The central bank of Iraq purchased 36 tons of the gold ingot in the month of April 2014 to increase the gold reserves of the country and ultimately to enhance the value of Iraqi dinar in local and international market. this purchase increased the gold reserves of Iraq by 90 tons in 2014. The purchase of this huge quantity surprised economists all over the world. After this purchase we have seen positive changes in the economy of Iraq as well as in the international market for worth of Iraqi dinar.
Different people have different ideas for this gold purchase. The people that are engage in dinar investment consider it as critical step to regain the value of dinar in international market. The reserves of Iraq that are almost double in the gold are the clear sign for dinar is being revalued, according to dinar gurus in the world. This attempt also brought a positive change in the dinar market of the world and the customer of Iraqi dinar increased in the number. There is no doubt that purchase of the gold will enhance the value of dinar in the international market and will help Iraq to regain the value of dinar in international money market. Many authentic sources talked about revaluation of Iraqi dinar rafter this gold purchase deal.
The statement of Noor Al Maliki to the local T.V channel was also a cause for people to invest in Iraqi dinar as much as they could. Nor Al Maliki in his interview said that they have a plan to revalue the currency of Iraq before general elections of Iraq. He gave signal to towards 30th of April as final date for revaluation. This statement enhances the sales of dinar in the international market and big financial institutions were also in the list of Iraqi dinar buyer at that period of time. But still nothing happened even general elections of Iraq have passed and the final result is going to announced in 25th of May 2014. Even after this date the Iraqi dinar investors are not disappointed and hope that it will be revalue in the near future and at that time they will cash the moment.
whether Iraq take prompt decision or it take some time to finalize the things for revaluation. Iraq is trying its best to control the illegal and forgery practices against dollar to enhance the value of Iraqi dinar. For example; Iraq printed new Iraqi dinar with the value of 250, 500 and 1000 IQD after several complaints about these notes in the international; and local Iraq market. Most of the local traders were complaining about these notes for several months for forgery issues. Finally Iraq reprinted these notes with different symbols and codes that is no so difficult for thieves to copy these notes. These notes are reprinted in the way that these are also recognizable by blind people in the country. Central bank of Iraq is doing all of these attempts to enhance the worth of Iraqi dinar in the international market. Most of the dinar holders were expecting revaluation before general elections 2014 as many other believed in the country.
After the meeting with IMF and World Bank, the Yasiri the governor of the central bank of Iraq announced that they are going to buy more gold ingot in the near future for the stability of home currency. The discussion on dinar is seen in United States of America more than any other country of the world. Most of the ex-military officers and financial institutions including some reputed banks are the buyer of Iraqi dinar in the world. The purchased of the gold on the part of central bank of Iraq and the statements from different noted leaders of Iraq gave hype to the dinar and increased the number of buyers and investors in the country.
The economists on the other hand consider it totally different from dinar gurus. They consider the purchase of this gold quantity favorable for country and its economy. The reserves of the country decide whether the country is powerful or not. Adding this quantity o gold will enhance the worth of dinar and most importantly, it is best for economy of Iraq. Iraq can hope for foreign investment in the country when the currency of Iraq would be better and tradable at international market. The economists understand the insights of Iraq and USA. Therefore they considered it as the hidden deal between Iraq government and World Bank. Furthermore Iraq is applying for WTO memberships that cannot be achieved with poor currency rate at international level.
The country that wants to get membership of WTO, it must have to fulfill the two major requirements on the country. The first one the value of their currency and second is the reserves of that country The WTO sees that whether the currency of the country traceable at international level. The worth of the currency should be good enough. WTO has made oil man data is always a good option and does’ not want country to make this resolve in the country. Central bank of Iraq is also selling through governmental policy o f the region now ad you can see at both easily. Economy of Iraq is already facing this issue in the international market. With the experienced team members, I assure you that this will enhance the value of Iraqi dinar in the country as well as in the global market. It is also said that CBI is trying to sell the gold to local importers and exporter of the gold. The central bank of Iraq issued 136 kg of the gold ingot in the local gold market of Iraq to know the response of the people for this purchase.
The jewelers are selling this gold to the people in Iraq and making money. The actual purpose of this gold purchase by central bank of Iraq is to bring it economic stability in the country. The gold importers are now purchasing the gold from central bank, instead of buying it from anywhere else in the world. when there is only one prominent seller of the gold, it will be difficult for other importers to import poor quality product from any other country of the world. The gold is also becoming cheaper in the country for local use and it is al due to the policies of central bank. The value of dinar is increasing against dollar and the gold in the country that shows the increasing worth of dinar in the local market. Some of the economists are not in the favor of sale gold in the local market by Iraq. Because selling gold in the local market will decrease the volume of gold reserves in the country. Dinar will lose its value in international market if continued selling it in the country. Iraq cannot afford the reduction in the gold reserves of the country as they are essential to bring economic stability in the country. Let’s see what will be the result of this policy on the economy of Iraq because central bank of Iraq is already uder severe criticism by many of the economists in Iraq for it poor monetary policies.