Iraqi Dinar and the Kuwait Comparison
The Kuwait dinar increased in value to be worth $3.40 USD in a period of ten years. Had an investor had the foresight to invest $1,000.00 USD in 1991 they would have $3.3 million USD today. The Iraqi dinar DOES NOT have similar potential.
The comparison used is WRONG. Yes the Kuwaiti Dinar crashed as a result of the 1990 Iraqi invasion, but this ONLY applies to notes in circulation at that time. After the Kuwaiti Government was restored, they issued a new series of banknotes with the same US Dollar exchange rate that the Kuwaiti Dinar had been fixed at before the war. Kuwaitis with old notes had to hand them in to be swapped for the new money. When the notes were being handed in, they were checked against the known serial numbers of notes in stockpiles at the Central Bank of Kuwait which had been stolen during the Iraqi occupation.
Stolen notes would not be exchanged - point blank. Other notes could only be exchanged by Kuwaiti residents during a very short period of time, after which all previous banknote issues were declared worthless. And in this case worthless means WORTHLESS. Current 20 Kuwaiti Dinar notes have a face value of about 75.00USD at the exchange booth. Older ones sell on ebay for about 10.00USD to collectors - and that's for one without any folds.
Investing in currency can sometimes be a good idea. Investing in the paper kind like the Iraqi Dinar, when you don't live anywhere near the issuing country is a BAD idea. Unlike the USA and UK, most countries demonetize their old currency. When Iraq issues new notes, and probably lops off four zeros in doing so, they are likely to give Iraqis a short window to exchange their old money, and then declare all previous banknote issues as being worthless. Joe Schmo won't be able to do very much with his prized 1,000,000 Iraqi Dinar cash investment once that happens.
Try finding a major reputable bank in the US or Europe that will readily exchange Iraqi Dinar at a market based rate (and not some opportunistic rip-off rate) on a day to day basis.
Moral of the story: Don't buy Iraqi currency! Just because there's oil there doesn't mean the economy will boom.
If you reckon Iraq is a great investment and you really want to invest money there, wait until the next foreign-currency bond issue by the Iraqi government, and throw your hard earned money at that. There's less chance you'll lose all of it.
I agree with the above get off the high horse and try to be postive once, I own dinar and it will either RV or Ri there are do many articles in the last couple days stating the rise in currency, yea your right about the LOP do your home work and you will see that is an incountry lop only
I have 1,000,000 Dinar and i gotta tell you all that i would rather loose a couple hundred dollars and take a chance than miss out on the opportunity of a life time. If your looking to make quick money the Iraq Dinar is not for you. You need to treat this like a long term gamble. Don’t play if you don’t have the money to loose and patientce is your best friend.
Well I would just like to respond to the ridiculously far fetched statement the comment that the dinar will go up 10 cents. There are an estimated 26 trillion dinar. If this 26 trillion dinar goes to .1 dollars, that will mean that there will be 2.6 trillion dollars worth of dinars. This is almost 40 times what the Iraqi GDP is. If you compare that to any other countries economy and how much of their currency is in circulation, youd see how far fetched this truly is.
The assumption that the Iraqi dinar will be worhless is based wholly what Kuwait did, denominating their notes (taking off zeros and issuing a 25 note for a 25,000. Thsi was briefly discussed by the World Bank and then dismissed after the Iraqi economy began to boom. Inflation in Iraq is 2.7% a year. Only nations that that are exeriencing high inflation re-denomiinate. In the case of Kuwait, their currency was reissued because tons of it was stolen. No comparison can be made in the Iraqi situation. Buy Dinar, a $315 investment buys you $250,000. The current exhange rate is fractions on the dollar. If the currency rises 10 cents, that is $25,000 return. The Iraqi dinar has been consistly over $3 american dollars to dinar prior to the invasion.
Verification:Bahrain dinar bills 20 serial no. 193073, demonetize?
Dinos eso mismo hoy 11/20/2009, quiero que expreses tu opinion hoy en 2009, sobre la moneda de Iraq, espero te retractes de lo que dijiste en 2007, saludos amigo, Dios te bendiga…
I have been reading several of your posts and I would have to say that I disagree with all of them. You are making it sound as if you are wishing for the economy of Iraq to never rise. I can tell you this because I was there and I did serve, that Iraq is a country who knows nothing more but war and death, dont you think that through all that they finally see a way out. And your one of the ones that are trying to push them make in the hole. Get off your high hourse and believe in something bigger than yourself. The Iraqi dinar will rise because the Iraq economy will begin to boom. I believe in it and many of my friends believed in it enough that we all would fight for them.