If you’ve spent any time researching where to buy foreign currency online, I guarantee you’ve stumbled onto articles about the Iraqi Dinar. Some people invest in Iraqi Dinar, while others are avid collectors. What’s so special about the Dinar that people continue to talk about the Iraqi Dinar and collect it?
Let’s go through the basics of why people invest in Iraqi Dinar and how you can use it. We will go through the basics and history of the Dinar, discuss why people want to hold it, and provide some resources for learning more about the Iraqi Dinar.
The last several decades have been difficult for the Iraqi people and their economy. Civil strife and military conflict created great instability. Infrastructure was destroyed and basic fundamentals of the economy have been hurt. Unstable governments and competing coalitions within the country continue to threaten stability.
But there is hope. The government continues the march to stability. The oil industry is beginning to grow again. Foreign interests including the World Bank and beginning to look to Iraq and the Iraqi Dinar as investment opportunities.
With all these elements in play, a currency that has been weak over the last several decades is poised to grow in value relative to the dollar and other major currencies. It is because of this great potential and the resources of Iraq that many are looking to Iraq and its currency as future investments.
On November 3rd, The Iraqi General Secretariat of the Council of Ministers announced that on the 9th of November 2020, donor countries will visit to support and finance projects in liberated areas. The United Nations Development Program said that it "carried out hundreds of service and humanitarian projects in the liberated governorates, and are continuing to rehabilitate and implement projects in the liberated governorates."
The Iraqi General Secretariat referred to "implementing 271 service and humanitarian projects in Salah al-Din governorate and rehabilitating 20,000 residential homes in Anbar Governorate." The United Nations Development Program also announced the implementation of "1754 service projects in Nineveh Governorate."
To learn more about the Iraqi Dinar and the history of the currency, see this article on the Dinar for more details.
There are 3 basic reasons people choose to hold and use the Dinar: collecting, traveling, and investing.
First, currency collectors are fascinated by the Dinar because of the wide variety of changes the currency has seen over the years. There are unique features and colors to the currency that make this desirable to collectors to display. There is also the historical significance of the currency as the currency provides a unique perspective into the country’s history.
Second, traveling to Iraq is another reason why people would want to hold the currency. While Iraq may not be a tourist destination for many. Business people looking for investment opportunity still need currency when they are in the country. Rather than relying on banks or airport exchanges, they will use a currency broker because of the exchange rates and lower fees.
Finally, investing is a major reason people hold and use the Iraqi Dinar. Just like any other investment, there are risks that come with investing in Iraqi Dinar and any other currency. Let’s go through the basics to understand why someone may consider this option.
What does it mean to “invest” in the Iraqi dinar? Basically, it would be like investing in any other currency: you purchase X amount of Iraqi Dinars (IQD) by paying some amount of US Dollars (USD). Like any investment, you expect the prices to rise.
As mentioned earlier in the article, there are rumors of incoming foreign investment in Iraq. This would create more stability and economic growth for the people of Iraq, leading to the an increase in value of the Dinar.
Here’s a historical chart of the Dinar’s performance, and will help you understand the reason many see hope in the increase of value.
There are small fluctuations in the day-to-day value of the Dinar, but it remained mostly stable since 2016 with small increases of time. Prior to this, however, the Dinar saw big jumps and declines that persisted for prolonged periods.
Many worry that, while they can buy Iraqi Dinar, they can’t easily sell them. This is not true, and the Dinar is in greater demand as a regular currency than just as a collectible or investment. Many currency brokers, including US First Exchange, will gladly purchase Dinars from investors and collectors.
It is common for countries with currencies with low value compared to other currencies to redenominate the currency with new value. This can happen with many currencies and is a risk in investing, but there are no current signals that Iraq is considering redenomination. The currency has stability as you saw from the chart above, and looks to continue to improve its position among global currencies.
Hyper-inflation destroys the value of hard currency. Over the last year Iraq has seen relatively stable inflation rates from a low -.9% of to a high of +1.3% (Source). This signals stability to currency investors.
There are several reasons people choose to hold and use the Dinar. If you are considering investing in Iraqi Dinar, consider the risks. Like any investment, there are risks involved and no return on investment is guaranteed. There is also the historical value of the Iraqi Dinar, as we can see from the multiple denominations and imagery on Dinar banknotes.
At US First Exchange, we deal in popular and exotic currencies, including Vietnamese Dong and Iraqi Dinar. You can order foreign currency online and have your money shipped straight to your door in 24-48 hours. All shipments are fully insured, and we pride ourselves on having the industry’s lowest spreads. Sign up for our exchange rate alerts to track the value of Iraqi Dinar over time and find the best time to buy currencies.
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