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Currency Speculation - Iraqi Dinars

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Currency Speculation - Iraqi Dinars

Postby Joanadark » Tue Jul 27, 2010 4:08 pm

For a while I've been doing some research and finally went ahead and made an investment in buying a fairly good quantity of the Iraqi currency.

Basically, the general idea is this:

Prior to the Iraq invasion, the Iraqi dinar (IQD) was worth $3.20 USD. Then it went to hell and the current exchange rate is $1 = 1168 dinar. This should change in the next couple days/weeks with the new Iraqi government coming in and the lifting of the Chapter 7 by the UN. The anticipated RV (Revaluation) is anywhere from 3.06 to 3.86.

What this means is if you were to go out today and buy 100,000 IQD, it would cost you about $140 USD. When the RV occurs, that same 100,000 IQD would be worth $386,000 depending on the exchange rate that is set. Since Iraq is very rich in resources ($4B in oil in month of May), the exchange rate likely to increase over time as more and more of the economic infrastructure is reestablished and the country continues gaining stability.

Right now I have approximately 500,000 Dinars in my possession, which is a fairly modest investment of about 500 dollars of money that I wouldn't miss one way or the other. Worst case scenario is that I sell it back to a bank for approximately what I paid for it and get my initial investment back, hang on to it for more modest long-term returns, or simply keep some of it as a souvenir from Iraq.
I know people who have a great deal more saved, in the order of multiple millions of dinar.

I'm pretty optimistic at the moment because of some information friends currently in-country have passed me regarding the proceedings of the UN finally lifting Chapter 7 sanctions and the new government seating its self.

We'll see what happens.

Thought I'd share the tip for anyone interested.

EDIT: Take with a grain of salt and read the follow-up discussion.
Last edited by Joanadark on Wed Jul 28, 2010 5:43 pm, edited 1 time in total.
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Re: Currency Speculation - Iraqi Dinars

Postby Grehn|Skipjack » Tue Jul 27, 2010 5:18 pm

This doesn't seem right... Where do I sign up?
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Re: Currency Speculation - Iraqi Dinars

Postby Vanifae » Tue Jul 27, 2010 5:28 pm

They were talking about this when I deployed to Iraq like 6 years ago, I don't buy it but good luck.
Last edited by Vanifae on Tue Jul 27, 2010 5:30 pm, edited 1 time in total.
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Re: Currency Speculation - Iraqi Dinars

Postby Nikachelle » Tue Jul 27, 2010 5:29 pm

We had some scumbag customer at the bank doing this about 5/6 years ago. I always hoped he'd lose all his money because he was a right bastard. He put something like 50 thousand dollars into this investment. Was three years later and the price of them had only dropped. I loled.
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Re: Currency Speculation - Iraqi Dinars

Postby Shamora » Tue Jul 27, 2010 5:34 pm

I have absolutely no knowledge in this area, but the first thing that comes to my mind is 'too good to be true'.
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Re: Currency Speculation - Iraqi Dinars

Postby Passionario » Tue Jul 27, 2010 11:35 pm

So, basically, we'd better stock up on Dinars right now, because their price will soar when Cataclysm comes out.

Makes sense, I guess.
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Re: Currency Speculation - Iraqi Dinars

Postby Fivelives » Tue Jul 27, 2010 11:51 pm

Currency speculation is a valid form of day trading, but it's one of the riskier forms. You can get out of investments in companies that are nosediving without losing much, but predicting the exchange rate is near impossible.

I personally made some money on the yen awhile back (shot up from 240yen:1USD to 80yen:1USD) and I haven't heard anything about the IQD. I'll definitely be tossing down about a grand for it. It's a relatively small investment for a possibly huge return (1,000$ will get me about 1,000,000 IQD), assuming even a small increase in value. If it does shoot back up to previous prices, or even up to the exchange rate of the kuwaiti dinar (around $4 for 1 KWD), then I just made a HUGE bundle of money.

Thanks for the tip Joanadark - I hadn't heard anything about this until now.
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Re: Currency Speculation - Iraqi Dinars

Postby mew » Wed Jul 28, 2010 12:07 am

Damn, I didn't realize the Yen had gone up so much so quickly. When I was there in 2003 it ranged between 90 to 120 yen per USD.
Grats Japan.
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Re: Currency Speculation - Iraqi Dinars

Postby hoho » Wed Jul 28, 2010 12:10 am

mew wrote:Damn, I didn't realize the Yen had gone up so much so quickly
I'm pretty sure big part of it was USD getting weaker :P
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Re: Currency Speculation - Iraqi Dinars

Postby Fivelives » Wed Jul 28, 2010 1:22 am

mew wrote:Damn, I didn't realize the Yen had gone up so much so quickly. When I was there in 2003 it ranged between 90 to 120 yen per USD.
Grats Japan.


It went up from 1985 to 1994. I bought a bunch in 1980something, sold it in '94.
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Re: Currency Speculation - Iraqi Dinars

Postby laterna » Wed Jul 28, 2010 3:27 am

Joanadark wrote:Prior to the Iraq invasion, the Iraqi dinar (IQD) was worth $3.20 USD. Then it went to hell and the current exchange rate is $1 = 1168 dinar. This should change in the next couple days/weeks with the new Iraqi government coming in and the lifting of the Chapter 7 by the UN. The anticipated RV (Revaluation) is anywhere from 3.06 to 3.86.



I assume you're talking about the gulf war? because before that, the price was 3.22. After that it was 0.32.

Also, how can you be sure that Iraq will be removed from Chapter 7? I tried searching for news to indicate that, but it was scarce....

Nika when you said scumbag? was he defined that way from his currency trading or from other acts?
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Re: Currency Speculation - Iraqi Dinars

Postby Nikachelle » Wed Jul 28, 2010 6:31 am

Laterna wrote:Nika when you said scumbag? was he defined that way from his currency trading or from other acts?

Bit of both, probably. He was sleezy and shady to begin with. Him trying to cash in on some bizarre scam that he tried to convince the ENTIRE bank would work only added to his sleeziness.
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Re: Currency Speculation - Iraqi Dinars

Postby Shoju » Wed Jul 28, 2010 6:54 am

Currency speculation is a big business, especially for those already in the numismatic profession. While I don't believe that the Dinar will ever bounce back to pre invasion levels, I do think that it will begin to solidify if and when the United States pulls out the troops en masse, and people see a 'more independent' country.

While Exchange rates are volatile, with enough research, you can begin to make a substantial profit. I remember at the beginning of my time at my previous employer, the owner invested ~$25,000 in GBP. This was at the beginning of 2001. Before I left in 2008, he had turned his 25k into about 37k. Not a bad return on a small investment in a stable currency. Sure, inflation cuts into the 'real' profit that you get from doing this, but there is still a profit to be had if you play it right.
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Re: Currency Speculation - Iraqi Dinars

Postby Shathus » Wed Jul 28, 2010 7:25 am

Article about Dinar investing after reading the initial post I looked around a bit and found this. Just posting it as an interesting counter-argument for discussion's sake. I suck at investing for the most part so I can't speak one way or another if it's a good idea.
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Re: Currency Speculation - Iraqi Dinars

Postby Aeran » Wed Jul 28, 2010 8:07 am

Nikachelle wrote:We had some scumbag customer at the bank doing this about 5/6 years ago. I always hoped he'd lose all his money because he was a right bastard. He put something like 50 thousand dollars into this investment. Was three years later and the price of them had only dropped. I loled.


it seems like you need to do some research before dismissing foreign currency speculation, you research raiding and playing a game, why not something that can benefit you in real life? The guy might have been a scumbag, but he was a scumbag with 50k to invest in IQD, meaning he had it to throw away. You never invest more than you can afford to lose in ANY venture, forget just currency futures.
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