Reorganization of Iraqi Dinar

After the improvement in oil sector, Iraqi dinar also strengthened in its value and with this improvement Iraqi dinar is becoming the most viable currency of the Middle East.

Government of Iraq and Central Bank of Iraq has also managed to detain the foreign currency reserves such as pounds, Dollars, Japanese yen as well as gold regarding the fluctuations in marketing situations.

During the eighties, the exchange rate of Iraqi dinar was equivalent to 3.33 USD. Due to political instability and wars caused the economic declension and also became the reason for increase rate of inflation rate and the increased inflation rate led to dinar depreciation.

Central bank of Iraq established new procedures to protect the economy of Iraq and currency power of Iraq from customer’s chaos.

Mohammed Saleh, the C BI adviser said that deletion of three zeros from the Iraqi dinar was one of the plans of the reforming plans which projected the national currency improvement and national currency management. Adviser refused to disclose the date regarding the launching of dinar citing the complicated procedure the process concerns. He only leaked that Central bank would transmit its master plans and strategies to the cabinet with in next few days.

Miler, an expert of Finance confirmed that deletion process will bring the inflation rate to the lower level as example countries Brazil and Turkey. Miler stated that revaluation process will take place gradually with the replacement of old Iraqi dinar currency. So, there will be not any effect on the transactions and daily exchanges.

The economic analyst and former State bank governor Basil Jamal expressed his views that Iraqi dinar reconstruction would cause tension among the citizens. That’s the reason it should implement a campaign to organize financial institutions and citizens.

Moreover the economists and financial experts criticized on the banking sector which was unable to fulfill the expectations of investors. They further commented that after Central bank new laws and rules private sector worked to the limitations of their services They added that the private sector worked after the Central Bank rules and laws leading to the limitation of their services.

Waka Bank director named Samara, gave stressed that banking sector in Iraq could not compete with the international banking sectors due to deficiency of technology, infrastructure, lack of material and human resources. That’s the reason; these gaps influenced all foreign banks to open their branches in Iraq as well as Iraqi dinar revaluation and developments in economic conditions.

Lately, substantial improvements were seen in Iraq’s economic conditions and especially in oil sector. And these developments actually benefited very much to the Iraqi dinar value. And Iraqi dinar has already become one of the most famous currencies in the middles east. And along with the improvements, it has been making efforts to develop positive relations between Iraq and Kuwait and both states are making efforts to solve the problem of common border and the establishment of the Mobarak port.

In short we can say that Iraqi dinar will make remarkable increase in value and this increase will increase the wealth of people who have made investment in this currency.