The Iraqi Dinar Scam

New Iraqi Dinar

Hello everybody.

I’m sure you’re all pretty familiar with the situation in Iraq. Well, with the emergence of the New Iraqi Dollar a whole slew of “Iraqi Dinar investment” sites have popped up. They all promise massive profits if you buy this new and highly speculative Iraqi currency. I too was tempted a while back to buy a few New Iraqi Dinars, but after the initial greed wore off and rationality came back to me I decided that it was too risky for me to go ahead with the purchase. I’m glad I made that decision as most likely I would’ve ended up with nothing more than worthless paper.

Personally I think what these sites are offering is a scam. When you stop to think about it, why should one expect the Iraqi central bank to want a strong Iraqi Dinar? It’s not to their advantage to do so. It is always in the best interest of a developing country to have a weak currency.  I don’t think any of the sites offering Iraqi Dinars for sale mention this and other associated risks. Then again why would they care to mention it if it might prevent you from getting suckered into a bad investment? My point is that you should really do your homework on this issue before you make a decision. To help you out I’ll share with you two videos a friend of mine sent me.

The videos are produced by a currency expert called John Jagerson (about which my friend says that the guy “REALLY knows his stuff when it comes to currency trading”.) In these two videos John gives a presentation on why you might want to avoid this type of investment. He also explains why the guys selling you the dinar are maybe not telling you everything you should know about the deal before exchanging cash with you.

Without further ado here are the two video links:

Part 1:

http://www.learningmarkets.com/index.php/200904141921/Forex/Forex-Getting-Started/the-iraqi-dinar-scam-part-one.html

Part 2:

http://www.learningmarkets.com/index.php/200904151937/Forex/Forex-Getting-Started/the-iraqi-dinar-scam-part-two.html

Kudos to John for taking the time to inform the public on the dangers of this speculative currency investment.

That about does it for this post. Thanks for your attention and I wish you all safe and profitable investing!

Cheers,

Alan

http://alansmoneyblog.com

12 thoughts on “The Iraqi Dinar Scam”

  1. I never said the currency itself is a scam. The websites that sell you the currency are a scam because they lie to you just to sell you this highly risky currency.

  2. I am amazed at people who seem to be stupid!!! I am not calling you stupid by no means, but if you want to really understand the truth about things than you must first know its history. There is no doubt that the Iraqi Dinar is going to go up in value, but it may take sometime. To be honest, it may be 10 years from now, but it will increase in value. Everyone thought they same thing about the Kuwaitt Dinar and now its the highest exchange currency in the world according to some banks. Its exchanging at a rate of 1KD for 3.80 USD. I don’t think that you should buy more than you can afford, but the IRD will increase in value and is a very good investment.

  3. “I am amazed at people who seem to be stupid!!! I am not calling you stupid by no means, but if you want to really understand the truth about things than you must first know its history.”

    First off if you ever want anyone to take anything you ever say seriously you can’t use the work “stupid” in your statements, second you said there is no doubt that the dinar will go up in value, well you “need to know your history” look at the Deutschmark from Germany during WW2, the Germans just knew their currency would increase in value so more and more bills were printed but the value never increased and the bills just amassed. The Germans had no doubt and they were wrong.
    Everything I have said is just my opinion, I don’t think the dinar will increase in value or at least not enough to make you a millionaire in 10 years but that’s just my opinion.
    I just tend to look at the facts
    – The majority of people investing in the dinar seem to be from the military or not have a proper education on how economies work.
    – Currency doesn’t earn interest, are you sure your $ wouldn’t be better suited in something like a CD for the next 10 years instead of siting earning 0? or if you like being risky invest in some more risky securities.

    …I just realized I could go on and on with this, Just anyone who reads this do the proper research before you invest in a countries currency that you know nothing about.

  4. I still stand by my original viewpoint that the Iraqi dinar is a risky and speculative “investment”

    Until political & economic conditions improve in Iraq you’d be better off researching and buying other currencies – or gold perhaps (which is a whole other discussion) !

  5. “Dealers love to point to the Kuwaiti Dinar when promoting their product. During the Gulf War, and immediately after it, the value of the Kuwaiti Dinar plummeted to a low of $0.10 US. Today, the Kuwaiti Dinar trades for approximately $3.45 US. That means if you invested $100 US into Kuwaiti currency at it’s lowest, and traded back into US dollars today, you would have turned your $100 US into $3,500 US. If it happened in Kuwait, then surely it will happen in Iraq, right? Wrong. The situation in Kuwait was entirely different. Kuwait had a strong government. Iraq did not. Kuwait made its greatest amount of money through foreign investments. Iraq made its greatest money through oil, followed by the selling of dates. After the Gulf War, Kuwait was a country that was always going to recover strongly. Iraq’s future is far more questionable.”

  6. “Ask yourself this question. If you thought that Iraqi Dinars were about to explode in value, would you sell them? Of course not. You would grab all your money, and buy as many dinars as you could, then sit back and wait for the money to roll in. Almost no dealer is willing to buy. Ask yourself why that is.”

  7. here is another interesting comment someone else left on a site:

    “The Dinar may make it to 1000:1, but that is about the best you can expect from this dinar.
    Anyone who thinks that Iraq can introduce a currency, increase the supply of it to 26 Trillion (over 3 times more than the US dollar, 3 times more than the Euro) and use this currency for almost 5 years now… an then somehow magically increase the value 120,000%… well you know the old sayings.. I’ve got some land in Florida I’d like to sell you… or maybe a bridge in Brooklyn.
    It’s amazing how many people involved in this thing don’t understand simple economics. Econ 101… supply and demand. The Dollar and the Euro get their value from the the demand that is generated from the size of the economies. The US has a $13 trillion dollar GDP, The Euro countries have a $12 trillion GDP. That makes for a tremendous demand for those currencies. Iraq on the other hand has a GDP of about $90 billion… and almost all of that is from oil sales which are in dollars so it does nothing for the dinar. The Iraqi non oil economy is practically nothig. There is virtually no demand for dinar except for speculators. With a money supply 3 times that of the Euro or Dollar. Iraq would have to have their non oil economy grow to approx 3 times the size of the U.S. or Euro nations (that would be a non oil GDP of about $35 trillion) in order to have the dinar rise to 1:1.
    Hopefully you see that is a total farce.
    If Iraq wants a rate of 1:1 or anything close, they will issue a new currency and re-denominate. In other words, lop 3 zeros from the currency. For every 1000 of this dinar you have, you will get 1 of the new currency. That is if they don’t somehow block money from reentering the country for an exchnage.
    Whatever money you have in the Iraqi dinar is at great risk!”

    This pretty much sums up my point of view.

  8. Thanks Kevin. If anyone has any other useful information about this whole Iraqi dinar “investment” subject please feel free to share.

  9. Iraqi Dinar is very real, but the pitch many Dinar dealers try to send your way is far from reality and designed to get you buy from them. Some of these dealers even go as far as to explain that they are trusted by the government and supply you with a document to reinforce this illusion.

    First, the US government requires a business (or anyone for that matter) to register with them when selling any kind of currency. Once you register, the US Government will send you a letter confirming your registration. IT DOES NOT mean that they trust or vouch for the company, only that they complied with the law.

    Read More:http://www.dinariraqi.net

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