- Business and Employment»
- Business & Society
What Will The Cash In Procedure Be For The Iraqi Dinar Post Revalue?
What Will The Post Revalue Cash In Procedure Look Like?
If you're reading this you are probably familiar with the Iraqi Dinar which is the currency of Iraq. You are probably also familiar with the reason people buy it. People purchase the Iraqi Dinar at today's low values. Today for example most dealers will sell a million Iraqi Dinar for around $980.
People purchase the Iraqi Dinar in the hopes of a revalue in which overnight it will rise sharply in value, possibly even returning to values around $3.22 US to 1 Iraqi Dinar in which case their $980 US Dollar purchase turns into over $3 Million Dollars USD.
If this were to happen which is a big if, people will need a way to cash out or cash in so to speak their Dinar for Dollars. Many people on blogs, forums, message boards, and conference calls make claims and throw out margins and other figures but much if not all of it is misinformation so in this Hub today we are going to give you the facts and address what a hypothetical cash out of the Iraqi Dinar will look like.
Many people claim they know margins, claim they are part of elite or special cash out groups, and that you must have a Certificate of Authenticity for your Dinar in order to cash it out. There are many other claims made, all which are essentially false.
The truth of the matter is that nobody really knows what a post revalue Iraqi Dinar cash out will look like because a revalue of a currency is unprecedented. It has never happened before. So for that reason anyone claiming to know exactly what a cash out procedure will look like is lying. Also, because this is unprecedented and because nobody knows what the rate will be or where the Dinar will have to be sold to, or what the market rate will be nobody can really say what a cash out procedure will look like, what the rate will be, or what type of margin people will pay.
We'll start by addressing the rumor you that you need a Certificate of Authenticity to cash out your Iraqi Dinar. This is patently false. If you've ever traveled internationally and came home with currency and went to sell back Euros, Pounds, or even Canadian Dollars to a bank or currency exchange did they ask you for a Certificate of Authenticity? Of course not. Currency has security features built into it. That is the guarantee that it's authentic. No piece of paper is needed.
Also, if you really think about it, why would a bank care about a Certificate Of Authenticity anyway. A Certificate is basically just a form made up and printed by dealers. It really doesn't show anything or prove anything, nor does the bank probably know anything about the dealer who issued it. A bank doesn't care about what some company who sold you the Dinar says, they will check the notes out for themselves. For that reason you will not need a Certificate of Authenticity to cash in your Dinar, you just need the Dinar. A Certificate of Authenticity is really nothing more than a marketing gimmick put out by dealers to add value to the product they sell.
Another common rumor out there is that you will need your receipt from purchasing your Dinar to cash it out. This is also pretty much untrue. It's not a bad idea to have a receipt and keep the receipt for your own records. I am not a tax expert nor an accountant so I can't tell you how taxes will affect you post revalue, however like stocks where your only taxed on gains, it may be helpful to have a receipt from purchasing your Dinar for tax purposes to show the price you bought at versus the price you cashed your Dinar out at so you can figure out and prove your gains for tax purposes. For actually cashing out banks and currency exchanges will most likely not care about where or when you bought your Dinar as long as it's authentic and legitimate currency.
Another big lie floating around out there is that there are elite or special cash in groups who already have banks agreeing to buy their Dinar. Many of these groups claim to have banks already agreeing to special margins. I find this hard to believe for a number of reasons. First, no currency in history has ever revalued before so anyone who would ask a a bank about buying in a currency they don't deal in, at a future date, for a specified price would be crazy. Banks deal in absolutes, not hypothetical situations. A bank is not going to agree to buy something from a hypothetical situation that may happen in the future.
Here's an analogy to explain this better. Remember the movie "Back To The Future" where Marty McFly rode a hover board? Hover boards don't exist, the technology is not there yet. Say I walked into a Walmart and asked will you sell hover boards in the future. Walmart would say I don't know they don't exist. Even more ridiculous would be asking Walmart to tell me the price for a hover board if and when they begin carrying them. Well not only do hover boards not exist but even if they do someday exist Walmart has no idea of guessing what the future price will be or what a vendor will sell it to them for so they would not agree to sell it nor would they agree on a price they would sell it at.
Same thing with banks. They are not going to agree to sell something on a hypothetical idea that it may revalue in the future. They also wouldn't agree to a rate or a margin either as the banks have no idea if they will be able to get rid of Dinar in the future and if so at what rate they will be able to get rid of it.
Exotic currencies or currencies which fluctuate a lot tend to have high margins because there's a lot of risk involved. For example the Argentina Peso currently has an official rate but is being bought at as much as 70% under the official rate for those reasons. For that reason it's very possible the Dinar will have an official rate hypothetically if a revalue were to happen but an official rate doesn't mean much. What matters is what rate you can actually sell your Dinar to a bank at and what rate they will be able to sell it off to their vault or a central bank at.
Well, I guess I have not laid out the post revalue cash in procedures so much as told you that nobody truly knows what they will be. The revaluation of the Iraqi Dinar is not an absolute, to be honest it's not even likely, it's a theory some people have essentially based on rumors and speculation not fact.
Even if these people are right and the Iraqi Dinar does hypothetically revalue one day, nobody today can tell you what the cash out procedure will be. What rate it will revalue at, or even what margin off of that rate you will get. Don't believe people who talk a good game claiming to be in the know. The truth is nobody truly knows and anybody who tells you they do is lying.