Did the Iraqi Dinar Revalue in 2018? May 22 2018
Did the Iraqi Dinar Revalue?
Here at BuyIQD.Com we often field phone calls asking us if the Iraqi Dinar has revalued.
Here is the thing with currencies, currency markets are typically open 24 hours a day. When one currency market is closing, another one on the other side of the world is opening. Currencies change their value in relation to other currencies all day long. For example, if I were to buy Euros for an upcomming vacation to Italy, this morning the exchange rate may be $1.35, meaning a Euro would cost me $1.35, later on this afternoon the rate may be $1.40 meaning each Euro costs $1.40. Currencies are constantly changing value.
Iraq and the Iraqi Dinar are a bit different than other currencies. Because Iraq and the Iraqi Dinar are not part of the International Monetary Fund (IMF) their currency doesn't really float in relation to other currencies. People often refer to this as a "pegged" currency. The way the rate is figured for the Iraqi Dinar is the Central Bank of Iraq (CBI) holds an auction once per week. Large banks from Iraq and around the Middle East bid on the currency at auction and that determines the rate. Because of that the rate typically only changes once per week, and tends to be pretty stable. For all intent and purposes the Iraqi Dinar has been trading at around $840 per million for the past several years.
What winds up affecting the price you buy the Dinar at is based much more so on supply and demand than it is on an exchange rate. For example, if a banknote seller like ourselves is taking in 30 million Dinar per week on buy-ins from the general public, but is only selling 10 million Dinar per week,we don't really have a need for more Dinar and may adjust our buyin price to deter people from selling to us, and if people do sell us it leaves us some room to be able to sell it off to a larger broker. If we are selling more Dinar than we are getting in, and/or if the supply chain of Dinar tightens up, we may raise the price we are willing to pay for Dinar. Because we have to buy Dinar to be able to resell it, this in turn affects the price of customers looking to purchase the Iraqi Dinar.
So when it comes to answering the question of has the Iraqi Dinar revalued, the Iraqi Dinar technically speaking revalues about once per week as once per week the CBI does auctions to determine the price. Other currencies however which are "pegged" currencies and traded on the Forex markets are changing their value or one could say revaluing all day long everyday.