Below is a link to a CNBC video with Jim Cramer discussing the possibilities for investing in Iraq and the new Iraqi Dinar. Inevitably, this new currency will turn into what is commonly referred to as a "petro-dollar," or a currency that goes up and down with fluctuations in oil prices. The reason for this is due to the fact that the nation's primary export is oil, and thus that will be the primary reason why foreigners will buy the Dinar.
The new Iraqi Dinar.
As a way to invest in the future growth and prosperity of Iraq, the Dinar is a perfectly logical strategy. The wild-card in this scenario, however, is any instability in the region, and in the United States' willingness to maintain the defence and governance of this overseas dependency. If it becomes clear that the United States will not maintain Iraq as a protectorate or dependancy, then the currency will surely be under serious pressure because the investing public will lose confidence in the country's ability to maintain its own security, and thus the security of its medium of exchange.
For the more cautious investors, looking for a company that operates successfully in Iraq may be a better way to explore this investment opportunity. One interesting company is Heritage Oil, which is listed on the Toronto Stock Exchange under the symbol HOC. It operates in the Kurdistan region of Iraq.
Above is an image of the region where Heritage Oil operates.