Iraqi Dinar is considered to be an attractive currency now-a-days for investors. The reason behind that emerging interest of people toward this currency is its continuous fluctuation against U.S Dollars. But now the question arises what are different types of behaviors of investors related to this fluctuations and Revaluation of Iraqi Dinar. According to research, a lot of behaviors have been observed among the investors. If we classify investors on the basis of behavior we will come to know that there are three basic types of investors on basis of there behavior.
Risk Seeker investor:
It is a type of investor who loves to take more risk because they are following this theory that higher the risk, higher the return. If we analyze the current situation of Iraqi Dinar we will come to know that Iraqi Dinar is the most attractive currency for Risk seeker investors because they are having appetite of risk.
Risk Averse Investor:
It is type of investor who avoids all possible risks. This type of investors avoids the investment opportunities which are having high risks. He is neither having appetite for more risk nor for the higher return. His main focus is to invest in less risky securities or currencies than a devalued currency.
Risk Neutral Investor:
It is a type of research who is risk neutral. He is having no concern with risk
They just invest on their own grounds and standards.
Market sentiments and current situations of Iraqi Dinar.
First of all we should analyze the current situation of Iraq market. After that we can analyze the sentiments of people in market. After detail analysis of market, I have concluded a few aspects which are:
- According to Moody’s research Credit Rating of Iraq has become lower to C+, which is a worse situation but we observe the exchange rate on 09-08-17, we will come to know that after a long time it became a little bit stable.
- A decision has been taken to strengthen the private sector of Iraq specially the banking sector which is a positive step for economy.
- On 08-08-17, G.O.I passed laws to decentralize government and election in the province which is an initiative to politically stabilize the position of Iraqi inhabitants.
- Mosul is liberated and Tal Afir, and Raqqa are surrounded by invasion plan and hopefully soon these plans will work and Tal Afir and Raqqa will be liberated. Then the curremcy would be revalued again.
In the light of all these aspects which I discussed above, I analyze the sentiments of investors and consequently I can say that a trend of strong sell has been observed now-a-days as per the technical and fundamental analysis of the market situation. Along with that , a large number of Risk Seekers are trying to take the initiative of investment in Iraqi Dinar , because there are solid chances of revaluation in upcoming future and it is expected that more investors will enter this market in future.