History of Iraqi Dinar

THE HISTORY OF IRAQI DINAR EXCHANGE RATE (IQD to USD) HIGHEST 1189.0531 IQD 31st March 2014 The Central Bank of Iraq purchased 36 tons of gold to help stabilize the Iraqi dinar against foreign currencies, according to a statement from the bank, AVERAGE 1166.2151 IQD Over Last Two Years An Al Qaeda-linked group in western Iraq began LOWEST issuing its own currency, featuring images of Osama bin 1160.2135 IQD Laden, which was presumably intended toreplace the Iraqi dinar, was being referred to as the 'ISIL dinar'. 10th February 2014 Past Present IRAQ INFLATION RATE HIGHEST 76.55% August 2006 AVERAGE 15.14% 2005 to 2014 LOWEST -6.37% October 2009 Jan 05 Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 Jan 14 RECENT HISTORY OF THE IRAQI DINAR 1991 1991 1992 1993 After the Gulf War in 1991, previously used Swiss printing technology was not available, resulting in new notes being of lesser quality. 1994 1995 1996 1997 1992-2002 1998 The previous versions of the Iragi Dinar started being called Swiss Dinars. Due to 1999 excessive government printing of the new issue, the Dinar devalued quickly. 2000 2001 2002 2003 2003 2004 New Dinar coins and notes were issued in 2003 to replace old Saddam notes to create 2005 a single unified currency. 2006 2007 2008 2010 2009 In 2010, the Central Bank of Irag announced their plans to redenominate the Iragi 2010 Dinar to ease cash transactions. The intention would be to drop three zeros from the 2011 nominal value of bank notes; but the actual value of the dinar would remain unchanged. 2012 Although the announcement stated that the change would take place by the end of 2013 2010, no redenomination has yet taken pla ce. 2014 2014 ONWARD Today, Iraq's GDP grows on average 6.625% per year (since 2005) putting the country's economy in the best place it has been in years, ranking 14th highest according to The World Bank. Many analysts believe Iraq is poised for one of the greatest economic recoveries on record. WHY ARE INVESTORS so INTERESTED IN THE DINAR? 1. INFLATION Countries with a consistently declining inflation rate, generally have an increasing currency value. HIGH 8.7% May 2012 INFLATION IN IRAQ IS CURRENTLY 1.5% DOWN FROM 8.7% IN MAY 2012 LOW 1.5% May 2014 Jan 12 July 12 Jan 13 Jul 13 Jan 14 May 14 2. INTEREST RATES Higher interest rates attract foreign capital, causing increased exchange rates. CURRENT PRIMARY CREDIT FACILITY : 8% Jan 04 Jan 10 Jan 14 3. CURRENT-ACCOUNT DEFICITS The current account is the balance of trade between a country and its trading partners, reflecting all payments between countries for goods, services, interest and dividends. Excess demand for foreign currency lowers the country's exchange rate until domestic goods and services are cheap enough for foreigners, and foreign assets are too expensive to generate sales for domestic interests. CURRENT ACCOUNT SURPLUS/GDP: 0.3% Jan 04 Jan 06 Jan 08 Jan 10 Jan 12 Jan 14 4. TERMS OF TRADE: Terms of trade (TOT) is a measure of how much imports an economy can get for a unit of export goods. IRAQ'S NET TERMS OF TRADE INDEX IS RISING, WHICH REFLECTS POSITIVELY ON THE VALUE OF THE GURRENCY. Jan 04 Jan 06 Jan 08 Jan 10 Jan 12 Jan 14 5. PUBLIC DEBT: Nations with large public deficits and debts (which encourages inflation) are less attractive to foreign investors. If inflation is high, the debt will be ultimately paid off with cheaper real dollars in the future. Thus, the country's debt rating is a crucial determinant of its exchange rate. THE CENTRAL BANK OF IRAQ HAS SUBSTANTIALLY REDUCED DEBT SINCE THE OUSTING OF THE REGIME IN 2003 BY UPWARDS OF $60 BILLION. Jan 04 Jan 06 Jan 08 Jan 10 Jan 12 Jan 14 6. POLITICAL STABILITY AND ECONOMIC PERFORMANCE: Political turmoil causes a loss of confidence in a currency and a movement of capital to the currencies of more stable countries. In recent years the tide has turned and massive investment is pouring back into Iraq. SOURCES: http://cbi.iq/ TREASURY VAULT: http://www.exchangerates.org.uk/USD-IQD-exchange-rate-history.html http://www.tradingeconomics.com/iraq/inflation-cpi "Dalvering oumanckes & commodies from our vauk to yours http://world.einnews.com/article/190140031 http://world.einnews.com/article/196888945