Q:

How do you know when the Iraqi dinar will rise in value?

A:

Quick Answer

While no one can predict exactly when the Iraqi dinar will rise in value, the level of political and economic tension Iraq faces often indicates the value of the dinar. When Iraq gets more deeply involved in political and military conflict with other nations, the dinar's value typically plummets.

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Full Answer

The value of the dinar decreases during military conflict because the overall status of the country's economy and infrastructure is greatly lessened, regardless of which side prevails in a conflict. Tracking the level of foreign investment in the Iraqi oil fields is also a good indicator of fluctuations in the value of the dinar.

On the other hand, Iraq's political and military conflict during the early 21st century may have provided an opportunity for investment in the dinar. As of 2015, many investors are purchasing dinar in great quantities due to its low prices. If Iraq manages to achieve political and economic stability, the value of the dinar will rise considerably. Because Iraq is sitting on a huge oil reserve, some investors think it is likely that the country could experience an economic boom after recovering from war. If this is true, the purchasing power of the dinar stands to rise considerably.

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