Introduction Of Iraqi Dinar
History of the Iraqi Dinar
Like Iraq, the dinar also has a colorful history. When we speak of the dinar it
is important to differentiate between the Kuwiati Dinar, the Jordanian dinar,
the Iranian dinar, the 'old Iraqi dinar' and the 'new Iraqi dinar'.
Kuwait, Jordan, and Iran's dinar are not related to the Iraqi dinar in any way
other than their name. The old Iraqi dinar was first created in 1931. Its value
was tied directly to that of the British Pound sterling, and, in fact, was
printed at mints located in the United Kingdom.
Prior to the introduction of the dinar, the official currency of Iraq was the
Indian rupee which dated back to British occupation of Iraq during the world war
period of 1931 to 1947. During this time the dinar was printed and circulated by
the Iraqi currency board; although, the tie to the Pound sterling was still in
place.
After the 1958 Iraqi revolution, or coup d'etat, the connection to the Pound
sterling was severed and the dinar traded at a higher rate for a short time,
then plummeted.
After the first U.S. invasion of Iraq in 1991, the Hussein government began
printing a cheap paper note in unsupportable quantities. The pre-1991 notes,
called the 'Swiss Dinar', because they were printed on high quality paper in
Switzerland, remained the official currency of the Kurdish region of Iraq for a
period of time.
During Saddam's regime, Saddam decided to try and set the exchange rate himself
to a little more than $3 dollars per $1 dinar. This of course was not accepted
by the market and was only available to those close to Saddam.
Unfortunately, this is what most Iraqi Dinar Dealers try to play upon. They try
and get you to buy into the lie that the Dinar was at one time openly traded at
some incredible exchange rate and that it will be there again.
The value of the currency quickly plunged and free market support of the Iraqi
Dinar collapsed.
Enter the New Dinar Iraq
Immediately after Saddam Hussein was removed from power, the newly formed Iraqi
Governing Council and the Office for Reconstruction and Humanitarian Assistance
printed more of the preinvasion
250-dinar notes as a short-term solution to keep the economy flowing as smoothly
as possible considering the circumstances. During the period of October 15, 2003
and January 15, 2004, the Coalition Provisional Authority began printing and
circulating the 'new' Iraqi Dinar. This version is a thoroughly modern banknote
with the latest anti-fraud and anti-counterfeiting measures built in, and no
likeness of Saddam Hussein anywhere on the note.
The new Iraqi provisional government allowed citizens to exchange their Swiss
dinars at a one-to-one rate.
The creation of this new dinar enabled the Central bank of Iraq (CBI) to start
the process of building a sound monetary policy designed to encourage banking
and investment in the country's infrastructure. It is the job of the central
bank to conduct currency auctions which establish the value of the dinar. The
new dinar has enjoyed some amount of appreciation since its introduction and
currency speculators hope that this trend continues.
The New Iraqi Dinar
Starting October 15th 2003 a new Iraqi currency known as the 'new Iraqi
dinar' began to replace the 'old Iraqi dinar', and the currency used in
the North of Iraq, the 'swiss Iraqi dinar'. The new Iraqi dinar created a single
unified currency that is used throughout all of Iraq.
HISTORY and FACTS
Before the war the Iraqi dinar sold for over $3 US. Many believe the Dinar with
vastly increase when is introduces to forex (foreign exchange) Iraq is sitting
on the worlds second largest oil reserve currency rises are not as uncommon as
you would think when the hostilities between Iraq and Kuwait were ended the
Kuwaiti Dinar nosedived to 10 cents per Dinar.
About the Iraqi Dinar
Before the war and Sanctions against Iraq, the Iraqi Dinar was worth $3.20 USD Dollars. Iraq’s Proven Oil Reserves are over $11.6 Trillion Dollars.
1. Iraqi Dinar Value before war 1 Dinar = USD 3.20. At that time,Kuwait Dinar is worth 1 Dinar = USD 3.40.
2. Kuwait vs Iraq War in 1990, Kuwait Dinar
plummeted to USD 0.30. In 2003, the Kuwaiti dinar surged back
to USD 3.40. But economists are already predicting the Iraq Dinar
is equal to the USD surged 3.20.
3. Iraq has the world’s second highest oil reserves at 143.1 billion barrels,with
95 percent of Iraq's revenue coming from exported oil
4. Oil exploration efforts in Iraq today
is towards the production of 11 million barrels per day within the next 5 years,
which is equal to the total output of Saudi Arabia. All the big
investors and global investment funds focused and poured into Iraq looking for oil.
5. Iraqi dinar value will rise along with
oil production. Analysts predicted that if Iraq reaches the production
of 5 million barrels a day, then the value is Dinar
at least equivalent to USD 0.10 ?
6. After the float, Dinar can be traded
on the open market. Commercial banks and money changer.
7. The United States is the country most
buy Iraqi Dinar. Now they are the best hope was floated on the
Dinar
8. In 2003, when the new Iraqi Dinar was
introduced, the economic forecasters expect the dinar to float within a period of
between 5 to 10 years. Now after 7 years, then it is a most appropriate
time and look forward to by all parties
9. When the dinar has floated, then in
practice it usually can be sold or exchanged at any commercial bank or money changer.
10. Why are you waiting for. The rise of the Iraq Dinar is not
to far away .The opportunity is in front . Buy Iraqi dinar, as the most prudent investment in this century.
The Iraqi Dinar has a few steps involving the
revaluation. These include electing a stable government, removing sanctions imposed
by the United Nations in the early 90’s, WTO acceptance, and full accountability
of all Iraqi Dinar in the world by the Central
Bank of Iraq in order to stabilize inflation.
When will the Iraqi Dinar be revalued?
Since the inception of the Iraqi Dinar in 2003, the Iraqi Dinar has continued
to increase in value, this is an indication of a recovering economy. This also means
an increase in the value of its natural resources, this present figure indicates
a sharp increase in the value of the Iraqi Dinar when compared to all other middle
eastern countries. It is also an indication that there is a steady revaluation of
the Iraqi Dinar.
Oil Production, Stabilization & Dinar Revaluation
With the firm footing of the new government in the right place, infrastructure reconstruction,
such as rebuilding many of the major oil fields, is achieving the much needed progress.
Meanwhile, Iraq has entered into agreements with international oil companies for
the exploitation of its huge oil reserves.
Is it risky to invest in the New Iraqi Dinar?
Of course there are risks in this type of investment. Nobody holds a crystal
ball and can guarantee that the currency will regain its pre-war value. That's the
main reason why many people are choosing to invest a relatively small amount from
their financial capability, minimizing the risk if the investment is not going as
planned but still guaranteeing massive profits if the Dinar will go up