Question: for those in the know.

[cgbrown]

Can someone explain in simple terms what the risk in owning Foreign Currency is?

If i were planning a trip to Iraq and converted $1,000 us dollars into Iraq Dinar. What's the risk.

I make the trip, spend only $800.00 while there and return with Iraq money and exchange it back into US dollars., What's the risk.\\

Now if i invest $2000.00 us dollars into Iraq dinars and the value changes, i trade it back, what's my risk?

[k98nights]

The risk is the value could ostensibly go down instead of remaining static or going up. If the value drops you lose money. That's it.