The Iraqi dinar trade has seen a boom in the last decade, with thousands of Americans opting to invest in the iraqi dinar. Their hope is that the Iraqi dinar to US dollar exchange rate will go up and that the dinar they purchased at a low price will be worth significantly more. There is some speculation about the advisability of dinar trade, as with any investment, though some reasons for optimism include,
- During the first Gulf War, the Kuwati Dinar plunged to 10 cents and is now valued at $3.99.
- The Iraqi dinar was already valued at more than $3 before the first Gulf War, so any appreciation would theoretically be even more significant than that of the Kuwati Dinar.
- Iraq’s oil reserve is the second largest in the world.
- The last year has seen a 25% appreciation in Iraqi dinar value.
- The U.S. has invested $2 billion into the reconstruction of Iraq.
Choosing to invest in dinar trade is an investment that each person has to consider on his or her own, and it’s a very serious decision. In this article, we’ll look at a few questions to ask before getting started with a dinar trade investment and provide some general information about the dinar.
What to Ask
- Are the dinar you’re looking to buy registered? The source from which you purchase should be registered with the U.S. Treasury as a money service business and should be able to help you verify their registration in order to legally sell Iraqi dinar.
- Who are you purchasing from? Are they a registered entity? Have they been in business long? It is wise to choose a company that is experienced in dinar trade. Look for at least a year or two of experience. Do they list contact information if you have any questions?
- What methods of payment are accepted? Be cautious of companies that require international wire transfer or that only accept cash or check. Credit card payments offer the highest protection against fraud.
- What is the shipping policy? A company shipping through a reputable carrier is a better bet, as they stand less chance of losing or damaging the order during shipping.
- Is authenticity guaranteed? The dealer should verify the dinar before shipping using the six security features of the Iraqi dinar and should guarantee against illegitimate dinar.
- Will the dealer buy back dinars? Some dealers will allow you to sell your dinar back to them in case you want to liquidate them before the currency is exchanged on the market.
About the Dinar
Dinar is available online at a wide range of prices and in several denominations. The dinar is worth 1,000 fils, though the fil is now considered obsolete. Coins in denominations of 25, 50, and 100 dinars are available as well as banknotes worth 50, 250, 500, 1000, 5000, 10000, and 25000. The banknotes issued between 1990 and 2003 depicted Sadaam Hussein on the front of the note, though today’ notes picture a variety of images including grain silos, an astrolabe, the Dukan Dam on the Al Zab river, a gold dinar coin, Geli Ali Beg and its waterfall, Au Ali Hasan Ibn al Haitham, and a Kurdish farmer.
Banknotes include the following six marks of authenticity:
- Ultraviolet writing on the back
- A horse head water mark
- A color changing symbol on the bottom left that changes from purple to green
- An embedded metallic security thread
- A dove printed in metallic ink on the back top left
- A unique serial number written in east Arabic script
As with any investment, it is down to the investor to determine whether dinar trade is a wise option. Should you choose to invest, be sure that you work with a reputable source. Read more articles like this.