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Iraqi Dinar is gaining lots of Importance, We can see that everyone is talking about it and everyone wants to invest in it. There are many people who believe that by investing in Iraqi Dinar they can generate a lot of profit with a minimum risk. But in my opinion investing in Iraqi Dinar is not worthy as it is a bit risky investment with no potential growth.

The most common example which you usually hear from people is of Kuwaiti Dinar. How the Kuwaiti dinar lost his value and then after revaluation people made their fortune out of it. That’s the most common rational behind this Investment. The first thing we need to keep in our mind is that there is a difference between Kuwait and Iraq apart from that, they are in the same geographic area and have some huge oil reserves doesn’t necessarily mean that they have the same fortune. And there is a lot of difference between Kuwait and Iraq.

Before the war Kuwait’s was generating lots of cash through foreign investment then through the trading of oil, Their Government was more stable and they have a complete infrastructure.

On the other hand before the war Iraq was already under a debt of approx. $125 Million USD. The only foreign income source was oil. No stable Government and no Infrastructure. So comparing Iraq with Kuwait is more like comparing apple with oranges.

For a second consider Iraq as a huge “company” which have penalty of resources, but don’t have any specific objectives or a road map about how to achieve those objectives, they don’t have a leader who will set the directions, they don’t have a good financial plan as well. Do you really believe that such a company can survive for long? So how can someone believe that Iraq is in a good shape and there is a probability that the value of Iraqi dinar will show some sort of upward trend in the foreign exchange market.

People usually believe that Iraq economy is improving and if they just revalue their currency they can again touch the pre-Gulf war level of $3.2 USD to an Iraqi Dinar. So if they even make a small investment today then they can generate a lot of profit out of it.

Many people say that Investing in Iraqi Dinar is a good investment. I am not sure what they exactly mean by good investment. In my opinion a good investment is the one which provides high profit and high liquidity. Do you think a less liquid stock can be a good investment? The same is the case with the Iraqi Dinar selling an Iraqi dinar is a difficult job which makes it less liquid. So even if you buy 1,000,000 Iraqi dinars what’s the point if you can’t sell it back easily when needed?

The Iraqi Dinar is not being freely traded in the foreign exchange market so if you do have 1,000,000 Iraqi dinar it doesn’t mean that you can just walk into a local bank and trade some Iraqi Dinars for USD. As most of the banks are not accepting Iraqi Dinar.

So I don’t think so that investing in Iraqi dinar can help you a lot to generate a great amount of profit in a short time period.