How to Buy the Dinar
A number of prominent financial figures have been touting the Iraqi Dinar as an investment opportunity of a lifetime. With a new Iraqi economy emerging from the war, with a sound fiscal policy and a brand new currency, indeed, buying the Iraqi Dinar may be a fantastic investment opportunity.
In this article we explore the Dinar, investment opportunities and risks, and explain how to buy the dinar.
A brief history of the Iraqi Dinar
A few countries have called their currency the Dinar, but they are different. For example, Kuwait and Jordan both use the Dinar. What this article is focusing on is the Iraqi Dinar. And to be even more specific, we need to distinguish between the old Iraqi Dinar and the New Iraqi Dinar. Think of pre-war Iraq and post-war Iraq.
The Old Iraqi Dinar
Amazingly, at one time, the old Iraqi Dinar was tied one-to-one with the British Pound. When that peg was eliminated, there was a period of time when the Dinar traded even higher than the pound! It was a very strong currency even if not well known by many in the Western world. With the dictator in power, sanctions resulted and put a lot of financial pressure on the economy. The nail in the coffin, so to speak, was the war in Iraq.
The new Iraqi Dinar
After Saddam Hussein was detached from power, the new government of Iraq formed the New Iraqi Dinar. This was influential in allowing the Central Bank of Iraq to institute new fiscal and monetary policies to support with the reconstruction of a new government.
The Central Bank of Iraq shows significant transparency in its communication and have a very instructive site. As they now embark on the process of rebuilding the country, eliminating Iraqi debt and encouraging expansion and investment in the nation, investors are encouraged that the Dinar can once again be a currency to be reckoned with. It is because of this, that investors are buying the dinar at these traditionally low valuations.
Security Features of the Iraqi Dinar
The new Iraqi Dinar complies with all contemporary currency principles and is abounding with anti-fraud measures.
Features on the Dinar include:
- Raised inscription
- Metallic embossing
- Writing noticeable under UV light
- Security filament
- Color shifting symbols
When you collect your Dinars, you should validate them against a number of those security features.
The new Iraqi Central Bank
Any investor considering investing or buying the dinar should do research of the opportunity. The Government of Iraq in embarked on an all-inclusive two-phase Banking Sector Reform Strategy (2008-2012) with the purpose of modernizing its banking structure. The policy has received the support of the World Bank and other worldwide allies.
Monetary sector work in Iraq has thus far focused on making the two state-owned banks much stronger and on taking the current regulations and improving them. The report assessed the impact of new reforms introduced by the Iraqi government and the Central Bank of Iraq on the performance and dependability of the financial sector, as well as the sector’s role to enhancing Iraq’s monetary growth. It followed a forward-looking developmental approach, identifying key challenges and priority areas of reform moving forward. Efforts have been undertaken to strengthen supervisory and regulatory authority, and several measures to improve the banks’ governance have been taken. Also, improvements have been made in the regulations regarding risk management, and the basic elements for banking supervision are in place.
All investments are a equilibrium between risk and return. If a dealer says that investing in the Iraqi Dinar is a “sure thing” then do not use that dealer. A dealer should always be upfront and honest.
As with all investment opportunities, there are those dealers that are genuine and those that are scams. Regrettably those that are scams can harmfully affect the perception of the whole trade. Always ensure that you are dealing with a trusted association.
Never put in that which you cannot afford to lose. While investors who buy Dinar have the prospective upside to make massive returns, you should recognize that such an investment would be open to high risk. Only you understand your own resources and your assets. This is not the type of investment you make if you cannot pay for the necessities in life.
How to Buy the Dinar
If you have an appetite for risk, you could try to open a Forex account with a forex broker and then trade the Dinar. However, you need to be careful with the leverage in the forex market where even a few cent movement can wipe out your holding.
If you find yourself travelling to Iraq, you can obtain Dinar there.
The easiest and safest way to buy dinar is from a 100% USA owned and operated Dinar exchange . While there are a few around, there are scams and you should always be weary buying off of the internet. You don’t want to end up with counterfeit notes that are worthless.
Before sending your money, you should verify that:
- The company has a physical address in the US
- The company has a telephone number
- The company responds promptly to your emails
- The company does not make absurd claims about returns