The Story Of Iraqi Dinar
Dinar is the official currency unit of Iraq, it was introduced in 1932 after it replaced the Indian rupee which was the official currency unit of Iraq back then, that was kind of imposed on the nation following the British takeover of Iraq at the time of World War, and since then the Iraqi has had some and good and some very bad times, at present there is no doubt that the Iraqi dinar is not among the most powerful currencies in the world, and it has lost the reputation and value it once had, specially before the gulf wars and invasions.
Decades of war and combat has not helped Iraq in any possible manner, war brings fuss, chaos, destruction, moral, physical and economical demolition, and Iraq is no exception, after Saddam Hussein's empire was dismantled by some major forces and the US troops took control of Iraq, a continuous combat and war situation has been ever present in the country, and in that situation the country cannot focus on trade, economy and infrastructure, the main priority is to better the law and order situation, and to find ways to keep the people alive.
The dinar lost its value in the international trade and monetary markets, if you have a look at its value then you can only say that it cannot get worse than this for the Iraqi dinar, the currency which was rated at 3 IQD to 1 USD, is now officially rated at 1164 IQD to 1USD. There are several reasons behind this massive downfall of the economy and the value of Iraq' currency, war and invasion being the main cause of disaster.
There was a time when the Iraqi dinar was pegged at par with the British pound, that was in the mid 1950s, and Iraq was the business hub and one the most powerful countries of the middle east for such a long time, Iraq's rich cultural heritage were a big attraction for the tourists, and the education was at its peak, that really helped them reach their literacy rate goal and the employment ratio automatically increased, the more number of employed people in the country, the better its economy gets, and that was exactly the case with Iraq, but the lack of attention and importance to educational reforms by the Iraqi government, and failure to maintain stable political condition and law and order situation has really dented Iraq's progress as a nation.
The economy has really suffered in the last decade and so did the Iraqi dinar, it completely lost its value in the international market, and banks stopped to buy Iraqi dinar, but since after the reinstitution of Iraqi government has shown some signs of stability for the Iraqi dinar, and as well as the law and order situation, though the days have been dark for the Iraqi dinar, but if Iraq somehow manages to keep the law and order situation under control, there are still good chances for the Iraqi dinar to become valuable again.
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