What Does It Mean When the Iraqi Dinar Revalues?


The revaluation of the Iraqi dinar up to a level of parity with the U.S. dollar, that is, to an exchange rate of 1:1, would mean that the United States would profit by trillions of dollars, according to Greg McCoach of Wealth Daily. This is because, at least according to some speculators, the United States purchased around $4 trillion Iraqi dinars for a price of $1 per 4,000 dinars. Many other investors also purchased Iraqi dinars at a favorable exchange rate and would also stand to profit.

However, it is not so much a question of when the Iraqi dinar will be revalued, but rather a question of if it will. In October 2014, the revaluation of the dinar was postponed by the Central Bank of Iraq for 5 years. Iraqi MP Noura al-Bajari was optimistic about the revaluation going ahead, but observers outside of Iraq were skeptical.

Caution was necessary for investors, warned John Wasik of Forbes. He advised investors to take official and nongovernmental warnings seriously and suggested that the dinar would not be revalued without great difficulty and bloodshed. He quoted Professor Cory Bunting of the Virginia Commonwealth University, who believed that the dinar would never revalue to the rate investors hope for and that they should be resold to currency dealers, even at a loss.