Iraqi Dinar Investment—the Risk-taker’s Chance Of Making A Killing

By Author: Samantha Dale
Total Articles: 610
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First introduced into circulation in 1932, replacing the Indian Rupee as the currency for Iraq, the Iraqi Dinar has seen many up and downs. Until the Gulf War, one Iraqi Dinar was equal to more than three U.S. Dollars! But the years following the Gulf War saw the value of Iraqi Dinar plummet, owing mainly to the Gulf War, U.N. sanctions, and excessive government printing of news notes.

After the deposition of Saddam Hussein, a lot more Saddam Dinar notes were printed by the Iraqi Governing Council and Office for Reconstruction and Humanitarian Assistance as a stopgap measure. After 15 October 2003, and the government began to exchange old currency for new notes at a one-to-one rate.

At the time of introduction, 4000 new Dinar were equal to one U.S. Dollar, but for now the Central Bank of Iraq has fixed the value for the new Iraqi Dinar vis-à-vis the Dollar at 1170 Dinars for one US Dollar. The Iraqi Government has stopped subsidizing fuel and is in the process of gradually appreciating the Iraqi Dinar to reduce Iraqi economy’s dependence on the Dollar. Once the effects of the reconstruction process set in, ...
... and the economy of Iraq revives, the value of the Iraqi Dinar is bound to skyrocket.

Previous post-war reconstruction efforts by U.S. after wars in Germany and Kuwait have followed similar trends: the local currency plummeted during the war, but in a few years it rivaled, or even surpassed, the U.S. Dollar itself. The Kuwaiti currency had dropped to 10 cents at one stage, later it reached 3.99$. If the Reconstruction process in Iraq succeeds, then your investment in Iraqi Dinar will yield a humongous profit.

You can get around 1000 Iraqi Dinars per Dollar after deducting the commissions, and if the value of the Iraqi Dinar equals or surpasses USD, you will be sitting on a pile of money. For the few pioneering individuals who bought the new Iraqi currency in 2003, the returns have been astounding.

Investment in the Iraqi Dinar is not for the faint-hearted: there is a good deal of risk involved. If Iraq erupts into civil war, or if terrorist activities increase, the Iraqi Dinars in your hand would have no more value than a clump of wastepaper. Also, once the U.S. army pulls out of Iraq, the situation can become highly volatile, and the economy might take a long time to recover.

Also, some investors point out that it’s a lot easier to buy Iraqi Dinars than to sell it. There is no proper mechanism for selling the Iraqi Dinars in the international currency market. Also, if you want to sell the Dinars back and get your money back in a short span of time, you will lose 20-30% of your investment, as the agents will not buy them back at the same rates.

Iraqi Dinar investment is an exciting opportunity for risk-takers to gamble and earn astonishing returns. There is no security or guarantee, but if America’s Reconstruction efforts succeed, and the Iraqi economy stabilizes, you may find your thousands turn into millions.

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