Wisconsin Warns About Iraqi Dinar

The Wisconsin Department of Financial Institutions is warning investors about advertised opportunities to invest in Iraq's currency, the dinar.

The DFI says several web sites say Iraq's currency is poised to increase in value, even dramatically, but it says investors aren't told that the dinar is only good in Iraq.

There is no currency exchange for the dinar and the U.S. dollar.

"That allows dealers to charge whatever they want to sell and buy back the Dinars, since no exchange exists for the currency," the DFI said in a statement Wednesday, reported by WBAY.

The DFI says some dinar dealers tout being registered with the U.S. Treasury Department as a Money Services Business, or MSB, but the designation only means the company's information is on file with the Treasury.

"We encourage investors to exercise extreme caution when considering their investment opportunities. They should do their homework," DFI Division of Securities administrator Patricia Struck said.

Suspicions of security or investment fraud can be reported to the Division of Securities by calling toll-free, 1-800-472-4325.

(Source: WBAY)

20 Responses to Wisconsin Warns About Iraqi Dinar

  1. Maryan 18th August 2011 at 00:27 #

    Can you publish a proof on this? That the dinar can only be redeemed in Iraq?

  2. Bob 18th August 2011 at 03:41 #

    You can buy and sell IQD at any exchange in the Middle East. I have bought and sold some in the UAE. I have heard that there are only a couple of banks in the USA and Canada that this is possible.?

  3. Madi 18th August 2011 at 08:20 #

    Is anybody know more is this the truth?

  4. Linette 18th August 2011 at 12:17 #

    There is a currency exchange for the Dinar and U.S Dollar, it is 1170 Dinars to $1 U.S Dollar. Iraq's Central Bank has this amount published on it's website, as does the National Iraqi News Agency (NINA). What whomever wrote this article needs to do is a little more research and they will find that before the fall of Saddam Hussein the exchange rate was 3.32 Iraqi Dinar to $1 U.S Dollar and it can be reinstated as soon as the economy gets better. Think about it people, how can Iraq trade with the U.S (such as Oil) if there is no currency exchange?

  5. AK 18th August 2011 at 18:14 #

    I think this is just a reflection of a subjective analysis according to the writer's only perception and it is not supported by any numeric data or reliable estimates!
    The Dinar on the other hand is linked to the U.S Dollar which is what investors should be cautious of, same thing goes to oil!

  6. Robert 19th August 2011 at 04:37 #

    This hold article is bull. If there wasn't a exchange rate you would not be able to purchase from a bank, which I have. Also go to the web site where this article was suppose to come from....nothing there about it!!

  7. Stew 19th August 2011 at 07:20 #

    The dinar crowd continues to march toward the edge of the cliff ignoring all signs along the way.

  8. AK 19th August 2011 at 13:10 #

    @STEW are you implying that we have an inflationary bubble?!

  9. Kim 19th August 2011 at 18:05 #

    Problem: I buy and sell dinar at currency exchanges here in Florida. If indeed there are no currency exchanges for trade "There is no currency exchange for the dinar and the U.S. dollar." according to the DFI then all my transactions must have been in my dreams ... really now! Also, my girlfriend purchased dinar from Union bank in WI ... go figure. Also, according to the law, American's are allowed to invest in Dinar. So, whoever wrote this article purposely misled .. withheld certain information ... the article should have read something like there are no currency exchanges in WI that exchange dinar.

  10. FunnyFool 19th August 2011 at 18:33 #

    seriously ppl if you bank with regions bank call them first thing in the morning and ask them if you can buy the iraqi dinar....i went to my local bank and asked them if i was able to and they said sure no problem and thats how i bought my first million....ya do your research...research this article is full of crap

  11. shela1153 20th August 2011 at 05:52 #

    What this article is saying imo is this. While you can buy Dinar there is no offical exchange rate EXCEPT in Iraq. Consequenly a dearler can charge whatever they want to charge on the buy or the sell. When you have an official exchange rate one, that is accepted globally then there is an exchange rate within a certain margin for all dealers. Right now the only place that there is an "official" rate is Iraq. The Banks in the U.S. will probably charge very close to the official rate of Iraq but make up the margin for error in percentage point and or fees'. Just take a look at what some of the dealers are charging. Some have a 200% difference between the buy and the sell.

  12. AK 20th August 2011 at 06:11 #

    isn't the rate determined by the central bank of iraq?!

  13. denny 22nd August 2011 at 11:17 #

    I know you can purchase IQD at your local bank. I assume you can also exchange for US Dollars at your local Bank. From what I have read, the currency gets sent to the US TREASURY and your bank pays you in US Dollars.

    The article is just a caution about on line dealers charging large fees and a warning to beware.

  14. Tam 31st August 2011 at 14:30 #

    Consider the source: Wisconsin.
    We just talked to our bank here in Texas and they will exchange our Dinar.

  15. para~investigator 6th September 2011 at 22:57 #

    Obviously the author of this article is unfamiliar with Presidential Order 13303 that states that all American citizens are allowed to invest in the Country of Iraq including business opportuinies as well as investing in the currency. Once the currency is a recognizable internationally traded currency ( announced recently that this has happened) you can go and cash in the Dinar the same as if it were the Euro, Yen, Pound, etc. This guy should have researched this subject more before opening his mouth. This is a legal investment with a huge payoff as soon as the CBI revalues the currency which should be happening any day now.

    Up until recently, Iraq was considered a terrorist country and was blacklisted as tradeable. This has since changed since all CH7 sanctions have been lifted and they regained soveriginty bestowed on them from the UN and UNAMI.

  16. Brian 7th September 2011 at 01:26 #

    At least shela1153 gets it. The article isn't saying it's impossible to buy Dinar outside of Iraq, it's saying that many "Dinaraholics" are being grossly ripped off with outrageous trading spreads on the back of missold Dinar with massive spreads by dishonest "pumpers". Eg : One popular licensed pumper (like many others) sells $85 worth of Dinar's (100,000 Dinars) for $185. That's an insane 115% spread. Normal FX cash spreads are under 5-10% whilst pro-Forex trading is in "pips" (a "pip" is 1/100 of a cent). Even higher denom trades are a total ripoff, ie, selling 1m Dinar's ($854 worth) for $1,220. On top of that, they also charge a minimum $150 per 1m Dinar's ($854) fee when changed back leaving people spending $1,220 and getting back $704. Between 40-80% of the investment would have been swallowed up in outrageous trading spreads & fees. At those fees, the Dinar could "RV" up a whopping 70% and many still wouldn't break even. Those still sucked into the 99,000% profits overnight "make $1m for every $1k held" mis-selling really do need to wake up and stop being suckered by conmen.

    Also the article isn't saying that Dinar can't *currently* be bought outside of Iraq, they're saying that when the Re-Denomination occurs, Iraq may well instigate currency controls and only change old for new notes up *only inside* Iraq which is exactly what they did last time in 2003:-

    "Q: Can dollars also be exchanged for new Iraqi dinars" What will be the conversion rate for dollars?

    A: Dollars will not be converted directly into new dinars during the official exchange. Following the exchange, dollars will be convertible directly into new dinars at the market exchange rate. New dinars will also be convertible into dollars as well as other currencies at the market exchange rate.

    Q: Will it be possible to exchange currency outside of Iraq?

    A: No. The only official currency exchange locations will be located within Iraq."

    The fraud is not being able to get Dinar outside of Iraq, it's the gross misselling that's taken place and the fact that despite what Dinar dealers currently say, the Iraq Central Bank has absolutely no future obligation to buy-back old Dinar's from small-time US dealers outside of its borders. This is exactly what happened during Iraq's last RD and note-change in 2003 : You could change up old Dinars for new Dinars *only inside Iraq* and only within a 3 month time-limit (Oct 15th 2003 to Jan 15th 2004) before they became demonetized.

    As for the "word" of the Dinar Dealers on their absurd "super-secret Intel radio calls" (with 100% flawless track records of failing to predict anything), "Ali" of "Dinar Trade" spend years telling people he'd "honor buy-backs" then a few months ago ceased all trading without a word. Other dealers are increasingly being indicted for fraud and misselling:-

    "A South Dakota man who banked hundreds of thousands of U.S. dollars by selling Iraqi dinars to investors outside the state has been indicted on federal fraud charges..."

    "US Dinar Bank" Desist and Refrain Order:-

    "DinarProfits.com" Desist and Refrain Order:-

    "eDinarFinancial.net" Desist and Refrain Order:-

    etc. They're starting to drop like flies through ongoing misselling fraud investigations.

  17. xBWOMPx 11th September 2011 at 10:45 #

    For one this is an investment and will take time. NOBODY knows the out come of this investment. Sure, there are people out there taking advantage of others because of the situation but I guarantee you that IF the dinar ever hits 1 to 1 with the dollar, any bank in America would be happy to do business with you.

  18. Greg 13th October 2011 at 11:53 #

    > Brian, 100% in agreement.
    It's an investment that most people don't understand.
    to keep it simple: Imagine a young couple that bought an appartment
    in Bagdad in IQD for example 1.000.000 new Dinar...
    Overnight if the RV happens @3.22 they would become miljonaires in $
    I personally would get out of Bagdad and go live in Monaco etc...
    The odds are probably better at winning the lottery, don't you think.
    Ps I too have IQD but don't expect returns in above 200% if ever.

  19. blahblah 26th March 2012 at 08:48 #

    Please read the recent post on Russ Feingold's Progressive's United . org website in the 'Blog' section about this very topic and subject.

    There might have been over night military veteran millionaires from the Kuwait Dinar revaluation, but where are all of those people now for real, today? Whether or not this type of thing would benefit our country, and help pay for the war debt, (similar to the WW2 and WW1 'war BOND' scheme, only this is currency), is it truly 'safe' and in 'good taste' for those who purchase(d) that Kuwait Dinar currency and supposably made money; or does the D.O.D. / other politicians 'frown upon that' , for real; despite whether or not GW Bush, himself was on t.v in a nationally televised news conference in 2004 in support of or promoting regular U.S. citizen civilians and any one and every one to purchase the 'New Iraq Dinar' to show support for our country's war efforts, and maybe for a good investment; basically to show that the 2nd war there, that we are just now getting out of, was not 'personally' for his own/his family's 'oil' wealth benefit and so forth... ???

    Over 2 million Americans supposably own the dinar now, and / or fell for / believe in the whole 'American Dream' type of thing, yet; businesses and corporations also invested in the New Iraq Dinar, and soldiers and U.S. contractors. If any of us/those people / businesses really do well, and the U.S. taxes they might owe from it are paid; other than having problems with selling it back to local U.S. banks, such as Chase Bank that legally sell the New Iraq Dinar currency for about a 13% charge over and above the going exchange rate; what rates are those places going to charge the people who have the Dinar? Is there truly going to be any money left after all of those places skim off the fat from it? Also, once more, where are those who really were in Kuwait who became over night millionaires now? What happened there was an over night revalue of over 700%. I have yet to see or hear from a single one of them, per my knowledge, that is yet alive, healthy, and well, about and pertaining to that revaluation and the money that they made from it.

    How much U.S. taxes were paid on it, so forth.

    The Kuwaiti's themselves; however, have been living IT LARGE ever since...the Saudi's too...and the BIG RICH OIL COMPANY MILLIONAIRE/BILLIONAIRES. While the U.S. citizens and civilians who spent money, and other things for that First Gulf War, and our tax dollars for what it cost, and gave our emotional 'support' of and for those who served in it...well, let's just hope 'we' don't get ripped off or worse, any more.

    From all of the wars our country has been in, I certainly hope I'm not the only U.S. citizen who eventually wants to be wealthy and rich; and have absolute guaranteed Constitutional Rights, Civil Liberties, Medicare, Medicaid, Social Security, AND MORE...this time, cold hard cash, too, from it...Better and more than what the Kuwaiti's and Saudi's and others have had from OUR investment in the whole thing, whether by way of purchasing Iraqi Dinars, stock by proxy there, or not.

  20. blahblah 26th March 2012 at 09:02 #

    On a website called: "www.investorsiraq.com", there were 'pumpers' selling and promoting the new iraq dinar AND purchasing iraq stocks via opening up a bank account in an iraq bank via proxy after 2004.

    There were/are numerous things on that website that are or used to contain information about complaints or problems that people were having or might have with the dinar, itself.

    Supposably, it is not illegal for individual people to sell the iraqi dinar on Ebay, however, that might only be up to a certain dollar amount, since there are some types of rules pertaining to those who have large quantities to sell and some thing about them being made to have a U.S. Treasury license or some such thing, too.

    I suggest looking at that website, too, for other information and resources. Supposably, it was and is lawful, since promoting of the iraq rebuilding/ Iraqi Freedom, and all of that, and rebuilding of their financial infrastructure and stock market were allowable for Americans and foreigners not from Iraq, itself, per some type of 'foreign investment' law or act that they enacted in or around early 2007 some time.

    Some people had to open up accounts in iraq, then send their money over to iraq to their own account, just to feel safe abou ttheir investment or to hope that if and when there is/was a revaluation that they would then some how be able to have their money transferred back from iraq to the U.S. without exhorbatant fees and problems, too.

    This is and has been an ongoing issue. I am also a Wisconsin resident, and have dinar.

    Also, from investing in that, are people being 'targeted' some how by D.H.S. / other agencies that seem to be unaware of or are aware of and are doing so on purpose, that GW Bush some how promoted and encouraged Americans to invest in and to be concerned about and to be come politically interested and some how informed about the events that were going on in Iraq with our country?

    Hopefully that was not done so to 'target', victimize, hurt, harm Americans; also.