The most popular way to buy New Iraqi Dinars is from dealers who sell the currency on-line. If you go to your search engine and type in "iraqi dinars", amongst other things you'll get what seems to be an endless list of websites that sell new iraqi dinars, some at very competitive prices. The prices you'll pay for dinars on-line are higher than the actual exchange rate provided by the Central Bank of Iraq. This is understandable as it is the only way those companies can make some profit.
These prices vary from dealer to dealer so it is always worth looking around for the best and/or the cheapest if you wish to buy dinars on-line. So, exactly how much should you pay for the dinar? How much more from the exchange rate should you expect? A fair premium should be no more than 30%, but that would depend on other things too.
In a nutshell, the total cost of buying iraqi dinars depends on the following:
The type of dealer.
If they are large, certified and well established with articles written about them in newspapers and other media, have the ability to ship worldwide, guarantee the authenticity of their dinars with a Da La Rue machine and provide a variety of payment methods, then they tend to charge more. These dealers tend to have a pool of satisfied customers who are willing to pay more in order to avoid risks.
An example of such a dealer is the Portaliraq.com which also provides a great website for information about business and finance in Iraq. Below is the link.
Another very special example of such dealer is a company owned by Marshall Donnerbauer, one of the pioneers in this field. His company now does much more than just trade dinars, something I discuss in more detail later in this website. For now, you can check out the link on:
The dealers who accept payments through credit cards via a secure server often charge a little more. This is because credit card payments are often a lot more secure than wire transfers or personal cheques. On the other hand, cash-on-delivery (COD) is another great method of payment, but it is almost never available for international deliveries.
Here are some dealers that accept credit card payments:
In simple terms, the more dinars you buy the cheaper the price gets. Think of it as buying at a wholesale Vs retail price. Therefore, the higher denominations are always less expensive per 1 million dinars than the lower denomination ones. The largest denomination is the 25,000 new iraqi dinar note. For example, if you buy a million dinars made of 25,000 NID notes, you'll pay less than if you buy the same amount in 10,000 NID denominations. The reason for that could be that there is a limited availability of the lower denominations since they are used more often. Also, shipping costs are higher because of the added weight.
How to buy New Iraqi Dinars on-line
The process of buying dinars on-line from dealers is simple. Like everything else you buy on the net, you choose the amount of dinars and denominations you want to purchase, send your payment and then wait for your order to arrive at home. Yes, the dinar notes are actually delivered to your door in an envelop. But is it safe? Is it legal?
The answers to both questions depend on the company you choose to buy dinars from and the country you live in. There are thousands of people around the world who bought dinars on-line and received them safely.. Others didn't because they dealt with the wrong companies.
Click below to see the risks related to buying dinars on-line.
So, what if you change your mind and decide to sell your dinars sooner?
Many people worry about the lack of liquidity when it comes to physically possessing the notes. In other words, they worry about how to sell the notes once they decide it is time to exchange them to another currency. A few months ago, this was more of a problem as most dealers wouldn't buy back dinars. Now, more and more companies that sell dinars allow this service for their customers. You can buy dinars from them and sell them back to them at a later date. However, if for some reason you are in a hurry to sell your dinars, something I wouldn't recommend, you can easily do it through ebay. This will probably make you a higher profit.
If you visit ebay you will find iraqi dinars being sold on a daily basis. This makes Ebay another good way of buying dinars at very competitive prices. An extra advantage of buying through ebay is that you have the ability to check the seller's reputation through on-line feedback from their customers.