Bloomberg reports that Japanese consumers are being warned about an investment scam selling Iraqi dinar on predictions the currency will surge in value.
A man in western Japan spent 2 million yen ($25,000) to buy 500,000 Iraqi dinar ($428) after a caller recommended buying the currency because it was expected to gain as much as 30-fold, the National Consumer Affairs Center said on its website. The man, whose attempts to get a refund were unsuccessful, was among more than 200 people who bought the currency, the posting said.
A quick calculation shows that even a 30-fold increase would still have left the man down 50% on the deal.
“In most cases, the exchange rate is extremely bad,” Ryota Kato, a spokesman for the center, told Bloomberg by telephone. “And you wouldn’t be able to exchange the dinar back into yen because currently no Japanese bank will accept it.”