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IQD Rate – Update From Baghdad Invest
Let us expand on the IQD-USD Rate!
Earlier today we posted confirmation of the rate being released any day now at approximately 1 IQD to 0.60/0.64 USD
This has been met with much dissatisfaction, would presume 10 years down the line you would be happy with some kind of action. We would like to stress however once the reset/revaluation has taken place that does not necessarily mean it will stay at that price.
As with all currencies, they go up and they go down.
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The Iraq Dinar exchange rate will be no different. It will get stronger some days and on other days it will get weaker. On the grand scheme of things it wouldn’t be unwise to predict the rate getting stronger once it has completed it’s process to revalue at 0.60/0.64 USD.
A little like an IPO listing on the stock market, it has a good chance of going up. For example the Twitter IPO listed at $26 per share and now finds itself trading at $41.65
Some would argue Twitter had it’s shares priced below market value but we would argue it is prudent to do so as you never know how the market will react.
Iraq has one shot at getting this right. If she prices herself too high and then enters a period of devaluation over the many months that follows, it will not have the desired effect of kick-starting the economy thus making the whole exercise a complete and utter wast of time.
With the potential that Iraq has, we have one of the world’s fastest-growing economies; it expanded by 9.6 percent in 2011 and 10.5 percent in 2012.
Our oil production has increased by 50 percent since 2005, and we are expected to emerge as the world’s second largest energy exporter by 2030.
We are reinvesting our energy revenues in rebuilding our infrastructure and reviving our education and health care systems. Who would bet the IQD will not strengthen?
0.60/0.64$ with the IQD getting stronger as the weeks and months go by. We have no idea what it will eventually get to, nor are we interested in pursuing the future rates. We will be thinking about the next step once step one is complete.
Please understand Iraq must do this right. Iraq must serve it’s people not the foreign interests. As such pricing the IQD right will be beneficial for all in the long run.