Investing In Iraqi Dinar
The only reason I am writing this article, is because we were approached by a family member to invest in Iraq Currency. We received a phone call from my husbands brother telling us about this great investment….it was investing in currency from Iraq!
I heard him on the phone, and I was shaking my head “No” I knew I had heard something on the Clark Howard radio show about this investment being a scam.
So, I did some investigating and this is what I found out:
This scheme has been floating around since about 1993, right around the desert storm time. Usually you are approached by a so called financial investor who seems like a dodgy character, offering you the opportunity to make money from an Iraqi dinar that is “going” to appreciate. Then the financial investor tells you that you don’t want to miss out on the profits that are likely to be “guaranteed” if you buy some dinars at today’s rate (about 1,000 dinar to $1) then once the dinars have improved, you exchange them back for dollars at a higher rate. Some of the sales pitch might include a small history lesson on, how in the past this has been a good investment.
But there are some problems with the Iraq dinar scheme, that you should be weary of before you consider investing in one of the most volatile places in the world.
If you invest in the dinar, it would be like gambling. If the Iraqi nation suffers inflation or hyperinflation, you would be owning some worthless currency that no one will buy from you, or you would be taking a great loss on your investment. You would also be gambling that the US Dollar won’t appreciate.
The companies usually do not have any registration credentials, any legitimate financial company or person selling hard currency for numismatic value, should be registered with an appropriate securities organization-such as the United Stated Treasury as a “Money Service Business” Ask to see there credentials and see what they fumble around to say….In my opinion if they do not have the right securities credentials there is now way they are going to get my money!
After doing the research, we decided this would be to high of a risk investment for us to take, that is why I wanted to share our experience with you, and make sure you do all your research before any investment.