The official currency of Iraq (Iraqi Dinar (IQD)) is a popular investment at the moment, but does it necessarily mean that is the right one? By buying the IQD most investors are hoping for a revaluation (that the price of the Iraqi Dinar will increase). The primary question should be why buying the Iraqi Dinar is a good investment.
According to Morningstar Inc., investors have put in approximately $3 billion within the past few months. You might be curious about where to buy the Iraqi Dinar, but there are numerous reliable and credible internet brokers that can help you invest in the Iraqi Dinar.
The Iraqi Dinar has been trading in a very narrow range, but it has been equally showing stability. The revalue potential of the Iraqi Dinar is very promising, especially considering that Iraq has incredible energy potential. Iraq is the world’s fifth largest oil reserve. While most people are quick to presume that the Iraqi Dinar will suffer the same fate as the German Rentenmark after World War II, the Iraqi Dinar has a better chance of revaluation at a higher level. This can be attributed to the fact that since the US invasion of Iraq in 2003, there have been newly built institutions, and the ones that previously existed are being improved upon.
In a general sense, aside from oil being a major export, Iraq has no place to go but up. The devastation left behind by the war has forced Iraq to rebuild, and as the infrastructure continues to develop, we could very well be witnessing Iraq rebuild an international economic boom of the future.
The growth, of course, is very dependent on internal politics. In the past few years, the country’s political situation has been superficially stable; in the very least. It’s essential to put into consideration that the political atmosphere has been hugely affected by the involvement of the U.S. If, however, we would consider the country’s current leadership for the future, unifying the country with a stronger leadership in order to alleviate local conflict (both religious and regional) then Iraq would have a better chance for the Iraqi Dinar to revalue higher in the future.
Despite the current political and economic woes in Iraq, the oil reserves are a glimpse at a wealthier future. A long term up-trend on the oil prices, or even the smallest spike, could improve the chances of a high revaluation of the Iraq dinar. Iraq is a stable oil-producing nation. As such, it is very viable as a major source of oil in a distribution chain that is often disturbed.
The stable oil distribution and higher oil prices would mean that Iraq will have increased flow of foreign capital into the country, therefore increasing the value of the Iraqi Dinar perhaps several times higher than its standing today. Even with the economic and political limitations, the fortunes from the oil are likely to prove detractors wrong causing the Iraqi Dinar prices to rocket even higher.