Category: Currencies
Iraqi Dinar: The Once and Future Currency of Iraq
Iraqi Money
The official currency of Iraq is the dinar. It has been in circulation since 1931 although has gone through major changes since then. It is commonly known as the IQD.
History of the Iraqi Dinar
Before the Iraqi dinar was in use, Iraq used the Indian rupee.
From 1931 to 1959, the Iraqi dinar was used, as was pegged to the British pound. Then, in 1959, it was pegged to the US dollar so that one dinar equaled 2.8 dollars.
Currency Pair, Currency Pairs
Forex trading involves the simultaneous buying of one currency and selling another. The currencies involved in a single trade form a currency pair. The first currency quoted in a currency pair is called the base currency, while the second currency is called the quote currency or the counter currency. When an exchange rate is quoted, it is always expressed as the number of units of the counter currency needed to buy one unit of the base currency.
While there are several currency pairs, the top four currency pairs that account for 70% of the total daily trade are:
US Dollar Converter, US Dollar Conversion
The US dollar converter is a ‘conversion’ tool which instantly converts the value of a specific domestic currency into US Dollars and vice versa. Such conversions are based on current exchange rates. The US Dollar converters are primarily used by traders for daily Forex trading. It plays a key role in the foreign exchange market, which is considered to be the world’s largestreporting 24/7 trading system that is worth $3.2 trillion approximately.
Carry Trade
When referring to an asset, the term “carry” means the return received (if positive) or cost incurred (if negative)of holding the asset. A carry trade is a currency trade in which low-yielding currencies are borrowed and high-yielding currencies are lent. A trader uses this strategy to benefit from the difference between the interest rates. The level of profits made from the trade depends on the difference in interest rates and the amount of leverage used by the investor.
