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How To Buy The Iraqi Dinar
The official currency of Iraq is the Dinar.
About The Dinar
The dinar banknote is available in 50, 250, 1000, 5000, 10000, and 25000 bills.
Before the war the Iraqi dinar was worth about one third of a U.S. dollar. As of the writing of this article the dinar was valued at 1,153 to one U.S. dollar. Below is a chart showing the history of the Iraqi dinar compared to the United States dollar.
You can find the current value of the Iraqi Dinar here: Currency Converter
It has the symbol of IQD on world currency markets such as Forex. Several countries use the name dinar for their currency so make sure you are purchasing the Iraqi Dinar, and ones printed after the reign of Saddam Hussein.
High Risk Investment
Buying the Iraqi dinar is still a high risk investment. Any number of situations, such as civil war or rampant inflation could wipe out the value of your investment. Don't invest in the dinar unless you are willing to take a gamble.
The country of Kuwait also refers to it's currency as the dinar. During Operation Desert Storm the Kuwait dinar was worth about five U.S. cents on the dollar. Now it trades at one U.S. dollar to about 3.45 dinars. If you had bought ten thousand dollars worth of that currency you would be very rich today. What happened in Kuwait could happen in Iraq, only at a slower pace. Both countries have great oil wealth but there are obvious differences between Iraq and Kuwait. Stability has been much, much longer in returning to Iraq.
Is Owning Dinars Legal?
It is absolutely legal, under presidential order 13303 and the constitution of the new Iraq it is completely legal for non Iraqis to own the dinar. In fact some might say it is patriotic for citizens of coalition countries to invest in the new Iraq and provide financial stability. Purchasing Iraqi currency is one way to do this.
How To Purchase Iraqi Dinars
Old 50 dinar bill
Old 10,000 dinar
New 10,000 dinar
New Iraqi 25,000 dinar note. Most common purchased by investors.
How To Avoid Counterfeit Iraqi Dinars
The new Dinar does not feature Saddam Hussein of course. If you are going to take physical possession of the money what you should look for are non worn bills. Many unscrupulous dealers will bundle up worn bills.
These war worn and tattered bills may not be accepted by banks when you go to sell them in the future. The whole aim of your purchase is to sell your dinars in the future so you should buy only larger, clean, authentic bills from a reputable dealer. The new Iraqi dinar, as printed by De La Rue company has watermarks, security thread and raised lettermarks to prevent counterfeiting. The De La Rue company is the printer of over 150 of the world's currencies.
You can find brokers of Iraqi dinar on the internet who will ship you a bundle of currency. Choose carefully when selecting a dealer since many are fly by night operations. Stick to large denomination notes such as 10,000 dinar bills.
For a more in-depth explanation of how to check for counterfeit Iraqi dinars see: How To Tell If An Iraqi Dinar Bill Is Fake
Final Thoughts On Buying The Iraqi Dinar
Just because a country has oil reserves does not mean that it's currency will increase in value. Examples of countries with falling currency values and rich oil reserves include Mexico and Venezuela. A currency is only as good as the monetary policy of the government of that country. If Iraq decides to print more dinar notes to finance reconstruction we could see the value fall dramatically. If you do buy Iraqi dinar notes be aware that your investment could become nearly worthless. If prosperity returns quickly though you could see a dramatic increase in value. Invest with caution.
You can often find bundles of Iraqi dinars on eBay. Look for large denomination bills such as 10,000 dinar notes. Make sure the seller has good feedback and a high satisfaction rating.
This article is not meant to constitute investment advice. Currency trading is extremely risky, especially when it involves the currency of a war torn country. Always seek professional investment advice first.