This is the start of a new series I would like to start called “Sunday Sense.”
It may be two articles a Sunday, it may be every other Sunday, it may be one Sunday a month.
The aim is to provide some sound advice as you start your week.
The Iraqi Dinar was recently brought to me as a possible investment idea.
Apparently the currency has been sold as a million dollar investment opportunity to many people and many believed the hype.
You can find them for sale through various websites and “brokers” online. They are even for sale on eBay.
So why are would anyone buy Iraq’s extremely low valued currency?
A lot of people seem to have a misconception of what’s going to happen with the Iraqi Dinar, they believe there will be a “revaluation” or “RV” as it’s been abbreviated.
The theory at first seems to make sense, which is where I believe a lot of people stop and say “I’m in!”
The idea is that the pre-war Iraqi Dinar was worth roughly $3.00 USD. The post-war Iraqi Dinar is now worth roughly 1/10 of a cent. So about 1000 Iraqi Dinar (actually more, I’m being generous) are worth only one US Dollar.
So in theory, there is said to be a revaluation coming that will reinstate the Iraqi Dinar back to it’s original value.
So for example if you bought $100 USD worth of Iraqi Dinar, you would have 100,000 Iraqi Dinar. When said revaluation occurred your $100 USD investment would return you about $300,000 USD.
Sounds good? I bet.
Now here’s the sad truth. The term revaluation for all intended purposes seems to have been misinterpreted.
What I gather from multiple readings, that I will list at the end of the article. Is that what was actually proposed was a “redenomination” and would, and I quote “remove three zeros.”
This would not mean that the notes would gain more value, but simply that new notes would be created with three less zero’s to replace the old higher denomination notes. The value of these notes will not change.
In this video, Vice President of the Iraqi Central Bank speaks.
While I’m not saying that the Iraqi Dinar can’t be an actual investment, from reading over the websites below I’ve only come to the conclusion that it is highly unlikely.
My personal opinion would be to stop investing if you already have, and to not invest if you were planning to. Keep your dinar if you like, but don’t spend any more money on them. This is far from a sure thing.
Want To Read More?
If the words of a small blogger such as myself aren’t enough, feel free to check out these other sources:
- Forbes, Inside The Dubious Dinar Revaluation Ruse
- Myths And Truths About The Iraqi Dinar
- Wealth Daily, The Future of The Iraqi Dinar: Three Misconceptions
- Iraqi Dinar To United States Dollar Value Chart
- Better Business Bureau: Foreign Currency Scam Is A Bad Investment
There have been many more articles and publications, but read these for starters and then you can Google or Bing up some information on your own.