Iraqi Denar...A Scam or the Real Deal

[possumfritter]

I have a friend that has been buying Iraqi Denar, about $1000.00 worth each month ($1,000 buys 1,167,020 at 0.0009) for the past several months.

Rumors have it that the Iraqi Denar will be re-valued in the coming days and it will go from $0.0009 to over $3.00 (pre-Saddam era).

Anyone else hearing about this?

[metro]

Buy it up, lots of it!

[possumfritter]

Well, here we are, almost a month later, and nothing has changed, except that I am being told now...that for sure it will be RV "very soon" because the election results have been 100% finalized, that PM Maliki has "pulled out," and the troops have been told by their commanders "they are coming home much earlier than expected." (From a source "who asked not to be named").

I just hope, for my friends sake, this isn't all a scam. I am waiting on "The Oklahoman" to run an article about all this.

[mugofbeer]

Well, here we are, almost a month later, and nothing has changed, except that I am being told now...that for sure it will be RV "very soon" because the election results have been 100% finalized, that PM Maliki has "pulled out," and the troops have been told by their commanders "they are coming home much earlier than expected." (From a source "who asked not to be named").

I just hope, for my friends sake, this isn't all a scam. I am waiting on "The Oklahoman" to run an article about all this.

Look for it to be a scam.

One can't just stand up and say "Our currency is now worth XXX." Currency is a commodity and if they plan to revalue it up from less than a penny to $3 per, there must be some justification. For example, when a company has a stock that is worth say $1 per share, and they wish to have the price of the stock worth $10 per share, they can't just say its now worth $10 per share. They have to do a 1 for 10 reverse split meaning if you had 1000 shares before, you will end up with 100.

Currency will work the same way. The old currency will likely be switched out for a new currency but 1000 old units will now be worth 1 new one (or some such ratio). If Iraq suddenly became a crime-free, terror-free, bomb-free place where foreign investors could feel safe about investing there, their currency would be able to appreciate according to how the market dictated.

China has been manipulating the value of their currency for a long time now to keep it consistent with the value of the dollar so their products would be artificially cheap. The US has been on the verge of officially accusing the Chinese of this but there is some politics in the way. If manipulation were stopped by the Chinese, the value of their Yuan would rise significantly making their products more expensive than they have been. China has the ability to do this but hte Iraqi's don't.

[ddavidson8]

I have a friend (boss actually) who's been waiting on the rv for at least 3 years. It's a very long story, but I've decided it's a scam. He bought the denar's from a bank and from a "ministry" guy in the middle east who runs a website that is constantly saying that the rv is coming on "Friday" or "next Tuesday". I don't think that my boss could even cash his denar's if the rv happened. Buyer beware.

[mugofbeer]

There's no free lunch. If you own 10,000 denars today and they revalue the currency up, you will end up with a proportionate number less denars worth roughly the same amount of money.

[possumfritter]

There's no free lunch. If you own 10,000 denars today and they revalue the currency up, you will end up with a proportionate number less denars worth roughly the same amount of money.

mugofbeer...if you are holding 10,000 dinar, I believe you might be able to buy a beer on tap and one order of wings at Hudsons, but ya wouldn't have much of anything to leave for a tip.

[possumfritter]

ddavidson8...those are the exact words my friend uses when he excitedly tells me, "it's going to happen Tuesday."

[Steve]

Mug is very wise on this matter. Possum, if something makes you ask "is this a scam?" Yep, it's a scam. That's your gut trying to overcome your greed.

[possumfritter]

You are right Steve! I copied mugofbeer's post and gave it to my friend late last night...he shrugged. Oh well, it's his money.

BTW...I still think the good folks at The Oklahoman ought to run an article about it all.

[mugofbeer]

Sent it in as an inquiry to Malcom Berko

[possumfritter]

Sent it in as an inquiry to Malcom Berko

Clever :-)

[mugofbeer]

Clever :-)

I mistyped. I meant to say SEND it in to Malcom Berko as an inquiry.

[possumfritter]

Still clever. I'll do that. Thanks!