Even if you aren’t someone who is into currency trading or collecting, you have likely heard of the Iraqi dinar. The currency, commonly known as IQD, has become an increasingly more talked about subject. Is it because of the rich history that this currency has? Is it because it’s the hottest new investment? Well, it’s a mix of both.
However, the news that prompted the more recent spike in interest regarding the Iraqi dinar would have to be the news of the revaluation of Iraqi dinar. To some, revaluating a currency is something that they consider common knowledge, while for others, this term doesn’t mean much.
Here, we are going to go over the most important news in regards to the Iraqi dinar, what it means for the future of the currency, as well as explain some of the terms that are relevant for the Iraqi dinar.
A Short Overview of the History of the Iraqi Dinar
For any of this to make sense, we need to go over some of the histories of the Iraqi dinar. This currency is the official currency of Iraq, and it was established in 1932. If you are curious about the currency that Iraq was using before that, it was the Indian rupee (and it was tied to the British pound).
The Iraqi dinar was tied to the British pound until 1959, after that, it became tied to the dollar. Iraqi dinar banknotes were printed in the United Kingdom, and the method used was called the Swiss printing method. These notes were called the Swiss dinar and they were known for their quality.
However, after sanctions, Iraq had to resort to a printing method that created notes that were lower in quality. These notes were known as the Saddam dinar since the notes depicted the Iraqi president Saddam Husain. The government was heavily overprinting the Saddam dinars, resulting in inflation and public panic.
The government has been trying to fix the issues of inflation for years and years now. However, new or different issues would arise. For example, Iraq heavily relies on oil which is sold to American markets. About 90% of their budget is generated by their oil revenue. However, even as recently as 2020, the prices of oil dropped.
The Iraqi Dinar in 2020 and 2021
You might be wondering how oil prices and Iraqi dinars are connected. Not wanting to cause more panic or poverty, the Iraqi government started working on revaluating their currency in 2020. The Iraqi dinar is still tied to the American dollar, so creating a fixed exchange rate was instated as one of the countermeasures for inflation.
This year, at the end of the summer, the Deputy Prime Minister and Finance Minister stated that he supports a “floating exchange rate” for the currency. This fixed rate will remain until 2025. Meaning that the Central Bank of Iraq will keep the Iraqi dinar at a certain price range.
The people of Iraq are eager for a life with more financial stability, and this seems like one of the necessary steps for that to happen. Poverty indicators for Iraq have still been rising, creating fear amongst the people of Iraq. However, this is a sign of going in the right direction.
More and more currency collectors and currency traders are looking into the Iraqi dinar and the potential that this turbulent yet captivating currency has.
What The Future Holds for the Iraqi Dinar
The world of currencies, whether referring to the currency market or currencies as a collectible, simply can’t be predicted. This also applies to the Iraqi dinar. However, it’s an undeniable fact that the public’s interest in the Iraqi dinar is going up. Financial experts are also chiming in with their two cents, predicting that growth will likely happen, slowly but surely.
Are you interested in attaining your very own Iraqi dinars? Curious how you can get your Iraqi dinars? Well, there are a few ways when it comes to how you can buy this currency. There are online websites, brokers, agencies, and reputable companies that deal with buying and selling Iraqi dinars. Make sure that you are buying from a renowned source.
When you buy from a trustworthy, credible source, you are lowering your chances of getting scammed. Believe it or not, but currency scams are a more and more frequent occurrence, sadly. There are multiple ways in which you can verify whether or not you have an authentic Iraqi dinar or not. Nobody knows what the future holds, but you could hold some Iraqi dinars!