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Foreign currency investment

Sent to General Experts June 7 2006 at 6:38 PM
   

Would it be wise to invest in buying the New Iraqi Dinar- to eventually exchange for dollars- to hope that the currency would gain value when Iraq becomes stabilized that's predicted to happen in the next 2 to 5 years? I read articles that are for and against this kind of investment, and I'd like to know if you can offer advice.

Thanks,
Dan

Customer (name blocked for privacy)
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Answer
June 7 2006 at 6:52 PM (13 minutes and 56 seconds later)
         
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Iraqi currency is unpredictable - if you are thinking for long term investing - most possible it will be a loss. But because the fluctuation might be substantial - it might be a good instrument for speculation for short-medium term.

But you have to be careful in selecting the dealer. Most dealers who sell dinars won't buy them, and U.S. banks won't buy them either. You can, however, sell dinars on eBay.



Edited by levr on June 7 2006 at 6:54 PM
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Lev -- Money-Tax,Investment,Collectibles -- 100% Positive Feedback on 125 General Accepts
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June 8 2006 at 7:33 PM (1 day later)
         
Reply to Lev's Post: I want to know the approximate time frame-number of months or years- that you meant in saying short/medium and long term in regard to investing in the Iraqi dinar. Also are there foreign banks that will exchange dinars for their currency if an American wanted to travel abroad to ultimately exchange dinars for dollars?
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June 9 2006 at 12:44 PM (17 hours and 11 minutes and 1 second later)
         
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In currency speculation short term is below 2-3 month, medium term - up to one year, long term - more than a year.

I don't know any bank that would buy this currency. The only place you can sell it - eBay - this gives the fair rate.

I would think that you join this forum to get better feeling of investment rumors around New Iraqi Dinar. - http://www.investorsiraq.com/

The New Iraqi Dinar has only replaced by the Old Iraqi currency notes, hence the number of currency notes in circulation remains the same. Any appreciations in Iraqi Dinar value will depends on notes in circulation to be reduced - I don't think it would happen in near future. However some are thinking this investment might be very beneficial. - http://www.iraqiwiki.com/wiki/index.php/The_Benefits_of_the_Dinar_Revaluation



Edited by levr on June 9 2006 at 12:58 PM
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Lev -- Money-Tax,Investment,Collectibles -- 100% Positive Feedback on 125 General Accepts
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