Buy And Sell Ecurrency Online, Iraqi Dinar Daily Updates

Iraqi Dinar Is it a Good Investment?

Introduced in circulation in 1931, the Iraqi dinar has changed hands from even the earliest days. Backed by British pounds to being pegged to the US dollar, the currency has had its fair share of activity. However, now with the Central Bank of Iraq issuing a new and stable currency, plenty of global speculators are seeing an opportunity. Or is it? Since the 2003 fall of the administration and the deposition of its ruler Saddam Hussein, the Coalition Provisional Authority or the current transitional government has issued new Iraqi dinar. Printed by De La Rue and adding in modern anti-forgery techniques, the updated currency has been revalued from as low as 4000 dinar per U.S. dollar to as high as 980 dinars per dollar. This wild swing is what speculators are looking to cash in on, sparking massive amounts of scams on the internet and associated forums. Sites promising wildly higher rates of exchange for the currency and guaranteed rates of return are banking on the hope that once the market opens up for the Iraqi currency, the exchange rate, much like that for the Chinese yuan, will explode higher. But is it all true?
The Attractive Investment

Why has the dinar become so popular? It's the simple fact that many of us remember when the Kuwait dinar declined to a valuation of 10 US cents after the invasion by Iraq. However, since January 5, 2003, the previous weighted currency basket peg was switched to a higher valuation of 0.29963 dinar. This translates into .34 per 1 dinar, the worlds highest valued currency. Translating this into an exchange rate transaction, a ,000 initial investment around the Gulf War would yield the investor a 3,240% rate of return of 4,000. The same expectations loom over the Iraq economy. Rich in crude exports and likely to remain under the guidance of the US, the country is expected to make a rebound and be catapulted into the global economic arena. The improvement and expansion are expected to be reflected in the underlying currency, creating instant profits for the dinar speculator.
Virtually Worthless Currency

However, the rumors and internet ploys are not true. All that glitters may be gold, but it comes at a price. The first barrier has to do with pricing. Formally introduced in October, the new Iraqi dinar is virtually worthless, trading at 1,460 dinars to Introduced in circulation in 1931, the Iraqi dinar has changed hands from even the earliest days. Backed by British pounds to being pegged to the US dollar, the currency has had its fair share of activity. However, now with the Central Bank of Iraq issuing a new and stable currency, plenty of global speculators are seeing an opportunity. Or is it? Since the 2003 fall of the administration and the deposition of its ruler Saddam Hussein, the Coalition Provisional Authority or the current transitional government has issued new Iraqi dinar. Printed by De La Rue and adding in modern anti-forgery techniques, the updated currency has been revalued from as low as 4000 dinar per U.S. dollar to as high as 980 dinars per dollar. This wild swing is what speculators are looking to cash in on, sparking massive amounts of scams on the internet and associated forums. Sites promising wildly higher rates of exchange for the currency and guaranteed rates of return are banking on the hope that once the market opens up for the Iraqi currency, the exchange rate, much like that for the Chinese yuan, will explode higher. But is it all true?
Liquidity Is King

Unlike the widely accepted major and emerging market currencies, trading the Iraqi dinar has significant barriers. Attributed to the wide discrepancies in prices, banks will not openly trade the dinar with the public. Larger institutions are only able to obtain the stable 1,460 dinar to $1 exchange rate. This will leave the retail trader to pick between the scant number of dealers offering differing prices. In addition, dealers won't always buy back dinars in the market, rather they only sell the currency to the market. U.S. banks, unfortunately won't transact in them either at the retail level. As a result, the illiquidity or absence of true transaction sources will leave the smaller retail investor holding the bag when it's time to cash out of the currency.
Political Upheaval

Although under the guidance of the US, the majority of the political development has been handed over to the new Iraqi government. This leaves a lot of leeway for geopolitical event risk as insurgents continue to battle the current administration in a land that is rife with civil war. The volatility will be reflected in the currency as fluctuations on a speculative manner can move prices all over the place. That's just considering one stable price and not numerous different prices. In addition, time is a heavy consideration. Although the power has been handed over to regional government heads, the insurgence could take years to end before there is stability. Ultimately, this will keep a majority of investors out of the market until the country becomes grounded.
Internet Fraud

Last but not least, the dinars ordered on the internet may be the older versions, considered useless on the market. Although the new dinars are difficult to counterfeit and pass off, dealers and traders in the dinar have sometimes replaced the old dinars, bought at extremely cheap prices, with the new versions in hopes that the unknowing investors won't pick up on the difference. In addition, older bills will also be mixed into the ordered shipment, lowering the value of the overall amount. In some cases, this will halve the value of the overall order, already considering it a losing investment. Some dealers have even taken the money and run away, not delivering on the ordered currency and leaving the investor empty handed.
Conclusion

Although a highly rewarding opportunity, attempting to buy Iraqi dinars on the internet is a risky transaction. Call it straight out gambling. Nothing is guaranteed and the risk reward ratio is low. This simple fact will likely keep a majority of traders out of the market. As a result, with varied prices, a handful of participants and plenty of fraud potential, the dinar market is one that has numerous barriers that will likely hang around for a while and attract only those that are misinformed.