Investing on a currency that has devaluated so much that it is worth almost nothing can be a risky affair. With the hope that something which is of no value at present would appreciate sometime in the future and that it would make the holder of the currency a millionaire has remained a hope for many such investors who had invested on a depreciating currency till now. The Iraqi Dinar is one such currency which has depreciated so much that the Iraqi Govt had to re denominated the currency to deal with the inflation and debt, read this forbes article for some info. Many people have been driven into believing that if they now buy a huge sum of dinar at a low price then they would profit millions when the value of a Dinar appreciates.
The worth of Dinars
At present a 1000 Dinars is worth $ 1. So if an individual purchases 100,000 dinars at the present rate he will be benefiting a large sum of money when the Dinar revaluates, read about jim cramer investing in the dinar. The notion that if one buys a particular amount of dinar with dollars then as the value of the Dinars increases then the individual would make lump sum profits by selling it back for dollars. This idea until now has remained vague as the value of dinars hasn’t appreciated in about more than two decades and the investors who had invested in it are still waiting.
Beware of scammers
The scammers who are spreading these hopes about making profit from trading dinars basically have no real reserve of Dinars and they does the trading only in options. These people are selling these dinars in millions just by giving hopes that since Iraq is the second largest oil reserve in the world the value of the Iraqi dinar is bound to appreciate. This is nothing but a hope and that too on very weak grounds.
There are number of misconceptions on the Iraqi economy that are making rounds and thereby spreading hopes robbing people off their money. There are a number of online marketing sites that sells the Iraqi dinars, read about iraqi dinar buying guide. Before purchasing dinars one must know the underlying story about the dinars. At the present condition of the Iraqi economy appreciating value of a Dinar would be a stroke of luck. Iraq is definitely a very lucrative ground for investments but very strong evaluating power is required before making any prior investment. And if one is still willing to buy dinars then it is better to buy in small amount to avoid chances of greater loss.