Trying to put a value on the Iraqi Dinar investment can be an elusive exercise. It is tightly held to the U.S. Dollar and for some time after the U.S. Invasion was considered on an equal par although popular opinion was that it was more on the order of a 3 to 1 basis with it.
During and after the Gulf wars, the Iraqi Dinar was on a roller coaster ride that ensured the decimation the currency. Now it takes over 250,000 Dinar to buy a low-end appliance like a refrigerator or washing machine in Iraq. It takes over a thousand Dinar to buy bread. And of course additionally the sanctions, unstable government, destruction of oil wells, and the lack of external and internal Iraqi Dinar investment, all contributed to the Dinar’s demise.
Currently, the Iraqi Dinar news is that it is trading at around 1175.5 (bid) Dinars to one U.S. dollar. This is the fixed amount against which the Dinar is tied. Occasionally, the government of Iraqi makes adjustments to the rate, but that is not done very often.
Is it possible to participate safely in Iraqi Dinar Investment? It will take some diligence on the investor’s part to stay close to the daily Iraqi Dinar news as the IQD (New Iraqi Dinar) is not, as of this posting, being traded on the open foreign currency exchange market. However, “Under the Order of the Coalition Provisional Government Order 39, a US citizen has the same rights to investments as an Iraqi citizen.”
While this paves the way for your purchase, you’ll still have to go to a foreign exchange market currency dealer to acquire Iraqi Dinar investment. Furthermore, despite the industry claims that are typically made, they will probably not be in the market to buy your Dinar back from you. Should they offer to buy it back; the amount will probably be at a deep discount compared to what you paid.
Buying New Iraqi Dinar at a respectable bank, look closely they are out there, and you can avoid the 30% plus markup that the currency dealers will charge, and it is certainly safer than dispatching cash. On the plus side buying New Iraqi Dinar from currency dealers is that some of them will allow the use of a credit or debit card for the purchase. If they use these types of cards then the site is probably one of the safer currency dealers.
Ignoring the street hype, most logical minds doubt there will be an Iraqi Dinar revaluation to the US dollar on any scale other than a normal, slow increase in which their currency recovers. The street spin on this reads like a get rich quick phenomenon. As many claim a strong belief that the Iraqi Dinar investment will increase in value against the US dollar overnight. However, should the U.S. go through a period of hyper-inflation, this may be a good way to ride out the U.S. economy by inflation proofing your capital assets.