Sandy Ingram
What will it take for the Iraqi dinar to strengthen against the US dollar?
Imagine a country as a business. The Gross Domestic Product (GDP) is essentially its annual report showcasing the value of all goods and services produced.
A high GDP indicates a booming economy...The currency rate on the other hand is a bit like a company's share price. It's the global market's way of saying how much it thinks that...country is worth.
The stronger the currency, the more confidence the world has in the country's economic stability and growth potential. How does a GDP affect a country's currency rate?
Simply, a higher GDP signals a stronger, productive economy. This attracts foreign investors, who need to buy the country's currency to invest. This surge in demand for the currency increases its value, or 'rate'...A rise in Iraq's GDP implies a healthier economy and a potential increase in the dinars value.
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