● Verify the product: To avoid buying counterfeit foreign bank notes, purchase currency from dealers registered with the U.S. Treasury as a Money Services Business (MSB). However, registration is not a reflection of experience in trading currency nor does it entail any qualifications on the part of the dealer, other than basic anti-money laundering requirements. Also, make sure you are receiving new dinar introduced in 2003; old dinar has a picture of Saddam Hussein.
● Be informed about exchange rates and fees: Iraqi dinar sells online in various denominations for a wide range of prices. Since Iraqi dinar does not trade freely in international markets, it is difficult to find objective exchange rates. The current exchange rate at the Central Bank of Iraq is 1170 dinars per US dollar. Consider the fees charged by dealers, which ultimately affect the price paid for dinar. Sellers have made a substantial amount of money through currency conversion fees they charge buyers.
● Be skeptical about predictions: The announcement that Iraq wants to delete three zeros from its currency has many believing the ‘revaluation’ will instantly give them 1,000 times the profit on their original investment. However, it is likely Iraq will issue new currency, exchanging 1,000 dinars for one new dinar if they delete three zeros.
While some sellers foresee the Iraqi currency substantially increasing in value, currency investors face considerable risk. If Iraq inflates its currency or devalues it, the value of the dinar could plummet. Further civil strife may also put downward pressure on the Iraqi currency.