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Is the Time Right for American Banks to Convert Iraqi Dinars?

by admin ~ July 29th, 2013

The climate in Iraq has definitely been stabilizing: less violence, more businesses being formed, reconstruction work under way, and the banking and economic systems are being constantly improved. Even with all of the progress that’s been made to date, American banks have still not fully embraced the Iraqi dinar. At this point, in order to convert Iraqi dinars to American dollars, you must deal with a bank which operates in Iraq, or the Central Bank of Iraq.

The new system of banking in Iraq has seemingly been modeled after the Federal Reserve Bank in the United States. It has responsibility for managing the currency, holding foreign exchange reserves, moderating interest rates and, therefore, inflation, and stabilizing currency prices. With this type of system in place and improvements that have been made, many more banks will be interested in opening in Iraq.

Many of those involved with the dinar believe that when large international banks are confident enough to deal in Iraqi dinars, it will cause a surge in pricing. Since 2004, eleven foreign banks have been licensed by the Central Bank of Iraq to do business in the country. However, due to the still volatile conditions there, at least by western standards, these banks have largely partnered with existing Iraqi banks rather than opened full-fledged branches of their own. This lack of presence of the foreign banks is seen as hindering the improvement in the dinar’s value that many people seek. Three global banks, National Bank of Kuwait, HSBC Bank, and Charter Bank of England are being especially closely watched as it comes to their involvements in the Iraqi banking environment.

Traders feel that once these banks with such a huge global presence become entrenched in Iraq, it should cause the dinar to become available everywhere on the international market. People should be able to easily trade dinar for their local currency; as easily as they do any other foreign currency at their local bank or currency exchange.

Until this happens, if you have dinars you want to exchange, you will have to deal directly with local Iraqi banks. You can find a lot more information about banks and banking in Iraq by visiting the website for the Central Bank of Iraq. There is also a list of all the banks that do business in Iraq on the site.

American banks should begin converting Iraqi dinars in the near future, as the continued stabilization of the monetary systems are put in place, economic growth is felt, and violence is kept in check in the country.

What Does the Future Hold for Iraq’s Dinar?

by admin ~ July 21st, 2013

The answer to this question is not as easy as yes or no, since there are so many things influencing the value of the Iraqi dinar. (Among these are violence, inflation, and reconstruction to name just a few.)

However, there are some positive signs in Iraq that suggest that the country as a whole is stabilizing, which should help to push the Iraqi dinar higher.

Iraq’s economy is tightly interwoven with Iraq’s oil supplies, so as oil prices stabilize it also has a positive impact on Iraq’s economy and its money supply.

The Iraqi government is also working with the International Monetary Fund and the United Nations on ways to support their efforts in economic reform, reconstruction, investment and higher educational areas. These efforts will also support guaranteed water resources, removing the existing landmines, and developing agriculture to help the Iraqi people become self-sufficient. Both the United Nations and the U.S. government are well aware that greater security in the region will only come with greater economic improvements.

To that end, the U.S. military will no longer use United States dollars to pay for anything in Iraq or Afghanistan. In an about-face in the way business has been conducted, they are attempting to keep U.S. money out of the hands of Al-Qaeda and the insurgents, by instead paying out funds via electronic funds transfer in the local currency. This measure is seen as one which will build up trust in the Dinar and the banking systems, which is essential to any increase in the dinar’s value.

Other good news for Iraq has been that the United States, the United Arab Emirates, and Cyprus have all forgiven 100 percent of the Iraqi debt. Iraq’s leadership has also asked China to forgive the $8.5 billion U.S. dollar debt it has with them, highlighting China’s role in Iraq’s reconstruction process. There has been no response from China yet.

What does all of this mean? Experts are saying that the Iraqi dinar should be restored to its past value (which was $.30 pre-war, and also was over $3 U.S. pre-Gulf War, and now is stable at a low 1170 dinar per U.S. dollar) before the end of the year or soon thereafter, due to the already mentioned reasons, and one more important one, below.

The whole Middle Eastern region is discussing publicly the unification of all their currencies similar to what we saw with Euro. With this discussion being had by the governments in the region, and the fact that it makes sense for them all to get away from dollar exchange at the same time a collapse is seen as imminent, oil-rich Iraq will definitely be a part of these equations. This has been in the works for quite some time, and is expected to be implemented within the next twelve months, and should have a very profound, exponential effect on the value of the Iraqi dinar.

Where to Check The Iraqi Dinar Exchange Rate?

by admin ~ July 18th, 2013

Authoritative Iraqi dinar exchange rate information is found at official government websites like:

Yearly Average Currency Exchange Rates are published by the IRS. The Internal Revenue Service has no official exchange rate. Generally, it accepts any posted exchange rate that is used consistently.

CIA World Factbook provides the official value of a country’s monetary unit at a given date or over a given period of time, as expressed in units of local currency per US dollar and as determined by international market forces or official fiat.

US Treasury Financial Management Service - Which reports standardized exchange rates for use in reporting by US governement agencies.

This quarterly report reflects exchange rates at which the U.S. government can acquire foreign currencies for official expenditures as reported by disbursing officers for each post on the last business day of the month prior to the date of the published report. Example: The quarterly report as of December 31, will reflect exchange rates reported by disbursing officers as of November 30. If current rates deviate from the rates in this report by 10 percent or more, Treasury will issue amendments to this quarterly report. Amendments will also be issued to reflect the establishment of new foreign currencies.

To ensure all reports are translated at uniform exchange rates, all U.S. government agencies should use these rates, except as noted above, to convert foreign currency balances and accomplished reported transactions to U.S. dollar equivalents as of the date of this report and for the ensuing three months. Since the exchange rates in this report are not current rates of exchange, they should not be used to value transactions affecting dollar appropriations.

Central Bank of IRAQ (CBI) reports Iraqi dinar exchange rate figures based on its regular auctions of Iraqi dinar currency auctions.

In addition to these authoritative government resources, the IRS webpage on Foreign Currency and Currency Exchange Rates lists three following external, non-government Iraqi dinar exchange rate sites which can be considered reliable:


Reasons to Buy Dinar?

by admin ~ July 16th, 2013

Before you can understand what the Iraqi dinar is worth, and whether or not investing in that country is going to be good value for money, it’s worth taking some time to understand the progress it’s made in the years since the US-led invasion that toppled Saddam Hussein.

Here are a few things that you might not know about what’s been happening in Iraq lately:

  1. Did you know that 47 countries have reestablished their embassies in Iraq?
  2. Did you know that the Iraqi government employs 1.2 million Iraqi people?
  3. Did you know that 3100 schools have been renovated, 364 schools are under rehabilitation, 263 schools are now under construction and 38 new schools have been built in Iraq?
  4. Did you know that Iraq’s higher educational structure consists of 20 Universities, 46 Institutes or colleges and 4 research centers
  5. Did you know that Iraq has a counter-terrorist unit and a Commando Battalion?
  6. Did you know that the Iraqi Police Service has over 55,000 fully trained and equipped police officers?
  7. Did you know that there are 5 Police Academies in Iraq that produce over 3500 new officers each 8 weeks?
  8. Did you know there are more than 1100 building projects going on in Iraq? They include 364 schools, 67 public clinics, 15 hospitals, 83 railroad stations, 22 oil facilities, 93 water facilities and 69 electrical facilities.
  9. Did you know that 96% of Iraqi children under the age of 5 have received the first 2 series of polio vaccinations?
  10. Did you know that 4.3 million Iraqi children were enrolled in primary school by mid October?


Instead of shouting these accomplishments from every rooftop, they would rather show photo’s of what a few perverted malcontent soldiers have done in prisons in many cases never disclosing the circumstances surrounding the events.

Instead of showing our love for our country, we get photos of flag burning incidents at Abu Ghraib and people throwing snowballs at presidential motorcades.

The lack of accentuating the positive in Iraq serves only one purpose. It undermines the world’s perception of the United States and our soldiers. This is verifiable on the Department of Defense website. Pass it on!

Investment in Iraq?

There was a time when Iraq was a leader in its region, and for every 1 Iraqi Dinar you exchanged, you would receive an outstanding $3.20US. The New 25,000 dinar note would have been worth over $75000US dollars!

The question that we often hear these days, is, “Will Iraq regain its economic strength?”

The New Iraqi currency, now a one version currency common to both the North and South, and independent from the executive government, represents Unity, Strength, and Credibility, essential in economical recovery. A nice beginning in stabilizing the Dinar, and furthermore, making the north-south commerce a much smoother ride.

Mesopotamia is one of the finest areas of the globe, and excluding petroleum, there are other natural resources in addition to the brilliant Iraqi brains, that can make Iraq one of the strongest economies in the world in a very short period of time. Also, take into consideration that Iraq was the world’s largest producer & exporter of dates and that over 600 varieties of palm trees are grown in-country. If managed properly this alone can help Iraq get back on its feet in no time!

As we all know, Iraq floats over a lake of oil, and its reserve is sufficient to feed the world need for decades to come. An important factor in helping regain its strength back in an even shorter period of time!

An estimated 33 billion US dollars have already been collected for the process of reconstruction, and Companies like Coca-Cola, Chevron Texaco, Alabama Blount4 Inc. are investing!!!

If you are still skeptical about investing your hard earned money, consider the following more realistic point of view:

It’s very likely for the Iraq Dinar to stabilize at 1US dollars = 100 IQD in a few years, if and when that happens your investment in 1 bundle of 100pcs of the 25,000 Dinars for example would be worth $25,000 USD.

Is the U.S. Dollar’s Reign Nearly Over?

by admin ~ July 13th, 2013

On November 23rd, 2010 China and Russia announced their decision to stop using the U.S. Dollar to settle transactions between each other, opting to use either the Chinese Yuan or the Russian Ruble instead. The bilateral trade agreement was signed in St. Petersburg by Russian President Vladimir Putin and Chinese Premier Wen Jiabao. This development signals further deterioration of the U.S. Dollar’s credibility as a reserve currency.

The last straw may well have been the enormous amounts of money that the Federal Reserve has already dispersed in attempts to stimulate the U.S. economy, in addition to its most recent and quite controversial $600 Billion QE II package that was announced in early November.

Dollar’s Weighting Decreased, Euro Higher in IMF SDRs

Another clear signal that the U.S. Dollar’s supremacy continues dwindling is the fact that the International Monetary Fund or IMF reduced the weighting of the Greenback in November in its basket accounting currency known as the Special Drawing Right or SDR.

SDRs consist of a form of international reserve asset used by the IMF largely to settle their financial obligations. Its value is based on a weighted basket of four currencies: the U.S. Dollar, the Euro, the Yen and the Pound Sterling.

Each currency is given a specific weighting or percentage in the basket that makes up the full value of the SDR, and these weights are adjusted every five years.

In the most recent SDR weight change, the U.S. Dollar’s weighting was just cut from 44 percent to 41.9 percent, while the Euro’s weighting increased from 32 percent to 37 percent, and the Pound Sterling from 11 percent to 11.3 percent. The Yen’s weighting was also reduced from 11 percent to 9.4 percent.

A year before the IMF reduced the Greenback’s weighting, the Governor of the People’s Bank of China Zhou Xiaochuan suggested replacing the U.S. Dollar as a global reserve currency with SDRs.

How a Weak U.S. Dollar Affects the World Economy

As the status of the U.S. Dollar as a reserve currency continues to lose luster, its value will also very likely decline over time.

The global economic impact of a weaker U.S. Dollar makes imports to the United States more expensive and therefore affects the ability of world exporters to sell goods in the United States. This tends to have a domino effect as less and less gets sold in that huge marketplace; and more pressure is put on exporters in other countries.

Nevertheless, a softer Dollar tends to benefit industries in the United States as people need to buy domestic goods in the face of higher priced imports.

Overall, the diminished demand for goods in the United States and the lower value of its currency have negatively affected the world economy as a whole, contributing significantly to the global financial crisis.

It is therefore rather unsurprising that many forex traders have found that being short U.S. Dollars makes sense as a long term currency trading strategy in spite of its recent corrective late year rally.

Iraq Central Bank Boosts Gold Reserves

by admin ~ July 11th, 2013

Despite the attention given by Iraqi media to the increase of gold reserves, locals are still oblivious to the repercussions of such an act on their daily affairs.

The monthly statistical report of the International Monetary Fund stated that over the three months between August and October of last year, Iraq’s gold holdings quadrupled to 31 tons, the first time something like this has happened in years. The value of gold as a strategic reserve has grown over the past few years due to the continued instability of the U.S. dollar exchange rate.

International banks perceive gold as having long-lasting value that is not affected by rapid economic development. Gold can be used to compensate for insufficient cash reserves in the wake of political or economic crisis. In that context, Iraq is probably the country that is most in need of a great deal of gold reserves given its succession of political and economic crises.

“Gold is the first shelter for countries in times of crisis,” said the Iraqi economic analyst Majid al-Suwari.
According to Parliamentary Economic and Investment Committee member Abdul Abass Shiyah, “it is normal for the public not to read between the lines of sharp increases in gold reserves.”

“The Iraqi dinar exchange rate is based on the amount of cash reserves, which include not only money but gold as well,” said Shiyah, a member of the Dawlat al-Kanoun parliamentary bloc led by Prime Minister Nouri al-Maliki.

Gold is the most stable component of official reserves. It will result “in the stability and possibly the improvement of dinar exchange rates,” he added.

Shiyah reiterated that the public will sense indirectly the impact of the increase in gold reserves. “When the value of imported goods decreases following the increase in the value of the dinar, which directly correlates to the increase of cash reserves, the public will remember the steps the state took to boost gold reserves,” Shiyah added.

The Central Bank of Iraq announced in August of last year that cash reserves had reached $67 billion, which is a first in the country that relies entirely on oil exports to finance its budget.

“The Iraqi reserve is figuratively described as ‘cash,’ but in fact it has multiple components. Iraq owns U.S. dollars, euros, pounds, gold and different types of securities,” said Shiyah.

He added, “The central bank uses a part of its huge reserve to fund major governmental projects. Even though a part of this reserve is disseminated between international banks and benefits Iraq financially, the central bank ought to fund some weighty governmental activities.”

Since 2003, Iraq has had an insignificant cash reserve. Some sources state that those who were in charge of the Iraqi economy during the first months following Saddam Hussein’s toppling converted a ton of gold, which was the only reserve held by the central bank, into cash.

Economic Analyst Majid Suwari said that Iraq’s reserves amounted to $39 billion in 1979; however, Saddam’s policies squandered that fortune. In 2003, Iraq’s debts reached $125 billion.
“The central bank policy is currently based on the diversification of reserves. However, if the policy of purchasing gold had been adopted two years ago when the value of one ounce was about $500 to $600, Iraq would have quadrupled its investment gains,” he added.

He concluded that “this initiative started late, but not too late.” Suwari expects the central bank to pursue the policy of increasing gold reserves amid the government’s spending tendencies.

He clarified that the Iraqi government needs the dinar to cover its huge expenses. The central bank provides it with the necessary Iraqi dinars in exchange for U.S. dollars obtained through the oil trade. Afterwards, the central bank converts dollars to gold.

Iranian Presidential Election Boosts Iraq Dinar

by admin ~ July 8th, 2013

Since the beginning of 2012 the Iraqi dinar has been on something of a roller coaster ride. Changes in central bank policy combined with strong dollar demand from Iran and Syria have twice pushed the market rate above 1280. Both times, subsequent increases in dollar sales at the central bank’s currency auctions then steered the rate back toward 1200. (See chart. Data is from the Central Bank of Iraq website.)

In the most recent iteration of this cycle, the dinar appears to have gotten a boost from the Iranian election held on June 14. Hopes for an easing of US sanctions following the victory of moderate candidate Hassan Rouhani seem to have led to a significant drop in Iranian dollar demand both at home and abroad. The Iranian rial is reportedly up 20.7% post-election, rising from 36,200 to the dollar to 30,000. Iranians are now said to be selling down hoards of US dollar cash, the total value of which the Central Bank of Iran puts at USD 18 billion.

The effect on the dinar has been less dramatic but is still easy to see on the chart. The Iraqi currency rose 1.0% from June 13 to June 15 and was up 2.9% (to 1215) as of June 27.

How long this trend can continue remains to be seen, however. President Obama earlier this month signed an executive order that will take effect July 1 and is intended to increase the pressure on the rial.

How to Spot a Counterfeit Dinar Note

by admin ~ July 6th, 2013

Learn how to spot the Fakes! Are you sure your Iraqi Dinars are not counterfeit? A Counterfeit Dinar can be hard to detect unless you know what to look for. Below, you’ll find pictures of the Dinar complete with all the counterfeit measures to help you determine if your new Dinar is a fake or the real thing.

Counterfeit Dinar’s Alive and Well!

According to AFP and General Secretary of the Interior Ministry, the Bulgarian police discovered an organization creating counterfeit dinars based in Sofia. The police seized what they believe to be the first counterfeit Iraqi dinar ever found.

This is a very serious matter, especially with internet sales of the Dinar growing at an incredible rate. Exactly how many fake dinars exist is not known, but you can reduce your chances of receiving counterfeit Iraqi money by using your credit card and avoiding money orders, check or other methods.

Protect yourself against Counterfeit Iraqi Money

Why Credit cards? When you purchase Iraqi Dinars using your card, your CC company offers a grace period in which you can refuse payment; all you need to do is simply look for counterfeits and make a call.

Counterfeit Dinar Tricky to Spot

The tricky part about the counterfeit Dinar is that they have most of the counterfeit measures mastered, but not all. Chances are, the fake Dinar will have inlaid gold thread and watermark, but not the raised letters or black light ink

Unfortunately, because the Dinar is still new, circulation of the counterfeit Dinar will continue to rise. Counterfeit Dinars can be discovered by looking for:

  • Lack of watermark on the counterfeit Dinar.
  • Missing security thread on counterfeit Dinars
  • Absence of Raised letters on the Dinar
  • Counterfeit Dinar will not glow under an ultra violet light (variable ink)
  • Dinars without metallic ink.
  • Use black light to test for watermarks such as the horse head; Black Light bulbs are usually available from any hardware store.
  • Use a special pen to detect fake bills with changing color – available from your local office supply store.
  • Hold the 25,000 and 10,000 Iraqi Dinar up to a light tilting it back and forth, the color changing ink will look much like a hologram.

Dinar on Reserve

by admin ~ July 4th, 2013

Want to buy a large amount of iraqi dinar but don’t have the cash right now? Iraqi dinar buy options allow you to pay a small fee now for the right to buy dinar at a later date, it’s like dinar on reserve – but, is it really just a way to get your money now before you decide it’s a bad investment?

Here is how it works, you pay a fee of $10 which buys you the right to pay $380 for 200,000 dinar within 60 days. The idea is that should the iraqi dinar go up way up in value, you never have to pay more than $380. However, should it go down, you can simply choose not to buy it and let your option expire.

You don’t receive any dinar for the $10, instead, you are given a contract that grants you the option to buy dinars.

This works best for people that feel the pressure to buy now, those that believe the dinar is going to have a major increase in value and want to secure their option without making a big investment.

Take the real life example I just gave you. Right now, the going rate to buy 200,000 dinars is $320 total (even though the exchange rate doesn’t equal this), no extra fees and free shipping, see our Buy Iraqi Dinar page. When you pay that $9, you are really paying $419 (9+30+380) (they don’t tell you about the $30 shipping and handling fees) – that’s about $100 more than what it’s worth!

Worse, the company that sold you the option may claim they buy back dinar, but fail to mention the $150 buy back fee which you don’t discover until it’s too late.

What you really did by paying that $9 was mentally committing yourself to buying dinar at an incredibly inflated price!

You’ll notice on most of these iraqi dinar buyback sites the misleading mention of pre-war values set by Saddam. It’s all designed to turn up the pressure and get money from cash strapped buyers looking to get in on the new currency.

Still think the iraqi dinar call options are a good deal? Then consider this before you buy:

  • A reputable source that has a positive history.
  • See the options contract BEFORE you buy – if they make an excuse why they can’t show it to you, then find someone else!
  • Call options should be at today’s price, not more!
  • Check for hidden fees, such as shipping, processing and buy back fees.
  • If the Dinar RV does happen, what guarantees do you have that the website will honor your CALL options?

Whatever you decide, take care not to be pressured. If you read through all the comments on this site, you’ll find that plenty of dates set where the dinar was set to revalue; every single one of those dates have come and gone! To top it off, most claimed to be by experts with inside or privileged information.
Take your time and be a wise investor!

Did Donald Trump Buy Iraqi Dinar?

by admin ~ July 2nd, 2013

Rumors about Donald Trump’s making a substantial investment – $30 million – in Iraqi Dinar have circulated and re-circulated on the internet for at least five years now.

Did Donald Trump Buy Iraqi Dinar?

Yet no credible source or documentation of this transaction seems to be available. An internet search turns up numerous mentions of Trump’s “Big Buy”, but nothing of substance. The most frequently cited “source” is a grammatically-botched piece from something called the Black Hills Today Global Digital News Syndication. Here’s a quote from the article that doesn’t inspire much confidence:

“We now confirm is the Trump Big Buy Into Dinar rumor, and true to his statement It’s time for all of us to diversify our assets and take back the American dream” Donald may well obtain another American Dream of turning 30 million into 30 billion!”

So, Did Donald Trump Buy Iraqi Dinar?

We don’t pretend to have the definitive answer. But we can do a couple of things that might be useful to future visitors debating whether or not to buy Iraqi Dinar:

First we’d like to challenge anyone who has a credible source or evidence indicating that Donald Trump did in fact buy Iraqi Dinar (in whatever amount) to post a message below including a link to the source. Doing so would be very helpful to both current and potential Iraqi Dinar investors.

Second, under the premise that the wisdom of the community is sometimes more reliable than the wisdom of the individual, we post the following poll asking visitors what they think about the legitimacy of the Donald Trump dinar investment.

Rumors that Donald Trump invested $30 million in Iraqi Dinar abound on the internet – but actual evidence of this is scant. Do you think Donald Trump has invested in Iraqi Dinar?

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