Iraqi Dinar Speculation
My brother lives in the Florida panhandle which is home to numerous military installations. In fact, his back property line is the Hulbert Field fence. Hulbert Field is home to most all of the Air Force Special Ops as well as some others that do cross-training there. My brother is a firefighter and they do a lot of training with the fire departments on the bases. About 5-6 years ago, some of those guys got to talking about buying up Iraqi Dinars which were about to be re-issued by the new Iraqi government. The short version of the story is that we all bought some. You could get a million Iraqi Dinars for around a thousand U.S. dollars. I figured if nothing else, we could impersonate a bunch of shieks and take over a strip joint one night with those 25,000 Dinar notes.:smileypimp: (that is the only denomination we got) I doubt many strippers keep up with currency values.
That venture has been pretty much dormant since then. However, there has been a spurt of news and speculation about what is about to happen in the last couple of weeks as the Iraqi elections approach. It seems that the U.N. might lift the remaining sanctions after the elections and that would send the value of the Dinars skyrocketing. A family friend of ours who is pretty high up in Chase Manhattan threw out a figure of eight-six cents per Dinar. If they go up to anything close to that, a bunch of us are going to be in the money. :9:
So, my questions are: : Did anyone here take a chance on these Dinars and Have you heard anything about this situation beyond what I mentioned?
so the current exchange rate is like .000009 dinars for every dollar and your friend is speculating once the sanctions are lifted the Dinar will appreciate in value to .86 for every dollar?
I cant even calculate the appreciation percentage on my calcualtor!
The new Iraqi Dinar is now being claimed to be the hottest investment opportunity. So called ‘dealers’ are all over the internet selling the new Iraqi Dinar. For most of the ‘dealers’ or scammers the fact assisting them in their illegal trade is the exchange rate of the USD and the new Iraqi Dinar. The present exchange rate is $1.00 USD will buy anyone approximately 1475 new Iraqi Dinars.
This exchange rate was quite the opposite during the Saddam regime, when $1.00 USD would be able to buy just 0.33 Iraqi Dinar.
Comparing both the scenarios would imply that in the present situation buying the Iraqi Dinar would be a great investment opportunity. But scrutinizing the facts would reveal the true picture behind the Iraqi Dinar scam.
Fact 1: Once you have bought the Iraqi Dinar, it will almost impossible to trade the Iraqi Dinar back into any other form of currency. The fact is that the Iraqi Dinar cannot and is not freely traded on the world market.
Fact 2: It is also worth mentioning here that it is the new Iraqi Dinar which is now the official currency of Iraq. Earlier the old Iraqi Dinar was in circulation. There have been cases wherein scammers have actually sold the old Iraqi Dinar to their victims. Since even the new Iraqi Dinar cannot be traded freely on the world market, the old Iraqi Dinar will only find its buyer in the form of a collector of old currency.
Fact 3: Although Iraq is the second richest nations in terms of oil reserves, this natural resource will not help in supporting the ‘investment opportunity’ provided in the form of buying the new Iraqi Dinar. Whenever anyone is buying the currency of a country, one is investing in the entire economy of that particular country. Hence, this implies that if one buys the Iraqi Dinar, one is essentially investing in the economy of Iraq. And any economy totally dependent on its oil reserves is a unstable economy in itself.
Based on the above mentioned facts, if one still desires to invest their money in the Iraqi Dinar scam, please note that this would mean locking up that amount of money until the exchange rate of USD in comparison to the new Iraqi Dinar changes, and there is no hope this will happen in the next 4-5 years.
From the Nasdaq site-
http://www.learningmarkets.com/Forex/200911031921/the-iraqi-dinar-scam-part-one.html