Currency Auction Results, 13th Nov

By John Lee.

The Central Bank of Iraq (CBI) has reported that 18 banks took part in its currency auction on Thursday.

A total of $173,983,000 was sold  at a price of 1166 Iraqi Dinars (IQD) per dollar.

(Source: Central Bank of Iraq)

3 Responses to Currency Auction Results, 13th Nov

  1. dinarian November 25, 2014 at 4:00 am #

    does this mean they are going to finally revalue their currency? How can you trade internationally with a worthless currency?

  2. Iraq Investor November 25, 2014 at 9:35 am #

    I think you’ve answered your own question — Iraq is trading internationally very successfully, as are many other countries with low exchange rates (e.g. South Korea), so clearly the dinar is not “worthless”.

    If it was a worthless currency, then all the people who pay their dollars to buy it would be idiots, right?

  3. Stew November 28, 2014 at 6:27 am #

    I always found it interesting that people claimed the Iraqi dinar was worthless.
    In the United States we carry and use for the most part 20,10,5, and 1 dollar bills. Most people don’t carry 100 or 50 dollar bills.
    Iraq has bills that are worth 21.5,8.6,4.3,and .86 dollars.
    So the bills they carry and use are worth pretty much the same as the bills we carry and use. How are they worthless?

    These same people will tell you how valuable the Kuwaiti dinar is. Iraq has 40 Trillion dinar in circ. That’s $35 billion worth of dinar in circulation.
    Kuwait has barely over 1 billion. So that $3.5 billion worth in circulation.
    So Iraqi dinar in circulation is worth 10 times more than Kuwaiti dinar in circulation.
    It’s so simple, but yet so hard for dinaraholics to understand. The Iraqi dinar (or any currency) does not get it’s value from the exchange rate only. The dinar and all currencies get their value from the AMOUNT OF CURRENCY and the exchange rate. Dinaraholics ignore the fact that Iraq has a MASSIVE supply of currency compared to other countries and that’s why the exchange rate is so low.
    So very very simple, yet so very hard for some to understand.