Iraqi Dinar Investment

[Reznov]

Ok, so I was visiting some family, and overheard them talking about exchanging 100 US Dollars for some X amount of Iraqi Dinars.

Apparently, the Dinar is worthless right now, and they are planning on re-evaluating it to the Euro or something.

And when they do that my family member apparently thinks that this 100 hundred dollar investment is going to earn her 30,000 bucks.


Anyone hear something similar to this? Know if its true or just overhyped BS?

[Robespierre Richard]

That's not how revaluations work... They're probably going to issue new banknotes as they did in Russia, Ukraine, and every other country I know had currency reforms in the mid-90s, so the $100 in Iraqi dinars are going to be just worthless paper. Seriously, I think a lot of Iraqis have way over $100 in Iraqi dinars, they aren't going to become a nation of millionaires.

It's weird how Americans have no idea how money works because they've never had hyperinflation. "So if I have 1 dollar it's 6 yuan which means I have like 6 times more money over there, right? Derp derp I don't know how money works."

[Dimentio]

They are idiots.

What the Iraqi government will do when Dinars turn worthless is that they will put away five or six zeros on it and present it as a "strong Dinar".

Better to invest in Gold.

[Robespierre Richard]

They are idiots.

What the Iraqi government will do when Dinars turn worthless is that they will put away five or six zeros on it and present it as a "strong Dinar".

Better to invest in Gold.

http://upload.wikimedia.org/wikipedia/commons/thumb/9/9d/Ron_Paul%2C_official_Congressional_photo_portrait% 2C_2007.jpg/478px-Ron_Paul%2C_official_Congressional_photo_portrait% 2C_2007.jpg

[bcbm]

my dad has some friend who invested a bunch in this bs. when he told me about it i was like "he knows he is going to lose like... all of those thousands of dollars and is basically a sucker, right?"

[Reznov]

Anyone can give me an exact reason why investing in them will not work?

I seriously want to debunk my friends dad and ruin his horrible dream of getting rich quick.

[Robespierre Richard]

Anyone can give me an exact reason why investing in them will not work?

I seriously want to debunk my friends dad and ruin his horrible dream of getting rich quick.

They won't use the same banknotes, the central bank of Iraq will issue a period within which people can through a bank exchange their old banknotes for new ones (at a ratio of like 1000 old for 1 new) and after that the old banknotes will cease to be legal tender.

The other thing they can do is make a period where both sets of banknotes can be used and then stop recognizing the old one after a year or so (what they did in Russia in 1997). Either way, the banknotes he has now will never have the exchange rate of 3 Dinars to 1 Euro.