Iraqi Dinar Value - A Serious Discussion on Where the Value of the Iraqi Dinar Could Be Going in The Near Future.Iraqi Dinar value is about the pure speculation and strategies used to acquire, accumulate, and then profit from Iraqi Dinar.The speculative rise and fall of the Iraqi Dinar Value seems to be a favorite topic of everyone on the internet. The current Iraqi Dinar Value set at exchange rates is determined by the price sold at auction held by the Central Bank of Iraq daily, which involves a number of Iraqi banks to participate. Recently the Iraqi Central Bank has denied rumors that it is on a quest to raise the exchange rate of the American dollar against the Iraqi Dinar. Whether they are truly not trying to increase the relative value of their currency or not, there has been quite an appreciation of the currency over the past couple of years in relation to the US dollar. This rise in value is apparent whether they meant to have the currency rise in relation to the dollar or not. A serious discussion to the direction of the money is below. Determination of Iraqi Dinar ValueI find the stable value of the Iraqi dinar very curious until I consider the political pressures at work to maintain the Iraqi dinar value on the world market. The vast amount of resources poured into Iraq by world powers including the US should pave the way for further stability and hopefully appreciation as the country and its economy rights itself. When looking at the Iraqi Dinar value a currency is only as strong as the economy underpinning it. One thing that cannot be overlooked is the natural resources of that economy. Any serious conversation involving Iraq should take into account the vast natural resources the country is suspected to have. Even though it may have lost its luster for the moment in these trying economic times make no mistake, the country with the most oil wins… …and Iraq is floating in oil and other natural resources, and best of all, a huge supply of fresh water, which is crucial to the economy in that area of the world. Top Oil Reserves by Country In Billions of Barrels1.) Saudi Arabia: 261,750 billion barrels 2.) Iraq: 112,500 billion barrels 3.) United Arab Emirates: 97,800 billion barrels 4.) Kuwait: 96,500 billion barrels 5.) Iran: 89,700 billion barrels 6.) Venezuela: 77,685 billion barrels 7.) Russia: 48,573 billion barrels 8.) Libya: 29,500 billion barrels 9.) Mexico: 26,941 billion barrels 1 0.) Nigeria: 24,000 billion barrels …and Natural Gas Greatest Natural Gas Reserves by Country, 2006 In Trillions of Cubic Feet1.) Russia 1,680 trillion cu ft 2.) Iran 971 trillion cu ft 3.) Qatar 911 trillion cu ft 4.) Saudi Arabia 241 trillion cu ft 5.) United Arab Emirates 214 trillion cu ft 6.) United States 193 trillion cu ft 7.) Nigeria 185 trillion cu ft 8.) Algeria 161 trillion cu ft 9.) Venezuela 151 trillion cu ft 10.) Iraq 112 trillion cu ft So what levels will the currency return to? Nobody knows, but this is what I like about this idea. $50=76,950 NID $250=384,750 NID $500=769,500 NID $5000=7,695,000 NID $10,000=15,390,000 NID
I have put together a table to see what the return on a certain amount of money would be if used to buy NID and exchange it with a bank for dollars. The numbers across the top is the value in US Dollars you might be able to exchange the NID for if and when the economy recovers. I don’t think you can get any bigger bang for your buck anywhere else. Remember this is just a hypothetical situation if and when the Iraqi economy recovers.
The above table is just for fun, but I think it gives you some idea of the speculative possibilities if you let your imagination run wild. There is another way to look at the equation which is probably not as pie in the sky, what if the New Iraqi Dinar you buy which represents the oil and gas riches of an entire nation were to climb to 1 cent to every US dollar? Lets say you bought 2 million New Iraqi for around $1,600 to $2,400, and the Dinar climbed to be worth 1 cent for every New Iraqi Dinar you own… Potential Value of 2 million New Iraqi Dinar:
What do I think the currency price will return to? It is way too difficult to predict what a country’s currency is going to be when, but one thing you can do is look at the countries around Iraq to see how their currencies stack up against the Dollar ($). In my humble opinion I think it will at least climb to where some of the oil producing countries have their currency pegged around the region. You can get these currency values at http://www.oanda.com. It is the best currency converter out there. Here are what some of the other countries around Iraq have as far as currency values, I think that Iraq currency returning to these levels is realistic, though again it is impossible to predict future results. My hope is that it will return to prewar levels closer to what the Kuwaiti Dinar is trading for now. So as of the date I am writing this report at the top end you have 1 Kuwaiti Dinar = $3.472463 to every US Dollar. The Value of Surrounding Currencies and How Much 1,000,000 New Iraqi Dinar would be worth if the New Iraqi Dinar Rises to an Equal Level
Most of these countries with the exception of Saudi Arabia don’t have anywhere near the natural resources in oil and natural gas that Iraq has in reserves. So while I hope for millions, I think I could live if I only got a measly couple hundred thousand dollars for my $1000 buying price of Iraqi New Dinar. I hope I have created a picture for you of what the possibilities are in this situation. I cannot stress enough that I am not telling you to do this, I am not even suggesting that you do it. However, I think you should do a lot of research and see what the possibilities are for you with this opportunity right now so you can make an educated decision.
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