Many Iraqis have lost faith in their dinar currency but to some foreign speculators, it promises big profits.
The contrast underlines the uncertainties of investing in Iraq as the country recovers from years of war and economic sanctions.
The logic of the dinar bulls is simple. Iraq's oil exports rose to 2.6 million barrels per day in September, their highest level in three decades; the country aims to hit 6 million bpd by 2017, which would put it close to Saudi Arabia's current level. Even if unstable politics, militant violence and bureaucratic inefficiency prevent that target from being hit, Iraq still seems to be on the threshold of an oil boom that will transform its finances.
There are number of factors which work behind the popularity of the currency of a particular country. Common people may not identify all these factors; however, expert eyes can easily monitor all these hidden causes.
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