Predictions About Iraqi Dinar Exchange Rate

Iraqi Dinar 123 News:– The continuous downfall in the global oil prices has increased financial distress in the Iraqi economy. A number of economic and financial experts have discussed on most concerning options to discover the Iraqi dinar exchange rate. The Parliament of Iraq has discussed earlier the feasibility of decreasing the Iraqi dinar exchange rate against the U.S dollars by 10 percent, and it would be approximately at 1300 Iraqi dinars per U.S dollar and it would provide 5 trillion Iraqi dinars or 4.2 billion U.S dollars for the federal budget. If they decrease at 20 percent against the U.S dollar then it will be approximately at 1400 Iraqi dinars per U.S dollar and it would provide Nine trillion Iraqi dinars.

It is confirm that decreasing the Iraqi dinar exchange rate would provide extra resources for the financial budget because it would raise the amount of Iraqi dinar. Artificially adopted methods can increase government resources but it will put extra burden on the Iraqi citizens. Some wealthy people will not be affected but it would reflect a negative impact for those that have less income. It would decrease the power of purchasing with low income for a large number of Iraqi citizens. The prices of goods can be increased especially prices of imported items. It would reflect negative effect in the investment sectors, most of the Iraqi dinar investors can bear a considerable amount of loss, including the bondholders in the country.

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