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3 Essentials Dinar Investors Should Know About the RV & Oil
2011-02-01 16:41:42
All,

We all know that Iraq is an oil rich country and there is a huge global demand for oil. Iraq stands to make a huge profit off their oil if done right. However, what is the direct relationship between Iraq’s oil trade and the RV?


Here’s the list of three essentials about the RV and oil:
1. The oil trade will make the dinar a widely traded currency

As more foreign countries invest in Iraqi oil and begin to export oil from Iraq, the dinar will be widely exchanged. When foreign companies pay out contracts, their currency must be converted to dinars. When Iraq imports infrastructure, it must convert its dinars to another currency. The increased buying and selling – trade – between Iraq and other foreign countries is the precursor for the dinar becoming listed as a currency pair to be publicly traded. Iraq’s oil trade is going to be huge and the dinar will be a currency that cannot and will not be ignored. Iraq’s rich oil trade is the biggest economic factor supporting the RV. High RV rates would not even be possible if Iraq didn’t have a “business” to support the value of its currency.

2. The oil trade will restore confidence in Iraq and the dinar
Iraq’s oil trade is as much a political issue as it is an economic issue. When there’s that much money involved, there’s a lot at stake. The oil trade is the perfect opportunity for Iraq’s government to demonstrate to foreign countries and investors that it can get things done. Countries want to see that Iraq will fulfill their responsibilities and work through negotiations. Investors want to know that Iraq will honor its commitments and protect their investments by providing the necessary security and infrastructure. This is also an opportunity for the global community to regain confidence in the dinar. Much like a stock, investor confidence is extremely important for currency once it becomes widely traded. The dinar has a lot of potential, it’s now time to make that a reality.

3. The oil trade will make Iraq an economic giant

Iraq has been a sleeping economic giant. Finally, Iraq has private contracts to export oil so that it can reap profits. As Iraq as a country strengthens, so will the dinar. The dinar is poised to become a major worldwide currency due to Iraq’s oil trade. There wouldn’t even be talk of an RV if it weren’t for the oil trade. For the dinar to RV and for that exchange rate to be sustained, it must be supported by tangible evidence – oil. It does take time for oil infrastructure to be in place and for it to be exported, but once that gets flowing Iraq is going to be a major economic force. More and more oil and gas is being discovered and we have only seen the tip of the iceberg. The next few years look very profitable for Iraq’s oil trade, which is great news for the dinar.