The Dinar Scam explain here:

Beware of the Iraqi Dinar Scam! Did you know that at least one state lists Iraq Money as one of the biggest scams on the internet? In fact, the State of Utah lists Iraqi Currency as the #2 scam on the internet!

Here is what they say about the Dinar:

'Advertisements in local newspapers promise great wealth by purchasing the new Iraqi dinar. Promoters explain that as democracy comes to Iraq, the expected peace will stimulate the Iraqi economy and the value of the dinar. What investors are not told is that the dinars can be redeemed only in Iraq and that the sellers already have doubled their money. Thus, the dinar would have to more than double in value and you would have to take a trip to Iraq to collect any profit.'

Iraqi Dinars

Try this - the next time you visit a site selling dinar, take a look at the disclaimer located at the bottom of their site; it's absolutely shocking! (the shocking stuff is usually in the first few lines of the disclaimer).

The new Iraqi Dinar is real and not a scam itself, it's the selling of the Dinar without telling the buyer that they are doubling the price and that it can only be redeemed in Iraq that is wrong. In fact, the central bank is reported to state that it's illegal to remove dinar from Iraq.

The only people making money on the Iraqi Dinar are internet dealers. They make a ton of money as soon as you buy dinar, may sell you fakes and will NOT buy back the currency. Once you buy the Dinar, you'll find it almost impossible to sell it back!

I should say that there is a remote possibility that you could buy Iraqi Dinar and make a good profit, but that possibility is so small, it's almost impossible to measure it; State government considers it risky enough to list, so why in the world would you consider it any different?

Oh, and if you see a site that is registered to sell Iraqi Dinar, don't be impressed. What they are not telling you is that they have registered with the government as a company dealing with money. It has NOTHING to do with the Iraqi Currency and does not mean they are trusted in any way. It simply says they filed a form informing the government that they are dealing with money. In fact, ANYONE can fill out this form and send it in and you'll get a statement saying you filed the form. Iraqi Dinar sellers use this to make themselves look legitimate so do not be mislead!

Remember, if you're going to look at the dinar as an investment, look at the disclaimer found on sites selling the dinar. Shocking!

Here is the link to Utah's page warning investors about the Iraqi Currency Scam. It's worth the visit and can help shed light on what is going on with Iraqi Currency.

Saddam's Exchange Rate

One of the most commonly quoted facts on Dealer's websites is that the exchange rate under Saddam Hussein was one Iraqi Dinar for three US dollars. That is true, as far as it goes, but here is the catch. Saddam Hussein himself personally set that exchange rate. He could have said, “One Iraqi Dinar buys 20 US dollars”, if he had wanted to. Just because that was the official exchange rate, doesn't mean that is what people were actually trading it for. The old Iraqi Dinar could not be freely traded on the world market, so this exchange rate was essentially meaningless. This rate was only open to those who were close to Saddam.

The most important fact to take out of this section: The Iraqi Dinar NEVER actually traded 1 Dinar for three US dollars in reality.

Trading your Dinar

The New Iraqi Dinar is available to buy from a myriad of dealers. But what can you do with it once you have bought it? Nobody actually wants New Iraqi Dinar because it cannot be freely traded on the world market. To put it simply, a bank won't accept dinar, and you can't trade it back for US dollars (or whatever currency you are using) anywhere except physically in Iraq. And if you actually went to Iraq, they would give you 1 US dollar for every 1475 New Iraqi dinars you gave them. That means that if you buy the dinar you are probably going to be stuck with it. There are a few dealers who offer to buy back dinar that you have bought from them, but they will not want your dinars from elsewhere.

The most important fact to take out of this section: Once you have bought your Iraqi Dinar you are going to have it for a while

Look at the Denominations

The largest US banknote in current circulation is $100. The same goes for the Australian dollar. There are not many first world countries that have a $25,000 note. The lowest note denomination that exists in Iraq is the 50 Dinar note. Therefore, if the exchange rate ever returned to the Saddam rate, there would be an Iraqi Dinar note that was worth $75,000 US Dollars. The lowest note denomination would be worth $150 US. To speak plainly, that is extremely unlikely. About on a par with Osama bin Laden turning himself over to the US Government.

More information on Dinar Scam:

www.usatoday.com

www.bizcovering.com

www.scambusters.org

www.bankersonline.com