SPECULATION IN IRAQI DINARS Público Deposited
The E-Sylum: Volume 7, Number 17, April 25, 2004, Article 13
SPECULATION IN IRAQI DINARS
A page one article in the April 23, 2004 Wall Street Journal
describes a thriving secondary market for the new Iraqi
currency."Plenty of amateur investors -- policemen, construction workers,
a dentist, even a college student -- are taking the dinar plunge.
As tension rises in Iraq, these people are making a bet most
professional currency traders wouldn't touch -- that the dinar
will appreciate.""For Mr. Rodinec and hundreds of others, Mr. Burbank is the
dinar man. A 48-year-old former Navy SEAL with a middle
linebacker's physique, Mr. Burbank says he has sold more than
$500,000 in dinar since he started his business in October. The
recent violence in Iraq caused the currency's value to fall
modestly but hasn't hurt sales, he adds."I never thought of myself as a currency trader," says Mr.
Burbank, who still works three days a week as a fireman in
San Diego. "But I called the smartest people I know -- a
corporate lawyer, a Wall Street guy -- and they said it sounds
pretty viable."Today, he sells dinar on his Web site, Daystartrading.com.
Prices are negotiable, depending on the size of the order and
whether payment is in cash or check. But Mr. Burbank generally
hands over about 500 dinar in exchange for one dollar. He gets
his dinars from three Middle Eastern suppliers.""Mr. Burbank's interest began last year when he bought 1.25
million dinar for $3,000 on eBay. He struck up a relationship
with the Jordanian who auctioned the new currency and began
buying directly from him.Several competitors have sprung up in recent weeks, outfits
with names such as dinarsforless.com and IraqDinarInvestment.com.
Some post photos of the new currency. The red-tinged 25,000
dinar note features a Kurdish farmer on the front and a drawing
of Hammurabi, ruler of Babylon from around 1792 to 1750 B.C.,
on the back.- 2004-04-25
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