Iraqi Dinar Alert

The highly-publicized Iraq Study Group Report (Baker-Hamilton) release yesterday contains this tantalizing bit of info that should be encouraging for Iraqi Dinar investors:

Milestones for Iraq
The government of Iraq understands that dramatic steps are necessary to avert a downward spiral and make progress. Prime Minister Maliki has worked closely in consultation with the United States and has put forward the following milestones in the key areas of national reconciliation, security and governance:…

GOVERNANCE
By the end of 2006:
The Central Bank of Iraq will raise interest rates to 20 percent and appreciate the Iraqi dinar by 10 percent to combat accelerating inflation. Iraq will continue increasing domestic prices for refined petroleum products and sell imported fuel at market prices.

Investors in commodities such as gold or silver have long known that a smart alternative to owning and safekeeping gold bullion is to buy stock in sound companies that mine and process the precious metals.

Might the same be true for Iraqi dinar?

The British company that prints Iraqi dinar under contract with the Iraqi government- De La Rue - has been doing quite well recently, according to recent newswire reports:

De La Rue Plc (DLAR LN), which prints paper money including the Iraqi dinar, gained 16.5, or 3 percent, to 569. The company said higher volumes of banknotes contributed to better-than-anticipated trading in the fiscal first-half.

Technorati Tags: Iraqi dinar

An interesting report from ynetnews.com indicates that there is significant enthusiasm in Israel for the investment potential of the Iraqi dinar:

Looking for investment opportunity? Try the Iraqi dinar
by Shlomi Shefer

Despite Trading with the Enemy Act prohibiting trade in enemy currency, finance minister approves trade in Iraqi dinar for another year. Buying Iraqi dinar at unprecedented lows could prove enormously profitable if and when war-torn nation returns to economic prosperity

Despite the Trading with the Enemy Act, which forbids trade in enemy currency, Finance Minister Abraham Hirchson renewed authorization to traffic in the Iraqi dinar for another year this week.

Technorati Tags: Israel, Iraqi dinar, investment opportunity