What does “investing” in the Iraqi dinar imply? In simple terms, it works the same way as any other currency investment. You spend ‘y’ number of US dollars to buy ‘x’ quantity of Iraqi dinar (IQD) (USD). You buy dinar at a certain price and then expect the price to climb, just as you would with stocks, bonds, or other currencies. The true question is not whether or not you “can” invest in this money, but whether or not you “should.”
Is buying Iraqi dinar a wise investment?
The only compelling reason to invest in the Iraqi dinar is if you plan to live or do business in Iraq. Because the Iraqi dinar’s exchange rate is controlled by the country’s central bank, a sudden revaluation of the currency by the Iraqi government seems improbable. Potential investors should measure these benefits against the currency’s high acquisition costs and hazards.
Is owning Iraqi dinar illegal?
However, there are a few fundamental issues with the Iraqi dinar scam that potential investors should be aware of before participating in one of the world’s most illiquid currency markets:
Lack of registration
It is prohibited to market an investment without proper securities registration in the United States and most other major economies. This need is circumvented in two ways by scammers.
To begin with, selling hard cash for its numismatic value is theoretically lawful. In other words, physical cash might be sold as a “collector’s item.” Second, some dealers will register as a Money Service Business with the US Treasury (MSB).
Dealers in the dinar will register as an MSB to give the impression of registration and government monitoring. The difference between genuine MSBs and dinar dealers is that genuine MBSs do not promote an investment.
So, if a company has to lie in order to avoid registration, are they really presenting a valid offer?
Dinars are sold on misleading hype
References to what occurred to the Kuwaiti dinar after the first Gulf War and the German deutschmark after World War 2 are frequently used to demonstrate the potential worth of a dinar investment. These would be wonderful instances if neither of them were free-floating currencies at the time, so the value was mostly determined by policy and state currency management.
It’s also a fact that no logical investor would make an investment choice based on two examples of prior data (one from more than 60 years ago) without taking into account all of the times this investing method failed.
Will the Iraqi government continue to pursue a currency appreciation policy? It appears improbable, because an appreciating currency makes funding your fresh new government and repaying past obligations more expensive. A currency crash or intentional devaluation is more plausible than a quick and rapid reflation in an economy like Iraq’s.
In fact, recent currency history appears to indicate that the dinar is more likely to drop more in the near future. The misconception relied on by dinar sellers is that a stronger currency will emerge from a thriving economy. That isn’t the case at all. A booming economy is almost always accompanied by an inflating (weakening) currency, as the recent instances of Venezuela, Turkey, and Mexico demonstrate.
Many dinar dealers point to the value of the Iraqi dinar previous to the Kuwaiti invasion in 1990 (1 dinar = $3+ US Dollars) as proof that the dinar’s potential is theoretically limitless. They fail to highlight that the pre-1990 dinar was demonetized (worthless) and that its value was established arbitrarily by Saddam Hussein’s authoritarian dictatorship. Following the embargo, the Iraqi government’s capacity to maintain the value of its currency deteriorated, and it spent the following ten years trading at 2,0003,500 dinars per dollar.
Compare the Kuwaiti dinar to the Iraqi dinar to learn more about the deception used by currency merchants and pumpers. Why Buying the Iraqi Dinar is for Dummies is the Iraqi Dinar Scam.
Investment risks they won’t tell you about
Assume you’re dead set on “investing” in dinars, despite the shady and deceptive sellers you’ll have to deal with. The following dangers should be considered. Although you are unlikely to hear these from a dealer, if you are still determined to invest in the dinar, you will be better educated.
In 2021, will the Iraqi dinar be revalued?
Iraq’s Minister of Finance argued at the time that the devaluation of the Iraqi dinar was a step toward reform and achieving a “financial balance” that would help the economy recover. According to a member of the finance committee, the depreciation will save the economy roughly 12 trillion dinars by 2021.
Where can I get Iraqi dinar to sell?
Banks will buy your dinars. Several banks in the Middle East are willing to buy dinars. The Central Bank of Iraq, the National Bank of Jordan, and the National Bank of Kuwait are three of these banks (see Resources). You’ll have to speak with the banks directly to learn about their rules and procedures.
Is there any value in old Iraqi dinar?
Lindgren claimed to have earned $71.48 for a 100 dinar note with an image of Saddam Hussein on it in one example. He anticipated that 100 dinars would be worth roughly 7 cents on the underground market.
Bidders agreed to spend more than $20 for Iraqi bills that were worth less than a dime at anticipated black market pricing in many other recent auctions.
The value of the dinar is likewise unrelated to official exchange rates. For example, one dinar was recently listed as being worth $3 on one exchange.
Since major exchanges stopped trading in dinars months ago, these posted rates, according to Lindgren, are useless. The US Treasury considers the dinar to be worthless.
Even still, it’s difficult to get away from Saddam cash, because to its abundance. Tomonis has nine instances of banknotes with Saddam portraits on his website’s Iraq section, and just four without. Tomonis advises that bank notes should be both rare and in good condition in order to earn top price.
Does Wells Fargo accept Iraqi dinar as payment?
We may typically buy back unused foreign currency cash at any Wells Fargo branch when you return. We don’t purchase back all currencies, and our buy-back prices aren’t the same as our cash-ordering rates. Please note that we do not buy coins back.
Wells Fargo does not sell or buy Iraqi dinar in any form, including online, over the phone, or in our branches.
Foreign currency cash is solely to be used for travel purposes. Foreign currency cash is not a product that Wells Fargo recommends as an investment.
How can I know if my Iraqi dinar is genuine?
A horse head is the most common watermark on Iraqi dinars. Special pens, available at most office supply stores, can be used to mark the bills and will change color as they are marked. You may check for holograms contained in the banknotes if you hold the 10,000, 25,000, and 50,000 bills up to the light.
What does the Iraqi dinar’s future hold?
According to Trading Economics global macro models and analysts, the Iraqi Dinar is anticipated to trade at 1458.52 by the end of this quarter.