Fluc-tu.a-tion (n.) – to rise and fall like that in waves, as the dictionary said, so is the current state of Iraqi Dinar. We’ll take a closer look at the notes we have been holding in our hands for quite some time now.

Why IQD Fluctuates?

Sinan al-Shabibi, Governor of the Central Bank of Iraq, released his words on a conference saying that fluctuations of Iraq’s currency were due to political instability and the difficult situations of its neighboring countries, Iran and Syria. However, some economists and members of the ministerial committee are not convinced with CBI’s reason. The opposing party said that fluctuation is caused by CBI’s inability to control the exchange rate with the rising demand of dinar from foreign investors.

What could really be the reason behind the fluctuation? Is it valid to say that this is because of the unstable political condition of the Iraqi government? How about the uncontrollable prices of the domestic currency?

Last April 30, 2012, Alstqama received an electronic copy of the released statement from the Office of Shaways. The electronic copy stated that the Office of Shaways released a statement telling that there was a presentation made by the advisers of the Prime Minister to show the main causes of the fluctuating Iraqi Dinar trade rate exchange against other currencies. However, this raised an extensive debate between parties – CBI and Ministers.

What does Iraq have to say?

CBI and Ministry of Finance are relentlessly expressing their thoughts to stabilize the exchange rate of dinar. As a matter of fact, on the same day (April 30, 2012), Iraqi Council of Representatives announced that the country’s most prominent banking institutions and Iraqi officials will be summoned to discuss about the implemented procedures to stabilize the currency. Moreover, according to Amin al-Hadi, a committee member, the committee requested new data about the procedures. Let’s just hope that these procedures (whatever they may be) will bring a positive change to our notes stored at home.

The meeting was attended by prominent ministers of finance, commerce and Agriculture, CBI Governor, Secretary General of the Council of Ministers with his assistant. The advisers to Prime Minister for Legal Affairs also took part of the discussion with the head of the National Investment Commission.

Iraq is really upholding its goal which is to stabilize its dear currency, isn’t it? Dinar information these days seems to be confusing at a certain point.

“We will get informed about the adoption of the bank and the Ministry of Finance for proper solutions in keeping the exchange rate and foreign currency selling procedures in daily auction.” Amin continued.

What do you say?

Although the concerned parties had their meeting, the value of dinar went to a decrease last month at an exchange rate of 1190 against the dollar. What does this change imply to your current notes?

However, the Central Bank of Iraq assured that it will not stop to manage the reserves of foreign currency. According to CBI, it will continue to regulate the banking sector as a measure to protect the economy and it will continue to implement monetary policy that includes exchange rate policies. After the discussion between Ministers and CBI, they have agreed to have a second meeting to get to the recommendations for dinar stability.

It seems that the country is taking its turn for a great change. They have started to focus on stabilizing the currency but, when will this take place? Will the fluctuation really be stopped? How about a positive fluctuation that will drive the trade rate to a higher value?

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Common sense in this game for Iraqi dinars is all about the right vantage points. Having a group like a forum, blog, or fan page for your dinar info is a great idea but if such community is crowded with negative aggression or a money driven capitalist who is looking to sell out their site in a moments notice, well, that my friend is not your best source for common sense.

Professionally moderated Iraq money portals along with common sense moderation rules will always refine a community that pumps out page after page of valuable rv intel that you yourself can filter through a brain cell.

Unless you are listening whole heatedly to some dinar guru you will need to filter investment information through your own beliefs values and rules. I recommend have multiple sources of information when making a decision that could change your financial landscape for good or for bad.

DrDinar for example is not based on Financial Advice, but has always been focused on reporting, hence, the DrDinar Report that has been released 3 times over the past 6 years. We are due for another update and it might even be a free report this time around but here is the final word- Take all the information you feel comfortable digesting, and present your findings in front of a financial adviser that you trust.

If you want to bank role $10,000 US dollars worth of dinars just make sure you show an article like this one to your trusted financial adviser along with other valuable intel and data so you can make a decision based on what is consistent with your risk tolerance and budget.

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In line with the bid from foreign companies, Iraq has been lining up a housing and commercial project worth $33 billion – $25 billion worth of housing units for unfortunate Iraqis in the reviving of Baghdad city and other provinces, and $8 billion for Iraqi ports to link the country to Syria, Jordan and Turkey. As the city government continues to lure foreign investors to resurrect the shattered economy, CBI sales for this period reached 94 million.

Things have been gotten up for both the government and financial institutions. Will this ever continue for the next five years? No one knows but, everyone is hopeful especially the Iraqi Cabinet. When Mayor Saber was interviewed just this week, he agreed to put $10 billion into the project.

If we consider the driving reason as to why the city government has been pushing towards the economy’s resurrection, Baghdad has been in a condition where it could hardly stand – decades of war and the UN sanctions imposed in 1990.

Take Sadr City as an example: This has been a large Shi’ite area at the northeastern part of the city. It has 7 million Iraqis suffering from electricity flickers (on and off) and lack of proper housing. Buildings in the area were battered by years of devastating war.

However, so much for shelters cobbled together for the area will be one of the major sites for the said construction project, stressed by Mayor Issawi. As a matter of fact, $870 is already allocated by the Iraqi Cabinet for the first construction year for Sadr city.

Iraq’s housing minister, Mohammed al-Darraji, even told the United Press International after his participation in the fourth executive office of the housing ministers in Indian Ocean and Asia last April 6, 2012, “We are trying with the World Bank to help us in building the housing units. The southern provinces need these units but we plan to cover all Iraqi provinces.”

So, the original plan was really to provide decent homes for all the provinces of the country. Just how determined is the housing minister of the country even if he had just escaped the traumatic assassination in the Capital of Baghdad last April 7 of this year!

To wrap up things, out of 27 interested companies and foreign investors, the city government ​only prequalified 7 companies to help them express their ventures for Sadr City. Some of the companies and investors include Broadway Malyan (UK-based architects), Halcrow Group, Woods Bagot (Australian based architects), some firms from the neighboring Arab world, consultants Pell Frischmann and structural engineers Buro Happold.

Moreover, the eastern part of Baghdad is the second site for construction which will include 65,000 flats. How much would this cost? The cost is estimated to be $20 billion good for 10 whole years. In short, the country is planning to reach 2 million homes between 2012 and 2015 – painstakingly challenging.

Although there has not yet been a concrete site for the third construction development, the third housing project is said to be in the western part of Baghdad city.

Just how massive this task can be? “We cannot do this by ourselves – we need international companies to get involved” Iraq’s Minister for Housing and Construction, Mohammed Sahib al-Darraji said.

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22 years ago (that’s 1990), UN had imposed Chapter 7 on Iraq. This was a part of UN Charter being the ‘Action With Respect To Threats To The Peace, Breaches Of The Peace, And Acts Of Aggression.’ With accordance to Article 41, Iraq had no choice but to adhere to the regulations set by UN that resulted to partial interruption of their economic relations and even other means of communication. In short, for more than a decade, Iraq was sanctioned and isolated from the world or so it seems.

However, that was 20 years ago – when Saddam had greatly inflicted the nation. Today, things have slightly changed and 2012 seems to be promising for the country especially to its currency, Dinar. Would you agree?

Iraqi dinar trade started in 1931 when it was backed by the British pounds to replace the Indian Rupee. During that time, Iraq had been under the guidance of Britain. However, when Saddam Hussein regime came into the scene in 1982, there was a subjective dinar exchange rate against the US dollar. He and his party had claimed that 1IQD was $3. However, this exchange rate did not adhere to the devaluation regulations of the US currency.

In 2003, after the Gulf war, dinar trade rate was 1IQD to $0.00027USD but, in 2008 it went $0.000512352. The unstable purchasing power of the currency against the dollar was because of the oppressing wars it had with other countries and sanction from the UN. 3 years after (that’s 2011), 1IQD reach a dollar equivalent of 1170 but, in January of 2012, dinar trade rate raised to 1160. For a span of 10 years, dinar trade has shown fluctuating movements but these movements have gained lots of speculators all around the globe.

Today, Iraq has established its Central Bank that has been issuing stable currency to circulate around the ISX. The country has been taking actions to build stronger International relations between foreign countries and this was greatly proven when Iraqi Diplomats tasted the American dream on USA Soil – a trade and economic forum held last January 31, 2012 in Washington DC.

Iraqi felt revived even more when the $100.5 billion budget for 2012 was officially confirmed by the agreement between Kurdish political blocs, Shi’ite and Sunni personnel. Just last March of 2012, a jump by 150,000 bpd on the country’s oil exports from the southern ports was experienced according to Reuters.

Going back to Dr. Sinan Al-Shabibi (CBI governor) when he hosted the US Chamber’s Iraq Business Initiative, he greatly emphasized that CBI is committed to a conducive environment for foreign direct investment through a more competitive and stable currency which has market based rates. CBI greatly knows that the reconstruction of Iraq will greatly need foreign investments and private sectors.

So, how would these positive events affect the current dinar trade? No one knows but, everyone understands the relationship between a stable economy of a certain country and its national currency.

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Who would have thought that the former US Military detention center in the city of Basra could raise a potential of becoming Iraq’s largest trading hub? Yes, a trade center that could link Asia and Europe. For years of being neglected and ignored, who would have thought that Camp Bucca could be set to become a link for commerce that could fuel employment and economic growth?

Basra is the second largest city of the country. During Saddam Hussein regime, this city was greatly oppressed and within the area was Camp Bucca which was once made to be US Military detention facility in the year 2003. This area was chosen because of its wide acres of land preferable enough to detain prisoners.

However, an Iraqi-owned development company (Kufan group) saw a great potential of its 740 acres of land that once held thousands of prisoners – they will turn Basra a massive logistics hub and it will be called as Basra Logistics City. For years from its freedom from Sadam’s reign, Iraq (consistently) is becoming ambitious, isn’t it? Well, they do have the land to become as such.

When Rami Faraj, one who is working on the said development, was asked by CNN reporter, Fred Pleitgen during an interview, Rami said, “It will be a connection hub to connect Europe to the Far East. The stuff or the goods come from Europe through Iraq and Umm Qasr and to the Gulf and the Far East and vice versa. It comes back from China and Japan. It will save time and money for the trading companies.”

In short, the group wants to link Asia and Europe to bring back life to Iraq’s second largest city. And they are aware of the challenges that need to be faced. The projected Basra Logistics City will include outstanding container terminal, food processing facilities, hotels, shops and warehouses. Without a doubt, the city is capable of accommodating all the ambitious goals of the Kufan group given the fact that Camp Bucca could detain 20,000 prisoners any moment from now.

Not to mention that American soldiers have left state-of-the-art infrastructure that will make it easier for the group to start its commercial operations. So, what about the security? Well, the geographical perimeter is a natural safe place for workers making it close to impossible to breach.

Near the Camp area is a water-treatment plant which is currently the source of fresh water for 45,000 people in Umm Qasr. Given the figures, Kufan group has invested $240 Million just on its first phase of construction – this makes South Iraq as the stage area to attract other logistic firms and big companies.

Kufan group still has to fix most of the port’s facilities (mostly from 1970s and 80s) which have not been properly repaired for more than 10 years. If they want to relive the glory days of what was once called the great Babylon, they have to fix the antiqued facilities that previous wars left. Iraq is currently doing its full modernization efforts for Umm Qasr. The Iraqi government and Kufan group expect, or so they seem to be, that Basra Logistics City will fuel economic growth in the area for the next years to come.

As the Deputy Prime Minister for Oil Affairs of Iraq, Hussein al Sharistani said, “The standard of living of Iraqis is much lower than what it should be, compared to the Gulf countries, Gulf oil countries; there is no reason why Iraq should (not) be living at that standard. And I think in the coming five to 10 years you will see a completely different Iraq.”

Every currency buyer should note that he/she should buy currencies from a particular nation only when its economic conditions are string enough. Presently, Iraq holds a favorable economic condition that has rather encouraged a lot of investors to buy Iraqi currency without hesitation. So, if you are planning to buy Iraqi currency, take a look at the following points which will help you end up in a profitable dealing:
First, you should know how to spot a fake dinar. Those who are new to the purchasing policies of Iraqi dinar might not be aware of the fact that the currency exchange market is full of fake dealers who are ready to dupe people by selling old dinars. So, you should know how to distinguish between old and new dinars.

The new Iraqi dinars are all printed by De La Rue consisting of a good number of anti-counterfeit features. Raised lettering, security thread, watermarks and optical variable ink are some of the typical features of the new dinar notes.

Once you have gathered knowledge to buy Iraqi currency, you can now head to choose a professional Iraqi dinar dealer. It’s better if you can get in touch with one of your local banks and ask for a dinar dealer. The majority of banks in Iraq usually provide dinar investors to people who prefer to deal with huge volumes of money.

One can also buy Iraqi currency online. There are several websites maintained by dinar professionals. You need to do some researches to pick the right dinar dealer. Remember, dinar investment involves a good lot of money. Therefore, you must be extremely careful and check whether the dinar representative is professional and has been conducting his business legally.
Once you are through with the researches, you can think of Dinar Investment and progress accordingly to buy Iraqi currency.

About the Author

Robert Cruz is not only an investor on iraqi dinar but also have good information on buy Iraqi currency. For more information on Dinar Investment he recommends you to visit http://www.gidassociates.com/.

According to UAE’s Al Ittihad newspaper dated March 26, 2012 replacement processes for the Iraqi Dinar banknotes will cost the country’s state budget of about $150 million or 172 billion dinars. Quite a bit of money just to change the look of the notes.

Officials want Iraqi dinar to be printed in Arabic, English and Kurdish language. The archaeological features of the country were even regarded to be part of the new notes idea. The Kurdish language is highly regarded as constitutional in terms of government transactions.

However, the cost that it would take on the process printing is said to be around $150 million – this includes print, transport, insurance and the work outside of the regular office hours. Is Iraq capable to spend this huge cash?

The said matter was alleged by Iraq’s Deputy Governor of CBI, Mohammed Saleh, when he released a statement saying, “The studies printed a new series of Iraqi currency started since 2005, and began correspondence with the Committee on Economic Affairs in the Iraqi government in 2007.”

This seems that it has taken up more than half a decade of planning. Saleh stressed that the project for the printing of the new currency will be characterized under the best security in the world.

Furthermore, Iraq just signed a contract with 4 big companies to print the notes and the coin variants of the currency. So, why take all the fuss? The idea is really simple – restructuring the currency will reduce the number of papers being circulated across the market thus, it will simplify and fasten Iraq’s payment systems.

So, when will this new Iraqi banknote look take its full occurrence? AKnews announced that the process will soon take effect this year in the month of September. In line with this, CBI plans to re-print approximately $26 billion worth of dinar.

One member of the Iraq’s economic committee of the Council of Representatives, Abdul-Hussein Abtan remarked, “The agreement includes granting the process of switching currency for a full year where both the old and new currencies will be dealt in the market during this stage.”

Abtan added, “…the process will contribute to dealing with inflation and facilitating economic cooperation with international banks and reducing social differences in the community.” This seems to detail the feared money laundering by some government officials who are also discouraging the CBI to stop the re-printing process.

Central Bank of Iraq said that it might consider requirements from the Council of Ministers as to determine whether the said project will need a law or not.

This idea from CBI was even supported by the financial committee of the Council of Representatives stating that if there would be a law to be implemented, the problem with inflation would significantly be addressed.

Well, not everyone believed that this could be a great move but, at least CBI reckons this movement as something positive to build up the economy.

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Will Baghdad accommodate all the Arab leaders and kings in one table at the same time? Where will they accommodate the guests?

Iraq’s capital city is getting a major make-over. As part of this make-over, Iraq has chosen Al-Rasheed hotel as one of the venues for the Arab League Summit this March 29, 2012. The hotel was renovated last year after it was torn by recent war.

For Baghdad, this isn’t just an ordinary conference but, a great proclamation to the Arab world that the country is accepted (again) as one of the great players in the Arab continent given the fact that the country has been pumping around 20,000 barrels per hour – not to mention that it hit its biggest oil output of more than 3 million barrels in one day last February since 1982.

Moreover, the country bought 400 armoured Chevrolet cars from the US worth about $160,000US a pop delivered. These expensive vehicles will ferry the Arab dignitaries and leaders in the upcoming summit. In return for supplying armoured cars for the dignitaries, the country will be exempted from the annual Arab League Membership Payments.

To note, this Arab Summit will be the first meeting since 1990. So, that’s around 22 years. This gives the country the deepest drive among any other Arab countries to host the conference. Arab leaders are expected to come. Iraqi Deputy Foreign Minister, Labid Majid Abbawi also announced that the UN Secretary-General Ban-ki Moon will be present in the upcoming summit (although there have been analysts who are skeptical if UN Secretary-General will really come).

So, what’s the agenda for this year? Leaders and kings who confirmed their attendance are to discuss the economic situations of Yemen, Tunisia, Libya, Egypt, Syria and the peace and order situation in Iraq.

Although, Syrian crisis is expected to be tackled in the summit, Syria won’t be at the meeting after being suspended. Who could have suspended Syria from the conference? Actually, it was the Cairo-based bloc that suspended Syria due to its dangerous crackdown on dissent. As a matter of fact, it is seeking the support from UN to oust Syrian President, Bashar al-Assad to step down from his deputy.

To the Iraqi government, Arab Summit predicts great challenges and the Iraqis are well aware about that. Is Iraq ready to meet the challenges amidst the ongoing violence in the region?

Iraqi Foreign Minister, Hoshyar Zebari released a statement in a television interview last February, affirming that the region is capable to host the summit, “We gavbe held.”

Chief of staff for the Baghdad security command center, Lieutenant General Hassan al-Baydhani even said that security forces hoped to keep the Iraqi capital “functioning” for the summit.

“We are working to keep Baghdad functioning normally during the summit, we do not put to put in place a curfew, but maybe necessity will require that. Certainly airspace will be limited only to aircraft carrying top officials visiting Iraq for the summit, with commercial air traffic set to be barred.” Baydhani added.

Prime Minister Nouri al-Maliki is also determined hoping that the Arab summit will attract more business in the region. The Iraqi government believes that a successful Arab League Summit would give Iraq the chance to reassure its neighbours that its security forces are ready to handle big events with or without the US troops.

To some analysts, world leaders are not expecting any huge stab from the conference but, for war-torn Iraq, simply holding it is a world-class victory for Iraq and it’s currency, the dinar.

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