The Factors Affecting The Iraqi Dinar’s Growth
The Iraqi dinar has been increasingly seen as a growing investment opportunity for many people for the past several years. This is because of a few different reasons. While many people may suggest this is driven by cultural and societal shifts in the country, the root cause of this goes much deeper. As many dinar recaps have highlighted, there have been a variety of different factors that have had a considerable effect on its growth as a popular investment. These reasons have helped drive up the price of the currency in recent years, especially compared to the majority of world currencies.
Through the past decade or so, Iraq has been involved in quite a significant amount of political and socio-economic pressure. This pressure has been a significant reason why economic growth in the area has been negligible and has been responsible for the dinar losing a significant amount of value in the international market. However, the majority of this has begun to wane in recent years. Because of this, many industries in the country have begun to bounce back resulting in a significant economic turnaround across the country. With this increased economic activity, the dinar has slowly begun to increase in value. While being a slow rise, there has been a noticeable turnaround in its value.
This has been the primary reason why an increasing amount of investors and financial experts have been flocking to the currency. However, many would-be investors may not know what’s driving this growth outside of political and economic shifts. There are a few notable areas that have had a significant impact on the Iraqi dinar’s growth as a growing investment opportunity.
Expanding Agricultural Industry
The agricultural industry in Iraq has been growing steadily over the past few years. As a result, it’s grown to be one of the larger sources of employment across the country. This has had a considerable effect on the overall economy. However, it has also been noted that Iraq still imports a significant amount of goods from abroad, with some of the more notable being the likes of grain and wheat. Despite this, the Iraqi government has been investing heavily in the niche to boost overall production.
As such, it’s been laying the foundation for future growth in the agricultural industry. As the number of imports begins to decline and the industry improves, this will continue to have a positive impact on the overall economy. As a result, the strength of the Iraqi dinar compared to many other major currencies should begin to grow further. Because of this, the currency is continuing to grow as a strong investment opportunity.
Oil & Energy Contracts
Over the past several years, Iraq has begun to increase its oil and energy production. This has yielded quite a considerable amount of investment in the area. Because of this, there’s been an increasing amount of economic activity, which has further increased the value of the currency. Similar to the agricultural industry, this boost in activity has created a significant amount of employment across the country. As this continues to improve, so too should the strength of the dinar.
Much of this has also been driven by the amount of oil and exports that Iraq has been responsible for across the region. This has brought a significant amount of money into the country that has been used in a variety of different areas. Coupled with the foreign investment that continues to come in from these oil and energy companies, the economic benefits have been enormous. However, this investment hasn’t been limited to foreign companies, as an increasing amount of Iraqi-owned businesses have been sprouting up across the country to capitalize on the market.
Final Thoughts
The above are some of the more notable examples of what have been affecting the rise of the Iraqi dinar. Many experts have noted that more needs to be done for the value of the currency to improve further. However, it’s also been highlighted that the foundations of much of this work are being laid across the country. As such, the value of the currency looks set to grow steadily over the coming years. While this means that it may not be an effective short-term investment, many experts have noted that it can be an effective opportunity for patient investors who are looking for a long-term return of their investment.
