2006-09-12 17:41:10 · 2 answers · asked by Anonymous in Business & Finance ➔ Investing
You can buy about one million Iraqi Dinars right now for about $3,000 US, and just hold it.
2006-09-12 22:28:58 · answer #1 · answered by dredude52 6 · 0⤊ 0⤋
if i understand correctly, what you are referring to is "arbitrage" (taking advantage of fluctuations of exchange rates). however, computer programming has improved to the point where exchange rates are realtime, and arbitrage has been reduced to 0.
however, if you are referring to speculation in buying and holding currency, you have to take the macro-economic indicators into effect when purchasing. For example, 5 years ago the US dollar vs. the Euro was strong (the purchase power of $1 US could buy 1.25 of Euro). Fast forward to today, and the roles are reversed. You have to pay $1.25 to get 1 Euro due to the weakening of the US economy due to public policy, oil situation, war on terrorism, etc.
2006-09-13 00:52:47 · answer #2 · answered by mr. answerman 2 · 0⤊ 0⤋