If you have been investing in the Dinar, you are probably aware that it is trading at a rate of 1175 Dinar to the US Dollar. While not at the historically low rates seen in the last few years, this is still not exactly the best possible rate, unless you happen to be interested in buying them for future investment. It is thought that should the revaluation occur this year, the exchange rate could drop to as low as three Dinar to the Dollar.
If you look at it from a purely mathematical view, the investment opportunities are significant. Consider these numbers: before the war you could buy one million Dinar for 300,000 Dollars. At today's exchange rates, you can buy the same number of Dinar for approximately 1000 US dollars. Thus, if you were to invest that one thousand dollars and buy one million Dinar, and the exchange rate at revaluation became 3 Dinar per dollar, your initial investment would be worth somewhere in the neighborhood of three hundred and thirty three thousand dollars.
Understanding the Latest Theories Surrounding the Dinar
This, of course, is all based on the theory that the exchange rate is going to reach this level, which is merely a prediction, but many economists say that there are a number of very positive signs that this is the year that the markets are going to finally stabilize, and the Dinar will finally achieve a more normal exchange rate. The reason for this is that the oil markets are starting to show some signs of recovery with new contracts being signed by a number of different countries.
However, since the UNSC has recently denied Iraq's application for an extension of the Development Fund for Iraq protection, no one is certain whether or not this is going to have an effect on the revaluation, and could actually delay it for a significant amount of time, and although they have guaranteed at least a six month extension, it could leave the earliest possible date for the revaluation until after June of 2011.
At the same time, there are a number of other factors that can have a delaying effect on the revaluation of the Dinar. Among these is waiting to see whether or not the Iraqi parliament is going to approve Article 110 of the Iraqi Constitution. This new article is going to determine how much influence the new parliament is going to have over the country's monetary policies. All of this should be seen as nothing more than a slight delay in the revaluation, but should not be seen as a reason not to take advantage of what may be one of the best investment opportunities to come along in a long time.
At Deal of Buy Dinar, we believe that the Iraqi Dinar is not going to remain at these incredibly low rates for much longer. As such, those who take the risk of investing in large amounts of Dinar now are going to realize a very significant return on their investment before the end of this year. There may never be an investment opportunity like this again.
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