Dinar-Dollar Volatility Report

Over the past 21 years, the value of the Iraqi dinar in relation to the U.S. dollar has fluctuated numerous times.  A recent study by the "Future Iraq" Institute looked at these changes from 2005 to 2024 and found three main reasons why the dinar's value keeps shifting. 

First, it's all about supply and demand.  When more people want the dinar, its value goes up.  When fewer people want the dinar, the value drops. 

The Development Road Project is expected to skyrocket the demand for the Iraqi dinar.  Neighboring countries are looking to purchase dinars to cut their shipping costs to Europe, including China. 

So, hold onto your dinars.  We do not yet know how this will play out. 

Second, there are seasonal patterns.  For example, over many years, the dinar has been stronger in December but tends to weaken in May. 

Third, outside events also have a huge impact.  Events such as the release of Iraq's national budget or holidays in countries like China and Iran can impact how the dinar performs.  

Yes.  A country's currency rates are that sensitive.  Iraqi merchants in Southern Iraq sell vast amounts of products to Iran on the Black Market.  A holiday in Iran can cause a temporary change in the exchange rate for a day or two in Iraq.  

The Central Bank of Iraq also plays a role by selling U.S. dollars to help stabilize the market.  Political and economic news can also significantly impact the situation. 

By understanding these factors, experts aim to more accurately predict the future value of the dinar.  

This is excellent news because we now know that experts are researching the IQD.