The Iraqi Dinar News Dinar Guru is a website that provides updates on the latest news and developments regarding the Iraqi Dinar. The site also offers guidance and advice on investing in the Iraqi Dinar.
Dinar Guru is a website that provides news and updates on the Iraqi Dinar. The site also offers advice on investing in the dinar.
What is the Iraqi Dinar
The Iraqi Dinar is the national currency of Iraq. It is issued by the Central Bank of Iraq and is currently pegged to the US Dollar. 1 US Dollar = 1,168.75 Iraqi Dinars.
The Iraqi Dinar was first introduced in 1931, replacing the Indian Rupee. After World War II, the dinar was pegged to the British Pound Sterling until 1959 when it switched over to being pegged to the US Dollar. In 2003, following the overthrow of Saddam Hussein, a new dinar was introduced with a peg to the US Dollar.
How Did the Dinar Become So Valuable
In the early 1990s, Iraq was in a state of turmoil. The country had just come out of a war with Iran, and was facing economic sanctions from the United Nations. In order to try and improve the country’s economy, the Iraqi government started selling its oil for dinars instead of dollars.
This caused the value of the dinar to increase, as there was more demand for it.
The dinar became even more valuable when Saddam Hussein came into power in Iraq. He made it so that only dinars could be used to buy oil from Iraq, which made other countries start buying up dinars in order to be able to trade with Iraq.
The value of the dinar continued to increase throughout the 1990s and early 2000s.
However, after Saddam Hussein was overthrown in 2003, the new Iraqi government decided to stop using dinars and switch back to using dollars. This caused the value of the dinar to drop dramatically, as there was now much less demand for it.
Today, one US dollar is worth roughly 1,200 Iraqi dinars.
Why are People Investing in the Dinar
People are investing in the Dinar for a few reasons. The most common reason is because they believe that the Dinar will appreciate in value. This is because, historically, the Dinar has been one of the strongest currencies in the world.
Another reason people invest in the Dinar is because it is a way to diversify their portfolio. By investing in a currency that is not as widely traded as the US dollar or Euro, investors can mitigate some of their risk.
What are the Risks Associated With Investing in the Dinar
When it comes to investing in the Iraqi Dinar, there are a few key risks that potential investors should be aware of. First and foremost, it’s important to remember that the Dinar is still a relatively unstable currency. While it has shown some signs of improvement in recent years, there’s no guarantee that this trend will continue.
In fact, if Iraq experiences any further political or economic turmoil, the value of the Dinar could plummet.
Another risk to consider is that many experts believe the Dinar is significantly overvalued at its current rate. If this is true, then investing now could mean losing a large chunk of your investment down the line.
Of course, only time will tell whether or not the Dinar is truly overvalued – so if you do decide to invest, be sure to monitor the situation closely.
Lastly, it’s worth noting that investing in foreign currencies can be a risky proposition in general. Since you’re essentially betting on one country’s economy performing well while another falters, there’s always the chance things could go against you.
Credit: www.michbelles.com
Conclusion
The Iraqi Dinar is a currency that has been gaining popularity lately as an investment. The reason for this is because there is a possibility that Iraq will soon revalue their currency, which would mean that those who have invested in the dinar would see a significant return on their investment. There are many different opinions on whether or not this will actually happen, but it is something that investors are keeping an eye on.