The currency of Iraq was introduced to the country in the early 1900s to replace their dependency on the Indian rupee. Through the years, the currency of Iraq, formerly referred to as the Iraqi dinar, managed to receive a high value especially when traded to the international market.
The Iraqi dinar is currently valued at one to 0.00084 US dollars. Despite the extremely low value of the Iraqi currency, the nation’s economic team are still doing their best to promote a sensible economic program that would benefit the country’s economy.
The value of the Iraqi currency reached its current value after several sanctions imposed by the United Nations. Under the regime of Saddam Hussein, Iraq was painted as a global antagonist, and the situation became worse as the 1991 Gulf War unfolded. Iraq invaded Kuwait and annexed the nation as their province. Many Kuwaitis fled their homeland, fearing that the brutal invasion led by Iraq would totally decimate the country’s economy. After Iraq lost the 1991 Gulf War, the country had to pay the nations that it invaded, and the United Nations posted a sanction against the ruling regime, preventing them from trading in the international scene and forcing the nation to establish connections with other states that are deemed to be antagonistic. This signaled the plummeting value of the Iraqi currency, and it never recovered.
After the events of the 9/11 terrorist attacks in the United States, the American government decided to invade Iraq because of their alleged connections to Osama bin Laden and other terrorists who plotted the attacks in New York, Pennsylvania, and Washington D.C. Saddam Hussein denied the allegations and stated that invading his country will result in retaliatory action. The United States continued with their invasion, and it had a huge impact on the country’s economy. The Iraqi currency was devalued once again, and it spawned an economic disaster for the locals. Many people suffered because of the sanctions imposed by the United Nations, and after the death of Saddam Hussein, the United States promoted a new leader who would be under their control, and they started rebuilding Iraq’s economy.
Iraq under the occupation of the United States managed to revive their oil and petroleum industry. The country manufactured thousands of barrels of oil per day, selling it to the international market and earning a lot of profit. The new government leading the nation was able to revive the country’s ailing economy, but the slight increase in the value of the Iraqi currency came to a stop once again after the rise of the radical Islamist group called ISIS. The terrorist group occupied a huge part of Iraq, and they messed up the country’s economy once again. Iraq was dragged into another war, and they are unsure if their economy will still be able to recover. With the help from the coalition forces, Iraq was freed from the hands of the terrorist group, and they continued working on their oil and petroleum industry. Today, many business experts are saying that Iraq will be the next state that would enjoy an economic breakthrough. The supply of oil from Iraq is abundant, and according to experts, it would help the country generate more profit that would allow them to draw more investors and provide jobs to a lot of people.
When compared to other states that have been in a recent civil war, one could say that Iraq has among the lowest valued currency, but it does not stop the Middle Eastern country from achieving its goals of becoming the place to go when trying to open up a business. As the country’s economic teams are working so hard to revitalize the country’s economy, many people are showing their support to the government and they are hoping that it would be the beginning of their changes that will be felt in every aspect of Iraqi way of life. Many people are saying that with proper cooperation among the departments within the government, the Iraqi currency could regain its pre-war values, providing a better life for the locals once again.