Should You Invest Money Into Iraqi Dinar?

Investing in foreign currencies has long been standard practice.  For seasoned investors, the ability to purchase large amounts of foreign currency when the country is about to see significant growth is a great way to build portfolio value.  Of course, knowing when a currency is poised for increases is hard.  There is a lot of talk today about the Iraqi Dinar.  Should you invest in the Iraqi Dinar?  

There are certainly plenty of people who feel that the Iraqi Dinar is a great investment.  It has seen significant value increases in the past year, and when looking at historical data, many are hoping that it will see the same result as the Kuwaiti Dinar did after the first Gulf War.  Iraq has one of the largest oil reserves in the world, and this certainly lends credence to the belief that the Iraqi Dinar could be very marketable when their economy rebuilds.

Of course, there are many who say that the Iraqi Dinar offers too much risk for too little reward as well.  There is no denying that the situation in Iraq is volatile at best.  There are still wars being waged both within the nation and with other countries.  Political unrest is leading to economic unrest, and the value of the Iraqi Dinar is very unpredictable in the wake of these factors.

Ultimately, it is up to the investor to weigh the potential risks against the potential for profit.  Only when you are able to look at your entire portfolio and your desired level of risk can you know if the Iraqi Dinar is a good financial investment for you.