The Iraqi dinar gained against the dollar today, but fell back to the opening level later as tensions between Sunni, Shi’ite and Kurdish political groups intensify, adding to the political turmoil and preventing an introduction of the much needed oil law.

Iraqi dinar can be an interesting option for traders who look for currencies with great potential for profit. But such potential often comes with higher risk. How investor can predict performance of the dinar?

Iraqi dinar slipped today on the speculation that Iraqi budget would post the deficit next year, decreasing the appeal of the currency.

The new Iraqi dinar, introduced in 2003 after the fall of the Hussein’s rule, became popular among some investors, who hope it would become much more valuable soon and would bring a big profit. Are such hopes justified or buying the dinar is buying the worthless paper?