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 preinvasion250-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
