When Saddam Hussein was ousted in 2003, there were a lot of speculations about the Iraqi currency. A lot of political, social, and economic changes have occurred since then, but what will this mean to an investor like you? The new Iraqi monetary system encourages foreign investments; in fact, the central bank is giving out licenses so foreign businessmen can open businesses legally. Of course, what most investors are counting on is the potential of Iraqi oil. Iraq is one of the biggest oil producers in the world, second only to Saudi Arabia.

These characteristics make the Iraqi dinar seem like an attractive investment on the surface. However, it is important to remember that whenever a country undergoes government changes, the new government can repudiate the old money; your investment can become essentially worthless. Another risk is that the new Iraqi government has the capability to inflate the dinar out of circulation. Finally, there is no guarantee that you will recover your investments on the dinar, even if the country does stabilize.

Investing in the Iraqi dinar seems like a good investment opportunity, but in actuality, purchasing this currency right now can be likened to buying a lottery ticket. Yes, there is a potential that the Iraqi government will stabilize eventually and the economy might improve. But as things stand right now, the risks are simply too high.

So, is buying Iraqi dinars a good investment option? Well, if you don’t know what to do with a bunch of money, there is little harm in buying a few Iraqi dinars. Right now, around 824 American dollars will buy you about a million’s worth of dinars. But if you don’t feel like buying a lottery ticket right now, better not buy Iraqi dinars as well.