Monday, November 3, 2008

Dinar Rate to Hike as Iraq Raises Interest Rates

Iraq's inflation rate has been falling, but the Iraqi Central Bank has decided to hike interest rates. With this contraction of the money supply, expect the value of the dinar to increase.

With such a contraction, as well as the official policy of appreciating the dinar, it can be expected that the dinar will keep rising. This comes at a time when almost a billion dinars were snatched up by foreign investors.

This has even been picked up in the wider press:

Iraq's foreign currency reserves now stand at $40 billion, he added. Central bank officials said Iraq's overall inflation rate had fallen from an overall level of 16-17 percent in 2007 because of a strengthening in the Iraqi dinar which helped shield the country from high commodity prices.

Also, some German marks for sale.

Search for dinars below!

1 comment:

Editor said...

dinars are the future