It is very sad that each and every soul from military personnel to civilians and others do not understand the issues related to these investments and are investing in the dinar without knowing about the risks involved in it.
Investing in the Iraqi dinar has been a scam that has been going on for quite some time now and it is quite commonly known these days. The people who are investing in the dinar are those who are somewhere ‘sure’ that the price of the dinar would go up and provide high profits soon.
The swindlers have painted such a vision that the investors are in an imaginary world that the investors would be gaining a lot of profit. The present rate of the dinar is 1000 dinars for 1 dollar. The sellers say that the exchange rate would improve a good percent and provide high profits.
According to a few basic issues the Iraqi dinar selling is a scam and it is important that the buyers should be aware of the fact that the investment they are going to do is not safe at all.
When doing major currency investments it is very important to check a few things that are required by the major economies of the countries that claim it to be illegal to make investments in them. The sellers use two different ways to manage things.
The basic idea is that it is perfectly legal to sell any kind of currency for its original value. To be clear, it is very clear that the currency sold can be sold by any one at all. The other option is that a few money dealers are registered with the Treasury of the US as Money Service business (MSB).
Being registered will help these dealers to protect themselves from the government laws of being illegal in other matters. The basic difference between real MSB dealers and others is that the real ones do not advertise or market the investments.
Is it important for the investor to know if they are investing with a real or fake dealer?
Selling Dinars on Deceptive Publicity:
The basic value of the investment done for the dinars is based on the management of the happening of the Kuwaiti dinar and the German deutschmark after the first Gulf War and the World War 2. It should be remembered that where dinar is a free floating currency the others were not then.
It is true that the investor which really wants to make a big investment would do so on two basic factors that includes the handling of the data of the past more than fifty years so that the strategic handling of things would be done.
Is it true that the Iraqi government would handle things in such a way that the currency would go up? a country which is on the road to betterment needs to pay off its loans and debts faster and handle things in a much better way. Any economy which is in a struggling situation more like Iraq needs to settle itself in a much better way. There are several issues that the country may face which include the issue of devaluation of the currency.
It is highly expected that the value of the dinar would rather go down instead of improvement in the near future. The dealers of the Iraqi dinar are just setting up misleading notions so that they can make their own business better. The issues that arise with the examples set by Venezuela, Turkey and Mexico were in a totally different scenario and it is not a good idea to refer one country’s condition with another. The economic conditions of Iraq are not good at all and it is not at all a good idea to handle things out in an easy way.
Several dealers give examples of the price of the Iraqi dinar before the Gulf war and the 1990 Kuwaiti invasion. 1 dinar = $ 3 + US Dollars is not the right example to quote when it comes to the handling of the Iraqi dinar. Not to forget that during the time of Saddam Hussein things were not at all good and the value of currency was very low in comparison to the US dollar.
Risks in The Investments That The Dealer Would Not Say:
If you are interested in investing in the Iraqi dinar without the intervention of any dealer then you should be up to date yourself on the issue. It is important that you should know what risks follow and how you have to manage things even if you still want to invest in the dinar.
The Iraqi dinar is not being traded in the market since quite some time now. You should be aware that you may be able to buy them easily but selling them would be a big issue? The buying and selling difference is almost 20 percent which causes you loss and not any kind of profit. So if you want to block your money and then wait to have your business at a no loss and profit situation; for that the dinar would have to go up by at least twenty percent which is a rare chance. Since after the revaluation of the currency, the currency has only gone up by 23% which is quite low.
2. Currencies With Extremely Low Values Are Often Re-Denominated
It is a very easy option for other countries that do not have any kind of knowledge regarding the handling of currency with the latest value. Venezuela is another oil based economy that re-denominated the USD trade in the year 2008 for an exchange of 1,000 Bolivar.
The management of the new Bolivar is at this point traded at 2.15 USD. This has been done in the past quite a lot of times. However is all this is thought about to be done within Iraq, it would not be a good option. Iraq needs to rest itself for several reasons and handle things out in a different manner. The handling of the money in Iraq value is a sensitive issue and needs to be dealt in a different way.
The inflation issues reported by the CBI are not the same, rather they vary every month. The rates have gone from -4% to +8 %. The management of things between the government and the economy of the country is not stable and the inflation process goes up and down. The inflation in the country is causing the major damage and ruining things out. The example of the Turkish lira may not be suitable however when it inflated, the value of it was equal to 1.5 million lira against the USD.
The crux of the story is that the investment in the dinar market is not a safe thing and if you are interested in the management of the dinar, then do not refer to any kind of dealers for they would misguide you how ever registered or unregistered they may be. The investment, if a must, is a big gamble.