As the official currency of the country of Iraq, the Iraqi dinar is issued by the Central Bank of Iraq. While the currency may be used by travelers to pay for goods and services in Iraq, there is controversy about buying the dinar as an investment tool.
The dinar has been around since 1923. In 2003, new dinar currency and coins were introduced as the official money of Iraq.
The value of the dinar changes frequently since it is not internationally traded. In early 2010, 1170 dinars equaled one U.S. dollar. The price varies, though, and the street price is sometimes higher.
Because the dinar is not internationally traded, it is almost impossible to exchange the money upon your return to the United States. Dinars should be traded for U.S. currency while you're in Iraq to avoid problems.
Some companies tout the dinar as a great investment tool. These companies suggest that the currency will increase in value as Iraq's economy improves. But the inability to trade the dinars from any country but Iraq makes it extremely difficult to cash out the investment.
Fraudulent Investment Deals
Exercise care when you purchase dinars as an investment. Some of the companies selling the dinar online accept payments, but never deliver the dinars or offer a refund to the customer.
Article Written By Nancy Wagner
Nancy Wagner is a marketing strategist and speaker who started writing in 1998. She writes business plans for startups and established companies and teaches marketing and promotional tactics at local workshops. Wagner's business and marketing articles have appeared in "Home Business Journal," "Nation’s Business," "Emerging Business" and "The Mortgage Press," among others. She holds a B.S. from Eastern Illinois University.