1. Is Investing in Iraqi Dinars a Gamble?
Considered to be a profitable investment opportunity, there has been a lot of speculation about the
Iraqi Dinar. While some financial experts feel the whole idea is a scam, others believe that the
revaluation of the Dinar can bring about a rise in the country's economy. The scamsters believe that
one might end up gaining millions of dollars if one buys the Iraqi Dinars at their present value and
then exchanges them back for dollars when the exchange rate of the Iraqi Dinar goes up.
However, before taking the plunge, there are some factors that potential buyers need to be aware
of before investing in one of the most poorly valued currencies of the world.
The primary issue is the lack of registration. In the United States and many other major economies, it
is illegal to market an investment without a proper securities registration. People who deal in this
illegal business usually evade this legislation by selling hard currency for its numerical value, maybe
as a collector's item, or by registering themselves with the U.S. Treasury as a Money Service Business
which gives them the impression of some kind of registration. But you ought to know that real
Money Service Businesses do not market an investment. So, you need to ask yourself, whether these
Dinar dealers are actually legitimate, before getting into any agreement with them.
Another problem is that Iraqi Dinars are sold on hype. The potential value of an Iraqi Dinar is often
compared with the effect on the Kuwaiti Dinar after the Gulf War. But it needs to be kept in mind
that unlike the Iraqi Dinar, the Kuwaiti Dinar was not a free-floating currency during that period,
which made it easier for the state and policy makers to increase its value.
Now, the question that arises in the minds of most investors is that will the Iraq government
increase the value of the Iraqi currency in the future? Fact is that since an appreciating currency
implies higher costs of paying for a brand new government as well as paying off past debts, a rise in
the value of the Dinar seems unlikely. An unstable economy like that of Iraq is more vulnerable to a
currency crash. Several dealers in Dinars refer to the value of the Iraqi Dinar before the Kuwaiti
invasion in 1990 when one Dinar was equal to a little more than $3 US Dollars, as a proof of the
potential for the rise in the Dinar's value. However, they overlook the fact that before 1990, the
Dinar was almost worthless and its value was set at random by Saddam Hussein. After the UN
embargo, the Iraqi government was not able to manage its currency and the value of the Dinar
collapsed to 2,000 or 3, 500 against the U.S. Dollar.

2. Hence, investing in Iraqi Dinars is a rather risky proposition, one in which the facts are not clear, and
where the likelihood of risk rather than the gain looms larger.
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