Will Iraq Government Change The Dinar?
One of the hottest issues of the Middle Eastern market today is Iraqi Dinar. There have been a handful of economists who have predicted that the currency of Iraq will sooner or later rebase just like what happened in Turkey and Russia some years ago.
Experts have speculated this rebasing because the economy of the country is slowly rising. A lot of rumors have emerged regarding the rebasing of Iraqi Dinar. Lots of foreign investors have carefully followed the issue from time to time. And a couple of experts have drawn their own perspectives regarding the potential rebasing of Iraq’s currency.
Although there have been exhorted rebasing issues on the Internet, still there has never been a final word from the central bank of Iraq. A lot of people want this to happen but there are some who are quite skeptical.
So, what is to be expected if this will occur? It’s simple. If the rebasing of the Iraq’s currency is decided and implemented, the common 25,000 IQD will become 25 IQD. There would be changes in the banknote. The 10,000 IQD will be treated as a common 10 IQD. In simple terms, if 1 USD will make up for 1,000 IQD, the 1,000 IQD will become 1 IQD. In other words, 1 USD will be equal to 1 IQD. The 25 USD will be equal to 25 IQD.
But the lopping off of the three zeroes does not necessarily mean that the value of the currency of Iraq will immediately be equal to the US dollar. Definitely not! There is a difference between the banknotes and the value. But people may wonder if this change will affect the investors. Well, this anticipated phenomenon will never hurt the current investors of today.
As a matter of fact, this will give a lot more profit to foreign investors and to the citizens of Iraq. In what way? Why do some people want to rebase the Dinar? Actually, there are only two supported reasons at present.
First, in a certain developing country such as Iraq where cash makes up 80% of the money matter, obviously, people would rather choose for smaller banknotes than carrying a heavy bunch of papers. This will make transactions safer and lighter for investors and vendors. Second, the central bank of Iraq has coped in order to cut back Iraq’s high rates of inflation. This means that the ascent in the general level of the current prices of services and goods of the country will be easily monitored and managed.
Rebasing will be a wise solution in managing the growing currency of the country. The current government of Iraq has considered the issue but still has not drawn their final decision. But if this will happen, the new banknotes are predicted to be printed by the Britain’s De La Rue. Britain’s De La Rue is a renowned commercial printer for banknotes and is currently recognized as the world’s biggest printer of banknotes.
So, will Iraq rebase the Dinar? Well, for now we can only assume or anticipate but we can’t strongly assert because we don’t have enough concrete statements from the government of Iraq. What we can do for now is be positive and expect the best for the growing country. This ‘again’ is another indication that Iraq is developing. This is a strong indication that the country will face the big foreign market. If this growth will continue, Iraq will become a powerful nation again with citizens who are more confident and civilized. A lot of foreign investors will definitely get attracted and the ISX will definitely grow.