by admin | May 30th, 2013
Iraq is best known for its massive oil reserve, which is the fifth largest in the world. However, there’s a lot more to this Middle Eastern country than what most people know. For starters, the Iraqi dinar currency exchange rate may be poor, but it’s actually fairing much better than it did after the string of events which succeeded the 2003 invasion of Kuwait.
Giant oil companies such as Shell, Lukoil, ExxonMobil and British Petroleum are playing a big role in propelling this nation forward and strengthening the Iraqi dinar. While it’s currently exporting over 3.2 million barrels per day (bpd), experts are predicting that its export levels will reach over 12 million bpd by 2017. Thanks to the continuous investments of these oil companies, plenty of industry observers predict that Iraq will indeed reach the targeted export levels as major corporations continue to develop Iraq’s inferior infrastructures.
On the other hand, this oil-based nation isn’t completely dependent in its number one product alone. It produces other products as well, including chemicals, construction materials and fertilizers. It’s also in the business of food processing and metal fabrication.
According to recent studies, Iraq’s gross domestic product has increased by 12.6 percent. Meanwhile, core inflation has decreased to 6.3 percent, which is a far-cry from the 32 percent witnessed in 2006. Moreover, the dinar currency exchange rate has increased by 17 percent – a notable improvement that was brought about the Central Bank’s policy to raise interest rates by 20 percent.
Iraq has managed to pay off roughly 80 percent of its debts, thereby allowing a larger budget for the country to rebuild itself. On top of this, unemployment is down to 15 percent, while inflation as whole is down to 5.8 percent.
As the economy begins to get stronger and stronger, many believe that the Iraqi dinar currency exchange rates will significantly shift in favor of the Iraqis, and ultimately help fortify the Iraqi economy.