Iraq’s currency is the Iraqi Dinar (IQD). It is issued by the Iraqi Central Bank and is divisible into 1,000 fils, even though the fils has been obsolete since 1990 due to inflation. The currency rate was IQD 1,483.5000 = US$1 on June 18, 2021.
The Iraqi Dinar replaced the Indian rupee as the official currency on April 1, 1932, at a rate of 1 dinar = 11 rupees, replacing the Indian rupee, which had been in use since the British occupation the country during World War I. The Dinar was tied to sterling until 1959, when it was transferred to the United States dollar at a rate of 1 dinar = US$2.80, without changing its value. The official rate increased to US$3.3778 before a 5% devaluation lowered it to US$3.2169, a number that held until the Gulf War in 1990, while the black market cost was said to be five to six times higher than the official rate in late 1989.
Is the Iraqi Dinar a good Investment?
What does “investment” in the Iraqi Dinar indicate? It’s the same as investing in any other currency, in a nutshell. You buy a certain number of Iraqi dinars (IQD) by paying the equivalent in US dollars (USD).
You buy Dinar at a set price and then expect the price to rise, just as you would with stocks, bonds, or other currencies. The real question is not whether or not you “can” invest in this currency but whether or not you “should.” While Iraqi dinars may be useful to those who live in or near Iraq, there are several reasons why you should not invest in dinars.
Advantages and Disadvantages of Investment in the Iraqi Dinar
1. There are some signs of hope for Iraq’s economic future. Iraq has the potential to rebound and reestablish itself as a stable economy, with 9% of the world’s oil reserves.
2. To restore investor confidence and revive the economy, the country will need a peaceful, promising business environment.
However, this does not mean purchasing dinars is the best way to bet on the Iraqi economy. The Iraqi Dinar does not float freely: the central bank sets the exchange rate, which means the currency’s value is unlikely to fluctuate rapidly. On the other hand, a more traditional investment vehicle, such as Iraqi stocks, could provide returns even if the Dinar’s value remains unchanged.
Furthermore, legitimate trading volume is very low; the IQD is not traded on the global forex market, and only a few Middle Eastern banks are willing to trade it. If you need to buy Iraqi dinars, you can only do so from a limited number of money exchangers, some of whom may or may not be legally registered.
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3. These brokers may charge up to 20% for such transactions, eroding the profit potential even for short-term trading.
4. The number of scams and frauds involving the Iraqi Dinar is perhaps the most serious concern. Several state regulators have issued warnings about currency “brokers” who promise high returns while charging excessive fees for difficult-to-sell dinars.
5. This scam proved particularly popular after the 2016 elections, amidst rumors that Donald Trump would somehow cause the currency to soar.
What is the value of the Iraqi Dinar?
As of May 30, 2022, one US dollar is worth 1,458.36 Iraqi dinars.
When will the Iraqi Dinar going to be revalued?
The Iraqi Dinar’s value is unlikely to change until 2026. The Iraqi Central Bank’s spokesperson declared in March 2021 that the currency would remain set for the following four years. Another government official later that year acknowledged that the exchange rate had been set in government budgets.
Will the Iraqi Dinar revalue in 2022?
SULAIMANI, SULA Hassan Nazim, a spokesman for Iraq’s federal government, stated on Monday (September 6) that the present price of the US dollar versus the Iraqi Dinar will be fixed in the draft 2022 Federal Budget Law and will not alter.
Is owning Iraqi Dinar illegal?
It is illegal to market investment without proper securities registration in the United States and other major economies.
Who is in charge of the IQD exchange rate?
The Iraqi government determines the Iraqi Dinar’s value, and it does not fluctuate unless the central bank alters the exchange rate. This means that the government sets the currency price for sale and purchase.
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