News
Iraqi Dinar Buzz Updates
General Dinar Info
2010-12-13 11:24:34
Is it Legal to Buy Dinar?
Presidential Order 13303, issued on May 28, 2003 by George W. Bush, provides U.S. citizens with the same rights to investments as Iraqi citizens. The order removed preexisting sanctions on investments in Iraq as they applied to the Development Fund for Iraq.
Similarly, Coalition Provisional Authority (CPA) Order #39, issued in September 2003, gave foreign investors (meaning anyone other than an Iraqi citizen) the right make foreign investments in Iraqi on terms no less favorable than those available to Iraqi citizens and prevented any limitations on the amount of foreign participation.
These two orders recognized the importance of foreign investment in aiding Iraq's political and economic recovery. Without outside assistance, it is unlikely that the country would be able to make significant improvements in infrastructure, harness the potential of its abundant natural resources, and develop an economy worthy of participation in the global market place.
While Presidential Order 13303 and CPA Order #39 obviously apply to the establishment of businesses in Iraq, they are also the authority for investment in Iraqi currency.
Until the end of 2008, it was even possible for U.S. citizens and legal residents to purchase dinars at U.S. banks. Most major U.S. banks stopped buying and selling the dinar as a result of the fact that the Iraqi dinar is a thinly traded currency that does not lend itself to the typical bank's business model. In order to make money, most banks charge a small fee for a large number of transactions. The Iraqi dinar is not traded in large quantities so it was difficult to make enough money to justify the costs and risks associated with buying and selling the Iraqi dinar.
Fortunately, U.S. citizens are able to purchase their dinars from various money service businesses, including DinarProfits.
Iraq Profile
Geography
Area: 437,072 sq. km.; about the size of California.
Capital: Baghdad (5.7 million, 2004 estimate).
Terrain: Alluvial plains, mountains, and desert.
Climate: Mostly hot and dry.
People
Population (July 2009 est.): 28,945,657.
Population growth rate (2009 est.): 2.507%.
Ethnic groups:
- Arab 75%-80%
- Kurd 15%-20%
- Turcoman, Chaldean, Assyrian, or others approximately 5%.
Religions:
- Muslim 97%
- Christian and others approximately 3%.
Languages:
- Arabic (official)
- Kurdish (official)
- Turcoman (a Turkish dialect)
- Assyrian
- Armenian
Government
Type: Parliamentary democracy.
Constitution: October 15, 2005.
Independence:
On October 3, 1932, Iraq gained independence from British administration under a League of Nations Mandate. Several coups after 1958 resulted in dictatorship, with the Ba’ath Party seizing power in 1963 and again in 1968. From July 1979 to March 2003, Iraq was ruled by Saddam Hussein and the Ba’ath Party. Following the overthrow of the regime by a U.S.-led coalition in March-April 2003, the Coalition Provisional Authority (CPA) assumed administrative and security responsibility for Iraq while Iraqi political leaders and the Iraqi people established a transitional government.
On June 28, 2004, the CPA transferred sovereignty to the Iraqi Interim Government. A new 4-year, constitutionally based government took office in March 2006, and a new cabinet was installed in May 2006. On June 31, 2009, U.S. troops withdrew from urban areas, a step that reinforced Iraqi sovereignty. On March 7, 2010, Iraq held a second round of national elections to choose the members of the Council of Representatives and, in turn, the executive branch of government.
Branches:
Executive--Presidency Council (one president and two vice presidents; this configuration may change following the March 2010 national elections and the formation of a new government; Council of Ministers (one prime minister, two deputy prime ministers, and 37 cabinet ministers). Judicial--Supreme Court appointed by the prime minister and confirmed by the Council of Representatives. Legislative--Council of Representatives (COR) consisting of 325 members.
Divisions:
18 governorates (muhafazat, singular - muhafazah)--Al Anbar, Al Basrah, Al Muthanna, Al Qadisiyah, An Najaf, Erbil, As Sulaymaniyah, Kirkuk, Babil, Baghdad, Dahuk, Dhi Qar, Diyala, Karbala', Maysan, Ninawa, Salah ad Din, Wasit. One region--the Kurdistan Regional Government.
Economy
Nominal GDP (2009 est.): $65.8 billion.
Nominal GDP per capita (2009 est., PPP): $2,108.
GDP real growth rate (2009 est.): 4.0%.
Rate of inflation (2009 est.): -4.4%.
Unemployment rate (2008 official): 12% to 18%.
Budget (FY 2010): Revenues--$52.8 billion; expenditures--$72.4 billion.
Public debt (Dec. 2008 est.): $46 billion to $87 billion.
Natural resources: Oil, natural gas, phosphates, sulfur.
Agriculture: Products--wheat, barley, rice, corn, chickpeas, beans, dates, cotton, sunflowers, cattle, sheep, and chickens.
Industry: Types--petroleum, chemicals, textiles, construction materials, food processing, fertilizer, metal fabrication/processing.
Trade: Exports (2009 est.)--$39.3 billion; export commodities--crude oil, crude materials excluding fuels, food and live animals. Export partners (2009)--U.S. 27.6%, India 14.5%, Italy 10.1%, South Korea 8.6%, Taiwan 5.6%, China 4.2%, Netherlands 4.1%, Japan 4.0%. Imports (2009 est.)--$41.3 billion; import commodities--food, medicine, manufactured goods. Import partners (2009): Turkey 25.0%, Syria 17.4%, U.S. 8.7%, China 6.8%, Jordan 4.2%, Italy 4.0%, Germany 4.0%.
Presidential Order 13303, issued on May 28, 2003 by George W. Bush, provides U.S. citizens with the same rights to investments as Iraqi citizens. The order removed preexisting sanctions on investments in Iraq as they applied to the Development Fund for Iraq.
Similarly, Coalition Provisional Authority (CPA) Order #39, issued in September 2003, gave foreign investors (meaning anyone other than an Iraqi citizen) the right make foreign investments in Iraqi on terms no less favorable than those available to Iraqi citizens and prevented any limitations on the amount of foreign participation.
These two orders recognized the importance of foreign investment in aiding Iraq's political and economic recovery. Without outside assistance, it is unlikely that the country would be able to make significant improvements in infrastructure, harness the potential of its abundant natural resources, and develop an economy worthy of participation in the global market place.
While Presidential Order 13303 and CPA Order #39 obviously apply to the establishment of businesses in Iraq, they are also the authority for investment in Iraqi currency.
Until the end of 2008, it was even possible for U.S. citizens and legal residents to purchase dinars at U.S. banks. Most major U.S. banks stopped buying and selling the dinar as a result of the fact that the Iraqi dinar is a thinly traded currency that does not lend itself to the typical bank's business model. In order to make money, most banks charge a small fee for a large number of transactions. The Iraqi dinar is not traded in large quantities so it was difficult to make enough money to justify the costs and risks associated with buying and selling the Iraqi dinar.
Fortunately, U.S. citizens are able to purchase their dinars from various money service businesses, including DinarProfits.
Iraq Profile
Geography
Area: 437,072 sq. km.; about the size of California.
Capital: Baghdad (5.7 million, 2004 estimate).
Terrain: Alluvial plains, mountains, and desert.
Climate: Mostly hot and dry.
People
Population (July 2009 est.): 28,945,657.
Population growth rate (2009 est.): 2.507%.
Ethnic groups:
- Arab 75%-80%
- Kurd 15%-20%
- Turcoman, Chaldean, Assyrian, or others approximately 5%.
Religions:
- Muslim 97%
- Christian and others approximately 3%.
Languages:
- Arabic (official)
- Kurdish (official)
- Turcoman (a Turkish dialect)
- Assyrian
- Armenian
Government
Type: Parliamentary democracy.
Constitution: October 15, 2005.
Independence:
On October 3, 1932, Iraq gained independence from British administration under a League of Nations Mandate. Several coups after 1958 resulted in dictatorship, with the Ba’ath Party seizing power in 1963 and again in 1968. From July 1979 to March 2003, Iraq was ruled by Saddam Hussein and the Ba’ath Party. Following the overthrow of the regime by a U.S.-led coalition in March-April 2003, the Coalition Provisional Authority (CPA) assumed administrative and security responsibility for Iraq while Iraqi political leaders and the Iraqi people established a transitional government.
On June 28, 2004, the CPA transferred sovereignty to the Iraqi Interim Government. A new 4-year, constitutionally based government took office in March 2006, and a new cabinet was installed in May 2006. On June 31, 2009, U.S. troops withdrew from urban areas, a step that reinforced Iraqi sovereignty. On March 7, 2010, Iraq held a second round of national elections to choose the members of the Council of Representatives and, in turn, the executive branch of government.
Branches:
Executive--Presidency Council (one president and two vice presidents; this configuration may change following the March 2010 national elections and the formation of a new government; Council of Ministers (one prime minister, two deputy prime ministers, and 37 cabinet ministers). Judicial--Supreme Court appointed by the prime minister and confirmed by the Council of Representatives. Legislative--Council of Representatives (COR) consisting of 325 members.
Divisions:
18 governorates (muhafazat, singular - muhafazah)--Al Anbar, Al Basrah, Al Muthanna, Al Qadisiyah, An Najaf, Erbil, As Sulaymaniyah, Kirkuk, Babil, Baghdad, Dahuk, Dhi Qar, Diyala, Karbala', Maysan, Ninawa, Salah ad Din, Wasit. One region--the Kurdistan Regional Government.
Economy
Nominal GDP (2009 est.): $65.8 billion.
Nominal GDP per capita (2009 est., PPP): $2,108.
GDP real growth rate (2009 est.): 4.0%.
Rate of inflation (2009 est.): -4.4%.
Unemployment rate (2008 official): 12% to 18%.
Budget (FY 2010): Revenues--$52.8 billion; expenditures--$72.4 billion.
Public debt (Dec. 2008 est.): $46 billion to $87 billion.
Natural resources: Oil, natural gas, phosphates, sulfur.
Agriculture: Products--wheat, barley, rice, corn, chickpeas, beans, dates, cotton, sunflowers, cattle, sheep, and chickens.
Industry: Types--petroleum, chemicals, textiles, construction materials, food processing, fertilizer, metal fabrication/processing.
Trade: Exports (2009 est.)--$39.3 billion; export commodities--crude oil, crude materials excluding fuels, food and live animals. Export partners (2009)--U.S. 27.6%, India 14.5%, Italy 10.1%, South Korea 8.6%, Taiwan 5.6%, China 4.2%, Netherlands 4.1%, Japan 4.0%. Imports (2009 est.)--$41.3 billion; import commodities--food, medicine, manufactured goods. Import partners (2009): Turkey 25.0%, Syria 17.4%, U.S. 8.7%, China 6.8%, Jordan 4.2%, Italy 4.0%, Germany 4.0%.