Iraqi dinar disappointing .. The speculators are betting on the future

Iraqi dinar disappointing .. The speculators are betting on the future
Many of them have lost confidence in him profits

Source: Middle East – 10/05/2012

Many Iraqis have lost confidence in the Iraqi dinar, but is a big profit for some foreign speculators. This disparity highlights the uncertainty surrounding the investment in Iraq while recovering from years of war and economic sanctions. According to Reuters, depends on the rise of the dinar speculators on simple logic, the Iraqi oil exports rose to 2.6 million barrels per day in September, registered their highest level in three decades. Iraq seeks to export six million barrels per day by 2017, which would make him closer to level the current Saudi. Even if the event of political instability and insurgent violence and bureaucratic without achieving this goal, Iraq is still in what seems on the threshold of an oil boom will lead to a shift in the financial situation. May grant the flow of new oil revenues Iraq a large surplus in foreign transactions and enhance public financial situation at the end of the current decade. This is the traditional recipe for a strong currency. Hassanein said Ali Agha, head of the company «dinars want U.S. currency trading high-risk ‘when buying the Iraqi dinar our investors because they know it is a long-term investment. You know that the reconstruction of countries takes time. Because banks outside Iraq are not traded freely, the dinar customers of criticism on the Internet, such as «dinars want are the only way in which foreigners can invest in the currency through. The company says that based Las Vegas it sells worth hundreds of thousands of dollars from the Iraqi dinar a day and shipped dinar for thousands of customers in the United States and elsewhere. said Agha, thanks to optimism about Iraq’s oil wealth, the company saw strong demand for the dinar since its founding in 2004, after year of the American invasion, which was followed by years of political violence and economic turmoil. But Iraqis in Baghdad are not convinced. Many exploits any opportunity to convert their dinars into hard currency, and use of the U.S. dollar in their daily except small ones. Iman said Saad Eddin, a housewife and mother of two «We have no confidence in the Iraqi dinar .. We fear that Ndk. Have more confidence in the dollar. Dollar fluctuates a fixed price tag. Iraqi dinar saw sharp fluctuations during the past three decades. In the eighties dinar was worth three dollars, but economic sanctions imposed on Iraq almost concurrently with the Gulf War in 1991 pushed the currency to fall, and fueled inflation fueled by the government print money. In late 1995, the dollar nearly three thousand Iraqi dinars. and after the 2003 invasion of the Iraqi Central intervention in the exchange market to support the dinar and use the revenue from the dollar to control the exchange rate. But over recent years, despite the growth of Iraq’s oil production, did not rise as he had hoped dinar speculators. The central bank sells dollar in daily auction at constant 1166 dinars, a level did not undergo any significant change since 2009.
Source: iraqdirectory