Hello. A good friend of mine has started buying physical dinar from dinar dealers here in the united states. He has said that the current value of the Dinar is pegged to the united states dollar and trades for about 1100 dinars for every dollar.

Now he has said that if/when the central bank decides to issue single-digit dinars and revalue the dinar to a 1:1 to the dollar, then what happens to the value of the physical dinars he has bought? Does, say a million dinars suddenly become worth a million dollars?

IDFK what is going on. Seems plausible on its face to me. Can you tell me what's up?

That is true if value becomes 1:1 then 1 million dinar will be 1 million US dollars. But it has been taking some time for that country to rebuild so I dont expect this to happen any time soon.

This "investment" has been on the internet since before the 2nd Gulf War.

Considering the occupation of Iraq will be the new reality for that country for the foreseeable future, and that political instability is a no-brainer in that area, not to mention pegging a failed currency to a failing currency isn't the best idea, I would guess that the most likely route is for the currency to be devalued and a new currency or perhaps even another country's currency to take it's place.

The easy answer....Stay away.