Frequently Asked Questions

1. I don't understand why the cost of 1 million Dinars in 25,000 notes is priced differently than 1 million Dinars in other denominations. Is it now or will it be more difficult to exchange certain denominations of Dinar?

The price differences are because of a few factors. Firstly, because of the differences in the amount of notes to make up 1 Million Dinar. 1 Million Dinar in the 25,000 Notes is the most efficient method - it only takes 40 notes. Next we move to the 5,000 Dinar note. It takes 200 notes to make a million. That is 5 times as many notes, which add to the cost of transport and then shipping to import, which is passed on to you. Then we add verification and inspection of the notes. They take 5 times as long to go through and verify their authenticity.

Finally the last factor is availability. The lower denominations are becoming more difficult to obtain. Especially the 1,000 Notes.

As far as how this will effect exchangeability, it will not. The only thing they factor at exchange is what quantity you can exchange at once. If you only have 25,000 Dinar notes, you can only exchange your Dinar in increments of 25,000, so if you only want to change in 30,000, you can't - you have to change in 50,000 Dinar (2 x 25,000). Whereas with the 5,000 or 1,000 you get the added flexibilty of smaller increments.

2. How fast will the value of the Dinar go up? Why won't it just stay at the price it is now? How long would I need to hold onto my New Iraqi Dinar?

The last official international exchange rate before Operation Iraqi Freedom began was $0.31 PER DINAR. When the new currency was introduced, the exchange was 1 for 1 for the old Saddam Dinars, and 150 for 1 of the Swiss Dinars, as explained in this article here. So after the New Iraqi Dinar was introduced, people in Iraq had the same amount of Dinar than they did before the new currency came out. Today the Dinar is worth about $.001 PER DINAR. What that means is that the average Iraqi went from having a Dinar that was reasonably valued to poor.  For example, let's say you had 50,000 in the old Dinars when it was worth $0.31 PER DINAR. So you trade in your 50,000 Dinars for the new Iraqi Dinar so you've go the same amount of Dinar. Now your 50,000 Dinars used to be worth $15,500 Dollars US, except because the value is so low now, your Dinar is now worth $50 US. This is one of the reasons we expect the Dinar to return to it's previous official value sooner than later as it will restore the buying power of all the Dinar the Iraqi's have. How soon? That is what we've been watching, for what the official international exchange rate will be set at. All current economic and progress reports point to 2006. While it may be easy for most of us here to buy Millions of Dinar, it is not the case for most people in Iraq.

How long will you need to hold onto your Dinar? Well, if the exchange rate returns to $0.31 PER DINAR, you could certainly exchange it all then. There are many who plan on exchanging a small portion of their Dinar then, and holding the rest of it and watching how Iraq's economy and oil production continues to progress. If you are looking to exchange your Dinar at $1 PER DINAR value or higher, it will take as long as it will to improve their oil production facilities to the next level and that is if oil prices stay where they are. Of course, the higher gas prices are, the more that will improve the value of Iraq's oil and gas exports and therefore the value of the New Iraqi Dinar.

3. Where will I be able to exchange my Dinar?

Once the international exchange rate is set you will be able to go to any major international bank or money exchanger to exchange your Dinars for Dollars as it was before. Banks and money changers typically charge a 4-5% fee for the conversion. If you ask banks now if they will be able to exchange it in the future, they will not know. It is like asking them what interest rates will be next month. They do not know until it happens.

For the latest news and information about the Iraqi Dinar or the Exchange Rate, please visit www.exchangeyourdinar.com   You can also exchange your Dinar for Dollars there until the international exchange rate is set.

4. What if Iraq decides to change their currency again?

Anything can happen, but this is very unlikely and we have not seen any indications by anyone in Iraq that they are unhappy for any reason with their new currency. In fact, the new currency has brought more stability and now increased value for them, so (as you will find in the news stories on the links page) many people who used to hoard Dollars for their value, have traded in their Dollars for Dinar and are holding Dinar. It has unified Iraq under one currency. You will also find in the news and links that the many people there are very proud of the new currency! It reflects a lot of great history and strength in Iraq and avoids any religious or political images. Having the new currency brought them a stability and peace of mind that they did not have with their old currency. It also got the a big reminder of Saddam out of their daily lives! The bottom line is that the new currency has been very well received. In fact, in 2004 they started making smaller denominations and coins to help accomodate for the increasing value of the dinar!

It is very expensive for a country to change it's currency. This new currency was developed after 3 months of study by some of the best treasury advisors and economists in the world. They studied the situation in Iraq and worked with their Central Bank to come up with the present currency as a long term solution. Since the New Iraqi Dinar was introduced, it has more than doubled in value. How did their currency board react to that. Did they even mention changing the structure of the denominations? Did the look at adding or subtraction zeros from the denominations? No, they started printing lower denominations and coins to adjust for the rising value - which shows a further commitment to keep what they have and work with it.

If they do decide to change the current version of the Dinar, you will be able to exchange it at www.exchangeyourdinar.com

5. How can I follow the changing value of the Dinar?

You can find the week to week institutional exchange rate changes at the

Central Bank of Iraq   or daily values and news about the current exchange rate of the Iraqi Dinar at www.exchangeyourdinar.com

6. Why can't I just buy the Dinar at the current rate that is listed at the Central Bank of Iraq?

That rate is only available to institutions in Iraq or to account holders at banks there. You are basically paying us (or any other Dinar dealer) a convenience fee to bring the Dinar to you. The exchange rate on the street in Iraq is about 1,000 Dinars to 1 US Dollar right now. Once we get closer to when the international exchange rate is going to be set, the supply will become unavailable to us as many people there will be unwilling to part with what Dinar they have. We pride ourselves that our prices are at the lower range on the web and we know we provide better service than other Dinar dealers. Besides, you know that if you pay peanuts, you get monkey business! We know that trying to save a few bucks working with another dealer has brought many back to us, after the anxiety and stress of not getting a response after sending someone your money is a horrible feeling. We try to be as responsive and available as possible, you would be surprised how many people send or leave messages with another dealer about questions or an order, only to not hear back for days if not a week! That is just not acceptable to us.

7. Is this legal?

It is perfectly legal to buy the Iraqi currency from a federally registered broker. It is a legal investment and if you go through the links on the site, you will see credible, authoritative sources that confirm this. You can see the Presidential order for yourself here.

8. How can we verify your federal registration?

We are a registered MSB. That is a Money Service Business.

We are registered with the IRS (A division of the Department of the Treasury). There is a listing of registered MSB's on the MSB website.

We are located in the state of Minnesota. We are on line #93. We have no reason NOT to be registered! Registration is free and there is no licensing involved. The registration requirement came as a result of the Patriot Act, and requires any agency that deals with money movement or currency exchange to report money laundering, suspicious activity or large cash transactions.

9. Are you a member of the Better Business Bureau?

While we are not a member of the Better Business Bureau, we have zero complaints about us. Many other dealers cannot say the same! Make sure you check for complaints. Some of our competitors have over 30 complaints against them!

10. Can I pay for my Dinar with a Credit Card?             

We are no longer accepting credit cards for payment for Dinar.

11. Why don't you offer COD anymore?

We used to offer COD (Collect on Delivery) until we received over $20,000.00 US in fraudulent cashiers checks. Because the delivery service is the one to inspect the check, and will accept no liability for loss if they take a forged or bad one, we cannot use this method any more as there is no way for us to personally inspect the check before we accept it for payment. We are sorry for any inconvenience this causes.

12. Will you notify us when the Dinar becomes available to exchange?

Yes. After you place your order we add your email to a database. We will notify you when the international exchange rate is to be set. At this time, there are very few other Dinar dealers that offer this level of customer service.

Your privacy is of great importance to us. You will not receive emails from us about anything else. Your email address will never be sold or given to anyone else. We hate SPAM as much as you!

13. If the Dinar is such a great investment, why don't you just keep it all for yourself?

We got into this business first as investors ourselves. Once we saw how many people we knew who also wanted to buy it, once they learned about the Dinar, we saw how big the market was! We also knew that the more we bought, the better pricing we could get for ourselves and others. We also had some bad customer service problems with other Dinar dealers (not answering calls or emails) and knew we could provide better service at competitive prices. We sell the Dinar to make money on it now, plan on making a healthy return on it when we exchange it and being in this business helps to build our inventory of Dinar.

We feel strongly that selling the Dinar really does help Iraq and its people. The further the value of the Dinar can rise in the short term, the more that Iraq and its people can do and buy for themselves now. This is an important step in build a successful democracy! Prosperity anywhere helps on many levels - I am sure you know this is true in your own home and community. What would happen if your money could buy twice as much as it did last year? Would that help your situation out at all?

We own and keep plenty of Dinar for ourselves and make a business providing it to people, along with service we feel good about. We get a feel good kind of pride about the Patriot Packs and how many people they do help. They directly help the Troops and Iraqi Kids, they help Iraq, and ultimately they will reward anyone who has one for helping! How many products do you know of that do so much good?

14. What do I get for purchasing a dealership?

We stopped offering our Dealership program as of May 31, 2006.

15. Just because the Iraqi Dinar is so cheap now, it does not make it a good idea to buy, I can buy Millions of the Turkish Lira for much less, is this the same situation as that?

No, the only reason the Dinar is so cheap is their economy ground to a halt due to the war. Now many things in their economy have improved and they are increasing their crude oil exports monthly. The value of the Dinar will be directly linked to their economy. The biggest strengths to Iraq's economy is their oil exports. They have the second largest crude oil reserves in the world and the largest natural gas reserves in the world. They are also rebuilding their date palms (fruit) exports. They were the worlds largest exporters of date palms. Their oil exports have always overshadowed Iraq's date palm exports, but they used to export over $118 Million US Dollars worth of date palms per year.

Turkey is not rich in natural resources, their currency (or economy) was never as strong as Iraq's and they do not have the assistance of the US and many other countries in improving their infrastructure and getting their economy and governement back on track. Since the end of Operation Iraqi Freedom, it is estimated that their economy has more than doubled. That leads many people to believe that the official international exchange rate will at least resume at $0.31 PER DINAR or higher. That was it's last value before the war.

16. Without going through the links on the site, what is some of the progress in Iraq that makes you so sure their economy is improving?

Since October 31st, 2006 the value of the New Iraqi Dinar has increased nearly 17%.

GDP growth was estimated at 54 percent in 2004. 2005 was also strong, with GDP growth predicted at 34 percent. Economist estimate Iraq to grow at least another 17-20% in 2006.

In 2004, the Ministry of Industry issued 7,661 licenses for new businesses: 2,896 in the construction sector, 1,520 in food, 200 in textiles, 667 in the plastic and chemical industries, and 1,336 in mining and resources. In 2005, Adel Karim, a deputy minister for industrial development, has announced the government's intention to start the privatization program, with cement, brick and pharmaceutical factories being transferred into the private sector as a first step.

The government is also cutting taxes to boost economic activity:

Iraq has slashed income tax to 15% from 49% and substantially increased the minimum sums individuals can earn net of tax.

The progressive tax system replaces a 1982 law under which individuals had to pay 49% of income beyond certain salary brackets.

The current tax system is progressive. It starts with 3% up to a maximum of 15%. . . .

Millions of Iraqi's fled Iraq to Europe, the surrounding countries and the USA under Saddams rule. Many of these expatriots have been returning to their homeland to buy houses, and build businesses for the future. They have money and an understanding of how to work in Iraq, along with their experience working in another country.

There has been a Real Estate boom in Bagdad, many areas increasing 400% in cost in the last year as many of these people move back into Iraq. Many people have been able to buy and move into houses in areas that were restricted to the wealthy and members of the government.

There has also been a building boom, which has caused a major cement shortage. They are working to open 10 new Cement Plants in 2005 to help meet this demand. Unlike other countries in the Middle East, Iraq has significant limestone reserves, making it a competitive and low cost producer of cement. It currently has 18 cement plants with a total installed capacity of over 20 million tons per year.

The Iraqi minister of housing and construction, Jasem Mohammed Jaafar, expects decrease in the prices of lands, up to some 25% of their current levels, if the new housing investment law would be ratified. Jaafar added the new law will provide a solution for the housing crisis during the next two years. . . .

He added that 5,000 units are accomplished in the framework of the annual program of this huge project . . . [and] that the ministry has started to construct five housing complexes in Misan, Kirkuk, Mosul, Baghdad and Karbala, and will start to set up 10 additional complexes, if the government approves plans. Financing for these projects will come from the ministry's budget.

He added that 2006-2007 will face a "huge housing revolution" with the implementation of the investment program and the forming of investment authority composed of six ministries (housing, finance, municipalities, planning, and the Central Bank). This Authority will encourage investors to participate in financing of housing projects, especially since the donor countries did not allocate additional funds for housing, except for $240 million allocated by the American ministry of transportation for roads and bridges projects.

There are more than $1 Billion Dollars US of Iraqi capital held by expatriates, who are ready to finance these projects under the supervision of the ministry, which will participate in advising and construction of housing units to be sold to the public.

The Iraqi government plans to call on international companies to develop 11 oil fields in the south to increase oil production to 3 million barrels a day, said the manager of oil fields development at the Oil Ministry. At the end of this year, the Oil Ministry is expected to sign contracts with the international companies to develop the southern fields. Among the fields the ministry is trying to develop are the Majnoon field, which has reserves of 12 to 30 billion barrels, and the West Qurna field, which has reserves of 11 to 15 billion barrels.

There are literally thousands of significant improvements like these that you have not heard on the news. You can find much more by going through the links page on our site.

17. What if Civil War breaks out in Iraq and the government falls apart?

When the Dinar was first released that was a serious concern. Factionalization (or groups fighting among themselves) has been a real concern in Iraq for hundreds of years. Most recently we have seen great advances in the relations between many groups and a newfound enthusiasm from most notably the Sunnis, since April of 2005, to be a part of the new government. There is an important law passed that month that we credit with helping to change their attitude. Basically the law states that only those who are a part of the federal government can share in the profits from the federally owned natural resources. That means if you are not part of the federal government, you will not get a share of the oil, natural gas, or other natural resource profits. Period! You can read the whole report at the International Monetary Funds website. Click here to get to the report.  You will need to have Adobe Acrobat Reader installed on your computer to read it.

The key point to remember is that for thousands of years there has been tension and  conflicts between the different cultural groups in Iraq. This has also been happening during some of the high points of their currency's value. The value of their currency is directly linked to their economy. Their economy's main strength is their oil and natural gas exports. Iraq's oil exports have been increasing by millions per month since the end of the war. With the aid of companies like Chevron, Texaco and many others that have moved in to help, oil exports are projected to rise substatially in the next 5 years.

We cannot stress the importance and achievement their new government will have on their democracy and many aspects of their country. The elections on December 15th, 2005 are a testament to the cooperation and progress of all these cultures and groups to work together. We look forward to seeing what the new Parliament and new Prime Minister and Ministers of Oil and Finance appointed by that Parliament will accomplish together in 2006.