Wednesday, January 26, 2005

In a surprising economic development, the exchange price of the Iraqi Dinar has jumped from its steady value in the past 12 months (1460/ 1 US $) to approximately (1300/ 1 US $) this morning!

This change in price was completely unexpected because the exchange price of Iraqi's currency has a long history of substantial drops prior to and during crises times. while having an overnight 10% increase in the exchange price indicates that the market is expecting something good to happen.

From my experience, wide fluctuations in the exchange price are only temporary in most of the cases and the price would return to a figure that is slightly different from the starting point, within days or a few weeks.

Maybe it's just a result of introducing coins back to the circulation, which were absent for over a decade. Or perhaps Iraqi trade-masters and economists have a different sense about the current "crises" and the post-election phase.

I can't tell but the coming weeks certainly can.

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