nobsMailing List
Sign up for our free monthly e-newsletter.
nobsNetwork
Nobs Network Forum Nobs Invest - Nobs Investment Community Nobs Forex Blog Forex for Beginner
nobsPopular Entries
Was reading Leo’s blog on a MLM scam that was uncovered and charged. You can check it out here. Iraq Dinars has been speculated by many to be a chance to make millions. Why?
I did some little research on my end to see what’s really so enticing. From a few sources online,
Brief History of Iraqi Dinar
The Iraqi Dinar is Iraq’s currency unit consisting of 1,000 fils or 20 dirhams. At the end of the British mandate in 1932, the Dinar was officially introduced and was worth the British pound sterling; this equated to $4.86 US Dollars at the time.
Until 1949, the Iraqi Dinar maintained its value of $4.86 and was then devalued and dropped to a value of a little over two dollars US. In 1959, Iraq officially removed the relationship of the dinar from the pound sterling as a symbol of independence, but the Iraqi Dinar remained at equal with the pound until the British unit of currency was again devalued in 1967.
Until December of 1971, the Iraqi Dinar remained equal to US $2.80 until major changes in world currencies began; then, in 1973, the US dollar was devalued and the Iraqi Dinar rose to $3.39 US and remained there until the Iraq War in the 80’s.
In 1982 Iraq devalued the dinar by 5 percent, to a value equal to US$3.22, and sustained this official exchange rate without additional devaluation despite mounting debt. In early 1988, the official dinar-dollar exchange rate was still 1 IQD to US $3.22.
Because of the nation’s inflation rate being estimated from 25 to 50 percent per year from 85 to 86, the real value of the Iraqi Dinar was around $1.50 per US dollar; however, many currency exchange or currency dealers mention the incorrect value of $3.22.
The Iraqi Dinar exchange rate is now at 1324, up from 1460 Dinars for 1 US dollar. In other words, $1 dollar will get you 1324 Dinars!
From everybody’s friend, Wikipedia,
Although the value of the dinar appreciated following the introduction of the new banknotes from 4000 dinars per U.S. dollar, at the time of their introduction, to a high of 980 dinars per dollar, it is now held at a “program” exchange rate, as specified by the International Monetary Fund[citation needed], of 1449 dinars per US dollar at the Central Bank of Iraq. However, there is not yet a set international exchange rate and so international banks do not yet exchange Iraqi dinar. The exchange rate available on the streets of Iraq is currently around 1500 dinars per US dollar (April 2006).
A very noteworthy analysis from Ask the Expert on ‘I’m considering buying Iraqi currency as an investment. Is that a good idea?‘ by Walter Updegrave. And the ‘Benefits of the New Iraqi Dinar‘ by Brad Setser
Easy to get Iraqi Dinars?
So if Iraq’s economy actually picks up, and corrects itself, a couple of hundreds will be worth half a million dollars. Currently, according to the Coalition Provisional of Authority, there’s no means of exchange outside of Iraq, so how come so many sites are offering their services for you to buy dinars? Chances are most of the sites are out to swindle your money, so be very careful if you’re joining in the fun. And if you have Iraq Dinars that has the recently executed Saddam’s face on your notes, chances are you’ve been scammed as they aren’t recognized anymore since 2004. And here’s some trademarks of counterfeit Iraqi Dinars as well.
A little verdict
It wouldn’t hurt to spend a hundred or two to get some action to see if the Dinars do actually revalue (a few hundred thousand dollars richer) or becomes worthless paper lying in your room, since there’s no way to know when will the dinars revalue. I would ask speculators not to over expand and just treat this hype as a gamble.
Popularity: 29% [?]
I looked into Iraqi Dinars last year pretty extensively. My conclusion mirrors yours, but I have a couple of things to add.
First, do not get involved with any of the Dinar MLMs. They’ve been around for over a year, but their dinar prices are higher than what you can get elsewhere.
Next, you can get some deals on ebay. However, there are several that are buying up Iraqi Dinar, then trying to flip them on ebay. There are a lot of sites selling Iraqi Dinare. Before you buy, make sure you do your research to get the best deal.
Always use something that has a fraud protection, like a credit card or paypal, to buy Iraqi Dinar. As soon as you receive it, compare it to the sites that have information about counterfeit and old Iraqi Dinar (which is worthless). If you get swindled, try to get a refund or file a fraud claim.
Last, don’t go overboard in buying Iraqi Dinar. There is a possibility that the value could go way up once the economy stabilizes. However, there is also a very real possibility that once the USA leaves, the Iraqi government could trash the new Iraqi Dinar and go with a completely different currency, which would make your “investment” worthless.
It’s interesting to note that the majority of Iraqi citizens prefer to transact business using the USA dollar, rather than the new Iraqi Dinar.
To get a return, you can try to flip them on ebay or you can wait for the value to go up. Don’t look for a high return in the next 0-3 years. Analysts are expecting the value to rise and level out in 5 years or so. Realistically, if the value goes up to where you can be rich, you can expect to wait 5-10 years or more.
JMO,
Sharon
I bought some about two years ago just for fun. They are pretty cool looking and a good conversation piece. As an investment, no
I don’t think so.
Mark
I’ve got some myself… it’s worthless paper to me, unless they really increase tenfold or more in value…
Mark Herpel and cashking, where did you buy your dinar? Like looking at other opportunity other than HYIP.
WiseGrub - I bought mine at http://www.portaliraq.com/
However I wouldn’t recommend them - their price seems too high.
I might spend a hundred or two just to place the money in the cupboard. Sharon brought up a few good points on the dinars being thrashed, rather than the continuation of it.
Just a punt, nothing more. Keep your bread money!
WiseGrub,
The prices change regularly. Your best bet is to google Iraqi Dinar and compare the prices on the sites you find. Also, look on ebay.
JMO,
Sharon
Another food for thought since Sharon mentioned it. If the Dinar revalues, doesn’t it make everyone in Iraq a millionaire?
Jude,
It doesn’t work that way. Consider the value of e-gold. If you buy it low and sell it high, you have more than what you started with. However, if you buy e-gold and use it for whatever purpose, then the buy it low and sell it low no longer applies. It’s the same with Iraqi citizens. They use the Dinar for whatever purpose. If they hoard some now and sell it for a foreign currency years from now, they’ll get more than if they sell it for a foreign currency now.
I’m not an expert at money exchange, so if anyone with more expertise can explain this better or add to what I’ve said, please leave a comment.
JMO,
Sharon
I also interest with this opportunity. And its will like but a lotery coupon for 10 years later and you will find out the winner at that time.
Maybe some senior could refer few good site for buy iraqi dinar.
The dinar also could become trash if the country splits into three different countries. I know the kurds would like it this way.
At what physical brick and mortor locations/buildings can I buy real iraqi dinar, issued post/after oct 2006. I don’t mean on the internet, I mean a place here in the u.s., preferably Nevada?
thanks !
phil
Phillip,
I don’t know, but I have a suggestion. Why don’t you ask your bank? If anyone would know, they would.
JMO,
Sharon
Sharon,
I asked US Bank, they said they don’t deal in that currency and don’t know who does.
I’m still waiting on response from BOA.
thanks,
phillip
I can’t believe anyone would buy Dinars off ebay or some website. There is so much fake money out there it would be hard to trust anyone.
I just went to Chase bank today and talked to them and was told they will order Dinars with a three day delivery time in mixed denominations. It will cost me a 2% fee. But at leaset you can trust a bank. I am planning on purchasing 1M of them tomorrow.
A close friend of mine told me someone just got back from Jordan and said they are buying them there too. Did you know that Jordan is where the rich fled when we occupied Iraq. I am willing to take the chance in 3-5 years for the upside return. I spend that much alone feeding my car middle east oil in one year. Hopefully I will get that back 10 fold.
Hey, if it hits we will all be back here to brag if not, we will all be here to cry. Remember, the upside is greater than the downside. At least we will have something tangable to use for wall paper or to leave to our money grubbing hungry kids…hey I can honestly say I am a “millionaire”
Armand
one of the banks that sell dinars is Chase at Huston Texas brunch.
news from iraq is very promising. There Foreign investment law has been enacted. The Hydrocarbon Law funds the Iraq budget for 2007.
With the Foreign Investment Law enacted that means they have to have a world wide traded currency for them to Open up on this Forex site.
So if anybody has invested in the Dinar - you are really looking pretty right now.
Chase bank is the only bank in the U.S.A that will sell the dinar. Someone placed an order Tuesday - he stopped by the bank today (wednesday) and they did not know when they would get the dinar!
Chase bank is part of JP morgan - JP is the bank that set up Central Bank of Iraq. So if Chase sells Dinar - that was a HUGE hello this is good investment.
Good Luck
Blogged about this subject weeks ago. I have bought Dinar myself, and made sure they are De La Rue authentic.
Word from my source has it there are coins being minted for use in the capital. This information cannot yet be confirmed through official reports though.
Should you consider this as part of your portfolio?
No. However, investing in the Dinar is very cheap indeed for its possible reward. This is the reason I decided to take on the experiment.
Thanks Agent725
I thought the coins had already been minted. I have the 100 and 25 coin. Also my understanding was the iraqi people didn’t care for the coins they liked that paper money and that they had printed the small demon or will reuse the old ones that didn’t have saddam face on them.
Last I heard for this week - was the small demon were being moved to the outer banks.
cheers
Hello MrsCK,
As far as I know, the 1 IQD coins have only just been minted. But then again, I don’t live in Baghdad, so I do not know what other type of coins there may be.
Agent725
From the contacts I have been talking with - they are stating that the RV will happen before the isx comes online.
Some are stating before the end of march which only gives them until friday to get the job done, because we don’t think they would RV on their sabath which takes place on friday.
Hope to get more info this week.
feel free to email me at (Removed for safety.)
I enjoy visiting and swapping info with folks.
Cheers
Chris
Hi MrsCK,
I edited your email address out for safety. There are programs that scrape sites looking for email addresses to spam or sell.
If Agent725 or anyone else would like to contact MrsCK about Iraqi Dinars, please send me an email and I will forward it so you can swap email addresses. In addition, you can PM each other at NN (announcement soon!)
Thanks,
Sharon
Hi Sharon, I already got MrsCK’s address as I was being notified of new posts on this page.
Thank you for keeping an eye out.
thanks Sharon - but no worries - I have been in the dinar investment over 2 years - so my email address is out there a lot of places on the internet plus I use it for my online company.
Many of my contacts are saying the RV should go this week - but we are talking about iraq that lovvvvvves delays.
but before the isx goes online.
cheers
chris
This maybe the last update for the dinar. There are 6 countires up for Revalue, Vietnam has the crappist rate so they will be going first before Iraq, yesterday on the Oz forex currency exchanger it was 16,xxx to $1 - today is is 10,000 to $1. So vietnam is set for RV. UAE and Kuwait are up for RV and today they are have a HUGE meeting with cental bank governors (4/3/07) of the middle east countries to talk about UAE AND KUWAIT CURRENCY REVALUE!!
I am looking for a Revalue between now and friday.
cheers
chris
Regarding banks—you can buy Dinar through UMB in Kansas City. I’ve bought a couple mill. All you have to do is open an account. I bought through them so I knew it would be authentic.
Good luck–Jim
Thanks for sharing jim
Any new updates on the RV of the dinar???
Angel
This is the only news I have: The formal launch of the ICI is May 3. We think the ICI was signed and is ready to go - may 3 is just a “cake and ice cream party day”. Iraq needs to RV before may 3.
Today April 24 is the last day of First Quarter. Tomorrow April 25th is the start of their Second quarter - doesn’t seem right to start the second quarter with a crappy rate.
We have also heard that IMF has told iraq to get all paper work done by april 27th that time is up - NO more delays.
The other countries that we think are RVing at the same time is: vietnam they will go first, Kuwait they want 25% increase, UAE, China, and India.
Today april 24 vietnam is having a bond auction - we can’t see then selling bonds at a crappy rate. IMF does not want double dipping - example Iraq RV’s then everybody turns around and purchase Vietnam - so vietnam needs to go before Iraq and that will be a huge clue of when Iraq will RV.
But over all - Iraq has between now and may 3 to get it done.
Hi I have over 3 mil dinar that I have had for over a year now& it has been going to RV every weekend since last labor day so I’m a little down with the Hype & eveytime they have a very good reason for it to happen in fact I can’t figure out how the place with the most oil& nat. gas is so poor. I bought almost all of it off E-Bay & actually did pretty well . I just put it in my safe deposit box today thinking its going to be awhile. I heard alot of Hype on the dong recently & heard its hard to get right now is that true.
If you are thinking about buying Iraqu Dinar, then I recommend that you read http://www.iraqidinar.org/ before spending a penny.
JMO,
Sharon
I have found one U.S. bank that has started to deal in the dinar. You have to have an acct with that bank before they will sell to you. Frost bank deals in the dinars. if you looking for a good website to buy from DinarTrade.com is a good site to go with.
hi,
i am from uk. where can i buy cheap and genuine new iraqi dinars.
tq
hello,
can anybody told me where can i buy cheap and genuine new iraqi dinars.
tq
Go to dinartrade.com
I purchased over 5 million dinar from them. It is a great company.
Not much news about the Dinar it appears. If you look up the term ‘revalue currency’ you will see that Iraq really fits the bill for a RV. Their economy is booming thanks to oil and their inflation is at 16%.
Supposedly our Treasury Dept sent a report to Congress suggesting that we allow a few of the oil producing countries to revalue their currencies or their economies will go from boom to bust.
Some believe this will happen by the end of ‘08. Iraq was not mentioned but it obviously wouldn’t hurt them to revalue as well.
It was suggested by one person that they might RV before the general election as a little reward to George Bush and the Republicans. I have no idea if this is true.
I like most of you, have picked up a couple hundred dollars worth and I’ll sit on it knowing that the upside way out measures the downside here (risk/reward).
Good luck to us all
I made my first purchase in May 2007 from Safedinar.com. Great compamy to work with, next day Fed-ex delivery. A friend of a friend of mine is in contact with someone that works security in the green zone, takes dignitarys to and from meetings and such. This person was with Pres. and Vic Pres of Iraqi, VP Chaney and John McCain this summer and the value of the dinar came up. This was from Pres. of Iraqi that the value will be somewhere between 3-5 USD per dinar.
I feel that it will happen before the general election in Nov. as a Republican boost for the whitehouse, also George Bush doesn’t want to leave office with the lowest approval rating of any Pres. Something very good must happen to change that.
Why would George Bush have a law passed to make it legal to purchase Iraqi dinar if he didn’t have a plan to use it at just the right time???? Also some food for thought, when Saddam was in power the Iraqi dinar cost $3.20 USD. and now that there is a demacratic goverment in power, fought for and helped to establish buy US dollars, my bet is that it will come in at a higher rate than it was under Saddam. Just as proof to the world that living under a demacraticlly controlled government is a lot better that a dictatership. All we can do now is wait and see.
November 10.2008. 10:54:09
Iraq Ctrl Bank: Still Studying Rebasing Of Iraqi Dinar
AMMAN (Dow Jones)–Rebasing the Iraqi dinar is still under serious study and is being undertaken in a bid to improve the Iraqi national currency, the Central Bank of Iraq said in a statement.
“The Central Bank of Iraq announces that omitting three zeroes off the current Iraqi banknotes is a project still under serious study,” the statement, emailed to Dow Jones Newswires late Sunday, said.
The central bank, however, didn’t say when it would take steps to rebase the currency.
“The idea of rebasing the dinar is one of the bank’s future plans, which aims at improving and strengthening the national currency in line with the current economic development in the country,” the statement said.
Monday, the Iraqi dinar traded at IQD1,200 against the U.S. dollar, according to a trader in Baghdad. If three zeroes are knocked off the Iraqi dinar, a dollar will equal 1.20 dinars.
Earlier in August, Central Bank Senior Advisor Mudher Kasim said the bank had taken steps to rebase the dinar and that a decision would be issued in due course. However, he didn’t give a timeframe. But he said it would take at least two years to print new banknotes and replace the old ones.
Also Finance Minister Bayan Jabor previously said his ministry had suggested to the central bank to knock off three zeroes from the current Iraqi dinars banknotes.
Currency rebasings are usually monetarily neutral and are introduced to make commercial calculations and cash dealing easier and cheaper. Turkey knocked six zeroes off its lira currency Jan. 1, 2005, for example. Russia did the same for its currency.
There are now more than 20 trillion Iraqi dinar banknotes in use in the market, which is a huge amount and if Iraq knocked off three zeroes from the notes that figure would become IQD20 billion in circulation, which is a reasonable amount, central bank officials said.
-By Hassan Hafidh; Dow Jones Newswires; 962 799 831 831; hassan.hafidh@dowjones*com
I purchased IQD 250K about 3 years ago and have been patiently waiting for this “revalue” to occur. Is there anymore news about it? If the revaluing does occur, won’t they just create new currency, making what we have worthless?
Iraq has chosen to buy back IQD from the open market beginning 7/2008 at a rate of $1.5B USD/month until they reduce the IQD to their desired level. They will probably slowly print the 10,5, &1 new Dinar at the rebase value. There will be no LOP as the Dinar is under a tight monetary policy and not tied to the GNP or GDP. Present value of the Dinar is way undervalued as it is being controlled along with the buy back to maintain consumer pricing.
A talk of LOP is to discourage anymore speculative buying to reduce the CBIs obligations outside of their borders. When the 10, 5, & 1s are printed the IQD will most certainly be on the WTO.
I bought some iraqi dinars in 2005 and have not seen an increase yet. Does anybody know when there will be an increase?
They are not going to increase, they are only going to decease. I travel to Iraq often, I used to be able to get Dinars at my bank. Now I have exchance once I am in Iraq. Thats the only way now, thanks to dumbass like you guys. Iraq is a crappy country, just like your crappy idea of getting rich. DO NOT BUY MONEY OFF THE INTERNET !!!!! DO YOU HAVE BRAIN DAMAGE!!! I go there for work, and cause of people like it is now a hassel to get dinars. I get ripped off using our money, so thanks and come back to reality.
Chase bank will let you exchange us dollars for denars
I Adore it,Excellent Write-up.I am Make a decision to Fit this into use 1 of these days.Thank you for sharing this.To Your Success!