Investing in Iraqi dinars offers no benefit to Americans. The federal government and multiple state governments classify Iraqi dinars investments as scams. The Federal Bureau of Investigation encourages investors contacted about Iraqi dinars opportunities to file a report.Continue Reading
States that warn residents not to invest in Iraqi dinars include Alabama, Oklahoma, Utah and Washington. The Better Business Bureau classifies Iraqi dinar investments as one of its top scams, citing how difficult the dinar is to sell and its low value.
Americans do not receive any special protections against attachments, liens or other legal actions when investing in dinars. While there is an executive order that protects oil products and other American investments in Iraq, this does not include dinars or other currency investments. A 2012 federal indictment against the investment firm BH Group confirms that these protections specifically exclude Iraqi dinar investments.
Iraqi dinars are difficult to sell because they cannot be exchanged at most currency exchanges outside of Iraq. Major U.S. banks such as Wells Fargo have policies against trading in Iraqi dinars due to the prevalence of investment scams. Another disadvantage is that dealers sell Iraqi dinar investments at inflated prices, making it difficult for investors to profit even when Iraqi dinars increase in value.Learn more about Currency & Conversions