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Is Iraqi Dinar New Opportunity or Tool for Scam?

November 2, 2010 at 21:20 by Vladimir Vyun

Iraqi DinarThe new Iraqi dinar, introduced in 2003 after the fall of the Hussein’s rule, became popular among some investors, who hope it would become much more valuable soon and would bring a big profit. Are such hopes justified or buying the dinar is buying the worthless paper?

The example of the Kuwait dinar fuels hopes of the investors, who put faith in the Iraqi currency. The Iraqi dinar already jumped from 4000 per dollar to near 1000 per dollar.

But can the potential profit in the future justify the very real troubles which the trader may encounter today buying the dinar? First, there is a problem of the liquidity: it may be not very hard to buy the dinar, but to sell the currency may be real pain. Most banks wouldn’t accept this currency and even dealers, who sold you it, may not buy it back. Second, the dinar is popular tool for the scams: it may be not very hard to find the dealer selling the dinar, but finding the trustworthy is totally different matter.

USD/IDQ fell 0.0548% today, declining from 1,168.14 to 1,167.50 as of 18:01 GMT.

If you have any questions, comments, or opinions regarding the Iraqi Dinar, feel free to post them using the commentary form below.

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