Thread: A note of caution!!! Iraqi dinar

http://money.cnn.com/2004/08/10/pf/expert/ask_expert/

From 2004?

I get a little sick of reading articles that people dig up that are 14 months old. That was then, this is now. Things move on, please read more up to date articles and if they're negative then post them here and we'll try and answer the questions where necessary.

There is more good happening in Iraq than bad. Read the long thread starting 'This s the last time you'll see this', there is bags of up to date news on that thread. On top of that research it yourself, but don't read too much into an article/articles that are 14 months old or more.

Interesting,

Looks like this poor sole is as ill informed as you can get, yet he hits every forum with the same old useless post from a useless CNN reporter who did happen to say you could get rich with dinar, but it was a risk, now I wonder what his tune would be?

Good luck to all, except Marvin, Mike

Please, please "Starvin"! This is sooooooo old! (And from CNN to boot....who takes them serious?....) It just makes sense that this would be a good risk, (as stated) and at what cost again? A tenth of a cent? What? Most in the US that value what has happened in freeing the Iraqi people from INCREDIBLE suffering under Hussein and protecting what unfortunately ALL THE WORLD NEEDS see this as a responsibility! (energy as it is in oil reserves and opportunity to SELL IT...) This is a no brainer....may you remain "starvin" with thinking like this. God Bless the positive initiatives in this world...like PIPS!

weinfm (Texas)

got mine and hope to see future profits. Just hope for peace over there.

Adster,
How does one get info on this opp.?
G

oh no
zzzzzzzzzzzzzzzzzzz


Is this on topic Hassle, or do you want me to remove it?

There's no harm in doing some DD.

http://www.xe.com/iqd.htm

Regards

Phil

Overview

A number of people have begun touting so-called "investment" opportunities in the Iraq Dinar as a "sure way" to make a lot of money with little or no risk. Many of our clients have asked our opinion on the legitimacy of this.

Is "investing" in the Iraq Dinar a sure way to profit? We don't think so. In our opinion, buying the Iraq Dinar is a high risk investment with a poor outlook.

A Little History

The official rate of the old Iraq Dinar, $3.22 USD (U.S. Dollars), was set in 1982 by Saddam Hussein. The old Iraq Dinar could not be freely traded, so this rate was never tested or upheld on the world market.

The current Iraq Dinar (IQD) was introduced between October 2003 and January 2004 by the Coalition Provisional Authority in close consultation with financial experts from Iraq and the international community. The IQD is currently valued at a little less than seven hundredths of a US cent. (1 USD = 1460 IQD). The old "Saddam" Dinar has no current value and is worth only what a collector is willing to pay for it.

What's Happening Now?

The IQD is not freely traded, and is not being used in any significant international transactions. We are unable to locate any official bank or foreign exchange office outside of Iraq that will exchange the IQD.

The IQD trades on a very small, tightly controlled exchange. The total volume of IQD traded by the Central Bank of Iraq is in the thousands of dollars, compared to the $1,900 billion dollars traded on the Foreign exchange market every day. This small number of trades makes the IQD's value effectively immaterial.

The Central Bank of Iraq's stated objective is not to promote the free trade of IQD, as is the case in a true free market economy, but rather to keep the value of the IQD stable. The only way the Bank can ensure the semblance of stability is by tightly controlling the exchange of IQD on the market, and by ensuring that the currency cannot freely trade on the open market. They evidently fear that open trading of the IQD would lead to a rout in which the value of the IQD would sink to practically nothing.

Consider the situation. Why tightly control the trading of the IQD if it is likely to appreciate in value? If the value of the IQD were to surge, this could be held out as evidence of a surge of confidence in Iraq's economy. So why not open the IQD to free trading? Why would this be done unless the Iraqi Central Bank itself feels that the IQD would decline in value in a free market?

A Snapshot of Iraq Today

The current situation in Iraq is pretty grim:
o Over a decade of interna