Iraqi Oil and the Dinar's Imminent Revaluation

The projected revaluation of the Iraqi dinar by November 2013 is three dinar per dollar. That's definitely a great improvement from 1176 dinars per dollar back in 2008. The value of the Iraqi dinar is expected to rise and this projection is backed by figures, not mere speculation.

Iraq was a founding member of the OPEC (Organization of Petroleum Exporting Countries) and yet it only has around two thousand oil wells. The conservative estimate of the proved oil reserves of the Republic of Iraq is about 143.1 billion barrels. Only the Kingdom of Saudi Arabia has more with 260 billion barrels or a fifth of the global reserves of petroleum.

As of December 2012, Iraq produces 3.4 million barrels a day compared to Saudi Arabia's daily production of 12 million barrels. The government is now initiating changes in various sectors in order to increase the production to five million barrels a day by next year. There are many agreements to be made and laws to be approved, but the first steps are being taken. In a few years, Iraq would be joining the list of the top five oil producing countries in the world which now includes Russia, Saudi Arabia, the United States of America, China, and Iran. The boost in the country's oil industry is expected to launch the dinar revaluation.

There is a lot of criticism with regard to current evidence on the dinar revaluation. Many groups and individuals in the finance community question the basis for the projected increase in value of the currency of a country that is yet to make inroads. It is a known fact that Iraq is struggling to revive its economy after decades of war and conflict.

Iraq's oil is high quality fuel and it does not take much money and resources to get it out of the ground. The technology to process and refine is not difficult to come by. The oil is there, but the policies and infrastructure that will radically change the Iraqi economy for the better are just being laid down. When Iraq achieves its political and economic reform goals, then the value of the Iraqi dinar will soar beyond expectations. The dinar is now being promoted as a great investment opportunity.

There are many websites dedicated to providing information as well as dinar trade for interested investors. It is important that a potential investor exercise care and caution before eliciting the services of dealers who may not have a license to make transactions involving the Iraqi dinar.

at 1:33 AM
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