US Dollar Continues Upward Trend Against Iraqi Dinar Amid Economic Uncertainties, 8 OCT

 US Dollar Continues Upward Trend Against Iraqi Dinar Amid Economic Uncertainties, 8 OCT

The US dollar has continued its upward trend against the Iraqi dinar in both Baghdad and Erbil, heightening concerns about the economic future of Iraq. This follows the closure of the stock exchanges in Baghdad, with the dollar’s prices reaching 159,000 IQD for $100, up from the morning prices recorded at 158,350 IQD for $100. In local currency exchange shops in Baghdad, the selling price of the dollar has risen to 160,000 IQD for $100. Meanwhile, in Erbil, the selling price of the dollar stands at 158,750 IQD for $100.

Investing in the Iraqi Dinar: A Risky Venture

Investing in the Iraqi dinar is akin to investing in any other currency, where one purchases a certain amount of Iraqi dinar by paying the equivalent amount of US dollars. The hope is that the value of the dinar will increase over time. However, such investments are fraught with challenges and uncertainties. The value of the dinar is set by the Iraqi government and does not float freely, meaning that the exchange rate remains fixed by the central bank and is unlikely to experience rapid changes. Trading volume is also extremely low, and the dinar is not traded on the global forex market. Furthermore, there are many scams and frauds associated with investing in the dinar, adding to the risks.

The Tumultuous History of the Iraqi Dinar

The Iraqi dinar has a tumultuous history, its value has experienced significant falls following the 1991 Persian Gulf War and the overthrow of the Iraqi government in 2003. While there were hopes that the dinar could experience a similar rise in value as the Kuwaiti dinar after the Gulf War, there were also warnings of scammers selling dinar investments for inflated rates and fees. In late 2020, the Iraqi government announced a devaluation of more than 20% of the dinar to make up for a shortfall in liquidity. This led to public protests in a country already struggling due to the worldwide coronavirus pandemic.

Future of the Iraqi Economy and the Dinar

There are some reasons to be optimistic about the future of the Iraqi economy, including its large oil reserves. However, buying dinars may not be the best way to bet on the Iraqi economy. The dinar does not trade on global forex markets, and trading volume is extremely low. Buying dinars can only be done through high-fee money exchanges or certain banks in the Middle East. There are also many scams and frauds associated with investing in the dinar.

Overall, while there may be some potential for the Iraqi economy to recover and for the dinar to increase in value, there are many risks and uncertainties associated with investing in the currency. As such, it is important for potential investors to carefully consider these risks and rewards before investing in the Iraqi dinar.