In December 2011, nine years of war ended in Iraq with the departure of the last remaining US troops.
On May 16, 2013, an Iraqi Airways Airbus A320 landed in the German city of Dusseldorf, marking the second European route for the formerly war torn nation’s flag carrier. It is yet another sign of a dawning Iraqi stability. While there is still a long way to go, Iraq is steadily gaining an equilibrium and taking its place as a nation.
One key sign of improvement is the stabilization of Iraq currency, the Iraqi dinar. pegged to the British pound until 1959, and disappearing from the international currency market during the war, the Iraqi dinar (also nicknamed the Swiss dinar because of the printing technology used) currently, the Iraqi dinar to US dollar rate is 1,260 to 1.
Iraq currency is one of 9 countries in the Middle East that use Dinars, all with different values on the global market. Currency speculators may choose the iraqi currency when they spot potential for a substantial gain. According to a November 15, 2012 Reuters article, The currency has been experiencing downward momentum as tensions in Syria and around the Middle East increase.
This means a low buying price for Iraq currency, and many unlikely investors are taking the chance. A quick google search shows dozens of sites through which dinar speculation is possible. The sentiment is, while the price to buy Iraqi dinar is low, the country has huge oil reserves that will come online and revalue the Iraq currency as the nation stabilizes. Speculators hope iraqi dinar investment will result in better than average return. Iraq currency is not officially traded on the global markets; every dinar banker is currently in Iraq, so special brokers handle the transactions.
Iraq is not yet a fully stabilized place. Sectarian tensions still linger and occasionally erupt into violence. Therefore, investing in Iraq currency remains a risky proposition. While Saddam Hussein’s idealized face no longer adorns the front of dinar notes, the legacy of his rule, and the incalculable damage brought on by the subsequent Iraq war, remains. Hopeful investors think the country,will get healthier, and their Iraq currency along with it.