Iraqi Dinar Alert

XE.com which calls itself "the world's most popular currency and [tag]foreign exchange[/tag] (fx, or forex) site" has devoted a page on its website to an overview of the [tag]Iraqi dinar[/tag] and its suitability as an investment. Their conclusion:

A number of people have begun touting so-called "investment" opportunities in the Iraq Dinar as a "sure way" to make a lot of money with little or no risk. Many of our clients have asked our opinion on the legitimacy of this.

Is [tag]"investing" in the Iraq Dinar [/tag]a sure way to profit? We don't think so. In our opinion, buying the Iraq Dinar is a high risk investment with a poor outlook.

If you're [tag]considering buying Iraqi dinar[/tag], you should take a look at the information they've brought together on this page.

In their syndicated column, [tag]Motley Fool[/tag] typically includes a section where people write in to tell about their "dumbest " investment. The idea is for readers to learn from mistakes made by others. Here's a recent submission as it appeared in the Kansas City Star:

MY DUMBEST INVESTMENT

Last year, I spent about $1,500 for approximately 1.7 million [tag]Iraqi dinars[/tag]. At the moment, one U.S. dollar is worth approximately 1,450 Iraqi [tag]dinars[/tag], making my investment worth around $1,170. Even a modest increase in the value of the dinar would result in significant gains. Time will tell if this investment is Foolish or just plain foolish. B.E., Killeen, Texas

The Fool Responds: Speculating in currencies � even those of major, stable nations has burned many investors. [tag]Iraq[/tag] is an especially unstable place right now. Inflation is just one of many risks facing the currency. Don�t look to the dinar's past performance, which is largely irrelevant now. Focus instead on the country�s future prospects. Or better still, consider investing in the U.S. stock market. Many of our companies offer international exposure through their global operations.

What I find interesting is that neither the reader nor the MF reponse are unequivocally negative on the Iraqi dinar.

For what it's worth - this piece of positive news about [tag]Iraqi Dinar [/tag]up in Mona Charen's commentary at Townhall.com:

Amir Taheri, writing in the June issue of Commentary magazine, offers a catalogue of progress in Iraq that is almost impossible to find in our principal news outlets. For example, he notes that there have been no queues of refugees streaming out of Iraq. To the contrary, 1.2 million have returned home since Saddam's ouster. Muslim pilgrims are flocking to the holy sites in Karbala and Najaf. The Iraqi dinar, which had been in free fall during the final period of Saddam's misrule, has risen by 17 percent against the Kuwaiti dinar and 23 percent against the Iranian rial. (bold added) Iraq's GDP has rebounded since the invasion, and inflation has dropped from 70 percent to 25.4 percent.