KARACHI, Feb 9: The State Bank has warned people buying the Iraqi dinar that they must know that they are doing so at their own risk implying that it would not come to rescue them if something goes wrong.
Following is the text of the warning issued by SBP on Monday: "The State Bank of Pakistan has taken serious notice of the information through general public and media that some unscrupulous elements are engaged in trade of Iraqi dinars in large amounts.
They are misleading the public at large by claiming substantial appreciation in its value in the near future, and thus inducing them to buy the currency under this anticipation.
"In order to save the public from these unscrupulous elements the State Bank of Pakistan would like to caution the general public in their own interest that the value of Iraqi dinar or any currency and its fluctuations and movements are not pre- determined or known.
If they choose to buy the Iraqi dinar they should do so at their own risk fully knowing that there will be no fallback or recourse available to them in this respect."
Money changers after making handsome profits in the Iraqi dinar trading in Karachi lately focussed on the twin cities of Rawalpindi and Islamabad. In Karachi, some top money changers backed by big speculators created such a big buying euphoria for the new Iraqi dinar introduced by US forces in Baghdad that its price shot up from four paisa to seven-and-a-half paisa.
But then the speculators went for profit-taking and rapid offloading of the Iraqi dinar by them again brought its price down to four-and-a-half paisa in the city. The money changers then set sights on Rawalpindi and Islamabad and in their craze to make quick bucks they hoisted banners at their shops promising to the potential investors that the Iraqi currency would appreciate and bring them profits.
It is against this backdrop that the central bank found it necessary to issue a warning to those who are out to buy the Iraqi dinar on the assumption that its price would increase in near future.