India has deficits on the current account and fiscal front. Although political bickering and violence continued throughout the period, military responsibilities were gradually transferred from U.
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Backed by the oil reserves , Iraq has the potential to spring back and establish itself as a stable economy. It managed to do so after the eight-year long Iran-Iraq war. But that will need a peaceful, promising business atmosphere to establish investor confidence, which will in turn help revive its economy and bring back the IQD forex rate to realistic levels.
Additionally, the following incorrect statements are heavily publicized by the propagators of Iraqi dinar Investment schemes:. Revaluation is the actual calculated adjustment made to a country's official exchange rate relative to a chosen baseline gold or USD. Revaluation results in that currency becoming expensive to the base currency by the factor of adjustment and hence changes the purchasing power of that currency. It simply drops off the zeroes keeping the purchasing power the same as before.
There are confirmed news items that Iraq did plan to redenominate its currency, but not revaluate. In the absence of any revaluation, there is going to be no change in the forex exchange rate of Iraqi dinar IQD with or without redenomination. Economists also point out that it would not be beneficial to the Iraqi economy to allow any such value appreciation by the authorities even by means of revaluation.
Doing so will lead to multiple problems for Iraq:. However, this is misleading. The new release was to prevent use of stolen and looted old Kuwaiti dinars. Examples of European countries like the Netherlands, UK, etc. These other countries managed to make a rapid comeback from the effects of World War II, and are today considered among the developed countries. One important fact missed here is that these countries were able to progress faster because the war situation was completely different from the Iraq War.
It was then a case of world war where the European countries in question were on the winning side and got maximum support in the post-war aftermath. The case of Iraq, by contrast, is more of a civil war, where there exists a possibility of the country being split into multiple fragments.
Even if it stays as one nation, it will still take a good long time for the economy to recover. Similar to Iraqi dinar, similar rumors are reported for Vietnamese dong and, most recently, the Egyptian pound. No banks are offering Iraqi dinars. If you have to buy Iraqi dinars, you can buy them only at select money exchangers, who may or may not be legally registered.
How Iraq, its economy and hence the forex rate develop over the long term, is going to be a long term uncertain bet. Trading forex currencies is always risky, as external factors at international levels are difficult to control or predict.
Unless you are trading on regulated markets or through regulated agents, traders and investors should use extreme caution for trading such currencies.
By Shobhit Seth Share. Is there the possibility of a scam in such an investment scheme? Financial scams usually have certain characteristics. The rupee plunged to a fresh record low on Wednesday, breaching the mark for the first time ever. The local currency opened 34 paise down at Rising crude oil price impacted forex market sentiment.
Oil prices were firm on Wednesday on expectations of a tighter market once US sanctions start targeting Iran's petroleum industry from next month, although a strong dollar and rising US crude supply curbed gains.
The euro also slumped against the safe-haven yen and Swiss franc, while the dollar surged to a one-month high. The dollar traded at The rupee Thursday ended almost flat at Steady capital outflows against the backdrop of tumbling local equities, ongoing global trade war concerns and surging oil prices kept forex sentiment under stress.
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Rupee tanks 43 paise, ends below 73 level for the first time ever Oct 3, , Oil puts rupee on course to outstrip taper tantrum losses Oct 3, , Jul 3, , Rupee recovers after report of talks on special dollar window for oil firms Oct 3, , Rupee at fresh record low; breaches level against US dollar Oct 3, , Rupee plunges to new record low, breaches level against dollar Oct 3, , Euro lifted off six-week low by Italian budget speculation Oct 3, , Time to cash in on market fears?
Porinju has a different strategy Whatever money is coming in, is getting invested, Porinu said. Investors with risk appetite can still go for bottom-fishing in second-rung stocks. But what do they have to do with my stocks? In well-functioning economies, financial systems are not allowed to collapse. Are you looking to stop your monthly SIPs? Who says a dull year for IPOs?
India ranks 2nd globally You might be missing out on a mega trend, which is the emergence of primary market for SMEs.