How Understand Exchange Rates When Viewing Iraqi Dinar & Vietnam Dong Rates Of Exchange?
A common misunderstanding among buyers of the Iraqi Dinar is how to read and understand exchange rates. Many buyers also don't understand why the price or rate they pay for Iraqi Dinar is higher than that of the rate posted on the CBI or Central Bank of Iraq's website. The value of the Iraqi Dinar today, as of this article being written, is 1166 IQD per USD. This means for every US Dollar you get 1166 Iraqi Dinars. This number is often written in the inverse, meaning you may see the rate posted as 0.0008576329. This means that one single Iraqi Dinar is worth 0.0008 of a US Dollar; a fraction of a penny or 1 US cent. Therefore, the value of the Iraqi Dinar today could be posted as 1166 or as 0.0008576329. Both tell you the same thing. If you understand the exchange rate better in one form over the other it's very simple to figure out the inverse. If the rate is posted as 1166 and you prefer seeing it in decimal form all you need to do is take 1 and divide it by 1166 and you will wind up with 0.0008576329. On the other hand if you see the rate posted as 0.0008576329 and you prefer seeing it the other way around all you need to do is take 1 and divide by 0.0008576329 and you will wind up with 1166.
Many buyers get very confused when they see the exchange rate posted in a form they are not used to but it's very easy to flip and it and see the exchange rate in the inverse way if it's easier for you too understand that way. Moving on we'll now discuss why buyers don't get the same exchange rate or value they see posted on the Central Bank of Iraq's website. With any currency there's a cost associated with acquiring the currency. Even more so when your acquiring the actual paper money or physical currency as opposed to just trading in currencies electronically like on the Forex Markets. That being said the Iraqi Dinar is not a pegged or traded currency and is therefore not traded or posted on the Forex Markets. Even with common currencies like the Canadian Dollar you'll often pay upwards of a 12% to 15%
spread just to buy the currency, sometimes also accompanied by a service charge. With "exotic" currencies like the Iraqi Dinar, Vietnam Dong, Indonesian Rupiah, South Korean Won, and others there's generally an even higher cost or spread associated with acquiring these currencies as they are less common and harder to get. Currently the Dinar is being sold at anywhere from about $1,000 to $1050 per million with $1,000 being on the low end. If the Iraqi Dinar is being sold at $1000 for a million Dinar that works out to a rate of 1000 Dinar per Dollar. The difference between the official rate of 1166 and the 1000 you are getting is called the spread or the margin. I know it may seem high, you are losing 166 Dinar per US Dollar off of the official exchange rate. When you take into consideration however that each Dinar is worth only a fraction of a penny, it's not as high as it appears. You should also take into consideration that the dealer your purchasing your Dinar from is also not pocketing that extra 166 Dinar. Every step along the way in the currency coming out of Iraq to a neighboring country, then to large brokers, then to smaller brokers, and then to dealers. Every step along the way someone is taking a cut for their work and for the service they provide. Everyone along the way is making a small cut. This should explain how to read and understand exchange rates as well as why the posted rate is not the rate you receive when purchasing Iraqi Dinar. One last thing. Before you spend countless hours trying to find better rates and trying to find a way to cut a dealer out of the action and go to the source to find a cheaper price, most brokers, even smaller brokers have minimum order requirements of 100 Million Iraqi Dinar or more. Which even at the official rate which they are not even getting, works out to an order of over $850,000. As with anything, price breaks come with volume and to get any where near posted rates you need to buy huge volume, and even then you'll be paying a spread, all be it a slightly smaller one. For more information on, Buy Vietnam Dong,convert vietnam dong to usd,Please visit:BuyIraqiDinarHere
Published on Oct 22, 2013
A common misunderstanding among buyers of the Iraqi Dinar is how to read and understand exchange rates. Many buyers also don't understand wh...