From Academic Kids

Even if the Iraqi Dinar gains value, (and it probably will), it will most likely be demonetized and new currency would be issued. Of course there would be another grace period for turn-ins, but unless you're actually in Iraq, where can you exchange a large heap of Iraqi cash? Even if you do manage to exchange them, (at maybe an extremely well-stocked airport kiosk), your "old" Iraqi Dinars would be converted to the "new" ones- they won't keep their old values, and you won't be rich.

For example...make a trip to Mexico and try converting an older 1000-Peso note at the current exchange rates. It won't happen! Don't be fooled. These new Iraqi Dinars are nothing more than inflation notes. Does anybody remember the million/billion/trillion-Mark notes of Germany before WWII? They're pretty much worthless.

If Iraqi Dinars were truly going to make money, why are the thousands of Iraqi currency dealers so over-eager to sell them? The majority of these bills are being exported through cash-strapped dealers in Jordan and Lebanon, (among other places). If they were great investments, they'd keep them for themselves.

At a loss

So what you are saying is that all the people I work with here in Kuwait have pretty well thought all along they are going to be rich and they aren't going to be. I'm not an intelligent person when it comes to financial markets or anything but if all this is a bunch of wishful thinking than I might not invest anymore of my hard-earned money. I wish I could find someone with information to help me.

Response

Some of these dealers are using the business of selling the dinar as a vehicle to buy more for themselves. Many of them are the most avid investors. While the pre-WWII German currecency is an example of a failed currency. The post WWII German currency made many here in the U.S. billionaires. There are also 6 International banks approved to do business in Iraq, soon anyone will be able to turn in their dinar currency to exchange it for dollars here in the U.S.. Those with the vision to invest in post WWII Germany and Japan made fortunes in the currency trade. I found an excellent review of companies that sell the new iraqi dinar. After calling about ten of the dealers and asking them key questions about there businesses, I found this review to be very accurate. Consumer Review of US Dinar Dealers (http://www.thecreditprotector.com/pdf.pdf)

Advice

After some investigation I would offer this as advice concerning the investment in the new Iraqi dinar. The Kuwait dinar increased in value to be worth $3.40 USD in a period of ten years. Had an investor had the forsight to invest $1,000.00 USD in 1991 they would have $3.3 million USD today. The Iraqi dinar has similar potential. Hundreds of billions are being invested into the new Iraq and many more billions will be invested as the country stabalizes. The question is whether the United States and it's allies will be able to lead Iraq to a stable government. If you believe this is the case, then this may be the investment for you. If you are concerned about the potential for civil war in Iraq or do not believe the U.S. will succeed in it's goals then perhaps you should stay away from the Dinar. As far as investing there are several sites that offer the new dinar and specialize in bringing it to the U.S..

This is totally legal and buying the new iraqi dinar may be the opportunity of the decade. I recommend investors look for an online dealer that offers a Guarantee of authenticy and verifies the currency through a De La Rue note counter. A guarantee of delivery and reasonable price are also important. As of 10/2004 the range in price for a million new Iraqi dinar is $999.00 - $2,000.00 USD. Avoid any that seem too good to be true as they probably are. But also avoid the highest priced vendors as they offer little benefit for their additional cost. Also avoid companies that try to push you towards purchasing. They should just give you the facts and let you make the decision. An acceptable time to ship should be within 1 week. The 25,000 dinar note is the most secure, but the lower denominations are about as secure as U.S. currency.

Don't believe the Kuwait Comparison

OK the comparison used by the above (anonymous) individual 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, 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 zeroes 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 Schlub in Deliveranceville Alabama 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 readily exchanges Iraqi Dinars 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.

If you have a problem with what I'm saying, then please leave your comments in my 'talk' page.

User:Pavlvsrex 15:44:33UTC 22 Oct 2004 (Yes I know I've edited under "Pavlvs-rex", but they're both mine.)