Iraq is the second largest power of oil reserves in the world. First one is Saudi-Arabia. The country is still under war condition, otherwise it had done much better for its economic growth than now. The condition of Iraqi economy was not always like this. Before the Gulf War, the economy of Iraq was one of the most stable economies in the world. The US dollar was like a small currency in front of the Iraqi dinar with exchange rate of $1 for 0.33 Iraqi Dinar. It means somebody needed three dollars for one dinar. The situation appears to be unbelievable, but this is the reality.
The economy if the Iraq, mainly depends on its oil production. It contributes to the economy a part of more than 90%. The rest of the items take up the remaining 10% of revenue for economic stability. Now the question is, how secure is the economy of Iraq? Well, Iraq is facing bomb explosions every day. Hundreds of people are killed every day, which is also creating a severe manpower shortage in Iraq. That is the reason, Iraq, the third country in the world in oil reserves. Iraq has offshore the exploration of its oil reserves. Those reserves are huge, no doubt. According to deputy oil minister in the era of Saddam, Iraq has over 300 billion barrels oil reserves. Much oil is explored, but far more is yet to be explored.
If the oil minister was right, Iraq is hiding under its soil the quarter of the oil of the entire world. When we talk about the economy of Iraq, we mostly discuss oil, because this is the major contributor. This is true that if you have to look at the future of the Iraqi economy, first you have to look at an estimate of total oil reserves. These reserves are the key point for Iraq to make important decisions regarding the economy and finances. This will make sure your strategies go over smooth path. Iraq’s oil is not only its asset and revenue, it is also a future looking and decision making metric.
Iraq has started many new projects of oil exploration with the companies within the country as well as foreign companies mainly from USA, UK and China. They will invest in oil reserves. At present, the oil production in Iraq is between 6 and 7 million barrels per day. With new projects and multimillion dollar investment coming from foreigner companies, Iraq will soon make its economy stronger.
This will also aid in making other industries strong. Also, the currency of Iraq, Iraqi Dinar, will also get stable. At present, the currency is in dwindling condition. But, it is expected that Iraqi Dinar will get back its position in the world exchange market in a few coming years. This is interesting fact that many investors are buying Iraqi Dinar as a major investment of time. They might have heard of Kuwaiti Dinar, which revalued overnight and made many ordinary people a millionaire in just a short span of time. Such investors buy Iraqi Dinar in bulk. In fact, one dollar can buy more than one thousand dinars. Think if dinar revalues tomorrow, how much they are going to earn?
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