This is the debate nowadays that Iraq’s financial and economic growth would be seen in the near future because of the higher exports of the oil and oil derived products. Authorities are seening level of comforts by allowing dinar to feel strengthen under the force of flows of oil money into the country in the long term.
According to the IMF, at the moment country is getting 0.2 percent budgeted surplus of gross domestic product to enhance this figure up to 12.1 in 2017.Iraq is still facing deficit in the trade of goods and services as it was in 2010 and 2011. But 2012 showed a MIX TREND of upwards and downwards.If we talk about the projection up to 2017 for next five years then there is an estimation of large surplus of 11.3 percent of GDP.
The central bank of Iraq is planning to make 1 Iraqi dinar equals to 1 US dollar with a consideration of redenomantion and positive reception, even though, that will take approximately 3 to 4 years to do that because of the instable circumstances in the middle east and its is also said if the circumstances changes over night in a shortest span of time then the process of redenomination will take over faster and convincingly the value of dinar will go up and up along with the increasing trend with oil prices and
Most of the analysts predict that the process of appreciation would go further and they are expecting Iraqi dinar to stay stable for the next 3 years, further more, after the expected castling of the Iraqi dinar, they will take Iraqi dinar beyond par against the value of the dollar, including the advantages and disadvantages of redenomination.
In order to do above adjustments with Iraqi Dinar Investment they will have to stabilize the politics, up to date skills, improved education, diversification in the economy so that not only depending on oil exports, and planning to offer finished product instead of exporting the crude form of oil.
To some how stability in the value of the Iraqi dinar has been observed for the last 3 to 4 years and it is still showing too much positives in its growth. After the invasion of Iraq in 2003, further execution of Saddam and renewing the currency notes, it is, on the average well in the course of stability along with a few political fluctuations.
Making bets in Iraqi dinar, by my point of view is slow, long term but most fruitful investment as we all know the higher the risk higher the profit and vice versa. But to determine the potential risk is the art of imagination and evaluating the past experiences which both are in favour of the Iraqi dinar to invest because there is no Saddam who spent most of his time in wars and destruction of Iraq.
Iraqi authorities are wishing the dinar go back to the value as it was like before, when it was equal to 3 US dollars in 70’s, 80’s. I expect the time will come when they will flourish with rich oil industry and economic diversifications when Iraq will be the strongest economy of the world because they are an oil bomb country.
No comments:
Post a Comment