What Is Iraq's Currency? - Dinar Exchange

0417 460 236 1300 856 881 dinars@dinarexchange.com.au

What Is Iraq’s Currency?

URL has been copied successfully!

When it comes to global currencies, the Iraqi Dinar stands out with its unique story. Similar to other currencies, you can invest in the Iraqi Dinar by purchasing a certain amount using U.S dollars. Just like stocks or bonds, you’re counting on the value of the Dinar to rise.

A Brief Historical Overview of the Iraqi Dinar

iraqi dinar bills

The Iraqi dinar is Iraq’s national currency. It has been the center of much speculation, particularly about whether it can increase in value against the dollar as Iraq’s economy recovers from several wars. However, hurdles persist. Major banks and brokers do not trade the Iraqi Dinar, making it a difficult investment path beset by hefty transaction fees through money exchangers.

Looking at the journey of the Dinar, the years following the 1991 Persian Gulf War saw Iraq’s economy shrink due to UN sanctions and rampant corruption. The Dinar, valued at $3 before the war, fell to less than a penny by 1993. Inflation sky-rocketed to more than 448% by 1994.

The overthrow of Saddam Hussein’s regime in 2003 and the introduction of new dinar notes infused a sense of optimism. Many believed that the Iraqi economy could transform for the better. Yet, its actual rise was slow and marked by fluctuations.

By 2007, the Central Bank of Iraq introduced anti-inflation measures to stabilize the Dinar. The currency began to gradually recover, attracting speculation regarding a rise in value. However, the end of 2020 saw a hard blow with the Iraqi government announcing a devaluation of over 20% of the Iraqi Dinar to compensate for liquidity shortages.

The Pros and Cons of Investing in the Iraqi Dinar

Before investing in the Iraqi Dinar, understanding its advantages and disadvantages is crucial. Some potential advantages include:

Iraq’s oil reserves could underpin economic growth.
Purchasing Iraqi Dinar might be a suitable investment for those living or working in Iraq.
Its exchange rate is fixed by the Central Bank of Iraq, mitigating chances of rapid value changes.

However, the disadvantages are significant.

The Iraqi Dinar has very little legitimate trading volume.
Its value is fixed and does not float with the market.
Several scams have offered overpriced IQD “investment packages” to speculative investors.
IQD does not trade on the global Forex market. To buy it, you may have to deal with high-fee money exchanges or certain Middle-Eastern banks.

Fair Warning on the Iraqi Dinar and Scams

Purchasing the Iraqi dinar isn’t part of a family picnic. It carries quite a reputation for scams. The country’s primary export, crude oil, is priced in USD. This makes the dinar’s value rather limited outside Iraq. But occasionally, schemes may lure you into buying dinars with a promise of a future price surge.

Typically, Iraqi dinar brokers dealing in the currency’s cash form charge between 25% to 30% premium over the official rate. Purchasers may risk massive losses right after the acquisition. Since demand outside Iraq is nearly non-existent, selling IQD is equally challenging. Brokers may bid 30% less than the formal exchange rate. If the exchange rate stays stagnant, transaction costs might eat into 60% to 40% of the invested capital.

You won’t find much of legitimate forex exchange activity in the USD/IQD currency pair. Top banks shy away from offering trade-in Iraqi dinars. Only selected brokers or money exchangers, with questionable legality, deal with IQD.

To Invest or Not to Invest in the Iraqi Dinar?

to invest or not to invest in iraqi dinar

The question of the hour is – should you invest in the Iraqi dinar? Well, it’s not a straightforward yes or no. On one side, it brings the thrill of investing in a currency that managed to ride through economic storms. But remember, it’s a path studded with complexity, scams, and uncertainty.

You may lose 50% without any exchange rate movement. In 2012, Iraq geared up to redenominate IQD, not revalue it. In the absence of revaluation, the Iraqi dinar’s value boost is unlikely on the horizon.

It’s not a journey for the faint-hearted, but with due diligence and constant market monitoring, one may tread the path. As the story of the Iraqi Dinar unfurls further, it will propel new waves in the global economic chronicle. And remember, every currency has a story to tell, each tale as intriguing as the denominations they represent.

How Dinar Exchange Australia Can Help

Navigating the labyrinth of investing can be daunting, especially when it comes to the volatile world of the Iraqi Dinar. This is where Dinar Exchange Australia can lend a hand.

At Dinar Exchange Australia, we’re about more than just transactions. We offer secure exchange services and bucket loads of expertise to guide you through the globe’s financial markets. Our team provides informed advice and unravels the potential rewards and risks that fringe the world of the Iraqi Dinar. Additionally, we value transparency, keeping you in tune with all the fees that come along with our services.

Investing is no less than an odyssey, particularly when it comes to the Iraqi Dinar. With a partner like Dinar Exchange Australia, you’re not alone on this journey. We make the exploration of the financial world less intimidating and more rewarding.

Are you ready to dive into the dynamic world of currency investment with the Iraqi Dinar? Contact us today. Let’s write your investment story together.

One reply on “What Is Iraq’s Currency?”

[…] Going beyond addressal of the present circumstances, the Central Bank Governor Ali Al-Alaq gave a scrutinized review of economic and monetary conditions. He also underscored staunch rules to oversee cash transfers and scrutinize cash operations— praising the Finance Committee’s contribution to monitoring the country’s financial trajectory and economic orientations. ALSO READ: What Is Iraq’s Currency? […]