With so many American military men and women, as well as civilian contractors, spending so much time in the sandbox they call Iraq, it is no surprise that they've brought home millions of Iraqi dinars. Though speculative in nature, there is a chance that the dinar is going to explode exponentially as the Kuwait dinar did following the first Gulf war.
With the United States spending billions to ensure Iraq has a capital economy, the Iraq dinar's value has already gone up over 25% since the fighting has slowed dramatically in the country. The Central Bank of Iraq is a steadying force, modeled after the U.S. Federal Reserve System, and capable of stabilizing currency and curbing inflation when needed.
Many multi-national companies are doing business in Iraq. The Pepsi-Cola Company has been one of the first to embrace this new population of soda novices. As the economy recovers, huge companies like Motorola, Lockheed Martin, AT & T, and General Electric are setting up shop to help with infrastructure. American University now also has training courses in Iraq.
The strength of any country's currency is closely linked with its financial picture, and for that reason, it seems inevitable that the dinar can be headed nowhere but up.
U.S. programs in the country have increased the job pool by close to half a million and companies from every part of the world are working and partnering with local companies to help rebuild the war-torn cities.
Many web sites sell dinar, both in paper form and virtual account form, so it is very easy to invest in them. Some sites state that the Central Bank prohibits removing dinar from Iraq, though that regulation seems to be largely ignored for the influx of cash it is providing to the country. If considering investing in dinar, be certain to find out what the current exchange rate is, and do not pay anything significantly different from that.
There are a few good reasons also to keep your dinar in an Iraqi bank:
-the accounts are interest-bearing.
-in the event of a change in the paper money, the banks will convert the currency.
-All licensed Iraqi banks are insured by the Central Bank of Iraq, affording some measure of protection.
-you will get a REAL exchange rate. No inflated surcharges.
You can also deposit any physical dinar you have once you open an account with an Iraqi bank.
As a means of further stabilizing the Iraqi dinar, and increasing its value, Coalition forces are now moving toward putting the economy completely back in Iraqi hands by using the dinar. The U.S. military has completed a switch over to the Iraqi dinar as the currency of note, which means payments are all made in dinars and not dollars any longer.
While still injecting U.S. cash into the country, it is no longer so visible, and Iraqis are learning again to trust in their own currency. The goal is to help stabilize the local economy and have more of the local currency in circulation, while severely limiting the amount of U.S. cash, which will push the dinarís value up.
For those Americans who brought home Iraqi dinars, the experts say to continue to hang on to them. As the economy improves, so will the dinar!
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Mike Smith writes on various topics including Currency Exchange,buying dinar and other foreign currency. He is published on more than 300 websites including: www.dinarinc.com
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