The Iraqi dinar is one of the most interesting currencies in the foreign exchange market (forex). With its country in political turmoil, the Iraqi dinar becomes even more interesting, and it’s good to keep up to date with the latest news surrounding the currency. Here are a few things you might want to know about the current state of the dinar.
Dinar Exchange Rates
The Iraqi dinar currency code is IQD and the most popular exchange made with the Iraqi dinar is with the U.S. dollar. Currently, one U.S. dollar is equivalent to 1145.25 Iraqi dinar. The second top conversion for the Iraqi dinar is with the Malaysian Ringgitt, which is valued at 327.55 IQD per 1 MYR. The dinar is minted in the Central Bank of Iraq and it is only used in that country. In the past year, the dinar has experienced an inflation of 2 percent.
Following the 2014 election, Iraq is breaking in a new government. One of the first moves that government is taking, under the direction of Prime Minister Haider al-Abadi, is the formation of a budget. This budget is forecasted to include 108 trillion Iraqi dinars, with an expected deficit of 23 trillion dinars. This budget is being made in an attempt to stabilize the economy, which will in turn, stabilize the Iraqi dinar.
For several years, the world has been expecting a revaluation of the dinar, which will make for a more profitable trade. It has not happened yet; however, dinar gurus, who devote their time to tracking dinar trends on the forex, are firm in their belief that a revaluation is inevitable.
The Economy and Oil Reserves
Though the budget will help to stabilize the dinar, the United Nations agree that utilizing the 90 percent of untapped oil reserves on Iraqi land will be the best thing for it. The UN and the Iraqi government are working towards a solution for this, though no plans have been made yet. If the oil reserves were opened for trade, it would most likely bring stability to the economy and the currency, making it a very profitable trade indeed.