While security-wise and socially, it's been a rough road for Iraq thus far, the
economy and the dinar have been quietly and steadily gaining strength for some time now.
Now, as security is improving and the government is getting
stronger, real progress is not only on the horizon, it's already
No, that's not the value of the dinar that's
it's the number of dinars one dollar will get you if you were able to get
them directly from the
Central Bank of Iraq. In December of 2006, one dollar could be exchanged
in Iraq for 1475 dinars. As of March 21, 2008, it would only get you 1207. That's
more than an 18% increase in the
value of the dinar, and it is continuing its steady climb. Click on the graph above for
the today's figures. Remember, the lower the number, the more it's worth
against the dollar. If you like, you can download the
daily stats from day of issue to today at the Central Bank of Iraq's web
The International Monetary Fund predicts that Iraq’s economy, boosted by rising oil revenues, will grow by more than 7 per cent this year. Oil production in Iraq is
now at its highest level since the US-led invasion of 2003, reaching 2.4 million barrels a day, thanks largely to improved security measures in the north.
They are expected to surpass pre-invasion levels of 2.6 million
barrels a day by the end of the year.
While the steady climb is gratifying to see, most of us are hoping to see a very significant jump when the dinar is recognized by the World bank and goes on the open market. We don't know exactly when that will be, but at its current levels, the IMF has recently deemed the Iraqi dinar to be
grossly undervalued. If you are looking to acquire some, trust us that you don't want to wait until an announcement is made before you act. Supplies will become scarce, and many
may find themselves priced out of the opportunity.
Iraq's $5 Billion deposit in the US Federal Reserve and what it
could mean to those of us who hold Iraqi dinars.
In early February 2005, while we were hailing the apparent success of the historic Iraqi elections, the Central Bank of Iraq was depositing $5 Billion into a new account with the US Federal Reserve in New York.
All of us, who have been holding dinars,
went in trusting the new Iraqi
government and the Central Bank of Iraq to do great things with the US dollars we've sent them. Building currency reserves
has been a major project for the central bank as the country resumes commerce with the rest of the world.
Aware of the need for US dollars in Iraq, we've sent them to them in exchange for their own fledgling currency. We've trusted that it would aid them in rebuilding their economy, infrastructure and indeed, their entire country.
This $5 Billion has been accumulating at the Central Bank of Iraq since the introduction of the new dinar in October of 2003. Its deposit into the US Federal Reserve has proven to us that our hard earned US dollars have not vanished into a black hole, but are doing the work we had hoped they would.
This account will not only earn Iraq $100 Million per year interest, but is also a bold statement to the worlds banking institutions and the global marketplace as a whole. Iraq is coming back, and preparing to take its rightful place on the world economic stage.
These are very exciting times for Iraq. As we celebrate freedom in Iraq and its successful elections, let us also take note of the forgiveness Iraq has received from so many of its creditors. Early detractors had beaten us over the head with this debt, saying it would be the dinars undoing. Today, Iraq's debt is a small fraction of the $120 Billion it once was, and continued write-offs are expected in the very near future.
Their economy continues to grow by leaps and bounds. The average Iraqi now has more disposable income than they've had in many years, as evidenced by the huge demand for home appliances and computers in recent months.
The very name of our web site, BetOnIraq, makes it clear that an increase in value of the Iraqi dinar has never been a sure thing. By definition, no bet ever could be. But since the April '04 launch of this web site, especially in the time since the elections, we've had stronger and stronger reasons to hope.
A sea of purple Iraqi fingers has for the second time now, pointed toward freedom. $5 Billion US dollars have found their way back to New York to tell the world that Iraq is back. There has never been a better time to Bet on Iraq, and we will continue to do just that.
Place your order now.
Press Release from Under Secretary for International Affairs
United States Treasury
Iraq to earn millions from $5 bln Fed deposit
Beyond the Headlines
Is anything good happening in Iraq?
Follow these links to see beyond the headlines, and discover the true Iraqi spirit of progress.
Iraq's revival boosted as oil production rises
production in Iraq is at its highest level since 2003, reaching 2.4
million barrels a day.
Bullish on Baghdad
The Iraqi economy shows signs of strength.
Treasure-trove of Intelligence Found in Al-Zarqawi Raid
A "huge treasure" of documents and computer records was seized
BRAVE PREZ BESTS
Why President Bush's visit to Iraq was so stunningly huge.
Post-al-Zarqawi Raids Kill 104 Insurgents
American and Iraqi forces have carried out 452 raids
in the week since Al-Zarqawi's death.
Iraq's Economic Recovery
With a predicted GDP growth of 34% for 2005, there are encouraging signs for Iraq's emerging economy.
Banks Encourage Domestic Industry
rates slashed more than 50% to spark Iraqi entrepreneurialism.
Iraq's Friendly Skies
Iraqi Airline Company announces regular flights between Baghdad, London and Cairo.
Kurdistan: A New Tourist Mecca?
The Kurdish government has approved 50 new hotels and
is printing guidebooks in Arabic, English and Kurdish.
Kurdistan: The other Iraq
A place where the universities, markets, cafes and fair grounds buzz with progress and prosperity.
Iraqi Women Find Forum
rights are affirmed regularly with talk radio taking its freedom of
speech to the airwaves.
Demand For Books Exploding
Free of government censorship, Iraq's publishing industry is booming.
Privatization of the State Institutions
Program encourages private
investors and craftsmen to execute projects all over Iraq.
Chaldean Bishop Cites Changes For the Better
Also firm in his assertions that fundamentalist attackers come from abroad.
Good News from Iraq
bi-weekly series of reports in the Wall Street Journal on the
positive winds of change that are
occurring throughout Iraq.
If things ultimately turn out well for the people of Iraq, they should
also turn out well for anyone who bought Iraqi currency at today's
Clean, Crisp Notes.
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