Iraq's Ever Growing Oil Trade and How It Affects the Dinar

[garylew]

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Iraq is continuing to show how focused they are on their oil trade. Huge amounts of foreign investments are coming into support Iraq's oil trade. By 2011, Iraq is planning to increase its oil exports from 2.6 million barrels per day to 3.6 million barrels per day. The biggest challenge Iraq faces is to quickly build the infrastructure necessary to support the increased productivity. A good problem to have. The great demand for infrastructure and security will increase the number of jobs created. Iraq reported a 15% unemployment rate, but its oil industry is looking to significantly reduce that rate.

Iraq's oil trade, which comprises 95% of its current revenue will create more construction, security and manufacturing jobs for Iraqi citizens. In addition to the employment gains, the dinar will benefit from this huge increase in the oil trade. There will be an increase in the demand for the dinar. As foreign companies do more business with Iraq - buying oil, contracting Iraqi security companies, labor, etc. they will need dinars to pay these service providers. Also, Iraqi companies will be exchanging dinars for foreign currency as they import products they do not have domestically. Many of the large components required to drill and export oil must be imported in. Dinars must be converted to pay for these components.

All in all, this is good news for the dinar as it is on its way to becoming a currency pair and being traded on the open foreign exchange rate. It is also an opportunity for the Iraqi government to show foreign investors that it will take care of investor relationships and interests - which will attract even more money into Iraq. Needless to say, there is a lot at stake regarding Iraq's oil trade and the Iraqi government knows it.

http://dinarprofits.com/iraq-increase-oil-exports-by-40-percent/