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.