Iraqi Dinar Alert

The Wall Street Journal reports (Friday, March 17, 2006) that emerging market mutual funds are snapping up risky bonds issued by the Iraqi government earlier this year. The bonds were originally issued to banks - such as Citigroup and JP Morgan Chase - to refinance commercial debt accumulated under Saddam. The Banks began selling the bonds (about $2.8 billion in total) to investors in January.

The implications for Iraqi Dinar are not discussed in the article, but it is clear that some serious Wall Street investors believe Iraq may indeed have a bright future.

Thinking about investing in dinar iraqi? Here’s some food for thought:

Why not take the chance? The only thing you have to think of, is how much can you afford to “gamble”. Myself, I have been to Las Vegas, and lost over $1,000 in two days. No big deal, I knew I could afford to lose it, oh well, it was fun trying.
This dinar is the same thing, in the fact that what if. I would hate to be sitting in my living room, watching the news five years down the road, and see that Iraq has been stable for a couple of years, producing unbelievable amounts of oil, and the dinar is worth 2 dollars for one dinar. Now that million dinar i COULD have bought could have made me a millionair.
The thing is, even if it stays the same as it is now, I am not losing any money, and have just made a possible long term investment. Hey, I will be laughing all the way to the porsche dealership!
Comment by Russell at June 27, 2004 06:39 AM

If you buy Iraqi Dinar from an internet dealer you will pay a very stiff markup. For example, pricing on a recent day showed one established dealer selling one million dinar for $1,095.00. The Central Bank of Iraq auction price for that same day showed the value of 1 million Iraqi dinar to be $677.50.

The dealer markup in this case was about 62%. The lowest markup I could find was at Safedinar.com which was selling one million dinar for $775.00 - a 14% markup. Dealers argue the markup is necessary to cover their transportation costs, overhead, risks, and provide a reasonable margin of profit.