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The Top Factors That Influence A Country’s Exchange Rate

by Xchange Of America ~ June 27th, 2016

The exchange rate of a country can be a difficult thing to comprehend, and it can be an irritating thing to deal with when you need to exchange funds. That being said, understanding how the exchange rate is made can help you get the best exchange rate when you buy dinars. The dinar exchange rate can fluctuate, but it can be understood. When you understand it, you get the best rate, and you come to Dinar Inc. to get that rate.

The first, and biggest influence in the exchange rate, is the inflation of the country. If a country has a lower exchange rate, then its currency value will be higher and the terms of the exchange will be much more favorable. The Iraqi inflation rate has actually improved greatly, lowering heavily over the past few years.

The interest rates of the country also play a major role. The higher the interest rate, the more foreign capital that comes in and the higher the exchange rate as a result.
Next, you have the public debt. The public debt of a country determines how attractive it is to foreign investors. Large public debts mean that foreign companies will not want to do business with a country. That then causes more debt in the country, the more the inflation goes up and the worse the currency is.

The political stability is another factor in the exchange rate of a country. If a country has political turmoil, it can cause a loss of confidence in a currency and a movement of capital within the currency. This can then cause the exchange rate to be not so favorable. Iraq has actually seen a great deal of turnaround in the stability of the political system.

Currency-account deficits are the balance of trade between trading partners and a country. It reflects all payments between the goods and services of a country and its interest and dividends. If there is excess demand for a foreign currency, then the exchange rate of the country is going to lower and goods and services become cheaper for foreigners.

Lastly, the terms of trade of a country also dictate the exchange rate of that country. This compares export prices to import prices, and if the terms of trade increase it will show greater demand for country exports. The Iraqi terms of trade index is actually rising, which is very important if you want to get a good exchange rate.

The dinar exchange rate is what it is all about when you come to Dinar Inc. You will come to us and we will provide you with the best dinar exchange rate so that you have more money when you travel to Iraq, or many other Middle Eastern countries. We will ensure you have the proper exchange rate that is most advantageous to you. You will leave with a great exchange, and you will be ready to travel to Iraq, which is a truly wonderful country.

History of the Vietnamese dong

by Xchange Of America ~ July 23rd, 2014

The Vietnamese dong (Code VND) has been the official currency of the country of Vietnam since 1978. Because the currency has been devalued so much since 1978 it is issued in bills of 200, 1000, 5000, 10000, and higher. It previously was divided into lower denominations called hao and xu, but neither of these are used any longer. The word dong refers to the bronze coins that were used during the Vietnamese dynasties. There have been several commemorative dong coins that have been issued since 1986 but they are not used in circulation. After a period of time in which coins were not issued, the State Bank of Vietnam began issuing coins in December of 2003 starting in denominations of 200.

Economy grew after Cold War ended

Vietnam was and continues to this day to be a communist country. The U.S. placed embargoes on Vietnam during the Cold War that first affected North Vietnam in 1969 but was extended to the South in 1975. After the Cold War ended, foreign countries began investing heavily in Vietnam, as it was a new economy with tremendous growth potential. However the United States maintained sanctions against Vietnam, but it did not prevent countries like Great Britain, France and Australia from investing.

The Vietnamese dong was devalued due to pressure from the U.S.

The U.S. pressured the IMF to devalue the Vietnamese dong in order to encourage the use of the U.S. dollar in the country, but the devaluation actually ended up benefitting the economy in the long run as it increased foreign investment and eventually U.S. investment once the sanctions were lifted in 1994. The Vietnamese dong continued to be devalued through a series of progressive currency devaluations, and the collapse of the USSR allowed Vietnam more trading freedom with the West.

The Vietnamese economy is one of the fastest growing in the world

At the moment the Vietnamese economy is one of the fastest growing economies in the world. A substantial middle class has emerged that is about 35% of the population, and its natural resources are now being developed including oil and gas. Many national companies have begun opening franchises in Vietnam including McDonalds and Starbucks. Companies like Samsung have moved their factories into Vietnam, strengthening the economy and providing jobs which in turn increases the chance that the Vietnamese dong will increase in value in the near future. Contact Dinar Inc for more information about buying Vietnamese dong.

Vietnamese Banks Lowering Interest Rates to Stimulate Credit Growth

by admin ~ January 29th, 2013

While the majority of foreigners already enjoy outstanding Vietnamese currencyconversion rates, things could get better for those – particularly who take on loans from Vietnam moneylending institutions for the financing of certain projects – who regularly transact with local banks while visiting the country.

Banks are currently struggling with the tough task of increasing credit growth for 2013. In addition, the implementation of looser monetary policies has made achieving such a goal even harder. Despite being pinned against the odds, the State Bank of Viet Nam intends to boost credit growth in several priority industries – including production and export – by lowering interest rates.

According to industry insiders, the interest rate is predicted to fluctuate anywhere from 11 to 13 percent.

Regardless of the banking institution’s optimistic approach, not everyone shares the same views, or believes that significant credit growth can even be achieved for this year. Nguyen Hoa Binh, chairman of Vietcombank’s Board of Directors, says that the State Bank of Viet Nam’s move is unlikely to have any impacts on lending.

In a statement to Dau Tu newspaper, Binh claims that commercial establishments still hesitate to utilize bank loans for expanding their business operations in the context of low consumption and high inventory. And since consumption is currently kept at the spectrum’s lower end, firms are unlikely to resort to using loans.

Pham Thien Long, the deputy general director of HD Bank, agrees with Binh, stating that credit growth would fail to increase despite the decrease of interest rates placed on loaning services.

Other banks have also resorted to cutting back on lending rates given to solvent buyers. At Eximbank, the interest rate placed on loans was reduced to 8-9 percent per annum for solvent debtors engaging the production and export industries. Regardless of the move, Eximbank admits that it’s still having difficulty in finding clients to take on these specialized loans.

According to a representative of SBV, the company has recently affirmed its intention to refrain from setting ceiling lending interest rates for all borrowers; but rather, it plans to set the ceiling rate to 12 percent for several priority industries.

Representatives from a couple of Vietnam moneylenders – who requested not to be named – say that they’re taking on a different approach to stimulating credit growth for this year. Amongst their various strategies, one shared in common was their move to focus on dealing with rising bad debts.

Iraq and Kuwait Leaders to Settle Outstanding Files in Baghdad

by admin ~ January 19th, 2013

History has shown a flurry of major issues taking place between Iraq and Kuwait, which gradually prompted the former to invade the latter. This invasion has claimed the lives of countless war personnel and innocent civilians, as well as causing collateral damage amounting to billions of dollars for those who like to buy dinar.

Despite the tragedies that has occurred between the two countries, and the sour relationship the two have been sharing over the succeeding years, leaders of both nations have decided to put an end to these issues, and work towards rebuilding each other’s economies so they can buy dinar for a better and brighter future.

During a recent press conference held earlier this month, Iraqi Prime Minister Nuri al-Maliki stated that a joint Iraqi-Kuwaiti effort – which aims to end all outstanding issues between the two countries – has been formed. He also spoke about his Kuwaiti counterpart’s upcoming trip to Baghdad, and how it “will contribute to the resolution of many outstanding issues between them.”

Throughout the duration of the conference, al-Maliki made several references signifying the strengthening of the relationship between Iraq and Kuwait. The most recent sign of both nations exerting efforts to strengthen ties revolves around their mutual agreement to resolve the file on Kuwait Airways.

The Iraqi Prime Minister believes that the resolution with the issue placed on the airlines could very well serve as the stepping stone for fixing all other issues and tensions existing between the two.

“Frankly we want to finish all outstanding files, keeping in mind that it was not us who invaded Kuwait, but that adventurer who had brought conflict to our two countries and slaughtered so many people,” said al-Maliki.

The “adventurer” he’s referring to in the statement above is none other than Saddam Hussein. Nevertheless, the extensive damage dealt during the tyrant’s deposed regime is going to be addressed, and has been made a priority. The Iraqi leader explained that his country is committed to pay Kuwait hefty compensations amounting to $13 billion. He says that they’re also obligated to the maintenance of border signs, as well as to close the file regarding Kuwaitis who’ve gone missing within Iraq territory.

News of the joint-effort to resolve issues and foster a healthier relationship – which could possibly lead to stronger trade and joint-projects essential for boosting both countries’ economies – has gotten many observers excited about what the future has in store for all Iraqis and Kuwaitis.

Senior Iraqi Clerics Balk at Arab-Kurdish War

by admin ~ January 9th, 2013

The senior Shia clerics in Iraq may have assuaged the worries of many Iraqis on a possible confrontation between the country’s troops and Kurdish Peshmerga fighters, saying it would harm the economy and dissuade foreigners to buy dinar. This came after the respected Muslim clergymen issued a fatwa or religious ruling which prohibits conflict and dinar exchange with the Kurds in the country’s disputed northern territories.

The fatwa was issued by the Najaf Hawza, a major Shia religious institution, which declared such a conflict as haram or religiously prohibited, mainly because it would cause people not to buy dinar or oil and harm the economy. The Shia statement further emphasized that Iraqi soldiers dying in fighting with the Kurds will not be considered as martyrs.

Tension in the disputed northern territories developed when the Iraqi Prime Minister, Nuri al-Maliki, deployed his controversial Dijla forces in the highly sensitive area likewise claimed by the Kurdistan autonomous region. In reaction to the prime minister’s maneuver, the Kurdistan regional government sent thousands of its Peshmerga soldiers into the disputed area, thus creating a tense standoff between the two forces for the last several weeks.

The Najaf declaration minced no words in accusing Maliki that he has driven the country to the brink of war just to achieve personal gain. The Iraqis will not be served if there is war with the Kurds, it declared. Curiously, Maliki himself is a Shia leader of the Dawa Party. Nevertheless, he has been widely criticized by Iraq’s Shia clerics, including Muqtada al-Sadr, the Mahdi Army founder. The clerics alleged that Maliki did not consult the Shia leadership about the deployment of Iraqi troops in the northern territories, saying that only a small choice group close to the prime minister were informed of his decision.

The letter of a father who has a soldier-son in the disputed territories was mentioned in the Najaf Hawza’s statement. The father’s letter inquired if his son would be a martyr should he be killed in the northern territories’ fighting. Senior Shia clerics opined that the soldier won’t be considered a martyr.

In their statement, the Shia clerics also charged that Maliki has failed as a prime minister and called the prime minister to step down from his position. The clergymen likewise expressed dissatisfaction with the unstable peace situation in Iraq, saying that security in Iraq hasn’t improved under Maliki. Being the commander in chief, the prime minister has failed in this task, and thus he must step down, the clerics said.

Notably, when Maliki restructured the army and formed the Dijla Operations Command, he drew a number of its high-ranking officers from the former Iraqi army. The reinstatement of these officers caused a stir not only among Shia officials but also among Kurdish authorities.

Iraqi Women’s Rights Campaign Highlighted at Summit

by admin ~ January 6th, 2013

Representatives from Iraq, in a recent summit meeting of the coalition Active Leaders for Women’s Advancement in the Near East (Alwane), announced initiatives to highlight and energize the Iraqi women’s role in all levels of involvement in the country, including economic practices such as where to buy dinar. In the area of politics, the Alwane Iraq committee is seeking to activate the quota of women in political representation which in the 325-member Iraqi House of Representatives stands at 25 percent.

The committee is likewise pursuing the training for women parliamentary candidates, while at the same time working to create more employment opportunities and provide encouragement to women to actively seek positions in the Iraqi workforce so they know where to buy dinar. A national advocacy campaign supportive of women’s rights and gender equality is also being pursued by the Alwane Iraq committee.

Delegations from sixteen countries attended the summit meeting held in Amman, Jordan. It was organized to highlight Alwane’s achievements during its first year. More than 130 men and women delegates attended the summit; among them were youth leaders, activists, government officials, entrepreneurs, business leaders, academicians, and civil society leaders. Many vital and pressing issues concerning the status of women were the focal points in the meeting’s agenda which likewise showcased success stories on women’s advocacy.

Future Search Champions for Women

Two Iraqi delegates were honored during the summit meeting. These were Naim al-Suhail, Iraqi presidential advisor, and Dr. Sabah El Tamimi, Baghdad Provincial Council member. Both were cited not only for their diligent efforts contributing to the empowerment Iraqi women and the enhancement of their role in society. They were likewise hailed for their significant contribution to the Iraqi Future Search report.

A broad overview of Iraqi women’s current social standing and specific objectives and recommendations for the future were effectively presented in this report. The Future Search report has been adopted as data reference by the Iraqi government in developing its strategy toward enhancing women’s role in the country. Specifically, it will serve as a resource for the national human development plan crafted by the Iraqi Ministry of Planning and the UNDP, a government initiative which too addresses women’s issues.

All of Iraq’s youth forums have been provided copies of the Future Search report. Besides presenting an evaluation of the Iraqi women’s past and present status, it also offers recommendations on how to elevate further the rights of women and their role in society, including active participation in political affairs.

IRAQ’S ECONOMY IS THRIVING—BLAIR

by admin ~ December 6th, 2012

In a rare speech on Iraq, former Prime Minister Tony Blair said in London recently that the country appears bound to be among the world’s fastest growing economies in the next ten years. Blair’s pronouncements certainly would be music to the ears of those who have a stake in the growth of Iraq. Among these stakeholders are those who have business ventures in the country and speculators who buy Iraqi dinars, hoping for a neat profit with the appreciation of the currency.

Blair, in his speech at the Iraq Britain Business Council conference, said that Iraq would achieve an economic growth around the vicinity of 9 per cent for 2012. By 2020, he shared with his audience that the country’s annual take from its oil deposits, one of the world’s largest, would reach around $100 billion, triple the current level. Besides these figures, however, there isn’t much statistics in Blair’s speech by which a currency trader would be able to draw a sound reading on a short-term path for the Iraqi dinar exchange rates.

The rest of Blair’s speech, as a matter of fact, just sounded as rhetorical and of not much value to those plotting the current value of dinar or to businessmen on vigil about their Iraqi interests. The former U.K. prime minister expressed elation over the recent economic gains and drastic reduction of child mortality rates in the southern Iraqi city of Basra. This city is where most of the British soldiers were based after the Coalition Forces invaded Iraq. Blair sang praises for the British forces for their participation in the U.S.-led invasion to topple the regime of Saddam Hussein in 2003.

What could even be most unsettling to those speculating on an Iraqi dinar revaluation is Blair’s acknowledgement that parts of Iraq continue to reel under destabilizing political tensions and terrorisms. True enough, around the time of Blair’s speech, two car bombs were detonated by suspected terrorists in Baghdad, reportedly resulting in four fatalities and wounding at least seventeen others.

Voted to office in 1997, Blair met strong public opposition on Britain’s participation in the 2003 Iraq war. Among other things, he was accused of blind subservience to then U.S. President George W. Bush. Blair’s political career, nonetheless, weathered the storm, and he went on to win the 2005 British election albeit with a reduced majority. Still, Blair had to face two humbling appearances at the British national inquiry on the Iraq war, a probe that will wind up in 2013.

IRAQ IS A GROWTH ‘HOTSPOT’

by admin ~ December 4th, 2012

Iraq looms large as the next regional hotspot less than ten years after the U.S.-led Coalition Forces invaded the country to topple the regime of dictator Saddam Hussein. This is according to Steve Hamilton-Clark, chief executive officer of TNS MENA, who is obviously impressed too of some recent bullish Iraqi dinar news.

The TNS MENA top honcho urged local marketers to accelerate their efforts to orient their operations with the vast market opportunities fast emerging in Iraq.  The CEO foresees rapid growth for the country’s gross domestic growth which he estimated at around 33 percent in the next three years. In this eventuality, the resulting increase in income levels will create a distinct middle class, not to mention its positive impact on Iraqi dinar exchange rates.

Having an estimated 32 million population, the third largest in the Mideast region, Iraq is shaping up as the next big consumer market with the country’s accelerating growth cycle, Hamilton-Clark said. He indicated that now is the opportune time to establish brand loyalty, set up platforms for new products and services, and boost penetration of the Iraqi consumer market.

Citing the results of a recent study that TNS MENA and IIACSS carried out, Hamilton-Clark revealed several factors that point to the country’s rosy economic prospects that no doubt can also make forex traders bullish on a possible Iraqi dinar revaluation. The study, titled Iraqi as Consumer 2012 (IRAC), identified the key aspirations among Iraqis as part of the robust factors that will help stimulate the country’s growth. Among these aspirations are national security and stability, education, strong family ties, and financial independence. Other plus-factors cited were nationalism, steadfast religious orientation, career ambitions, and big-heartedness.

The IRAC study, the first of its kind in Iraq, covered ten cities. Its findings revealed some validity to assertions that the Iraqi dinar, currently trading sideways on the market, looks headed for a breakout. The study showed that 41 per cent of those surveyed believe that the present economic situation in their country is good. Significantly, 42 percent expect improvement of these conditions to continue over the next six months. Consumer confidence is likewise relatively high, with 32 percent saying that now is the time for purchases of consumer durables.

Those moving into the Iraqi market, like the traders who plot currency movements especially dinar exchange rate fluctuations, would have to acquire a thorough understanding of the Iraqi population’s characteristics. Besides basic socio-demographics, Hamilton-Clark identified these traits as: lifestyle habits, general life attitudes, category interaction, brand affiliation, and retail shopper understanding.

IRAN READY TO HELP IRAQ WITH URBAN MANAGEMENT

by admin ~ December 2nd, 2012

Here’s a piece of good news that may not immediately raise Iraqi dinar exchange rates but may foster even better relations between Iraq and Iran that would be beneficial to the economy of both countries. Recently, Mayor Mohammad Baqer Qalibaf of the Iraqi capital Tehran announced that his city is prepared to assist Iraq in urban management.

The mayor visited Tehran recently and met with Amal al-Din al-Har, the governor of the Iraqi Karbala Province.  During the meeting, Qalibaf praised the Iran-Iraq deep relations, saying that the long-standing ties between the two neighboring Muslim countries cover all aspects. Iran is ready to share with Iraq all its know-how and technical expertise with the citizens of the two Iraqi holy cities of Najaf and Karbala so that all-out progress could be achieved in these cities, Qalibaf said.

Such a statement comes at a time when fewer Iranians are able to afford visits or pilgrimages to Iraqi holy sites. This is because each U.S. dollar or Iraqi dinar now costs approximately three times more than what these currencies did as recently as last year. With conditions improving in both Iraq and Iran, the pilgrims’ difficulties regarding affordability of Iraqi dinar exchange rates may be alleviated.

Qalibaf emphasized that the Islamic Republic of Iran’s experience can be useful to Iraq. Al-Har, on the other hand, expressed gratitude to Iran for its support and assistance to the Iraqi nation. He further called on Tehran to share its experience so that the two Iraqi holy cities can be reconstructed. The two countries’ relations have grown and became stronger since the former Iraqi dictator, Saddam Hussein, was overthrown in 2003. Both countries are jointly moving forward on a series of plans to further expand their ties which can eventually spark appreciation in value of the dinar as well as that of the Iranian rial.

Iraq, indeed, has much to benefit from its closer ties with Iran. For instance, the capital Tehran is regarded as one of the largest and among the most important population centers in the Middle East. The city has a daytime population of around 11 million, a possible market for Iraqi exports or potential tourist visitors whose potential spending can have positive effects on the Iraqi dinar exchange rate. Tehran is currently undergoing an urban renewal from which Iraq can draw much experience. The urban planners in the city, for example, are implementing massive programs on urban environmental conservation and safe communities, among other post-war reconstruction activities.

 

Iraq To Settle $500M Airline Dispute With Kuwait By 2013

by admin ~ November 27th, 2012

Although the Iraqi invasion in Kuwait ended 22-years ago, the aftershocks are still felt today, especially on the invader’s end. The two neighboring countries’ airlines had long been in a dispute over damage dealt to the Kuwait’s airlines during the war back in 1990. Kuwaiti officials recently announced that Iraq will be made to pay a total of $500 million to put an end to the issue once and for all.

Kuwait’s Emir Sheikh Sabah al-Ahmad Al-Sabah signed a royal decree, which ratifies the settlement, stating that Baghdad will pay $200 million during the first six months of next year. As for the remaining $300 million, it will initially be deposited into a special bank account, and eventually transferred to Kuwait Airways Corp.

This deal took place within Kuwait City, and has gotten many feeling enthusiastic with the “rift” between both countries finally out of their way. The total amount to be paid by Iraq is said to be less than half of what the Iraqi government really owes Kuwait, as ten airplanes and numerous aircraft parts were pillaged by Iraq’s military forces as they seized the airport. According to reports, the total value of all of the airline’s plundered goods amounted to roughly $1.2 billion, which makes the half-billion dollar settlement appear much more reasonable.

Kuwait’s decree shall be effective the same day it’s published. Moreover, according to an Iraqi foreign ministry statement, the decree “cancels all restrictions and complications in rebuilding Iraqi Airways and it is now free to buy new planes and build a fleet.”

After the Iraq-Kuwait war, all flights between both Arab nations were immediately cancelled. It was only till earlier this year that authorities allowed direct flights from Iraq to Kuwait, and vice versa, to resume. The move to honor the final settlement shall further improve relations between the two countries, thereby making it easier for both Middle Eastern neighbors to come to terms for other concerns brought into the picture by the war which began a couple of decades ago.

That being said, the seven-month Iraqi occupation has accrued damages in all forms, thereby prompting Kuwaiti leaders to seek $20 billion for war compensations, as well as $16 billion in debt. Ironically, some of the speculated reasons as to why the Iraq-Kuwait conflict began in the first place was tied to Iraq’s inability to pay its $80 billion debt – used to finance the Iraq-Iran war – to Kuwait.

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