by PAUL LEWIS
Iraqi dinar revaluation is one of the most discussed topics in and outside the Iraq. People want to know the revaluation of Iraqi dinar when it is going to happen in the market so that they may mature and convert their investments and get rich overnight.
As far as my opinion is concern, it is overnight because some people are waiting for Revaluation of Iraqi Dinar for numbers of years. Most of the people want to know the future or Iraqi dinar and revaluation of Iraqi dinar when whole country is in trouble and facing law and order as well as economic crisis.
The Present Situation And Iraqi Dinar RV
Let me explain that the present situation of Iraq is not satisfactory and the major economic indicator and contributor crude oil is in danger. The militants are about to take control of Baiji oil refinery, the biggest oil refinery of Iraq but the story is not over.
Iraq security forces are fighting back to get the control back to the security force of Iraq and the most important fact about this is that oil refineries of Iraq are fully operational in southern areas of Iraq and baiji is located in northern area which was already under the conflict with Kurdistan regional government.
So we cannot say that the militants have hijacked the oil industry of Iraq. The production of Iraq is same as they produce most of their oil from southern oil fields.
There too few oil fields fully functional in southern area of Iraq that is under the semi control of militants. Therefore there are not any serious threads to the economy of Iraq and the value of Iraqi dinar in the local or international market.
What CBI Says About Iraqi Dinar Now?
The governor of central bank of Iraq, Abdul Basit Turky said in his press release last Sunday that economy of Iraq is fully stable and does not have any serious harm that may destroy the overall economy of Iraq.
He said it is temporary instability in the law and order situation that Iraqi security forces will overcome very soon and people will see the old Iraq very soon.
Moreover he said that Iraq has $70 billion as cash reserve at central bank of Iraq that is enough to support their currency for a longer period of time, even if the situation remained at same condition.
Iraq purchased gold ingots as gold reserves that enhanced the gold reserves of Iraq three times in the international market.
The 70 billion dollar cash reserves and more than 100 tons of the gold is enough to the currency of Iraq in the international market. He said these worthy reserves are the guarantee of success of Iraqi dinar in the market and assured that it will not lose its value in the market.
The governor also convinced the international companies and foreign investors not to worry about present law and order situation or Iraq as it will be covered in the next few days as the security forces of Iraq have enough ability to crush this kind of elements in the favor of its country.
He said that it is an internal issue of Iraq politics and will be resolve either with dialogues. If Iraq resolved this issue with dialogue or by force in the favor of the country, the economy of Iraq will regain its value back in the market within few days.
Role of CBI After The Unrest Situation
It will not take longer period of time to the central bank of Iraq to motivate and convinced the foreign investors to invest in Iraq as it did in the past. The experts believe that the role of central bank of Iraq will be crucial in this overall situation of Iraq.
The central bank of Iraq is the custodian of the investment made by foreign investors in the country and the other major contracts signed by the government with the other foreign companies of the world.
The central bank of Iraq has already given the trusteeship for the international companies interested in the investment in Iraq and for those companies that are dealing with commercial bank of Iraq dealing with local and foreign clients in the country.
Central bank of Iraq is responsible for any mishap with the foreign investors while dealing with any of the local or foreign bank of Iraq.
The central bank of Iraq announced that it is ready to accept the trusteeship for the commercial banks of Iraq operating and dealing with international and local companies.
In the case of failure of any commercial bank in their legal responsibilities and financial liabilities, the central bank of Iraq is responsible to compensate lose.
This enhanced the confidence of local and foreign investors to invest in the country with the view that central bank of Iraq is responsible for lose caused them via any operational mistake of any Iraq I financial institution.
That’s why we have seen enough investment in the southern oilfield of Iraq. The new contracts are signed with the international companies to explore and develop the oil fields of Iraq.
The governor of central bank of Iraq said that foreign investors trust us and therefore they are investing in the country with the poor law and order situation of Iraq, as they understand that the situation is temporary and will be handle in the next few days.
The continuous interest of the foreign companies in the investment of Iraq has helped it to maintain its currency stable in the country as well as in the international market.
We have also seen that the Value of Iraqi Dinar is unchanged in the international market that shows its strength and also the result of positive policies of central bank of Iraq.
The central bank of Iraq is planning the things according to ongoing circumstances of the country and according to international economic market condition.
The finance ministry of Iraq is working with central bank of Iraq without any confusion in the mind by leaving the law and order situation of Iraq with the security forces of Iraq.
The stock exchange of Iraq and the stock exchange of Erbil is fully operational in the country and contributing in the development of the country with the total commitment and devotion.
Will Revaluation Occur?
There is no hesitation in these two major financial institutions of Iraq, the central bank of Iraq and the finance ministry of Iraq and need political support to keep their things operational in the future.
There is no doubt that revaluation of Iraq dinar will happen in the country as it is the essential need of Iraq and its economy. It may postpone for few days or months but it will never be canceled.
People like you, me and many others are waiting for the stable political and law and order situation of Iraq so that the revaluation of Iraqi Dinar may occur. But I assure you that it will not take much time.
The central bank fo Iraq and finance ministry of Iraq will must produce some positive results regarding revaluation of Iraqi dinar in the next few days as they are working by keeping their targets in their minds.
What we need to do is to remain calm, cool and determine to see the final step of revaluation of Iraqi dinar.