Iraqi Dinar Alert

The highly-publicized Iraq Study Group Report (Baker-Hamilton) release yesterday contains this tantalizing bit of info that should be encouraging for Iraqi Dinar investors:

Milestones for Iraq
The government of Iraq understands that dramatic steps are necessary to avert a downward spiral and make progress. Prime Minister Maliki has worked closely in consultation with the United States and has put forward the following milestones in the key areas of national reconciliation, security and governance:…

GOVERNANCE
By the end of 2006:
The Central Bank of Iraq will raise interest rates to 20 percent and appreciate the Iraqi dinar by 10 percent to combat accelerating inflation. Iraq will continue increasing domestic prices for refined petroleum products and sell imported fuel at market prices.

An interesting report from ynetnews.com indicates that there is significant enthusiasm in Israel for the investment potential of the Iraqi dinar:

Looking for investment opportunity? Try the Iraqi dinar
by Shlomi Shefer

Despite Trading with the Enemy Act prohibiting trade in enemy currency, finance minister approves trade in Iraqi dinar for another year. Buying Iraqi dinar at unprecedented lows could prove enormously profitable if and when war-torn nation returns to economic prosperity

Despite the Trading with the Enemy Act, which forbids trade in enemy currency, Finance Minister Abraham Hirchson renewed authorization to traffic in the Iraqi dinar for another year this week.

Technorati Tags: Israel, Iraqi dinar, investment opportunity

With any investment, it is important to periodically review performance. This provides a basis for assessing whether the investment is as worthwhile as originally perceived and, also, for making “buy, hold, sell” decisions. Iraqi dinar is unique in that it is not an investment security or currency with a price determined through organized trading. Buying and holding dinar is easy (though dealer pricing varies widely), but selling (for individuals, at least) is presently done through mechanisms like e-Bay rather than a developed exchange market.

Technorati Tags: Iraqi dinar, e-Bay