Wallingford, CT - September 26, 2011 – Better Business Bureau is warning consumers across the United States and Canada to be wary when considering any foreign currency investment, particularly the Iraqi dinar. BBB fields a growing number of complaints about dinar investments from around the world, including military personnel claiming they were victims of dinar dealing fraud.
Consumer complaints against currency exchange companies allege they paid for but never received their dinars, that they had been sent Iraqi bank notes with duplicate serial numbers and that companies made misleading statements on their websites about the profit potential of dinar currency investments. Both BBB and consumers discovered several Iraqi dinar currency sellers disappeared in the wake of consumer complaints or refused to return telephone calls or answer letters.
There is fierce debate over promises of investors making millions of dollars on modest investments in Iraqi currency. While sellers promise the value of the Iraqi dinar will skyrocket if the currency appreciates, promises of imminent profits from Iraqi dinar speculation have yet to materialize.
Consumers should understand that businesses may legally sell foreign currencies; however, most dealers who sell dinars won’t buy them. Those who do, offer considerably less for the currency than what they charged. Buyers are cautioned that investing in promises of fast profits from currency trades amount to speculation – not an investment. Verify the product
- Iraqi dinars are being sold on eBay in various denominations for a wide range of prices. Consumers are advised to be careful when purchasing any currency from unauthorized sources, to avoid buying counterfeit foreign bank notes. Some investors complain that they unwittingly ordered dinars from unscrupulous dealers and never received them.Be skeptical about predictions
- While some sellers foresee the Iraqi currency substantially increasing in value, currency investors face considerable risk. If Iraq inflates its currency or devalues it, the value of the dinar could plummet. Further civil strife may also put downward pressure on the Iraqi currency. Don’t mix apples with oranges
– Some SPAM emails hype the dinar as an investment opportunity by citing the rise in the value of the Kuwaiti dinar after the Gulf War and the German mark after WWII. Neither Kuwait nor Germany had a free-floating currency. Their value was mostly a function of official policy. An economy in Iraq’s situation - with an unstable government, acts of terrorism and widespread corruption - is likely to experience a currency crash or international devaluation. Watch out for unsubstantiated, sweeping statements
– One dinar-related email claims that “everybody will want to get in on this.” There is currently no active market for dinars. You can buy them but can you sell them?
Sellers have made a substantial amount of money through currency conversion fees they charge buyers. Consumers, however, are advised to steer clear of “opportunities” marketed by unregistered advisers to inexperienced currency investors. Legitimate opportunities should disclose all risks and avoid modifying or fabricating performance history to make an opportunity look better than it is.
Check the BBB Business Review of currency traders and other companies at www.bbb.org