Iraqi Dinar Currency is Moving towards IQD Revaluation: Experts

It is supposed that the Iraqi dinar currency be attached to a basket of major currencies, international reserve currencies, which is powerful in foreign trade and capital markets. Iraq has been used to facilitating bilateral ties in its monetary history. There isn’t any secret to the followers of controversy on bilateral connection, specifically in the U.S dollar. The initial source of foreign currency to Iraq has been considered the U.S dollar. The official international reserves of U.S dollar are estimated at about 65%. Point to be noted that foreign trade of Iraq mainly depends on the U.S dollar currency with its neighboring and Asian countries. It has been considered a real fact that most international currencies depend on the U.S dollar to intervene in the international currency market. Iraq is also operating currency operation window in the Iraqi Central Bank with U.S dollars. It is essential to interact with the currency basket proposal and in finding methods of exchange rate movement according to this system.

Iraqi Dinar Currency is Moving towards IQD Revaluation: Experts

The exchange rate of Iraqi dinar is connected to a basket of currencies changing values. It for those interested and decision makers to analyze the performance of this system in considering how it differs from the bilateral connection. During the entire current year, the average U.S dollar exchange rate against Iraqi currency was recorded at 1200 Iraqi dinars per U.S dollar. The exchange rates of other international currencies change in Iraqi dinar currency according to their exchange rates. The proposal to adopt a basket of currencies instead of bilateral connection might mean a change of U.S dollar exchange against Iraqi dinars. It will be according to the exchange rate of the basket currencies against the U.S dollar. When we talk about pricing of Euro or British pound, it depends on the exchange rates between these currencies and the U.S dollar.

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