What will the iraqi dinar be worth in 2011

Japanese Shares End Higher on Tech-le Australian Shares Rise on Mining Boos New Zealand Stocks Under Pressure fro Indian Shares Rise Ahead of Inflation Calendar Forecast Indicators News. Population Unemployment Rate. More Indicators. National Statistics World Bank. We have a plan for your needs. Standard users can export data in a easy to use web interface or using an excel add-in. Inflows of new oil revenue could give the country big external surpluses and push state finances deep into the black by late this decade - the classic recipe for a strong currency.

Because the dinar is not freely traded by banks outside Iraq, online dealers of banknotes such as Dinar Trade are the only way that most foreigners can invest in the currency. The Las Vegas-based company says it sells as much as hundreds of thousands of dollars worth of dinars daily, shipping dinar notes to thousands of customers in the United States and elsewhere.

Back in Baghdad, however, Iraqis themselves are not convinced. Many take what opportunities they have to change their dinars into hard currency, and conduct all but small day-to-day transactions in U. We trust the dollar more. The dinar has endured wild swings over the past three decades.

After the invasion, the central bank intervened in the currency market to strengthen the dinar, using its supplies of dollars to manage the exchange rate. If a customer wants to sell his dinars, the dealer will only buy it back at a 30 percent discount - so no quick trades here. But Scarpa said he is prepared to wait. The country has the second-largest oil reserves in the Middle East and exports 3.

In the last four years, the dinar has barely moved. Since , it has appreciated by just 5 percent against the dollar, and at a tenth of a penny, the Iraqi dinar is the weakest currency among oil-producing Arab nations. By August , the dinar had plummeted to a fraction of a penny.

Redenomination is done in case of high inflation levels by old high-value notes being made equal to new small value notes e. Redenomination simply drops off the zeroes keeping the purchasing power the same as before. There are confirmed news items that Iraq did plan to redenominate its currency, but not revalue. In the absence of any revaluation, there is going to be no change in the forex exchange rate of Iraqi dinar IQD with or without redenomination.

Economists also point out that it would not be beneficial to the Iraqi economy to allow any such value appreciation by the authorities even by means of revaluation. Doing so will lead to multiple problems for Iraq:. However, this is misleading. The new release was to prevent the use of stolen and looted old Kuwaiti dinars. In the Kuwaiti example, the pre-war forex rates were retained, but old banknotes were swapped for new ones. Examples of European countries like the Netherlands, the United Kingdom, and France are sometimes cited in an attempt to justify an Iraqi dollar investment.

These other countries managed a rapid economic comeback from the effects of World War II, and are today considered among the developed countries. One important fact missed here is that these countries were able to progress faster because the war situation was completely different from the war in Iraq. In the case of the world wars, European countries in question were on the winning side and received maximum support in the post-war aftermath.

The case of Iraq, by contrast, is more of a civil war, where there exists a possibility of the country being split into multiple fragments.

Even if it stays as one nation, it will still take a good long time for the economy to recover. Some investors argue that the market could drive a strong appreciation for the Iraqi dinar in the post-war era, simply because the huge oil reserves will eventually make it a strong currency.

Similar to Iraqi dinar, similar rumors are reported for Vietnamese dong and, most recently, the Egyptian pound. No banks are offering Iraqi dinars. If you have to buy Iraqi dinars, you can buy them only at select money exchangers, who may or may not be legally registered. The bill was introduced by the Central Bank of Iraq in Nov.

This will erode the profit potential even for short-term trading. In terms of longer-term opportunities, forex trading in general comes with a few challenges:. How Iraq, its economy, and hence the forex rate develop over the long term, is a long-term uncertain bet. In addition, trading forex currencies is always risky, as external factors at international levels are difficult to control or predict. Unless you are trading on regulated markets or through regulated agents, traders and investors should use extreme caution for trading the Iraqi dinar or similar currencies.