Bank owners and citizens protest deterioration of the Iraqi dinar following US ban on Iraqi banks

The consortium is required to withhold 7 percent from secondary contracts for remittance to the GOI. Companies pay a profit tax of 15 percent unless they operate in the oil sector, which has a 35 percent tax profit rate. Any business or individual considering doing business in Iraq should obtain competent advice from a private accountant and attorney. Draft bills, including investment laws, dinar investment are not available for public comment. The promulgation of new regulations with little advance notice and requirements related to investment guarantees have also slowed projects. According to Iraqi law, a foreign investor is entitled to make investments in Iraq on terms no less favorable than those applicable to an Iraqi investor, and the amount of foreign participation is not limited.

  1. Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
  2. This is bad news for Iraqi workers, but represents an attractive labor pool for large global companies.
  3. It’s often forgotten that current industrial powerhouses, like South Korea and Taiwan, industrialized precisely because they offered low wages.
  4. The Kurdistan Board of Supreme Audit is responsible for auditing regional revenues with IKP and GOI oversight.

The new (convertible) IQD came into circulation on October 15, 2003, eventually replacing all the old Dinar and Swiss dinar banknotes that were no longer legal tender. The freshly released Banknotes were similar to the Swiss Dinar, with added security features to protect against counterfeiting. In late 2020, the Iraqi government announced a devaluation of more than 20% of the Iraqi dinar, to make up for a shortfall in liquidity. The act resulted in public protests in a country that was already struggling due to the worldwide coronavirus pandemic. These examples are programmatically compiled from various online sources to illustrate current usage of the word ‘dinar.’ Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors.

Will the Iraqi Dinar ever gain value? ›

As the government of Saddam Hussein struggled to contain inflation and speculation, the Iraqi dinar fell from its prewar value of $3 to less than a penny in 1993. Tensions escalated after the government of Kosovo, a former Serbian province, banned banks and other financial institutions in the Serb-populated areas from using the dinar in local transactions, starting Feb. 1, and imposed the euro. Do not buy, sell, trade or hold any Iraqi Dinars or any stocks, bonds, other currencies, or commodities based upon any postings or messages on the Website or referenced on the Website.

Iraq is in a favorable position to attract several investors worldwide as long as it keeps unlocking its oil resources. Based on the future predictions of the Dinar, it’s easier to plan how to buy the Dinar for those interested. Below are some forecasts and analyses that investors can look into before investing. An economy such as Iraq is more prone to experience a currency crash or international devaluation as compared to drastic reflation. The potential value of an investment in dinars is usually displayed with reference to what happened to the Kuwaiti Dinars after the Gulf War and the German Deutschmark following World War 2.

Under Iraqi law, an Iraqi debtor may file for bankruptcy, and an Iraqi creditor may file for liquidation of the debtor. The Iraqi Companies Law regulates the process for the liquidation of legal entities. Iraq ranks 168 out of 190 countries in the category of Resolving Insolvency, according to the World Bank’s 2020 Doing Business Report. U.S. investors also complain about the application of the social tax, equivalent to 5% of employees’ pay and a 12% employer contribution, to third country national employees who cannot receive benefits from the Iraqi health and pension systems. Investors in the IKR face many of the same challenges as investors elsewhere in Iraq, but the IKR has a traditionally more stable security situation.

You can order foreign currency online and have your money shipped straight to your door in hours. All shipments are fully insured, and we pride ourselves on having the industry’s lowest spreads. Sign up for our exchange rate alerts to track the value of Iraqi Dinar over time and find the best time to buy currencies. Foreign employees must obtain a security clearance and a work permit before applying for the residency permit required for legal employment. Some companies have reported prolonged delays in obtaining necessary residency permits for foreign workers. Iraq continues to face high unemployment, a large informal sector, lack of satisfactory work standards, and a large unskilled labor force.

IQD To USD Convert Iraqi Dinar To United States Dollar

Foreign investors tend to rely on foreign workers, although at least 50% of an investment project’s workers must be Iraqi nationals. International companies have noted that it can be a challenge to meet this requirement. The GOI does not follow any forced localization policy in which foreign investors must use domestic content in their goods and technology. There are no requirements for IT providers to turn over source code and/or provide access to surveillance. In November 2010, Iraq’s Higher Judicial Council established the First Commercial Court of Iraq — a court of specialized jurisdiction for disputes involving foreign investors — as part of a national strategy to improve Iraq’s investment climate. The GOI established the National Investment Commission (NIC) in 2007, along with its provincial counterparts Provincial Investment Commissions (PICs), as provided under Investment Law 13 (2006).

Is the Iraqi Dinar a Wise Investment? (

Investors in Iraq continue to face extreme challenges resolving issues with GOI entities, including procurement disputes, receiving timely payments, and winning public tenders. Shifting and unevenly enforced regulations create additional burdens for investors. The COVID-19 pandemic and subsequent drop in global oil prices continue to reverberate in Iraq. The Iraqi government has been covering a large fiscal deficit by borrowing domestically and drawing on its foreign reserves.

Over decades of war and sanctions, Iraqi courts did not keep up with developments in international commercial transactions. As trade with foreign parties increases, Iraqi courts have seen a significant rise in complex commercial cases. Although contracts should be enforceable under Iraqi law, such enforcement remains a challenge due to unclear regulations, lack of decision-making authority, and rampant corruption. The U.S.-Iraq Strategic Framework Agreement (SFA) provides for bilateral mechanisms to address trade and investment issues. A second TIFA meeting was held under the auspices of the SFA in 2019, with special emphasis on visa facilitation, customs, and taxes. Both governments held a Strategic Dialogue in August 2020 to discuss progress in these areas.

The U.S. International DFC provides debt and equity financing, political risk insurance, and technical development to mobilize private sector investment to advance development in emerging economies. DFC’s current investments in Iraq surpass $280 million across sectors such as energy and financial services. Since 2009, Iraqi law has allowed foreigners to own land and the amended Investment Law expressly provides foreigners the right to own land for the purpose of developing residential real estate projects. It also allows foreign investors to own land for industrial projects if they have an Iraqi partner.

Iraqi Dinar Guru Updates, Investment, News, Opinions, and Intel (02-8-

In 2021, the IKP ordered the establishment of a Kurdistan Anti-Corruption Court. Investors are required to protect the environment and adhere to quality control systems. These include soil testing requirements on the land designated for the project as well as conducting an environmental impact study. In practice, the GOI lacks a mechanism to enforce environmental protection laws and implementation is limited. In the IKR, oil companies are mandated in their production sharing contracts with the KRG to give back to the communities in which they work through corporate responsibility agreements. These agreements require yearly payments from which the KRG prioritizes and allocates funds for projects such as improved roads, university training for local youth in the geotechnical and energy fields, and health clinics.

While it’s true that alternative energy sources, like wind and solar, have made considerable progress in the past couple of decades, they’re mostly being used for electric power generation. That mostly replaces the use of coal and nuclear fuel, since those are the primary energy sources used to generate electric power. Iraq is the world’s fourth leading oil producing nation, after the Russia, Saudi Arabia, and the United States. It produces 4.38 million barrels of oil per day, and is one of the world’s leading oil exporting nations. Iraq ended up devaluing its currency in 2020, meaning everyone who invested in the Dinar in 2014 would have incurred at least a 20% loss of their money.

Kosovo’s Prime Minister Albin Kurti retorted that claims his country is conducting an ethnic cleansing campaign against the Serbs are “a lie,” and said that abolishing the dinar will prevent criminal groups in Kosovo from receiving illegal cash. Frank26  [Chase Bank story]  I went into Chase Bank to speak to the wealth manager… She looked at me and chuckled and said I just got out of a meeting on that…I started asking questions and she says, as a banker I cannot answer those question right now…personally I can tell you things are moving. She said, I will put you in my computer to call you in two months if I have not heard from you. By the time the scheme unraveled, federal officials say victims handed over nearly $24 million to the con men for the Iraqi currency they thought would make them rich.

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