Iraqi Dinar Alert » General

3 Things to Understand About the Much Anticipated Iraqi Dinar Revalue

Administrator — Sat, 28 May 2011 22:11:17 +0000

If you've been considering buying Iraqi Dinar as an investment and have done even a little basic research, you've likely heard about the Iraqi Dinar revalue (often referred to as "RV"). Here are three key points about the Iraq Dinar RV that you'll want to keep in mind as you will want to remember as you cut your way through sales pitches from sellers of Iraqi Dinar currency:

The Iraqi dinar revalue is the cornerstone of Iraqi Dinar speculation.

It is discussed ad nauseum on the internet is because it is the lynchpin to the hopes of dinar speculators. It is also the cornerstone of most Iraqi dinar sellers sales pitches. Think of the Iraqi dinar revalue as the grand-slam home run of dinar speculation. The thinking goes like this:

Because of years of war and turmoil, the current valuation of the Iraqi dinar currency is unrealistically low in relation to the vast natural and social assets of Iraq. So low, in fact ($1.00 USD equals more than 1,000 IQD), as to present a once-in-a-lifetime opportunity.
Those who are shrewd enough to get in now will benefit immensely when Iraqi oil production increases and money flowing in from other countries forces government leaders to revalue the Iraqi Dinar currency to bring it more on par with other currencies. Often, the pre-Kuwait War value ($3.2169 USD equaled just 1.00 IQD) is mentioned as the hoped for target.
Someone smart enough to put in, say, $2,799.95 would receive 2,500,000 IQD in return (figures from an actual deal recently available through eBay). When the Iraqi Dinar revalue occurs, this currency would suddenly be worth over $8 million - perhaps even overnight!

The Iraqi Dinar revalue argument really is what drives interest in buying Iraqi Dinar currency. Without it, Iraqi Dinar become just another investment that has a chance to produce profits over a long-term investment timeframe. The revalue argument makes the case for get-rich-quick scenario that everyone loves.

25 Million Iraqi Dinars In 25k Notes M/c & Visa Ok

US $28,755.55

10 Mil 5k Iraqi Dinars Iraq Dinar I Ship Insured

US $12,255.55

The Iraqi Dinar "revalue" is not the same as the Iraqi Dinar "redenomination".

For several years there has been official Iraqi government discussion about removing "three zeros" from the Iraq Dinar so that 1,000 dinar would become 1 dinar. This type of transition is sometimes made by governments having very low-value currencies (such as the Iraqi Dinar) as an efficiency move to simplify cash transactions and allow citizens to carry less money around. Often, new currency is printed and citizens would exchange 1,000 of their old notes for a new 1 dinar note. The change does and is not intended to have an impact on the purchasing power (i.e. value) of Iraqi Dinar.

Currency revaluation, on the other hand, does change a currency's purchasing power. According to Investopedia:

In a fixed exchange rate regime (like Iraq), only a decision by a country's government (i.e. central bank) can alter the official value of the currency. (S)uppose a government has set 10 units of its currency equal to one U.S. dollar. To revalue, the government might change the rate to five units per dollar. This would result in that currency being twice as expensive to people buying that currency with U.S. dollars than previously and the U.S. dollar costing half as much to those buying it with foreign currency.

Unfortunately, many dinar speculators and peddlers are deliberately characterizing Iraq's proposed redenomination step as a currency revaluation that would, in fact, change the dinar's purchasing power.
The Iraqi Dinar revalue can happen gradually over time.

As the Iraqi economy stabilizes and strengthens, oil exports grow and the country's future outlook brightens, it is to be expected that the value of the Iraqi Dinar will increase in value against the dollar. The U.S. dollar could certainly lose value as well as the U.S. finally begins to confront its towering debt problems. Buying and holding onto some Iraqi Dinar on this basis may not be an imprudent gamble. This slower revaluation process may take a decade or more to pay off.

Iraqi Dinar Investment Calculator

Administrator — Fri, 14 May 2010 01:35:26 +0000

Investors in the Iraqi Dinar currency are hoping to see the future value of their Iraqi dinar investment grow over time. There are, of course, no guarantees that IQD investments will appreciate at any specific rate of growth and investors are wise to weigh different possible outcomes before committing to an investment. The Future Value of Iraqi Dinar Calculator below allows users to enter different growth rate assumptions and visualize how their investment might fare under each set of assumptions.

The calculator is meant for self-help general guidance only and is not intended as investment advice. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues - including investments in Iraqi dinar currency.

Beware of These Iraqi Dinar Scams

Administrator — Fri, 14 May 2010 00:31:17 +0000

There is ongoing debate over whether investing money in Iraqi Dinar currency is a legitimate avenue for investing or simply a polished internet "scam". Opinions from respected experts are to be found on both sides of the Iraqi Dinar currency debate. These expert opinions should be reviewed and carefully weighed before doling out cash to purchase dinar currency.

But what is not subject to debate is the fact that there have been clear cases of Iraq dinar fraud and scams that documented in the public record and which all investors considering Iraqi Dinar need to be aware of. We present here documentation of several such Iraqi Dinar scams for your information and education. Prudent investors are advised to be aware and alert to these issues:

Iraqi Dinar Scam Targets Iraqi dinar Websites!

As if the Iraqi dinar trade didn't have enough credibility problems. Now comes word that scammers have turned to ripping-off Iraq dinar websites. Iraqidinar.org is reporting that a couple of guys presenting themselves as wealthy middle-eastern royalty are offering to buy dinar websites for no money down, but promises of future millions! The scammers have a checkered past that is well-documented, including big problems with the Federal Trade Commission (FTC).
While it may appear that this type of Iraq Dinar scam would not directly impact Iraqi dinar currency buyers, be forewarned that if scammers like these guys get control of established and successful Iraqi Dinar websites, they could be in a position to wreak havoc on the many thousands of people seeking to buy Iraqi dinar. Be forewarned too that this scam clearly shows how sparse the government oversight and regulation of the Iraqi dinar trade is. While else would scammers already caught by the FTC in one area turn their sights to the Iraqi dinar business?

It is for this reason that we have long recommended that buyers go through eBay for Iraqi dinar transactions. eBay has a reputation to uphold and does not tolerate unscrupulous vendors remaining active on its site. Other buyers provide valuable comments and feedback about their satisfaction level, so you always have a good idea of what others are saying about a particular dealer.

Beware of false assurances of guaranteed or extremely high profits

State of Idaho v Jack Lee Smiley

Among other things, this suit alleges the defendant (Smiley) "guaranteed that an investment of $1,000 would return $1,000,000....Smiley enticed investors into giving him money by making false assurances and promises, and by failing to advise them of material facts."

Beware of unregistered or unlicensed currency dealers

Beware of buying Iraqi dinar that has been illegally transported into the U.S.

U.S. Army Major Charles E. Sublett was charged in an indictment, returned by a federal grand jury in Memphis, Tenn., on Jan. 5, 2010, and unsealed today following his arrest in Huntsville. According to the indictment, Major Sublett smuggled more than $100,000 in currency, concealed in a shipping package, into the United States from Iraq in January 2005. Major Sublett also allegedly failed to declare that he imported the money....According to the indictment, the package also contained $107,900 in U.S. currency and 17,120,000 in Iraqi dinar. Major Sublett allegedly failed to file a Currency or Monetary Instruments Transaction Report (CMIR) as required by federal law when transporting currency in amounts of more than $10,000 into or out of the United States.

U.S. District Court, United States of America v Charles Eugene Sublett

Beware of buying counterfeit Iraqi dinar

From a report to Congress by the Office of the Inspector General of the Coalition Provisional Authority:

An Iraqi citizen operated an Iraqi dinar counterfeiting operation in Baghdad. A raid of the subjectâ€™s printing company seized a vehicle, six printing presses, and more than 20 billion Iraqi dinar. Subject was arrested and turned over to the Iraqi National Police.
An Iraqi citizen attempted to bribe banking officials in Iraq for their help in laundering counterfeit Iraqi dinar at their financial institution. DCIS agents assisted the 18th MP Brigade and the Iraqi National Police in arresting the subject and two accomplices. Seized subsequent to arrest were a vehicle, approximately $9,000, and approximately 440 million in counterfeit Iraqi dinar.

Beware of buying stolen Iraqi dinar

From a report prepared by the U.S. Army War College Strategic Studies Institute (SSI):

Since the fall of Saddam Hussein, Iraq has been rife with criminal activities ranging from bank robberies and drug trafficking to kidnapping, oil smuggling, and extortion. Because of its cash economy, there are many opportunities for robberies, and it has been estimated that, on average, about a million dollars a month are stolen at gunpoint. As one report noted, Baghdad has become the bank robbery capital of the world. This appeared to be underlined in the summer of 2007 when three guards at the Dar al-Salam Bank in Baghdad stole what was widely reported to be $282 million but in fact was the far more modest amount of $282,000. More substantial robberies took place at al-Rafidian Bank ($1.2m), the Industry Bank, ($784,000), the Iraqi Trade Bank, ($1.8m), the Bank of Baghdad ($1.6million), the al-Warka Bank, ($750,000), and the Middle East Investment Bank ($1.32 million). In addition, as discussed in Chapter 4, â€œbank executives have been kidnapped from their homes for ransoms as high as $6 million.â€ In effect, both banks and bankers have become targets in what for the perpetrators has been a highly â€œrewardingâ€ activity.

In addition to bank robberies, criminals have also robbed those transporting money. This practice has extended well beyond Baghdad. In one robbery in Diala, armed men stole one billion Iraqi dinars ($860,000) from government accountants as they left a Diala bank with â€œbags of cashâ€ to be used for social welfare payments for poor families. Identifying the perpetrators is difficult, but it seems likely that policemen and security guards are almost certainly involved in at least some of the robberies.

Utah Dinar Scam

The State of Utah has listed Iraqi currency scams as one of its "Top Ten Investment Scams" for consumers to beware of.

When will the Iraqi Dinar Currency Increase in Value?

Administrator — Fri, 26 Mar 2010 01:37:08 +0000

Many soldiers and contractors returning from the Middle East have brought back millions of Iraqi dinar upon speculation that the currency will soon explode to its pre-war value. Some even dare to hope that it will again reach the levels it enjoyed pre-Gulf War. Currently, 1 Iraqi dinar is worth about 1/10 of a U.S. cent. Experts expect that it will increase gradually as Iraq is stabilized, within the next three to five years, and will remain in a range between $.01 and $1.25 versus the U.S. dollar. Still others argue that it will happen much more quickly, as soon as one to two years, as the Iraqi oil fields are rebuilt and again begin to produce massive revenue for the country.

The dinar has already increased value 25% since the end of large-scale fighting in the country. Iraqâ€™s currency is tied very tightly to the geopolitical atmosphere in the country, and there are many reasons to be hopeful in this regard:

The United States allocated over $18 billion for reconstruction and improvements to infrastructure along with a continuous support structure. It has forgiven Iraqâ€™s debt to the United States, and offers the backing that will help Iraq develop its market economy, (valued at $70 billion a year) given its vast oil reserves and educated population.

Iraq has oil reserves of $10 trillion, second only to Saudi Arabia. They have signed tentative agreements with the worldâ€™s biggest oil companies in the world to get the oil flowing as quickly as possible.
Many of the worldâ€™s most advanced nations are currently working in Iraq, building commercial enterprises, and intending to make it a base of operations.

Money has been promised by many countries for help with restoration projects and infrastructure improvements, including: electricity, clean water, road projects, internet systems, phone systems, and health services. Much of this work is already taking place.

Iraq is setting up agreements with neighboring countries for exports of oil reserves to quickly begin to produce revenue.

Iraqâ€™s new government set up a monetary system that is spurring foreign investment, which is essential to building a strong market economy.

The Central Bank of Iraq was set up totally independent and not run by leadership in Iraq, in much the same way as the Federal Reserve operates in the U.S.

Iraq has opened new stock and bond markets, and they are thriving while pushing listed Iraqi stocks drastically upwards.

Real estate is booming in Iraq, as people are permitted to buy where they couldnâ€™t before and depressed prices are spurring sales. Citizens have more money than theyâ€™ve had in many years and are taking advantage of the market.

Iraq, with the help of the United States and other allies, is moving swiftly in the right direction, and will bring the Iraqi Dinar from catastrophic lows to a globally recognized currency with world value, within the next few years.

Iraqi Dinar Auction

Administrator — Mon, 22 Feb 2010 00:01:52 +0000

Below are results of the latest official Iraqi Dinar currency auction held by the Central Bank of Iraqi (CBI). The auction results are presented to show the current value of Iraqi Dinar vs USD (US Dollar):

The results were as follows:

Details	Notes
Number of banks	4
Auction price selling dinar / US$	1166
Auction price buying dinar / US$	-----
Amount sold at auction price (US$)	4,321,000
Amount purchased at Auction price (US$)	-----
Total offers for buying (US$)	4,321,000
Total offers for selling (US$)	-----

Exchange rates

Iraqui or Iraqi Dinar

Administrator — Sat, 21 Nov 2009 20:12:45 +0000

People researching the Iraqi Dinar sometimes Google Iraqui dinar instead. This is understandable since "u" follows "q" in the vast majority of English language words that include "q". Indeed, Ask Oxford states that "(t)here are very few words in which q is not followed by u, and all but one have reached English from other languages." Iraqi (not Iraqui), of course, is one of these words.

There is, in fact, a tongue-in-cheek movement afoot to stop using "u" after "q" as seen in this Q&A at Google Answers:

Q: Please qantify (sic) the benefits of dropping the letter 'U' after 'Q' in the English language.

A: Hello probonopublico and thank you for your qestion (sic)

Well, for a start think of the environmental issues. Newspaper ink is 95% carbon which is produced by burning hydrocarbons. By dropping the letter U we could be saving thousands of lives a year. "Pigment for newspaper ink still comes from benzene, toluene, naphthalene, and other benzene ring hydrocarbons which may be quite harmful to human health if accumulated in the food chain."

Another reason (or not) to drop the 'U' is that it would rationalise the English language, much as the North Americans have already done Colour=Color etc....

So, if you found this page looking for "iraqui dinar", we understand. Just visit our Iraqi Dinar homepage to find exactly what you're looking for.

Iraqi Dinar Rumors

Administrator — Thu, 05 Nov 2009 00:36:27 +0000

Rumors can be extremely important in the financial markets. Trading decisions (whether to buy, sell or hold) are made based on information. And rumors - accurate or not - are one of the oldest, most powerful means of information mass communication. A trader who is able to act early on information is in a position to gain, while others lose.

On the other hand, false or inaccurate rumors can cause traders to make wrong and costly decisions. Some market rumors have been so well coordinated and widely circulated that they have caused the downfall of major companies. Many observers believe that bogus rumors largely caused the downfall of Bear Stearns in 2008.

The Iraqi dinar, of course, is not immune to rumors. Indeed, because of the dinar's speculative nature (and limited market), rumors probably carry more weight in formulating individual's decisions whether or not to buy Iraqi dinar than in more mature financial markets. The lure of a potential quick and large profit coupled with a "sound plausible" rumor about the dinar is enough to get many people to pull the trigger and invest in dinar.

A simple search on Yahoo Finance message boards will provide enough Iraqi Dinar Rumors to keep you reading most of the night. Here's one recent example:

I've heard rumor of the IMF meeting in the next days to months with a priority topic being the revaluation of the Iraqi Dinar (IQD). Topic would include a two-tier valuation of the currency, one for the common folk that have them stashed away in shoe boxes and in their nightstands and the second for an exchange rate between governments. It is rumored that the common-folk rate may be based upon a simple $1(USD) to 1(IQD) up to the value of the Euro or even the British Pound. This would be exchanged at banks across the US for that rate. In turn, the banks would exchange it to the Federal Reserve for a mark-up rate (what that would be is TBD). The Fedeal Reserve would then exchange it with the government of Iraq for a much higher rateâ€¦similar to the beginning of the warâ€¦around $3.40ish(USD) per IQD. The exchange would not be for dollars but for oil and natural gas credits giving the governments that are exchanging the IQDs a steep â€˜discountâ€™ for future oil/natural gas. We shall see.

Generally, we don't feel that such rumors play a big role in overall dinar market valuations. As the nearby graph illustrates, the dinar has shown steady improvement vs the US Dollar in the last couple of years. But this performance is likely more attributable to general stabilization of conditions in Iraq - not singular market moving events or rumors of such events.

Iraqi Dinar Historic Values

Nevertheless, it is certainly possible that a market-moving event (like currency revaluation) could occur and being "in" early in such a scenario could be profitable. But given the cost, time and effort involved in constantly tracking and evaluating Iraqi Dinar rumors, we don't allocate our resources to this pursuit. Rather, our stand is that if you view Iraqi dinar is a long term investment with considerable upside potential, getting in at today's pricing is attractive in itself. If some rumor or event occurs that causes IQD values to rise quickly, so much the better.

One more Iraqi Dinar rumor of note: the Donald Trump Dinar Rumor. This internet rumor has been around for several years. Basically, it holds that Trump invested $30 million in Iraqi dinar. The upshot being that if Donald Trump thinks Iraqi Dinar are a good investment, should the average guy think so too? Unfortunately, promoters of Donald Trump Dinar rumor can point to no concrete evidence that such a transaction actually took place.

If you are interested in following Iraqi dinar rumors, a visit to the discussion forums at Dinar Speculator is recommended.

Americans Cash in Iraqi Dinars

Administrator — Tue, 03 Nov 2009 12:20:57 +0000

With so many American military men and women, as well as civilian contractors, spending so much time â€œin the sandboxâ€ as they call Iraq, it is no surprise that theyâ€™ve brought home millions of Iraqi dinars. Though speculative in nature, there is a chance that the dinar is going to explode exponentially as the Kuwait dinar did following the first Gulf war.

With the United States spending billions to ensure Iraq has a capital economy, the dinarâ€™s value has already gone up over 25% since the fighting has slowed dramatically in the country. The Central Bank of Iraq is a steadying force, modeled after the U.S. Federal Reserve System, and capable of stabilizing currency and curbing inflation when needed.

Many multi-national companies are doing business in Iraq. The Pepsi-Cola Company has been one of the first to embrace this new population of soda novices. As the economy recovers, huge companies like Motorola, Lockheed Martin, AT & T, and General Electric are setting up shop to help with infrastructure. American University now also has training courses in Iraq.

The strength of any countryâ€™s currency is closely linked with its financial picture, and for that reason, it seems inevitable that the dinar can be headed nowhere but UP!

U.S. programs in the country have increased the job pool by close to half a million and companies from every part of the world are working and partnering with local companies to help rebuild the war-torn cities.

Many web sites sell dinar, both in paper form and virtual account form, so it is very easy to invest in them. Some sites state that the Central Bank prohibits removing dinar from Iraq, though that regulation seems to be largely ignored for the influx of cash it is providing to the country. If considering investing in dinar, be certain to find out what the current exchange rate is, and do not pay anything significantly different from that.

There are a few good reasons also to keep your dinar in an Iraqi bank:
-the accounts are interest-bearing.
-in the event of a change in the paper money, the banks will convert the currency.
-All licensed Iraqi banks are insured by the Central Bank of Iraq, affording some measure of protection.
-you will get a REAL exchange rate. No inflated surcharges.

You can also deposit any physical dinar you have once you open an account with an Iraqi bank.

As a means of further stabilizing the Iraqi dinar, and increasing its value, Coalition forces are now moving toward putting the economy completely back in Iraqiâ€™s hands by using the dinar. The U.S. military has completed a switch over to the Iraqi dinar as the currency of note, which means payments are all made in dinars and not dollars any longer.

While still injecting U.S. cash into the country, it is no longer so visible, and Iraqis are learning again to trust in their own currency. The goal is to help stabilize the local economy and have more of the local currency in circulation, while severely limiting the amount of U.S. cash, which will push the dinarâ€™s value up.

For those Americans who brought home Iraqi dinars, the experts say to continue to hang on to them. As the economy improves, so will the dinar!

25,000 Iraqi Dinar Note

Administrator — Mon, 02 Nov 2009 10:34:20 +0000

FRONT
The front of the Iraqi Dinar 25,000-dinar note shows a Kurdish farmer holding sheaf of wheat. Tractor in background.

The back of the Iraqi Dinar 25,000-dinar note shows King Hammurabi. Credited with writing the first code of law in human history he founded the First Dynasty of Babylon in 1700 BC, leading Babylonia into a period of great prosperity.

The following Iraqi Dinar notes are currently available for sale (click image for more information):

Iraq: Authentic Five Million Iraqi New Dinar 200 X 25000 Iqd Unc Mint

US $2,799.99

10,000 Iraqi Dinar Note

Administrator — Sun, 01 Nov 2009 09:24:13 +0000

FRONT
The front of the Iraqi Dinar 10,000-dinar note shows Abu Ali Hasan Ibn al-Haitham (known as Alhazen to medieval scholars in the West), born Basrah in 965 A.D. His most important work - although he wrote some 200 books - is held to be a seven volume series on optics Kitab al-Manazir, in which he gives the first correct explanation of vision, showing that light is reflected from an object into the eye. He is said to have invented the camera obscura. Also, an eminent physicist and mathematician he developed analytical geometry by establishing linkage between algebra and geometry. Alhazen's work was translated into Latin, and greatly influenced European scientific thought.

BACK
The back of the Iraqi Dinar 10,000-dinar note shows Hadba Minaret, at the Great Nurid Mosque, Mosul, built 1172 A.D by Nurridin Zangi, the then Turkish ruler. The 59m-high minaret leans 8 feet off the perpendicular. That is how it earned its Arabic name Al-Hadba (the humped).

The following Iraqi Dinar notes are currently available for sale (click image for more information):

Iraq : Authentic Five Million Iraqi New Dinar 500 X 10000 Unc Mint

Iraqi Dinar Alert » General

3 Things to Understand About the Much Anticipated Iraqi Dinar Revalue

The Iraqi dinar revalue is the cornerstone of Iraqi Dinar speculation.

US $28,755.55

US $12,255.55

The Iraqi Dinar "revalue" is not the same as the Iraqi Dinar "redenomination".

The Iraqi Dinar revalue can happen gradually over time.

Iraqi Dinar Investment Calculator

Beware of These Iraqi Dinar Scams

Iraqi Dinar Scam Targets Iraqi dinar Websites!

Beware of false assurances of guaranteed or extremely high profits

Beware of unregistered or unlicensed currency dealers

Beware of buying Iraqi dinar that has been illegally transported into the U.S.

Beware of buying counterfeit Iraqi dinar

Beware of buying stolen Iraqi dinar

Utah Dinar Scam

When will the Iraqi Dinar Currency Increase in Value?

Iraqi Dinar Auction

Iraqui or Iraqi Dinar

Iraqi Dinar Rumors

Americans Cash in Iraqi Dinars

25,000 Iraqi Dinar Note

US $5,100.00

US $4,975.00

US $3,999.99

US $3,025.00

US $3,020.00

US $2,799.99

10,000 Iraqi Dinar Note

US $5,100.00

US $3,999.99

US $3,374.99

US $3,090.00

US $2,279.99

US $2,120.00