Will Iraq change its currency in the near future
Recently, many rumors have been circulating about possible changes to the Iraqi Dinar One such rumor is that the Iraqi government is considering changing their national currency from the new Iraqi Dinar, which was introduced in October 2003 following the fall of Saddam Hussein from power, to an entirely different currency with new notes and denominations. Another suggests the large 25,000 dinar note will be made obsolete and unable to be exchanged.
It is the opinion of the Tampadinar.com experts that these rumors are not something with which a potential Iraqi Dinar investor should be concerned. The majority of the “currency change” rumors have been initiated by individuals who have ulterior motives to profit from such currency changing fears.
Most of the rumors about the uncertain future of the Iraqi Dinar are started by businesses or individuals looking to profit from investment into their own “secure electronic Iraqi bank accounts.” In order to drive potential investors in the Iraqi Dinar to these accounts, articles based on unfounded information are marketed by these business owners. The main goal of this misinformation is to increase feelings of fear and uncertainty in order to convince investors that holding physical money is an unsafe and unwise strategy. What is the only proper way to invest in Dinar according to these companies? You guessed it- placing your money in their “secure electronic accounts.” We’ll talk about these so-called secure electronic Iraqi bank accounts later in this article, but first let’s address the speculations that Iraq will totally overhaul its present currency.
The bottom line is that the prospect of the Iraqi Government changing the nation’s currency in the near future doesn’t make sense on several levels. Governments generally change their currencies because they are 1) offensive, or 2) because the currency is being counterfeited successfully. In the case of the Iraqi dinar—it is neither. In 2003, the Iraqi Dinar was implemented with the approval of the Iraqi people. The new currency was changed from the offensive “Saddam” banknotes that were widely counterfeited to the new Iraqi Dinar which is one of the newest most secure currencies in the world. Tampadinar.com reports that out of the tens of millions of banknotes they have inspected, cleared, exchanged, they have run across 0 (zero) counterfeit banknote.
Furthermore, the Iraqi Government is working hard towards having their currency and economy fully integrated with the world economic market. In order to do this, there are significant accounting measures, procedures, and audits which must be accomplished internally and externally. To change the currency prior to being established on the world market would be counterproductive to the goal of integrating the Iraqi economy into the global economy. Some Iraqi Dinar investors don’t realize that a country won’t/can’t declare a currency worthless and just start transacting with a new currency; there has to be a changeover period. Countries don’t just erase wealth one day and say “everyone is starting from scratch.” Even after the fall of Saddam, the old Saddam currency was exchanged for the new Iraqi Dinar and wealth was maintained. Changing the currency would be very expensive and time consuming. Unlike the change from the old Saddam banknotes to the current Iraqi banknotes which took several months, any change in currency now would take many more months to complete the process. It just doesn’t make sense. If Iraq does decide to change their currency, it is more likely to occur after or in conjunction with a significant revaluation of the currency. A significant revaluation would necessitate the introduction of smaller banknotes for the sake of usability.