The Iraqi Dinar (IQD) is the currency of Iraq and has been in circulation since 1932. Over the years, it has undergone several changes in value due to various economic, political, and social factors. In recent years, the IQD has gained attention in the foreign exchange market, also known as Forex. In this article, we’ll explore the reasons why IQD is on Forex.
Firstly, it’s important to understand what Forex is. Forex is a decentralized marketplace where currencies are traded. It’s the largest financial market in the world, with an average daily turnover of over $5 trillion. Forex trading involves buying and selling currencies with the aim of making a profit from the fluctuations in their value. Currencies are traded in pairs, with the exchange rate representing the value of one currency against another.
The IQD is on Forex because it’s a tradable currency. This means that individuals and institutions can buy and sell IQD on the Forex market, just like any other currency. The IQD is traded against other major currencies such as the US dollar, Euro, and British pound. The exchange rate of IQD is determined by market forces of supply and demand.
One of the main reasons why the IQD is on Forex is because of Iraq’s oil reserves. Iraq has one of the largest oil reserves in the world, which makes it an important player in the global oil market. The revenue generated from oil exports is a significant source of income for Iraq. As a result, the value of the IQD is closely tied to the price of oil. When the price of oil goes up, the value of the IQD also tends to rise. This correlation makes the IQD an attractive currency to trade for investors who are interested in the oil market.
Another reason why the IQD is on Forex is because of Iraq’s economic reforms. In recent years, Iraq has implemented several economic reforms aimed at improving its economy. These reforms include reducing subsidies, increasing taxes, and improving the business environment. These measures have led to increased foreign investment in Iraq and have boosted the country’s economy. As a result, the value of the IQD has also improved, making it a more attractive currency to trade.
Political stability is also an important factor in determining the value of a currency. Iraq has been plagued by political instability and conflict for many years. However, in recent years, there have been efforts to improve the political situation in Iraq. The defeat of ISIS and the formation of a new government have brought some stability to the country. This has had a positive impact on the value of the IQD, making it a more attractive currency to trade.
Finally, the IQD is on Forex because of the demand for it from Iraqi expatriates. There are millions of Iraqis living abroad, and many of them send money back home to their families. This creates a demand for IQD, which can be met through Forex trading. Many Forex brokers offer IQD trading to cater to this demand.
In conclusion, the IQD is on Forex because it’s a tradable currency that is influenced by various economic, political, and social factors. Iraq’s oil reserves, economic reforms, political stability, and demand from expatriates are all factors that contribute to the IQD’s presence on Forex. Forex trading of IQD is a way for investors to profit from the fluctuations in its value. As with any currency trading, there are risks involved, and investors should do their due diligence before investing.