One of the most profitable ventures that you could undertake is to invest in foreign currencies. Of course, as with any type of investment there are going to be some challenges along the way as well. This type of buying and selling is done in what is known as the foreign exchange market. It’s important to keep up to date with Iraqi dinar news, while also learning of some smart tricks so that you can buy low and sell high (at a profit). Whenever this is done right, you’ll stand to make a profit.
The History of the Iraq’s Dinar
According to Iraqi dinar news, this was introduced as Iraq’s national currency in 1931. Until 1959 the dinar’s value was pegged to the British pound. Afterwards it became pegged to the U.S. dollar. Until the Gulf War it was worth more than $3 in the U.S. but the war quickly devaluated the currency. Nevertheless, new currency has continued to be issued but the International Money Fund now values it at a specific rate.
Why Purchase Iraq’s Dinar
There are many reasons why you should consider purchasing dinar today. Many of these are reasons that other speculators have found worked well for them and so they should work well for you also. First of all, Iraq is working on rebuilding its oil industry. This will lead to bigger, better opportunities for both local and foreign companies alike. Big companies, with stellar reputations (such as Shell and Hyundai Cars Korea) now have contracts to do business in Iraq. There’s no reason to believe that these countries are out of their minds for having invested their money in this country. Secondly, unlike other third world countries, Iraq has approved of its multi-billion dollar annual budget. This is because they have reliable resources and are influential over the IMF (International Money Fund). Included within this budget is funding for things like food, security and other necessities, as well as investment projects. What this means is that the country has resources that are both reliable and stable enough to support them. In turn, this means that the country is able to support and strengthen its currency. Thirdly, peace and order are better now than they were in the past. There are no longer any tanks located everywhere, nor are there an abundance of riots. Most of the U.S. forces are no longer even on Iraqi premises. This is because Iraq, on a whole, is improving. Now there’s room for foreign investment opportunities, which will lead to a higher value for the country’s currency as the currency will also become stronger whenever it’s circulated throughout the rest of the world. Fourth, the Iraqi government has improved since Saddam Hussein was ousted. As with anything else, things will rise and fall based upon leadership. Whenever there’s a good government, there’s good economic standing and this is exactly what you’ll find in Iraq today. The country’s new leadership is open to the citizens, as well as the United Nations. It’s been quite some time since this has happened. They have circulated new currency at the beginning of 2013. This means that Iraq has been able to strengthen its currency. They will soon be approved to make the dinar the official currency that’s to be traded on the foreign exchange market.
How to Buy Dinar
Now that you’re a bit more up to date in regards to Iraqi dinar news, you may want to buy some for yourself. There are some steps that you’ll want to take in order to do so. First of all, you’ll want to take the time to make sure that you know the difference between the old and the new dinar. If you’ve bought the old dinar, they’re not going to get you as good of returns as the new dinar will. Make sure that also learn about the counterfeit dinar as well. While at it, this is also a great time to learn all that you can about the anti-counterfeiting measures that are being taken so that you don’t get scammed. Once you feel secure in your knowledge of the dinar you’ll want to find an authentic vendor. You can start by contacting your bank to see if they might possibly sell this foreign currency. Many of them actually have this currency in their vault. If not, then you can actually go online and purchase dinar today. You’ll be pleasantly surprised to discover that buying dinar online is both fast and easy to do. As long as you’re dealing with an authentic dealer you shouldn’t have any problems either now or in the future. Experienced dealers will be able to provide you with information in regards to online trading as well.
Iraqi Dinar News & Pricing
The Iraqi dinar news clearly states that there is no formal market for pricing these transactions, which is different from the truth in regards to actively trading stocks and bonds. Whenever you purchase the dinar you’ll actually get the currency in a physical bundle from the retailer with whom you’re working. You will not simply receive an electronic entry on a brokerage account statement. There are several factors that will impact just how much you will pay for the dinar, including: 1. Dealer pricing can greatly vary. In fact, you’ll oftentimes find as much as a 25% spread. 2. Large denomination notes are going to typically cost you less than if you were to purchase the same amount but in small denomination notes. There can actually be as much as a 29% difference found here. 3. You are going to find yourself paying a slight premium if you want uncirculated (never before used) dinar notes. Sometimes you may only have to pay as little as $10 U.S.D. more but it’s definitely a consideration that you’ll need to take the time to look into prior to making your purchase. 4. Shipping and handling are 2 fees that you simply cannot avoid paying. Just to give you a rough idea of how much these fees will cost, if you were to buy 1,000,000 IQD, you can expect to pay between $20 U.S.D. and $40 U.S.D. for shipping. There are a few retailers out there who do offer free shipping but they are few and far between. Plus, they will generally charge you a higher base price in order to make up for this.
Where to Purchase Your Dinar
As was mentioned earlier, you can actually buy the dinar online. You can also sell dinar via an online platform as well. The currency’s exchange rate will vary widely on the International level. There’s also the possibility that the value will fluctuate as the market scene changes somewhat. This is why the dinar is such a profitable option for anyone who’s keen on day to day trading. You’ll be able to get good returns if you’re actively involved in buying and selling each day. Fortunately for those who are interested in doing this, there isn’t much of a transition cost involved with currency exchange. However, it is vital for you to remain up-to-date in regards to information about the market. The technique that you choose to use here will determine just how much you actually stand to gain. In this regard, trading foreign currency is very much like trading stocks and shares.
Where to Sell Your Dinar
Whenever you’re ready to sell some of your dinar you can always simply sell it back to the dealer. Most online dealers are willing to purchase back what they’ve sold you. However, you need to understand that once you take your dinar home it instantly depreciates by as much as 32%. So, while you can resell your dinar back to the dealer from whom you purchased it from, you will pay a larger transaction cost for having so little hassle. Another option is to sell your dinar on eBay. You’ll want to keep your transaction costs under 10% here. eBay actually has a calculator available to help you get a good idea of what these transaction costs are going to be. Just keep in mind that if you’re new to this, eBay can be somewhat intimidating and it does have a rather large learning curve. It’s also important to note that eBay has a very active community of dinar dealers who you’ll be in direct competition with. There is one other option and that is to sell your dinar via Craigslist. This is a free, easy way to effectively sell your holdings. However, you do need to keep in mind that you’re only reaching out to a local market and there might not be a lot of people in your area who are even interested in investing in this type of currency.
The Bottom Line
Now that you know a bit more in regards to Iraqi dinar you will have to decide for yourself whether or not this is the type of investment you would like to get involved in. There are a lot of things to think about here, as there are with any other type of investment you may consider. Nevertheless, at least now you know how to get into this market if you’re interested in doing so. To read more about the dinar, give this Wikipedia article a quick read – Wikipedia Dinar.