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MENAFN Press - 08/07/2014
(MENAFN Press) (EMAILWIRE.COM, July 08, 2014 ) Hartford, CA -- For years, people in and outside of Iraq have been excited about the revaluation of Iraqi dinar. But what is the real state of Iraqi dinar?
Will they ever mature so that its investors can convert their investments? Is there hope amidst the country being in hot water now facing law and order and economic crisis?
Iraq's major economic gauge and main source of crude oil are facing major perils as of the present. Baji oil refinery which is the largest oil refinery in Iraq are about to be taken control of by theBuy Iraqi DinarBuy Dinar militants. However, Iraq security forces are in the process of getting the control back.
What is notable though is that the oil refineries of Iraq are operating vastly in the southern part of Iraq, while Baiji is in the northern part which is currently having disagreement with Kurdistan regional government. This fact attests that Iraq's oil industry is not being hijacked at all by the rebels.
The issue about Baiji oil refinery does not gravely pose a threat to Iraq's economy. Therefore the Iraqi dinar's value in both local and international markets are not at all in hazard.
Abdul Basit Turky, Central Bank of Iraq's Governor, stated in his press release that The 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 gold reserves are enough proof that Iraqi dinar has its success place in the market and that the currency is not to lose its market price. Foreign investors should also be confident about their investments amidst the current law and order state of the country.
Whatever internal issue Iraq is having right now, the governor assured that Iraq's economy will recover and it wouldn't take that long before it regains its market value.
Iraq's Central Bank plays a significant role in the overall situation of Iraq and it is prepared to allow trusteeship for Iraq's commercial bank's dealings and operations with both local and international companies.
Investors locally and internationally should feel secured that any operational gaffe of any commercial bank under the legal responsibilities of Central Bank will be compensated by CB.
Investor confidence, as a very important factor in maintaining the stability of Iraq's currency, continues to interest foreign investors. Iraqi dinar's value has an elastic state in the international market showing great strength adding the fact that Iraq's Central Bank has constructive policies.
Taking into consideration the current state of Iraq and of its economy, the question of the viability of Iraqi dinar's revaluation is something that everyone is concerned about. Iraq's state may be in a bit of a haze right now.
But its leaders are positive that soon, their country's political and law order situation will be stabilized.
And yes, revaluation of Iraqi dinar is on its way as well.