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By John Lee.

Iraqi Prime Minister has reportedly told a press conference that his government intends to increase the value of the Iraqi dinar (IQD) against the US dollar.

Kurdistan24 quotes Mohammed Shia al-Sudani as saying that the interests of the needy were not taken into consideration when the currency was devalued by approximately 20 percent in December 2020. "We tend not to repeat that in this cabinet," he said.

But according to Asharq al-Awsat, even though more than 50 MPs have petitioned the government to reverse the devaluation, it is considered unlikely to happen, as it would increase the government's costs by more than $24 billion each year.

Al Araby also cites the Iraqi Finance Minister as saying that the dinar value will not be changed in the 2023 budget bill.

It adds, however, that former Prime Minister Nouri Al Maliki has suggested an exchange rate of 1,375 dinars per dollar, down from the current  level of 1,460, but not back to the pre-devaluation level of 1,182.

(Sources: Kurdistan24, Asharq al-Awsat, Al Araby)

By John Lee.

The Central Bank of Iraq (CBI) has said that there is no justification for changing the exchange rate of the Iraqi dinar relative to the US dollar.

CBI Deputy Governor, Ammar Khalaf, confirmed to the official Iraqi News Agency (INA) that, "in our belief as a monetary authority, there is no justification for changing it ... changing the exchange rate remains within the monetary authority's policy and according to circumstances."

He repeated that economic circumstances are the main criterion, and "there is no future plan to change the exchange rate ... there is no justification or need to modify it."

Since the change of regime in Iraq in 2003, many unsophisticated investors in the United States have been persuaded to buy Iraqi dinars in the hope of stratospheric upward revaluations.

See also:

https://www.iraq-businessnews.com/2012/08/29/7-questions-for-dinar-speculators/

https://www.iraq-businessnews.com/2012/08/06/you-cant-fix-stupid-the-iraqi-dinar-scam/

https://www.iraq-businessnews.com/2012/07/04/iraqi-dinar-investments-opportunity-or-scam/

https://www.iraq-businessnews.com/2011/11/11/iraqi-dinars-one-of-the-most-foolhardy-investments-you-can-make/

By John Lee.

Iraq has reportedly devalued its currency by about 20 percent against the dollar.

According to Bloomberg and The Arab Weekly, the Central Bank of Iraq (CBI) has reduced the official rate to 1,450 dinar per US dollar.

The previous official rate was 1,182 dinar to the dollar.

Reuters adds that the decision came as a preemptive move to prevent "draining Iraq's foreign reserves" and help government to secure public servants' salaries.

Riot police were reportedly sent to protect the central bank HQ in advance of the annoucement.

More here, here and here.

(Source: Bloomberg, Reuters, The Arab Weekly)

The co-owners and chief operating officer of one of the largest Iraqi dinar exchangers in the United States were convicted last month by a federal jury following a five-week trial.

Tyson Rhame, James Shaw, and Frank Bell were each convicted of mail and wire fraud conspiracy, as well as multiple counts of mail and wire fraud. Rhame and Bell were also convicted of making false statements to federal law enforcement agents.

“These executives engaged in a lengthy campaign to defraud investors by spreading lies about the investment potential of the Iraqi dinar,” said Acting U.S. Attorney Kurt R. Erskine. “These convictions resulted from years of investigation, which included dozens of electronic and physical search warrants, hundreds of witness interviews, and extensive financial analysis.”

“The conviction of these three defendants is the result of an extensive effort by the government to protect investors from those who make unsubstantiated claims about the potential revaluation of a foreign currency,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Their greed led them to steal the hopes of unsuspecting investors and ultimately led them to their demise. The FBI and its partners make it a priority to root out and punish anyone who preys on investors for their own selfish desires.”

“This was a trial about fraudulent inducements, conspiracy, investment fraud and outright greed,” said Thomas J. Holloman, Special Agent in Charge, IRS-Criminal Investigation. “Rhame, Shaw, and Bell saw an opportunity to build their personal net worth and business position in the currency market by seizing on investors’ desire for high returns on their investments. At the end of the trial, the jury agreed with the government and found the Sterling Currency Group co-owners and chief operating officer guilty of the conspiracy and the underlying frauds. Despite the challenges these complex cases present, IRS-CI is committed to working with our partners at the FBI, and the U.S. Attorney’s Office to show white-collar fraud is still an investigative priority.”

According to Acting U.S Attorney Erskine, the charges, and other information presented in court: Rhame and Shaw owned and operated the Sterling Currency Group, which was once one of the country’s largest sellers of the Iraqi dinar. Bell was Sterling’s chief operating officer. Between 2010 and June 2015, Sterling grossed over $600 million in revenue from the sale of the Iraqi dinar and other currencies, while Rhame and Shaw received over $180 million in distributions.

The evidence at trial established that the defendants took steps to make investors believe they would get rich by investing in the Iraqi dinar. At one point, Rhame posted information on Sterling’s website falsely suggesting that the dinar was about to revalue. At other times, Rhame and Bell falsely claimed that Sterling would cash out investors at airports around the country following a dinar “revaluation.” The defendants also paid substantial sums of money to third parties who in turn spread false information about the dinar on conference calls and Internet chat rooms.

Tyson Rhame, 53, and James Shaw, 55, both of Atlanta, Georgia, and Frank Bell, 55, of Decatur, Georgia, were convicted of conspiracy to commit mail and wire fraud and multiple mail and wire fraud counts. Rhame and Bell were also convicted of making false statements to federal agents regarding Sterling’s operations. The jury acquitted the defendants of money laundering charges. A fourth defendant, Terrence Keller, was acquitted of all charges at trial.

(Source: US Dept of Justice)

The great Iraqi dinar scam, in which con artists peddle the false hope of a massive revaluation of the Iraqi dinar, seems to be finally dying out.

That makes the time right for one of the architects of the scheme to make some more money, this time writing a book about her road to riches.

Eve Dakota (not her real name) told Iraq Business News that while the tricks used to gull people out of money are as old as civilization, the Iraqi dinar presented an opportunity probably unique in the history of scams.

"Many of our victims believe there someone or something mysterious is controlling everything that happens, and we were able to tap in to that," she said.

"It appeals to some strands of Christianity, who see some association with the Book of Revelations and a resurgent Babylon; it appeals to the sort of conspiracy theorists who think that the CIA, Goldman Sachs, the Illuminati and the Republican Party have a grand plan for what they call a 'Global Currency Reset (GCR)'; there are even people who think that this is all being controlled by extraterrestrial life forms."

"All these people want to be on the inside, to be part of the chosen few who will profit spectacularly."

"On top of all that, people desperately want to believe, with many even believing that by thinking positively and having 'faith' they can change the course of world events ... these are the people we target."

Eve's new book, "How to Make Millions Selling Iraqi Dinars", will be launched later today.

By John Lee.

A report published on Thursday by the World Bank focuses on the implications of low oil prices for eight developing countries -- Egypt, Tunisia, Lebanon, Jordan, Iran, Iraq, Yemen and Libya -- and the economies of the GCC (Gulf Cooperation Council).

The Plunging Oil Prices report questions the practice of pegging the Iraqi dinar to the US dollar, noting the that value of the dinar has been falling against the dollar in the parallel market:

"Iraq pursues a policy of a de facto peg to the U.S. Dollar, and therefore monetary policy is constrained in tackling the current shock.

"The Central Bank of Iraq (CBI) had kept the Dinar steady through January 2009.

"In 2014, the nominal exchange rate in the official market remained stable against the U.S. Dollar at 1,166 IQD/1 USD, but the rate in the parallel market increased.

"The CBI has recently taken steps to simplify foreign exchange market regulations, but has not eliminated all existing exchange restrictions and the multiple currency practice.

"With the peg, fiscal policy carries the burden of macroeconomic stabilization, but in this case does not have the space to do so."

Read also:

• End of the Road for the Dinar Scam? 
• ISIS and the Dinar Traders
• Iraqi Dinar Investments: Opportunity Or Scam?
• Iraqi Dinar Revaluation Enthusiasts are Unaware of Bernie Madoff’s Fame

By Guest Blogger.

Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

For several years, con artists have been peddling the Iraqi Dinar scam – the myth of a massive revaluation of the Iraqi dinar, but that may be about to change.

Using a range of convoluted arguments, these people push the idea that the dinar will increase to 1,000 times, or even 3,000 times, its current value; they or their associates then profit by selling the currency at a fat profit to people who desperately want to believe that they have found a pot of gold.

In a particularly cruel twist, they often target people who are in financial difficulty, and string them along with the fear that they wouldn't want to miss out on this once-in-a-history-of-the-world opportunity.

Self-reinforcing online communities have been created, where the unwitting victims can feel that they are finally part of an elite group destined to prosper, just as long as they continue to keep the faith.

Emotional commitment, and a quasi-religious zeal, all play a role: An April Fool article spelling out the utter absurdity of the Iraqi Dinar scam get-rich-quick scheme was met with widespread anger and hostility in dinar chatrooms.

Anecdotal evidence, however, suggests that even the most diehard "dinarians" are finally starting to accept reality, and that by the end of 2015 this scam may have been consigned to history. Sadly, this will be too late for the many who have been cheated of their savings, their time, and their hope.

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(Dinar image via Shutterstock)

Following the insurgency by ISIS/ISIL, and the declaration of a 'caliphate' to be known as the Islamic State (IS), we have seen an increase in enquiries to Iraq Business News regarding the future of the country's currency, the Iraqi dinar (IQD).

These enquiries typically come from people who have been persuaded to speculate on the currency by buying Iraqi banknotes, often in the hope of a stratospheric returns.

Many of these people, who like to think of themselves as ‘investors’ rather than speculators, genuinely expect to make a thousand-fold return on their money, and therefore are not concerned about the very wide spread between the current buy and sell prices, which can make this a very lucrative trade for currency dealers.

For those who promote the idea that the Iraqi dinar will revalue (or 'RV', as they term it) to 1,000 times its current price, the increase in terrorist activity has several implications.

On one hand, it makes it more difficult to argue that Iraq is on the road to recovery, making the 'Big RV' a more difficult sell. But on the other hand, it provides a useful explanation for why a revaluation, which they have been claiming was imminent for several years, will not occur any time soon. As a result, they can save face and extend the life of their business model. Meanwhile, others have argued that revaluing its currency would provide the Iraqi state with the strength it needs to fight the insurgents.  Read more ...

By John Lee.

Ohio based publication The Toledo Blade has reported the beginning of a new trial of three local men accused of intentionally deceiving investors with the now familiar refrain that the Iraqi dinar will dramatically revalue.

The accused ran a firm BH Group along with two hedge funds, with one defendant allegedly lying about fighting in Iraq. The scale of the fraud is reported to be $23 million.

According to the report, the men are accused of promoting the currency,

"as a potentially profitable investment on the theory that at some unknown point in time a “revaluation” would occur. If the Iraqi government would increase the value of its currency from a tenth of a penny to, say, $2, a $25 investment could turn into $50,000."

All of the defendants have been charged with conspiracy to commit wire fraud and wire fraud as well as various other related financial crimes. Read the full story here.

(Source: The Toledo Blade)

By Nora Lenderby.

Iraq Business News is pleased to announce that our intrepid reporter John Lee has been honoured with an award from the Goldman-Rothschild Institute for Monetary Efficiency.

Although no formal announcement has been made, we understand that the award relates to the maintenance of monetary stability in Iraq.

At first Mr Lee was reluctant to discuss the award, which was conferred at a private ceremony at the organisation's underground headquarters deep in the Swiss Alps, but when pressed he said it was given in recognition of his efforts in helping to limit the number of beneficiaries of the recent thousand-fold revaluation of the Iraqi Dinar (IQD).

“What people don't yet know,” he said, “is that the 'Big RV', the Global Currency Reset (GCR), has already happened, and the big players have all cashed out. That door is now closed – job done. We've turned our billions of dollars into trillions of dollars.”