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Jesus Galkin
Jesus Galkin

How To Buy Iraqi Dinar In Us VERIFIED


The value of the Iraqi dinar is unlikely to change before 2026. In March 2021, a spokesman for the Central Bank of Iraq announced that the currency would remain fixed for the next four years. Later that year, another government official confirmed that the exchange rate had been established in government budgets.




how to buy iraqi dinar in us



The value of the Iraqi dinar is fixed by the Iraqi government and does not change, unless the central bank changes the exchange rate. This means that the government decrees the price for sale and purchase of the currency.


The dinar is the currency of Iraq, issued by the Central Bank of Iraq. In 1932, the dinar was introduced into circulation--replacing the Indian Rupee. Due to UN sanctions after the Gulf War in the early 1990's, the previously used Swiss printing was no longer available to create the original Iraqi Dinar notes, so a new note was issued. After the deposition of Saddam Hussein in 2003, the Iraqi Governing Council and the Office for Reconstruction and Humanitarian Assistance began printing the new dinar notes to maintain the money supply.


Banknotes were issued by the Iraqi government in the early 1930's in denominations of 1/4, 1/2, 1, 5, 10 and 100 dinar. Printing was done in the United Kingdom. After 1954, the Central Bank if Iraq issued these banknotes. In 2003, new banknotes were issued consisting of 50, 250, 1,000, 5,000, 10,000 and 25,000 dinar denominations. A year later a 500 dinar note was issued.


The government sells oil in US dollars, which it uses to buy Iraqi dinars from the central bank in order to finance salaries and public services. Devaluating the local currency against the dollar means that it will get more Iraqi dinars from the central bank.


The draft budget also proposes imposing a sales tax of 20% on gasoline and jet fuel and 15% for kerosene, and imposing an airport fee of 25,000 Iraqi dinars per ticket on international flights and 10,000 dinars per ticket on domestic flights.


The potential value of an investment in dinars is often illustrated with references to what happened to the Kuwaiti dinar following the first Gulf War and the German deutschmark following World War 2. These would be good examples except that neither one was a free-floating currency at the time so the value was mostly a function of policy making and official currency management.


In fact, more recent currency history would seem to show that it is more likely that the dinar will depreciate further in the near term. The fallacy that dinar dealers are relying on is that a growing economy will result in a stronger currency. That is not the case. As the recent examples of Venezuela, Turkey and Mexico show; a growing economy is as likely to be accompanied by an inflating (weakening) currency as not.


There is currently no active market for dinars. You can buy them but can you sell them? We surveyed several dealers and found that the difference between what you can buy dinars for and what you can sell them for is approximately 20%. This means that the dinar will have to appreciate by at least 20% before you could sell the currency back at break-even. It is worth noting that since the new dinar was introduced after the U.S. invasion it has only appreciated about 23% total.


The new bolivar now trades at 2.15 to the USD. This redenomination process has been done over and over again in modern history. One of the risks here is the process required to get your hard currency dinars exchanged for potentially a second issue of new dinars at a new value. If there is an extremely illiquid market today there is likely going to be one then as well. It may be something that can only be done in Iraq which could make the process extremely expensive.


Learn more about the differences between a redenomination and a revaluation in The Iraqi Dinar Scam: Why Buying the Dinar is for Dummies, and see why the Iraqi dinar is more likely to be redenominated than revalued.


A.F. Alhajji, an associate professor of economics at Ohio Northern University who has studied the Iraqi economy for 15 years, received e-mail from Mideast currency speculators urging him to buy Iraqi dinars, similar to messages he got after the dinar was issued in 2004.


At Dinar Trade in Brentwood, Tenn. (formerly Bakersfield), sales dropped off during the last few months but picked up again in the last two weeks as many of its 54,000 customers took a renewed interest in the dinar, an employee said. The company expects the dinar to appreciate 10% to 20% in value.


On Thursday, the last day of business in this largely Muslim country, the dinar was trading at 1,424 against the dollar, according to the central bank. That was its strongest price since March 2004, when it was 1,420.


Most Iraqis receive oil and food subsidies but struggle to pay for cars, computers and other items, said Laith al Abadi, 30, a computer engineer who was exchanging dollars for dinars at the Beirut Exchange Co. last week. Abadi said he imports PCs on the black market to avoid taxes and keep his prices low -- $300 to $1,400 for a basic model.


After World War I, when Iraq fell under British rule, the official currency was the Indian rupee, with rates set by the empire. Once Iraq gained independence in 1932, leaders created a national currency board to set exchange rates for the dinar but not shape monetary policy.


The dinar hit new lows on Friday, reaching about 1,670 to the United States dollar. The currency has lost nearly seven percent of its value since mid-November. The official rate stands at 1,470 dinars to the dollar.


This pressure intensified in the first week of 2023, pushing the value of the dollar on the black market to 1,580 Iraqi dinars at the time of writing. In comparison to the beginning of September 2022, when it never topped 1,475 Iraqi dinars, this represents a 7 per cent increase in the value of the dollar.


Analysts concur that the Iraqi government and Central Bank must cooperate to deal with the latest challenges by engaging with the US to relax the new financial regulations and reduce their effects on the market value of the dollar and the dinar.


New Iraqi Currency Starting on October 15, 2003 a new national currency known as the 'new Iraqi dinar' will begin to replace the existing currency, the 'old dinar', and the currency used in the North of Iraq, the 'swiss dinar'. The new Iraqi dinar will create a single, unified currency that is used throughout all of Iraq and will also make money more convenient to use in people's everyday lives.


Following demonstrations in Iraq over the recent slide of the Iraqi dinar against the dollar, a delegation of Iraqi officials will travel to Washington to resolve issues related to US banking restrictions.


As hundreds of people demonstrated near the central bank headquarters in Baghdad on Wednesday to protest the devaluation of the Iraqi dinar against the dollar, which has triggered a rise in prices of imported consumer goods, an informed source told Iran International that representatives from the Iraqi government are scheduled to go to US next month to investigate the smuggling of dollars from Iraq to Iran.


The dinar went into a tailspin against the dollar after the New York Federal Reserve imposed tighter controls on international dollar transactions by commercial Iraqi banks in November to halt the illegal siphoning of dollars to neighboring Iran, which is under tough US sanctions.


This has created dollar shortages as demand has outstripped supply and accelerated the dinar's descent against the greenback. The Wall Street Journal recently reported that the intensification of pressure on the Islamic Republic has caused the value of Iraq's currency to drop.


The opportunity was pitched as a way to profit from a nearly worthless Iraqi dinar. Scammers promised profits were nearly guaranteed if investors bought dinars at today's values, and then exchanged the dinars back for dollars at a later date once the dinar exchange rate presumably improved.


Iraqi dinar was formally introduced in 1932. During this time, 1 dinar was exchanged for US$4.86, a rate which remained unchanged until 1949. Between 1949 and 1971 the rate was 1 dinar for 2.89 US$. From 1973 to 1980, the rate changed to 1 dinar for 3.39 US$. The change was influenced by the devaluation of the US$. Between 1982 and 1988, 1 dinar was exchanged for 3.22 US$, this change was effected by the Iran-Iraq War (Tyson 2010, p. 102).


Today, one US$ is equivalent to 1,000 Iraqi dinars. This implies that if one has US$1,000 he will be able to purchase 1,000,000 Iraqi dinars. That is one thousand times one thousand Iraqi dinars. This information regarding the exchange rates is available in the website of coinmill.com. There are many places in which one can buy Iraqi dinars. Most of these places are websites. They include DinarBanker.com, USACurrencyExchange.com and Giddassociates.com (Summer 2007, p. 36).


There are many reasons why the number of people exchanging US$ for Iraqi dinar has increased (OECD 2010, p. 48). However, there are only two main reasons. Firstly, the Iraqi dinar has become extremely cheap and so it is affordable to majority. In fact, even the poorest individuals, those who could not afford to invest in any currency, are finding it easy to invest in the dinar. For instance, one can buy as much as 100,000 dinars for only US$100 (Stathis 2006, p. 221).


Secondly, investing in the dinar is perceived by majority as stress free. The fact that small amount of US$ is required to purchase much of the dinar gives the investors easy time. Unlike other currencies, which trade enormously in the market, the dinar is dormant, therefore, one does not have to worry himself to follow up how it is performing in the market (Mahnken & Keaney 2007, p. 201).


On the other hand, there is speculation that investing in dinar today can come with a few benefits in future. There is high probability that the economy of Iraq is likely to worsen further. This in turn is likely to result in a further devaluation of the currency. When the currency loses much of its value, those who have bought today will be able to sell it at higher prices in future (Robinson 2009, p. 190). 041b061a72


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