Should I Buy Iraqi Dinar? 5 Reasons Why We Say “NO!”
Before you buy Iraqi dinar, note that the currency has yet to demonstrate any significant growth in the past 10 years. Chart courtesy of XE.com
An investment in Iraqi Dinar can be tempting to consider, especially when you can find many “investment firms” promoting the currency as the next big investment opportunity to hit the markets. Numerous rosy scenarios of Iraq’s future are offered, yet this couldn’t be further from the truth. With decades of experience in foreign exchange under out belt we do not consider the Iraqi Dinar to be a good investment. For those asking themselves, “should I buy Iraqi dinar?” consider some compelling reasons as to why this is not a promising investment.
Supply vs Demand – How Do I Sell Iraqi Dinar?
This is by far the most important factor to consider. Before you invest in Iraq Dinar, ask yourself the following questions: If Iraqi Dinars are such a great investment, why are so many individuals and businesses looking to sell them? Considering the massive amount of sellers, have I researched how I would sell my Dinar, especially if the value falls?How exactly can I profit from an investment in Iraqi Dinar? The point here is that it is very easy to buy Iraqi Dinar, but quite challenging to sell.
Historical Value
The Iraqi Dinar Rate Hasn’t Risen in 10 Years As the chart at the top makes clear, the Iraqi Dinar has declined in value over the past 10 years. In the last 24 months of this article’s publishing there has only been a one month window (May 1 – June 1, 2013) in which the currency offered a potential buying opportunity, which was negligible at best. From a historical standpoint, the Iraqi Dinar has not been a promising investment.
A Simple Analysis Of The Iraqi Dinar’s Performance Over A 2 Year Period*
In the past 2 years even a CD with a 2% yield has offered a better rate of return than the Iraqi Dinar and is far safer.
Banks Across the World Do Not Accept Iraqi Dinars
Have you ever wondered why it is impossible to find a bank in North America or Europe that accepts deposits in Iraqi Dinar? Not only is it difficult to open a bank account in Iraqi Dinar, most banks do not even exchange Iraqi Dinar for other currencies. This is an investment red flag!
You Earn No Interest When Holding Iraqi Dinar
Unlike a stock or bond, holding Dinar in the long term offers no yield. As the chart above displays, a CD offering a meager 2% yield is more attractive than the Dinar in the near term. Furthermore, amassing a significant amount of this currency creates additional problems for investors. One must find a safe place to store the hard currency since banks will not accept deposits in Iraqi Dinar, costing both time and money.
Investment Opportunities Offered By Atomiq Consulting
Given the reasons above, we suggest that extreme caution is exercised when considering any type of investment in the Iraqi Dinar. Should you be interested in an investment in the foreign exchange market, Atomiq Consulting can recommend several reliable and reputable forex investment companies. With years of experience in the foreign exchange industry, our forex managed accounts allow you access to some of the top forex fund managers around the globe. To learn more about our forex managed accounts, don’t hesitate to contact us today.
*The attached chart displays returns which are not adjusted for inflation. Data for Iraqi Dinar can be obtained via XE.com where the quoted exchange rate on January 2013 was 1164.14, and 1163.46 on September 3rd 2014, the day of this writing.
