When we look few years back, a decision was taken by the government of Iraq and the Iraqi dinar was announced to be redenominated. But due to some reasons, the government could not implement this decision and now after almost four years the decision is still pending. However, this announcement made a good impact on the dinar investors and Iraqi people and they started investing in it. The People and investors are still waiting for the implementation of the announcement about the revaluation of Iraqi dinar. The government is also struggling to make decisions for the dinar, the government decided to lay this issue in front of the IMF, but we have seen that there is still no decision made for the Iraqi dinar revaluation.
This country has the second largest oil reserves in the world. This is the main reason for the investment in Iraqi dinar. What would happen if the revaluation takes place? According to some dinar experts, the position of the country would not get better because any country could revaluate its currency only when its position would be too bad. But the inflation rate would be too much high and the locals could become under a lot of stress. Although, there is not a very high chance, that the currency would get equaled to the US dollar. But, there would be a handsome profit for the investors. Because, when we look back at the history of Iraqi dinar, then it would be interesting to see that this currency has a strong background. This currency revalued in the past and had a very strong position in the international currency market.
Iraq is under a lot of debt, there are many Iraqi people who are managing the business in buying and selling of Iraqi dinar. They know that the country is under a lot of foreign debt. They have to pay it off this debt in any conditions. Iraq will be able to pay off its debt that it had taken from Kuwait. May be the government is trying to pay off its debt and then they will think about their currency revaluation. These are all just guesses and predictions. But one thing is for sure, the debts are rising on daily bases and they would not be forgiven. Iraq must pay them off in any condition.
Now the recent attack on Mosul by ISIS disturbed the whole process of revaluation of Iraqi dinar. But most of the economists say, when the law and order situation gets better in the country then the currency will be revaluate very soon.