The Dinar is issued by the Central Bank of Iraq and when we speak of Investing in Dinars we are ONLY referring to what is termed “new Dinars”. This is not to say, that the old Iraqi money won’t be valuable as a collectors item in the years to come.

HISTORY

The Dinar went into circulation in 1931, replacing the Indian rupee, which was the official currency of the country since the British occupation in World War I.

The Dinar shared the same value as the British pound until 1959, when the ratio was switched to the U.S. Dollar at the rate of 1 Dinar equal $2.80. Between 1971 and 1973, the Dinar value increased to $3.38 before devaluating to $3.22.

The Dinar remained at the value of 1 Dinar being worth $3.22 until the Gulf War. It is said that the Iraqi Government printed and put into circulation a lot of monies with their leader’s image. This is believed to be one of the reasons the Iraqi Dinar fell in value.

After the Gulf War in 1991 after the economic blockade, a new Iraq money went into circulation and by 1995 US$1 equaled about 3000 Dinars.

Between October 2003 and January of 2004, a new Iraqi Dinar was printed. To date no International Exchange rate has not been established; therefore International Banks do not/did not exchange the Iraqi Dinar.

SCAMS

There are dozens and dozens of sites online that promise to deliver authentic Dinars -- do your homework. Thousands of people have been scammed out of millions of dollars. If basic rule would be, if you can’t verify that they are registered with the US Treasury as a money service and can legally do business in the United States -- the run. If you call and get a voice mail that does not return your call -- run.

In some high up, and well respected, circles, the purchase of Dinars has been listed as the number two (2) of the most common scam for investors.

Yet thousands of investors are still investing in the Iraqi Dinar.

WHY?

Speculation: You can purchase 10,000 Dinars at major auction sites online for about $5 to $6. The thought that this 10,000 Dinars could one day (long-term) turn into $5,000 or $10,000 or even $30,000 is an overwhelming thought. For your 10,000 Dinars to increase to $5,000 USD, it would only have to increase to 50 cents to 1 Dinar. Is that too much to expect? After all Iraqi holds about 10% of the earth’s oil reserves! (By the way, this article is confidential -- read it and decide for yourself, no need to tell the whole world)

In August of 2007, a story came across the wires from London - that talked about a $2.1 Billion Iraqi Petro Plan. So you may want to locate that article and further your investment portfolio!

For more articles on Investing for Beginners: http://www.taxeswilltravel.com/article_index1A.htm

This article is published by: Purple Monkey e-Publication; copyright 2007