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Iraqi Dinar Scam

 

The Internet is fraught with information on the popular Iraqi Dinar scam. Iraqi Dinar as explained by its promoters is a form of investment opportunity which involves buying of dinar in the hopes that it will be resold at a future date when it would have increased in value. While some people believe this kind of arrangement is merely a scam others aver that a lot of people still make profit from it.

The major promoters of Iraqi Dinar have repeatedly claimed that this investment opportunity is a way of profiting from Iraqi dinar which is sure to appreciate in the future. They also promise that millions of dollars in profits are virtually guaranteed if an investor buys the dinars at current values and then exchange them back for dollars at a later date once the dinar exchange rate has improved.

To many detractors, this claim by the promoters is nothing but a sham. Detractors argue that Iraqi Dinar scam is perpetrated under the guise that investors will get back in future more than double of their investment in dollars whereas the possibility that such will happen is zero as Iraqi Dinar is not a worthwhile currency. They further reiterate that placing one's faith in something worthless with the remote hope that it will someday have value is a quickest route to bankruptcy.

Some analysts also argue that an economy like the war-torn Iraq is more likely to experience a currency crash or intentional devaluation and that speculation for a future appreciation of Iraqi Dinar might end up a deadly financial game for any investor.

Another point which speaks volumes of the Iraqi Dinar scam is that investors are not told that the dinars can be redeemed only in Iraq. Thus, the investor will have to go Iraq in order to be able to collect any profit made from such an investment. This on its own begs for question.

Other points raised by detractors which are worth taken into consideration include liquidity, inflation and currency demonetarization. Liquidity aspect of it portends that there is currently no active market for dinars. It has to do with possibility of it appreciating in the future as targeted. In addition, liquidity also relates to being able to sell dinar after buying it experience has shown that dinar will have to appreciate at least 20 percent before you can sell.

In terms of inflation, the Iraqi Central Bank reported monthly inflation rates that ranged between -4% (negative) to 8% which is capable of destroying the nation's currency value. And with the current situations in Iraq, if the government and economy become more unstable than they are at present, the inflation rates could escalate and may further worsen the currency value.

It suffices to say that Iraqi Dinar scam could be real if one goes by the afore-mentioned points and economic analysis.

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