is their second such election since the new Iraqi Government was formed in 2005. It is taking a lot of time for the election committees to complete the counting of the ballots. Every day on every major world news site, there are many news stories making headlines about the progress on the counting of the votes in Iraq to see who the decided winners will be. The whole world is watching and waiting on every word of each news story. Why, because so many individual investors across the globe are holding the new Iraqi dinar? Maybe this is partially the reason. And maybe much of the reason news like this coming out of Iraq is so important is because of the all the potential for the oil they have. (If you found this article, its probably because you were looking for it, for example.)
Iraq has the third largest oil reserves known in the world. (Some believe it is actually the second largest.) There is more oil to be found in their country than anyone can imagine. Every week there is a new story in the news about another oil field discovery in Iraq. And also, it seems like every week there is a news story about another country or large oil company signing a contract with Iraq for the rights to a piece of those oil reserves. Iraq gets revenue from every gallon of crude coming out of the ground. This revenue is really beginning to escalate. And the world needs crude to sustain life as we know it and is beginning to make Iraq a very wealthy country.
Many Positive Signs!
In September, 2005, the new Iraqi government signed into law their new Constitution. Since then, the presence of the Iraq Military, with the help of the large foreign military alliances, has made the country more secure, with only a small amount of terrorism still lurking in the shadows. It is finally felt that security is now under control and in 2010 the foreign military alliances will begin to withdraw as Iraq will be able to manage it with less help.
The Iraqi Economy is beginning to spread its wings and their stock exchange has gotten its start. Many of the needed utilities such as electricity and water has also been improving over time.
If you began investing in the Iraqi Dinar from 2003 to 2006, You would have realized at that time that this currency investment was one huge long shot, but it had just enough potential to peak your interest. And if you have stayed in this investment or are just getting into it now, the odds of this investment now paying off are greatly improved from before.
Here is a quote from a news paper ad that I saw in 2006.
“Stability is the keyword in Iraq. Democracy is taking over and the Iraqi people are free. It is only a matter of time before the Dinar is released on the foreign exchange and many experts feel that Baghdad could be a mirror image of Kuwait City but on a much larger scale.”
The United States Government thinks Iraq is worth it because it is spending its tax dollars there to help start the economy. One oil company executive who wished to remain anonymous who purchased dinars said, If you think the United States of America is going to let the second largest oil producing country in the world fall into the hands of thugs again…guess again. It’s not going to happen”
Recently, the Iraqi Government stated “We have promised the people of Baghdad and Iraq that the next four years will be the phase of construction and better economy, and we will live up to our promises”
The Future of the Iraqi Dinar
So, to answer the original question asked above, “Will Iraq’s currency, the Iraqi Dinar, gain value compared to other world currencies soon?”
Absolutely, YES!… Because a new government is in place, and old oil fields are getting back on line, and new ones are being discovered, and the security has been restored. Iraq also had a lot of debt piled up owing to many other countries. And most of that debt has been forgiven by those countries. What will keep the currency revaluation from happening now?