If you're looking for a new way to invest your money, the Iraqi Dinar is an excellent choice to consider. Hundreds of thousands of investors are moving their money into the Iraqi Dinar because they believe it will revalue and that they will benefit from windfall profits or unexpected gains from specific circumstances in the Iraqi economy. If you're curious about whether the Iraqi Dinar will revalue and how to be a part of the process, continue reading this article.
What is the Iraqi Dinar?
The Iraqi Dinar is the official currency of Iraq. The Iraqi Dinar is subdivided into 1,000 fils and issued by the Central Bank of Iraq. The Dinar was first released in 1932 and was the currency used to replace the Indian rupee. At the time, 11 rupees would convert to one Dinar. During the first 27 years, the Dinar was connected to the British Pound and then became permanently connected to the USD. The rates held steady until the mid-1990s, when the Gulf War began.
Swiss Dinar, or the currency printed before the Gulf War, was printed and valued over $3 per 1 U.S. Dollar. Once the war was over, the government printed more money, but it was not of high-quality. However, it continued to circulate around Iraq. The sanctions placed by the United States on Iraq during this time devalued the new dinar notes quickly down to 3,000 dinars per $1 USD.
In 2003, high-quality notes were printed by the Coalition Provisional Authority so that the country could use one currency. Holders of old currency could exchange them equally, except for Swiss noteholders who would receive 150 new notes for one Swiss note.
What Does It Mean to invest in the Iraqi Dinar?
Now that you understand the past of the Iraqi Dinar, it's essential to understand what it means to invest in the Dinar. Like buying other currency, stocks, or bonds, you can purchase the Iraqi Dinar for a certain amount of money, depending on the current fluctuation rate.
The idea is to buy before a significant amount of money before a rise in the currency occurs so that you can make money more money than you invested. For example, if you invest $1 now into the Iraqi Dinar, that number could increase in value and be worth more than $1 or decrease in value and be worth less than $1. The actual rate you'll receive back from your investment depends on the Iraqi Dinar's market rates.
How Does Revaluation Work?
A revaluation is an adjustment that increases the country's official exchange rate in comparison to a baseline, such as the price of gold, wage rates, or a foreign currency. A country can only change or alter its currency's value through its central bank or other government offices. Revaluations have a significant effect on the valuation of assets held by investors or foreign companies and the currency itself. It can also change the exchange rate between other countries and cash, so foreign investments need to be adjusted to reflect the change and impact of the exchange rate.
Revaluation can happen for many reasons, such as large-scale events that affect an economy's profitability, leadership changes, changes in interest rates, or other significant events that predict a market's ability to become more stable. An exciting way reevaluation can work is if there is a great demand for a specific currency. Essentially, big decisions that affect the economy or country's leadership can cause an Iraqi Dinar to Revalue.
When a currency is revaluated correctly, it will increase in value for those who hold the currency. The Kuwaiti Dinar was revalued after the Iraqi invasion and could become a high-valued currency. With the current rates, 1 Kuwait Dinar is worth 3.30 United States Dollars.
The Iraqi Dinar Could Revalue
Iraq has recently devalued the Dinar by 24% back in December of 2020 to cope with the COVID-19 pandemic and lower oil prices. This means that oil dollars are now converted into more dinars, which helped the government to run the country properly. However, with everything that becomes devalued, there is the ability for it to revalue later in the year. Here are some of the reasons why experts believe that the Iraqi Dollar Could Revalue.
Domestic Fuel Prices: Since 2007, Iraqi Authorities have worked hard to implement measures around the use of domestic fuel, increasing the amount of domestic fuel used in their economy. This has helped to eliminate all direct budgetary fuel sources, except for kerosene. Since the fuel is sourced in Iraq, this increases the number of jobs that have been created and profit being made in the economy. This is expected to increase jobs and profits in the market, thus raising the value of the Iraqi Dinar.
Raised Policy Rates: One of the past issues that have been associated with the depreciation of the Iraqi dollar is the lower interest rates, which did not help the value of the Iraqi Dinar rise. Now the Central Bank of Iraq has raised its policy on interest rates which has helped the Iraqi Dinar appreciate.
Exchange Rate is Rising: As these changes are implemented into the Iraqi economy, there has been a change to the Iraqi Dinar's return. Before any of these changes were implemented, the exchange rate in April of 2007 was around 1.270, and in 2020, it was around 1.190, which means there is a 6.5% positive return.
Annual GDP Change: The GDP in Iraq keeps increasing. In 2020 it was at 178.11, and it keeps increasing year over year. It's predicted to rise to 232.12 by 2024. With this increase, you can expect the value of the Iraqi Dinar to increase as well.
Oil Prices are Rising: As the demand for oil increases, so does the money Iraqi economies can make. Oil is the countries largest export, and as more people are starting to jump back into business and travel, oil is needed. With more money available in the oil industry from foreign markets, the better the Iraqi Dinar does.
Arguments Against the Iraqi Dinar Revaluing
Not everyone believes the Iraqi Dinar will revalue. While it leans towards revaluing in the future, it's important to understand the other side of the argument as well. Some believe that the odds are slim and that it would take years before there would be any type of investment gain in your Iraqi Dinar. Here are a few of the reasons that some believe it may not revalue.
Not Available on Global Forex Markets: The value of the Iraqi Dinar is set by its Central Bank, or government, instead of fluctuating like a regular currency does due to supply or demand. Alternatively, it follows an auction process. The rates can change at any time just because the government decides it wants to change the rate. However, it's improbable that it will be lowered anytime soon.
Iraqi Dinar is Heavily Circulated: Some experts believe that there is already a ton of Iraqi Dinar in the markets, making it hard to see an increase in the value. While there is a lot of Iraqi Dinar, not enough has been printed to overpopulate or over circulate the currency.
The Economy is Changing: The economy has been recovering since the attack of ISIS in 2014. The government holds many resources of their highest export, oil, in the areas controlled by Kurdish forces and ISIS. This makes it hard for the economy to grow when they are unable to distribute and sell one of its biggest moneymakers. Thankfully, the government has already worked to adjust for this by moving most of its export facilities away from ISIS or Kurdish-owned land. Plus, like any economy, you will see the ebbs and flows present.
Too Good to Be Ture: Some experts believe that the Iraqi Dinar is too good to be true. They believe that while the idea sounds great, it doesn't guarantee that you will become a millionaire overnight. While that may be true, it was never promised that anyone who invests in the Iraqi Dinar would become a millionaire. Instead, it's suggesting that the currency will soon revalue, which will increase the value of the Iraqi Dinar, thus making you extra income on your Iraqi Dinar. No matter what, it's still a viable currency that can be used to buy goods and services in Iraq.
Should You Buy Iraqi Dinars?
With all the information supplied in this article, you might wonder if it's a good time to invest or buy Iraqi Dinars. Right now, the value of the Iraqi Dinar is going to increase, and according to research, the GDP of Iraq is going to rise to 232.12 by 2024, which means that the Iraqi Dinars will rise as well. It's a good time to buy Iraqi Dinars to get ahead of other investors. Plus, at such a low entry cost to obtain a good chunk of Iraqi Dinars, you're not going to lose either way. To sum up, no one could cast the right Iraqi Dinar future prediction and all all is left to the prejudice of the investor to weigh things out and see which investment is good for him/her and which is not.
Every person from civilians, unwise investors, special servicemen, and contractors are investing in the Iraqi dinar. However, only a few know what consequences lie if you invest in the currency. When it comes to investment in Iraqi dinar, the procedure is the same as any other investment process.
You pay a certain amount of US dollars to get Iraqi dinars. Like other shares, bonds, money, and investment opportunity, you invest in the Iraqi currency with a risk. However, you expect a price for the particular cost of the Iraqi dinar.
There’s no harm in investing your money where you like. But the Iraqi dinar scam has victimized a lot of investors. The genuine question here should not be ‘Can’ but ‘Should you buy Iraqi dinar?’
Investing in the Iraqi dinar — Iraqi dinar to USD
Investment in Iraqi dinar works like purchasing bonds or stocks. After buying the dinars, investors wait for the IQD value to go up so they can claim the price they expect to get. It is relative to shares because you predict that the future value of your investment will be worth more than what you had invested.
While it is not illegal or a crime to invest in currencies, we should learn the future consequences of a risky investment. When it comes to Iraqi dinar investment, many currency gurus have convinced thousands of people to give it a shot. While we know they are scammers, they claim it is a sure-fire shot to invest in Iraqi dinar and get a high return on investment.
To go into the depth of the Iraqi dinar controversy, we will discuss the fundamentals of Forex.
The Fundamentals of Forex
Forex refers to currency pairs (such as Iraqi dinar to USD) and digital money trading. Say, for example, that the Forex trading speed for the following currency pair is 1 USD for 1,160 Iraqi dinars. If you spend a total of $1000 with the current trading speed of the currency pair, you will most likely get up to 1.16 million Iraqi dinars.
If you follow the trading pattern for a higher return on investment, you can predict the future IQD rate and get more than what you have paid for.
Now let’s say this case comes true and the IQD rate or the exchange rate increases dramatically into a hypothetical value. If you get 1 US dollar for 1 Iraqi dinar, the IQD rate will have your investment worth more than $1.16 million.
So, the theory is, the investor could become a millionaire overnight if the IQD rate increases. By investing a moderate value of 1000 US dollars, he would be getting a million dollars in return.
Is this investment opportunity a hidden profit prospect or a hyped scam?
We will commence with the advantages of buying Iraqi dinar:
The Iraqi dinar investment has had a fair share of dirt on and off the internet. We had heard about all the speculation ideas that were moving about. However, several trading reports suggested a spike or a slight increase in the IQD rate.
The IMF came forward with the first announcement about the IQD/USD rate in mid of 2007. While the report is old and came in the post-saddam Hussein era, the news was shaped in many ways. The following announcement supported another spike report from the Iraqi dinar currency and money trading.
The article mainly spoke about the Iraqi government, the gradual increase in domestic utilities. At the end of the article, it was also suggested a remarkable structural reform plan to make a change and turn the market of Iraq into an economy-based hub.
To combat inflation, the action plan was initiated by the Iraqi government comprising three fronts in total. To begin stabilizing the economy, the central bank of Iraq allowed the value of the dinar to rise a bit.
Other than that, it announced to increase its interest rates. These steps were initiated to control the financial conditions and to give control to the central bank so that the market could be de-dollarized.
The effect of the announcement on IQD/USD rate
Just before the action plan, the exchange rate of Iraqi dinar was more than 1270 (in April 2007). As of August 2020, the IQD/USD exchange rate was declared up to 1190. In light of trading, it turned out to a favorable yield. However, the current prospective developments and the Iraqi dinar future predictions depended greatly on the high turn-over of the IQD/USD exchange rate.
Are Iraqi dinar gurus scamming us?
Even though the future prospects say otherwise, the truth is, most dinar gurus continue to scam thousands of investors. Like other financial or trading scams, the gurus use various techniques to source hard-earned money from the investor’s pocket.
Many dinar gurus are not sure if the Iraqi dinar investment is worth the time and effort. As of now, this opportunity is neither lucrative nor a sure-fire shot to a high return on investment.
Fortunately, we have compiled several red flags that you can watch out for:
If the Iraqi dinar guru promises an astronomical return on investment on a measly amount, he is likely to be a scam
If your dinar guru is a stand-alone agent or works for an unknown trading company rather than working for a known trader, he would definitely turn out to be a scam
If the dinar guru is promoting himself through internet banner ads and unsolicited telephone marketing instead of establishing communication through social media, he is expected to be a huge scam
A little knowledge about the forex trading world can save you from a huge scam. For instance, Bank of America and other established financial organizations do not offer forex trading in IQD to USD. Why? Because the Iraqi dinar is volatile due to increase inflation and currency devaluation.
Moreover, several US states, such as Oklahoma, Alabama, and Utah have issued warnings against Iraqi dinar investment because its market is volatile and unstable.
How do Iraqi gurus scam the investors?
Gurus have command in using the forex trading platform. They use foreign exchange to cover their shady or scam deals. Forex trading refers to buying currency. In this case, gurus scam the investors by convincing them to buy Iraqi dinars for US dollars.
We all know that the forex trading platform is a legitimate forum for investment. It is as safe as investing in a stock market. The forex trading is stable because it is rarely disturbed by military conflicts, weather conditions, and natural disasters. Therefore, the currency exchange rate is pretty steady there.
However, the return of investment in forex trading would not make you as happy. They are stable but not the best. Investing in foreign currency is an easy way to make post-retirement money. In some countries, it is considered a lucrative business and career opportunity for baby boomers.
How do gurus use forex trading for Iraqi dinar scam?
Gurus scam by overpromising the returns on Iraqi dinar investment. To convince people to invest more US dollars, they convince the investors that the IQD/USD rate will increase in the mean future.
For instance, a scammer will connect you to an Iraqi dinar agent who would convince you by giving multiple hypothetical values of high returns. They will provide you with the current exchange rate and will convince you by giving a strong postulate on the value of the IQD/USD exchange rate in the future.
That being said, if you wish to invest $1000 at the exchange rate of 1160 for $1, you would be getting a total of 1.16 million IQD.
After giving you a postulate on the exchange rate, they would convince you that it will increase in the upcoming months. The void promise that the IQD rate will grow is a red flag we all should be watching out for. One can’t expect to invest $1000 and expect it to turn $1.16 million in the next few months.
Every step of the Iraqi dinar investment process is a scam as no currency can grow to equalize the US dollar, especially if the inflation rate is high. Moreover, there’s no sure shot on any investment, be it purchasing a bond, stocks, shares, or currencies. If a guru is assuring you, he is most definitely a scam.
Iraqi dinar future prediction
Regional fights, civil war, and no allies are current issues of the country, Iraq. In the future, there’s an extreme possibility that Iraq will split into three regions. If such a tragedy happens, the day to eat the fruit of investment will never come for the investors. In short, the value appreciation won’t happen if the civil conditions of the country do not get better.
Does Iraq have the potential to rise again?
As there are abundant oil reserves in Iraq, there’s a possibility that the country will rise again, establish and spring back to develop a stable economy and market. If we talk about the past, the country managed to spring back after a long-term war with Iran.
However, Iraq lacks a promising and peaceful business atmosphere to establish the confidence of the investors. If the trust of the investors is restored, the country’s economy and the market will revive and increase the IQD/USD exchange rate.
But the conditions do not seem always seem favorable. There are convincing red flags that Iraqi dinar investment is nothing but a hyped scam. However, there’s a strong reason to pass a statement as harsh as this.
The Iraqi dinar investors trade in the black market of the forex instead of trading desks and established institutions. The supporters and the dinar gurus confuse two economic terms; redenomination and Iraqi dinar revaluation.
Iraqi dinar revaluation and redenomination
When it comes to revaluation, it is an adjustment officially made to the exchange rate of the country’s currency. The rate is often relative to a standard baseline (US dollar or gold). After a successful Iraqi dinar revaluation, the currency will become more expensive. As the rate changes, so do the purchasing power of the base currency.
On the other hand, redenomination is a confirmed plan of action that the Iraq government will not revalue its currency but redenominate it. If the Iraqi dinar revaluation does not occur, there will be no change in the IQD/USD exchange rate.
Reasons not to invest in the Iraqi dinar
Iraqi dinar revaluation rumors continue to attract a substantial number of investors. Dinar gurus have convinced the investors that they will be making windfall profits if the exchange rate grows in the future.
Here are some reasons why investment in Iraq dinar is not a wise decision:
The Iraq economy is struggling
The Iraq economy had been on the verge of falling for years. Now, the only way to redevelop the economy is to make use of the oil reserves. However, the significant oil reserves located in the south are still controlled by Kurdish forces and ISIS. Therefore, it might be impossible to develop trade with foreign countries.
With the economy already falling, the last thing this country needs are the challenges due to massive Iraqi dinar revaluation.
Iraqi dinar investment is not done on established financial institutions and global forex markets
The value of the Iraqi dinar is currently set by the central bank. The established financial institutions, regular banks, and global forex markets do not trade this currency. That being said, it is a freely traded currency and the dealers can charge any exchange rate they desire.
Several US states have issued warning against Iraqi dinar investments
Several US states including Alabama and Oklahoma have issued warning against the scams involving Iraqi dinar investments.
Iraqi currency is already in circulation
With the current exchange rate, it is imperative that Iraqi currency is in a great deal of circulation. However, there’s a slight possibility that the central bank of Iraq might drop 3 zeroes to create a new currency. This approach is known as redenomination and it will have no effect on the IQD/USD exchange rate in the global markets of forex trading.
Iraqi dinar investment is an uncertain bet. Due to external factors involving international markets, trading currencies is always risky. You can’t predict or control the market. Unless you are trading through a regular bank or an established financial institution, you should be considerate when investing in Iraqi dinar.
Deleting zeros or printing a new category? .. The Iraqi government's options to save the dinar from collapse
A new storm hit Iraq this time with the local currency depreciating against the US dollar after political, security and health storms preceded it with the outbreak of the Corona virus, the decline in oil prices, the government reaching the stage of deficit in paying its employees' salaries, and the House of Representatives having to vote on the internal borrowing law to fill the deficit. The government started with the initial steps to implement the provisions of the White Paper that it launched and talked about a lot over the past months to support its economy by raising the price of the dollar against the local currency from 1184 dinars to 1450 dinars to the dollar at the selling prices approved by the Ministry of Finance of the Central Bank, and this step was negatively reflected on the prices of goods, commodities and daily needs. For the citizen, with rates not less than 25%.