One thing is must that rapid increase in oil production of Iraq would increase the value of dinar and it will strengthen the economy of Iraq over the next ten years. Amazingly the history about this currency shows us that this is expected from this end. Like many other countries history, there is also the good future for Iraqi dinar.
Many financial experts are also predicting some good for the Iraqi dinar. They claim that Iraqi dinar will rise in value and will become one of the strongest currencies of the world with in coming ten years.
While the ministry for oil and gas is claiming that the oil production will increase and this production of oil will reach to the 10 million barrels per day to 12 million barrels per day at the end of a decade.
And many analysts are taking this projection very seriously just because of the fact that no any other country has achieved such a large achievement in oil production.
And if we look at the previous ten years then we will come to know that there has also been seen the remarkable increase in oil production.
If we see history then recent studies by the EPRF (Energy Policy research Foundation) gave us the analysis that Saudi Arabia is closest with the increase in oil production of 6 million barrels From 1970-1979 followed by Iraq and it was near about 3-6 million barrels from 1965-1974 and if we look into consideration the Russia then Russia has rose with 4 million barrels oil production from 1998-2007. So from the figures, we can find that it is only Iraq that has made the remarkable increase in oil production.
But problem is that it is still the assumption and not the reality and it all depends upon the happening of the assumption into reality and otherwise nothing will be changed except the output of oil. Actually there are many things that can be expected to be changed.
Like the large countries, domestic demand for the refined products will be increased significantly also therefore exports do not ascend at the same rapidity like the production of crude volumes. In the Iranian and Saudi cases, booms in oil production led to import booms with the outcomes that require for foreign exchange increased with the increase in export earnings.
Lesson of history for the Iraqi dinar is that whether it weakens or strengthens but the next decades will be counted to great extent for the success of Iraq.
And if the production oil is kept increased at the rate of 3-4 million barrels annually then one thing is sure it will put the very positive effect on the Iraqi dinar. And, if the currency of Iraq is strong, then its means that Iraq will be successful in making its position in international market. So saying anything prior to happen is not the good thing, so we should be patience and must have long standing observations regarding this.