Koreans to Invest in Iraq

[garylew]

Prime Minister Maliki is encouraging South Korean companies to invest in Iraq. The South Korean Minister of Economy, Choi Joong Kyung met with Maliki in Iraq to discuss possible investments. Korea is looking to contribute to reconstruction efforts.

South Korea would be a key trade partner for Iraq. Iraq is diversifying its investment relationships in Asia. China is a huge economic partner and while Korea would not invest as much as China, it will still be a major trade relationship. This relationship could motivate more Asian countries like Japan and India to invest more in Iraq. As announcements of more countries that are investing in Iraq come about, it is adding more credibility to the security and stability of Iraq in the eyes of foreign investors.

These trade relationships are also critical for political relationships. As Korea and Iraq begin to trade, they will learn more about each other and gain understanding. This is crucial for Iraq as it is working on establishing better foreign relations. The more trade partners Iraq can get, the better it is for them politically. There needs to be more communication between Baghdad and the rest of the world. Iraq is seen as a war torn, unstable country. This is not the perception Iraq wants or needs, nor is it what the dinar needs. The more back and forth there is between other countries, the more Iraq will be able to showcase itself. Part of the negative perception of Iraq is due to the lack of information. As Iraq forms more connections and nurtures these relationships, the world view on Iraq will change - and it's most likely for the better. Iraq has done a great job with setting up their oil trade and attracting foreign investment. It is working through political matters and Iraq is moving forward by listening and responding to its people.

The dinar will also benefit from more trade partners. With Korea, the Korean firms who want to buy Iraqi products must now use the Korean Won to buy dinars. The more widely traded the dinar gets, the better, as it will potentially allow the dinar to be on the public market. Trading with Korea is a step in the right direction. Iraq really has done a great job of getting investors into Iraq, it is up to them now to keep investors in Iraq. This will be the true test and if Iraq can maintain great economic relationships with other countries, more countries will buy dinar, creating more demand for the dinar, which will help boost the strength of the dinar.

Source: http://dinarprofits.com/maliki-invites-koreans-to-invest-buy-dinar/