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Better Business Bureau - Iraqi Dinar Investments: Opportunity or Scam?


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7 - 4 - 2012

Iraqi Dinar Investments: Opportunity or Scam?

Better Business Bureau (BBB) is warning consumers across the country to be wary when considering any foreign currency investment, particularly the Iraqi dinar. Over the years, BBB complaints nationwide about dinar investments allege a number of scams surrounding the profit potential of dinar currency investments. For this reason, BBB advises consumers looking to buy dinar to familiarize themselves with the most popular scams involving Iraqi dinar and recommends making an informed decision.

According to the U.S. Commodity Futures Trading Commission (CFTC), the growing number of investment opportunities in recent years has been accompanied by a spike in foreign currency trading scams. While there are legitimate firms that trade foreign currency in foreign exchange markets, others utilize promises of large profits, religious associations, and charity affiliations to take consumers’ money.

“The web is filled with promises of making millions of dollars by investing in Iraqi currency,” said Catherine Ralls, BBB Trade Practices & Investigations Specialist. “Consumers should know that investing in promises of fast profits from currency trades could lead to potential losses.”

BBB provides the following tips to those considering investing in Iraqi dinar:

Verify the product: To avoid buying counterfeit foreign bank notes, purchase currency from dealers registered with the U.S. Treasury as a Money Services Business (MSB). However, registration is not a reflection of experience in trading currency nor does it entail any qualifications on the part of the dealer, other than basic anti-money laundering requirements. Also, make sure you are receiving new dinar introduced in 2003; old dinar has a picture of Saddam Hussein.

Be informed about exchange rates and fees: Iraqi dinar sells online in various denominations for a wide range of prices. Since Iraqi dinar does not trade freely in international markets, it is difficult to find objective exchange rates. The current exchange rate at the Central Bank of Iraq is 1170 dinars per US dollar. Consider the fees charged by dealers, which ultimately affect the price paid for dinar. Sellers have made a substantial amount of money through currency conversion fees they charge buyers.

Be skeptical about predictions: The announcement that Iraq wants to delete three zeros from its currency has many believing the ‘revaluation’ will instantly give them 1,000 times the profit on their original investment. However, it is likely Iraq will issue new currency, exchanging 1,000 dinars for one new dinar if they delete three zeros.

While some sellers foresee the Iraqi currency substantially increasing in value, currency investors face considerable risk. If Iraq inflates its currency or devalues it, the value of the dinar could plummet. Further civil strife may also put downward pressure on the Iraqi currency.

Don’t mix apples with oranges: Some sellers hype the dinar as an investment opportunity by citing the rise in the value of the Kuwaiti dinar after the Gulf War and the German mark after WWII. Neither Kuwait nor Germany had a free-floating currency. Their value was mostly a function of official policy. An economy in Iraq’s situation - with an unstable government, acts of terrorism and widespread corruption - is likely to experience a currency crash or international devaluation.

Watch out for unsubstantiated, sweeping statements on religious or charity affiliations: Statements such as “pray for advice from God before making a purchase” or “our company has committed 10% of the profits towards providing for military based charities,” can be used in an attempt to connect with consumers and entice them to invest in dinar.

Other statements such as “everybody will want to get in on this,” are also used. However, remember there is currently no active market for dinars - you can buy them, but can you sell them?

Consumers are advised to avoid “opportunities” marketed by unregistered advisers to inexperienced currency investors. Legitimate opportunities should disclose all risks and avoid modifying or fabricating performance history to make an opportunity look better than it is.

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Unirod, what is your understanding of this issue? Thanks!

With all the smoke and mirrors articles, my understanding is that the exchange rate will raise from the depths of the 1000 rate in the negative, up to a positive 1 numeric exchange rate. Why else would all the extreme security be in place for discovering counterfeit currency? if they are going to LOP why spend millions on security for the exchange? It doesn't make sense to me.

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we all know for sure they will get arid of the 3 zeros on the new banknotes. there was an artical posted about 2 months or less ago about how the Central bank of iraq goal is to get the iraqi dinar exchange rate to 1000 dinars to 1 dollar. they want to make a new currency that is less counterfitable cause there been alot of counterfiter out there that are making the current dinars.

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if they do that 1000 or are dinar for 1 new dinar that would make the new dinar worth 86 cents not ours.

when country RD there currency the exchange rate stays the same the only thing that changes is what our old dinar exchange will be worth it will either be 1 to 1 or 10 to 1 or 100 to 1 or 1000 to 1

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Sound advice and very objective for once. The comment about 1000;1 exchange is only an unsubstantiated theory though.

Thx A/C/3

its not a theory. The only people who think that are people on dinar forums. Deleting the zeroes doesnt change because we all want it to. The cbi has announced this almost a thousand times, and the only people who think its good are people listening and reading gurus. To people unbiased on the issue, its no longer even a debate.

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we all know for sure they will get arid of the 3 zeros on the new banknotes. there was an artical posted about 2 months or less ago about how the Central bank of iraq goal is to get the iraqi dinar exchange rate to 1000 dinars to 1 dollar. they want to make a new currency that is less counterfitable cause there been alot of counterfiter out there that are making the current dinars.

The currency we have according to an article posted yesterday on this site stated that there are 8 security features on our 3 zero currency. The new currency (1/1/2013) supposedly will have 36 security features. The currency we have has some of the most advanced security features in the world. Any claims of counterfeit in mass have been an exageration by all reports. More smoke and mirrors. If the rate is indeed raised to 1000:1 that's great IMO because I will make $$$ on my investment. But the CBI hasn't done squat yet. But they will have to do something soon...IMO

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The currency we have according to an article posted yesterday on this site stated that there are 8 security features on our 3 zero currency. The new currency (1/1/2013) supposedly will have 36 security features. The currency we have has some of the most advanced security features in the world. Any claims of counterfeit in mass have been an exageration by all reports. More smoke and mirrors. If the rate is indeed raised to 1000:1 that's great IMO because I will make $$$ on my investment. But the CBI hasn't done squat yet. But they will have to do something soon...IMO

i respect your opinion, but smoke and mirrors?? Why would the cbi say the same thing a thousand times? Theres no attempt to keep quiet, or keep a rv message within Iraq. This message is to loud, to frequent, and repeated too much, to fall into a smoke and mirrors category. The CBI is being VERY specific, they are giving dates, they are telling us what the old to new exchange rate will be, they tell us "replace the currency", etc.

There are too many key details explained daily for me to consider this smoke and mirrors. but, despite what they do, im holding onto my little amount of dinar anyways.

Do people believe the cbi is giving the rate and date for a RV???

Edited by sandstorm
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i respect your opinion, but smoke and mirrors?? Why would the cbi say the same thing a thousand times? Theres no attempt to keep quiet, or keep a rv message within Iraq. This message is to loud, to frequent, and repeated too much, to fall into a smoke and mirrors category. The CBI is being VERY specific, they are giving dates, they are telling us what the old to new exchange rate will be, they tell us "replace the currency", etc.

There are too many key details explained daily for me to consider this smoke and mirrors. but, despite what they do, im holding onto my little amount of dinar anyways.

Do people believe the cbi is giving the rate and date for a RV???

You know all this to be fact yet you still post here every day....

Who's the dummy??? ;)

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You know all this to be fact yet you still post here every day....

Who's the dummy??? ;)

id say you. i still have dinar and have a few minutes everyday to read and posts. why are you reading my post, when you wont read the article? If you think its all smoke and mirrors, assume my posts to be as well.

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I think that this article is good for what it doesn't say just as much as for what it does and I think that we can thank Okie and the likes for the aspect of it being a warning in the scam department.

its definitely not a scam. depends on a persons due diligence and individual responsibility to handle their own investment. The only people getting scamed are the dumb ones, or the people who rely on somebodys elses information when making decisions. Even then its not a scam, being ignorant doesnt make the dinar a scam

Edited by sandstorm
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its definitely not a scam. depends on a persons due diligence and individual responsibility to handle their own investment. The only people getting scamed are the dumb ones, or the people who rely on somebodys elses information when making decisions. Even then its not a scam, being ignorant doesnt make the dinar a scam

Im not saying it's a scam over all, I was referring to the aspects of it that make it a scam as per the warning. That there are individuals who scam individuals with their lies in order to make quick bucks . I did my research before getting into it and it held water and I do still think there is potential to profit.

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id say you. i still have dinar and have a few minutes everyday to read and posts. why are you reading my post, when you wont read the article? If you think its all smoke and mirrors, assume my posts to be as well.

So you say........still not thinking I'm the dummy :P

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Scam def.. A confidence game . Usually to turn a quick profit..! Let's see who made a quick profit here?// Not me , still waiting, no profit.

" Being ignorant doesnt make it a scam". Ugh! Wish you hadn't written that ...

is it not true? we as people arent forced into anything, it was all of our own choices to decide. We cant blame anyone but ourselves whatever the outcome. The dinar is an industry, thats heavily marketed and advertised. Its no different from any other marketed investment.

i am taking this speculation like a lottery ticket

I am also. id care less what happens, its not a big loss if it turns out to be one.

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