Change of Currency and Electronic Accounts

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 removal 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 DinarBanker.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 own “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. DinarBanker.com (the largest and longest running Iraqi Dinar exchanger in the United States) reports that out of the tens of millions of banknotes they have inspected, cleared, exchanged, they have run across only one counterfeit banknote that was extremely easy to detect. See the Iraqi Dinar banknote security features.


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.


In 2002 Iraq’s labor force was estimated at 6.8 million people. Recent figures on labor participation by sector are not available. In 1996 some 66.4 percent of the labor force worked in services, 17.5 percent in industry, and 16.1 percent in agriculture. In 2004 estimates of Iraq’s unemployment ranged from 30 percent to 60 percent.



With all of that said, if by some remote chance the Iraqi Government did decide to change the current Iraqi currency to something else prior to being on the world market, it could be easily exchanged through large established Iraqi Dinar exchange dealers like DinarBanker.com. DinarBanker.com said “we can turn around and exchange anyone’s Iraqi Dinar to/with the Middle East in 48 hours at minimal cost due to our established connections and extensive banking relationships.” It is more likely that a change of currency will occur after, or as the Iraqi Dinar hits the world market at a time when individuals can freely access exchange services at large banks worldwide.

In addressing the notion that an Iraqi Dinar investor is better off having their money supposedly secured in an electronic Iraqi Bank account, there are number of factors to consider. The most important consideration is the security of the funds that are being held. There is no FDIC in Iraq. There is no agency that will guarantee or insure an investor’s money if the bank fails. Many offshore bank account holders have learned the significance of this the hard way over the past few years. If an Iraqi bank fails as the result of bad investments, or as the result of corruption/theft (which is currently widespread in the Iraqi financial system), an Iraqi Dinar investor who has funds in that bank is “out of luck”---the funds are GONE and there is no recourse or government agency anywhere in the world who will help.

DinarBanker.com was approached a couple of years ago with offers from one company touting the secure electronic bank accounts for Iraqi Dinar investors. DinarBanker.com was offered significant compensation to steer potential/existing Iraqi Dinar investors toward these electronic accounts. After extensive research in Iraqi and surrounding Middle Eastern countries, DinarBanker.com determined there was absolutely no way the electronic funds could be safeguarded from loss in Iraq. Plus, it was also discovered that even banks in neighboring countries were governed, audited, and monitored by much lower and less secure standards than those in the United States, making any foreign accounts a risky investment. Despite any rumors generated by the “electronic bank account” companies, DinarBanker.com has seen absolutely zero credible evidence suggesting the “hard currency” will be restricted for exchange in any way, shape, or form. To the contrary, suggestions that the actual Iraqi currency will be limited or restricted for exchange after an increase in value is met with boisterous laughter by the largest and most well known currency exchanges established in the Middle East. Comments like “you Americans….where do you come up with these crazy rumors” are often made to the DinarBanker.com team when trying to authenticate such rumors.



In conclusion, it seems unlikely that the Iraqi Government will make any changes to the current currency prior to any revaluation. If however, a change does occur, there will be a long opportunity to switch-out old currency for new---the old currency will not be abolished without an exchange opportunity. Additionally, the experts at DinarBanker.com currently believe the safest way to invest in the Iraqi Dinar is to physically take possession of the currency from an established, audited (not just registered) Money Service Business and avoid putting your money at risk in a possibly unsecured and uninsured bank account in an emerging new economy.

The Future of the New Iraqi Dinar - Watch the Video Here

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