DrDinar Blog

The Future Of Iraq’s Economy

Politics in Iraq has been frustrating for all parties involved, including Iraqi citizens. The Iraqi people have been annoyed by the lack of leadership by all parties unite to form a unity within the government that works for the benefit of Iraq as a country. The election was held in March 2010 and most Iraqi thought that they will have a good government to lead them but a formal government is still not established.

Iraqi dinar revaluation is a tough challenge to answer especially for business and people who would like to invest in Iraq. While there might be some problems between the Iraq and United States, the problems concerning the Iraq’s economy is still bound to arise.

The revaluation of the Iraqi dinar is expected by many investors and economists because the economy is slowly spreading its arms to new opportunities. One of its promising new opportunities is the country’s oil supply. From the moment when the country discovered its abundant oil reserves, many of the oil companies and nations have signed contracts with the country’s oil reserves.

According to senior Iraqi Central Bank adviser the government has adopted a two-pronged plan to restructure the national currency in order to facilitate large transactions and make government accounts more efficient. Many Iraqis still depend mainly in cash and it was burdensome to carry bags full of money to pay for expensive items. This inconvenience leads people use dollars for any transactions instead of dinars which the Iraq government wants to end.

Many Iraqi dinar investors have invested in the dinar to take advantage of its historically low value. The current trading value of the Iraq currency is nearly 1175 to 1 US dollar. People are anticipating about the revaluation of Iraq’s currency because from the moment that this anticipated revaluation will take its occurrence, a gain is expected. This is good news for investors who have invested in it.Dinar investors are anticipating for Iraq to be stabilized as a country and waiting for the Iraqi dinar to be in the open market.

Today, Iraqi dinar can only be purchased from the private distributors since the commercial banks have stopped taking the dinar expect the banks that choose the develop policies to deal with the restricted dinar. Given that dinar is not listed in a foreign currency, banks do not have a necessity to carry the dinar. Investors are waiting for the dinar to be traded publicly so that market forces will establish the value of the dinar.

*************************************
This article is written for http://www.DrDinar.com
You may reprint this article online or offline as
long as this box remains and the link is
hyperlinked online.
*************************************

For most of the last decade, Iraq occupied the Arab world, as it was swiftly invaded by American forces in 2003 before being wracked by the insurgency that sprang up in opposition and then by waves of sectarian killing that grew into a civil war.

Since the bloodshed peaked in 2006, order has gradually been restored, though violence remains high by any but wartime standards. The fairest elections in the country’s history in March 2010 led to the creation of a government of national unity, although after only eight months of political stalemate that played out mostly along sectarian lines.

In 2008, Iraq and the United States signed a status of forces agreement, negotiated in the last days of the Bush administration, which called for the withdrawal of all American troops by the end of 2011. But the agreement was reached with a wink-and-nod understanding that a politically palatable way would be found to keep a substantial American troop presence in the country after that date.

On Oct. 21, President Obama declared that the United States would bring all American troops home by the end of the year, ending a nearly nine-year military engagement that cost the lives of 4,400 troops and more than $1 trillion, divided the American public and came to define America’s role in the world. What could be the effect of this action to Iraq’s government and economy?

The Iraq that U.S. forces will leave behind is far from stable, and the mounting tension between Iran and Saudi Arabia could well see a renewed flare-up of Iraq’s disastrous sectarian civil war. A jihadist Sunni insurgency has reasserted itself in recent months with a steady uptick in terror attacks, and it could become a vehicle for Saudi proxy warfare against Iran, which backs the Maliki government and various Shi’ite political and military formations, including Sadr’s. Kurdish-Arab tensions are growing in the north, where the fate of such contested cities as Kirkuk remains unresolved and a source of mounting security danger.

Iraq’s political future still remains contested, with sectarian and ethnic rivalries reflected in the continued failure to pass a low regulating the sharing of oil revenues, and mounting anxiety over the increasingly authoritarian approach of Prime Minister Maliki. Iraq could yet fail as a state. Those US forces no longer patrol Iraq’s cities, and are mostly involved in mentoring Iraqi units, although they have played a major role in mediating Arab-Kurdish conflicts in the north. But despite these conflicts in the government of Iraq, UN News Centre reported that Iraq’s security situation had improved, but while progress has been made, noted the need for further progress on the humanitarian, human rights, and political fronts.

There are speculations that time will come that Iraqi dinar will be revaluated due to the weak trading of dinar. The best place for investors right now is portfolio positions in physical precious metals, mineral exploration stocks, and quality mining. There is still very limited market for junior mining stocks among huge financial institutions as seasonal traders have left for the summer. CIBC Analyst Barry Cooper recently wrote, “The net result is that gold companies can now be purchased for about their intrinsic value for the spot price of bullion.” This lag in junior gold stocks, as well as in the overall junior mining stock market, will carve out a beautiful buying opportunity for investors to take a position at historically low prices compared to bullion.

**********************************
Written by http://DrDinar.com
This article may be reprinted online or
offline as long as this box remains and
is hyperlinked online.
**********************************

In no particular order these are the tips I want to suggest to my Dinar holding friends at this stage in the game.

Diversify – This is one of the most important elements to help protect you against the potential of loosing everything in your investment arena. Don’t put all your eggs in one basket. Iraqi Dinar should be the aggressive portion of your investment, 5% or 10%, maybe 20% of your total liquid (easy to sell) assets to be aggressive investments (including dinar)

Bathroom wall of society – Don’t just adopt any old article or belief you see on the internet. If you are a professional or a hard working middle class just remember that some of that brainy advice that looks authentic could be written from some slob sitting in front of a computer in a 400 square foot appartment. The internet is great but much of the internet is used as a writing board as it can be called the bathroom wall of society.

Invest only what you can afford to loose – I’ve been saying this for years also, only invest what you can afford to loose in the Dinar. If you can assume that responsibility you are mature enouph to play the game, I’ve had a very small handful of people over the years that want to point fingers and even sue me if the dinar goes bad. Talk to a certified financial advisor and bring this article before investing in Dinar. If it’s too risky for you, sell your dinar on ebay now.

Associate with others in the same boat – Don’t join just one blog or forum for the Dinar, join several so you can compare and contrast and stay in the loop. I watch many sites and when articles start pouring into my email inbox from many different sources all about the same thing, I know I need to take a closer look. But, I also watch for the little tip bits that can turn the Dinar investment into a whole new direction. The full troop pull out is an example.

Enjoy life and don’t watch results every day – Fluctuations in a currency can be deceiving up close, stand back and see the bigger picture on the charts. A currency can change value going up and down hundreds of times in one day. You can be winning and feel like you are loosing. Let the dinar do its thing and move on, sticking with your core values. Whatever they are.

**********************************
Written for http://www.DrDinar.com/blog
This article may be reprinted online or
offline as long as this box remains.
**********************************

The hottest topic in the weeks to come will be the troop pullout. Currently, the RV is the top topic but not for long. The news coverage alone will keep everyone glued to the topic of the coalition troops coming home. Coupled with the pullout happening around the Christmas holiday season will give the media the extra incentive to cover endless stories. But what about my dinar? Your dinar?

I do not anticipate a civil war breakout in Iraq due to the pullout, but it is possible. There are so many variables related to the pullout and what effect it can and will have on that I will not even attempt to get into it. Iraqi forces are well enouph to stand on thier own two feet. Politics is another story, what will happen with the Iraq Government, Iran is sure supportive of the pullout…

This is where the leadership will come to fruitation, hell or high water, Iraq’s leadership will be revealed. Raising money will be a priority for the Government but it will be done strategically, rocking the boat is not an option at this stage in the game. Success with all the trimmings is at hand for Central Bank of Iraq, Warka Bank, Government and private, the entire country but timing will be everything.

Pulling the trigger on the RV will not be done in haste, as haste will make waste. I do believe it will be done, and independence harnessed properly will be a good sign. So lets wait and see how Iraq takes on this first ride without the training wheels with a final push from big daddy.

****************************
Written for http://www.DrDinar.com
This article may be reprinted online
or offline as long as this ad remains
and is hyperlinked online.
****************************