PURPOSE OF THIS BOOK

The New Iraqi Dinar (NID), introduced at a value of 2,050 NID to USD $ 1.00, caught worldwide attention and imagination when it first came out in October 2003. People from all walks of life believed that the currency's value in the near term will be comparable to pre-war levels of $ 3.22 to one Iraqi Dinar (if not more). It gave them hope and an artificial sense of future financial security! It was feast time for Dinar dealers!

Six years down the road and the currency value is nowhere near $ 1 USD to 1 NID (as of 30 April $ 1 USD = 1,170 NID). Iraq is currently number 3 in the world's most dangerous destinations, next to Somalia (where pirates abound) and Afghanistan (where Bin Laden is residing) followed by the Central African Republic (where you may end up in an unmarked grave) and Pakistan (where the Taliban is 100 km from the capital). At least that gives you an idea. The coalition forces are starting to pull out from Iraq. U.S. combat missions are scheduled to end by September 2010. There is a wave of targeted bombings once again. Concerns over the future Iraqi political and economic stability are mounting. Will the infant government rise up to the challenge and steer Iraq to a prosperous future? The world is watching!

In spite of the associated risks in Dinar investing and the uncertainty of how the currency will turn out in the next few years, my research revealed that many are very interested in converting some of their hard earned dollars to Dinars. A million Iraqi Dinars can be purchased for about USD $ 1,000, more or less. If Iraq emerges from the ashes and truly develops a strong economy with lasting peace, then the currency's future value may equal the U.S. dollar! Such is the appeal and drawing power of this risky investment.

"Is it really risky? Is it safe to invest? Will there be peace in Iraq? Will the value go up soon? Will there be revaluation?" are some of the questions asked by people in forum sites. Nevertheless, it is business as usual at dealer sites with sales averaging around USD $ 5,000 a day or USD $ 150,000 monthly.

A lot of "expert" opinion has been aired, different advice given and so many articles and fancy charts published for and against Dinar investing. In the middle of it all, people are more confused.

The purpose of this book is to help you draw conclusions whether or not the Iraqi Dinar is a worthy investment. Also, I am sharing my thoughts, opinions, experiences and analyses on the matter so that you will not miss out on a potentially redeeming opportunity as I see it, given a forthcoming global energy crisis, while at the same time maintaining caution. After all, it is your money at stake.

I am tired of reading hasty generalizations, unsupported claims or half baked conclusions. (But I do admire the intent of opinion givers in dissuading people to plunge to a perceived risky investment). I am enraged in reading sales pitch comparing the Iraqi Dinar with the Kuwaiti Dinar (KWD) where the latter rose up in value from virtually being worthless during the Iraq invasion to USD $ 3.65 to 1 KWD today, the highest valued currency in the world! Maybe the Iraqi Dinar will be of the same value in 20 years! A BIG MAYBE!

Lastly, I see a stream of curious investors with bright eyed eagerness, naiveté or plain stubbornness to get into the fray. I believe it is time to offer a book of common sense with a lot of tough minded optimism to enlighten people. The overall purpose here is not so much to convince you that "you too" can risk like others have done so in years past. Rather, I have written this book to focus more on the "how to" go about the risk, and at level best "how much" the value should be and "when will" those values be attained.

WHO THIS BOOK IS FOR

When I decided to write this book, I had three main groups of people in mind.

The first group is made up of investors who already have Iraqi Dinar holdings, big or small. They are essentially the "old timers" or the "first wave" in the arena, committing their funds between 2003 and 2008. Some are probably disgusted or disillusioned at the moment while the rest, I would say are praying for a bright Dinar future. I wanted to offer this people hope. Perhaps after reading this book, they would even increase their holdings in a more cautious manner.

The second group this book was written for is made up of "new" investors. They are the hundreds of thousands of "newbie's" who have an idea about the Iraqi Dinar, have done some research or so and about to plunge into the arena this year onwards. However, they are probably in a situation similar to standing at the edge of the cliff either waiting for a little "push" or confidence build-up before taking the leap. They need more information. I intended to give them just that.

Finally, the third group I would like to reach with this book is the Iraqi Dinar dealers. It would be appropriate if they themselves do the numbers and truthfully convey to all customers all need to know information and not hype on the Kuwaiti Dinar.

I also believe that on the individual level, there are three types of people; Speculators, Investors and Gamblers.

Speculators are people who would go into an investment for the short term, a quick turn around with expectations of good profits. They rely not so much on information gathered but rather on their own "gut feel". They take "calculated risks".

Gamblers are different. They are high risk people. They go into an "investment" for the short term with a "get rich quick" philosophy. Even with lacking information they are willing to risk money against the odds and hope for the best. Winning or losing money is just a game that they find pleasure in. Beating the odds is euphoria for them. They have a high tolerance for losses and charge such losses to experience.

Investors are people with a wider horizon. They have an investment mix ranging from low to high risk for the short to long term period. They rely on all information they can get, their own gut feel, listen to expert advice and in some cases, employ professional services. They have a defined set of objectives and a clear vision where they want to go. Their main concern is capital preservation and appreciation.