3 Protest Postives For the Dinar

[garylew]

Iraqi citizens have taken the streets and are protesting the lack of public services, lack of jobs and general mistrust of the Iraqi government. And you know what? I don't blame them.

If you were living in Iraq right now, you wouldn't have reliable electricity. Think about how hot it gets in the summer in Iraq. Wouldn't you be angry if you only had air conditioning two hours of the day?

In addition, Iraq's unemployment rate is around 15% and the government hasn't done all that much to help it seems.

With all that being said, there's still a lot of good that could come from these protests. And that good is also good for the dinar.

1. Put fear in Maliki

With the Egyptian revolution still fresh in the minds of every one in the Middle East, Maliki has to worry about losing his people. Iraqi citizens realize this and running with it. These protests are causing Maliki to listen. Maliki does not want these protests to get out of control because it will undermine his authority.

With respect to the dinar, if Iraqi citizens get what they want: reliable electricity and more jobs, of course it will help the dinar. More Iraqis happy and working - isn't that what will make Iraq more stable and strong?

2. Promote democracy in Iraq

The Iraqi people aren't calling to upend the current government and get a new one, it's demanding reform from the politicians they elected. Protests are essential for democracy, as people's voices are heard. This has not been the norm for Iraq.

As these protests move forward and hopefully bring change, Iraqi citizens could become more empowered to use their voice to improve their lives and Iraq.

3. More confidence in Iraq

How could these protests put more confidence in Iraq? It all depends on how Iraq comes out of this. If Iraq can maneuver through these protests in a way that pleases its citizens and restores peace, the Iraqi government has done something right.

This will have ripple effects to the dinar. Private investors will see how the Iraqi government defused this situation and be more confident in the security of their investment. More dollars, yens, yuans, francs, euros and pounds will be converted to dinars. More business transactions and larger deals will be signed by Iraq and foreign companies. More dinars will be exchanged. The market for dinars will become more active and hopefully the dinar will be publicly traded and reflect its true value.

Source: http://dinarreport.blogspot.com/2011/03/3-protest-positives-for-dinar.html