* Dinar Daddy: Clarification on Previous Post (Dinar, RV, Cash-in, Banks, etc.)
All,
It has come back to me through Breitling that many are concerned I’m down on the Iraqi Dinar. I’m posting this to clarify what I posted previously. Simply put, I’m a firm believer one should be aware of all possibilities, and do their very best to prepare for any scenario. Furthermore, due to the challenges of holding the Iraqi Dinar (listed below), it’s important that SOMEONE speak of things that may not be what we all want to hear, that being those possibilities no one wants to address that would not leave holders any significant of a return, or even a loss.
The Challenges of the Iraqi Dinar Currency:
- Liquidity
- Exotic Currency
- Volatile, Dangerous 3rd World Country
- Currency NOT internationally recognized
- Currency on OFAC List
- Iraq under Chapter 7 sanctions by the United Nations
- Political pressures pulling decisions within Iraq every which way
- Iran greatly influences Iraq and their politicians’ decisions
- Iraq moves VERY SLOW in every decision they make
- Uncertainty about world currency markets in general (i.e. USD concerns, Chinese Yuan worries, etc.)
- Rumors/statements by the Central Bank of Iraq that the currency will be “Re-Denominated”.
Anyway, please note I’m doing all I can to prepare everyone for what they could be facing good or bad in holding the Dinar. The ONLY intent beyond that is simply to instruct ALL to improve their ability to make a gain on holding the Dinar by having an “EXIT” strategy. How do you do that? Well, by knowing your options with known participating cash-in locations (very few guaranteed locations at the moment), and by setting yourself up with an Iraqi Bank account wherein you can hold Dinar electronically versus the physical currency, you can accomplish that.
What are the benefits of holding an Iraqi Bank account? Here are my thoughts:
- When holding electronic funds, you hold NO “Denominations”, so the oft-discussed “Re-Denomination”, should it occur, would not impact you other than the amount that would show within your account.
- When holding electronic funds, you can keep the bank account for as long as you wish, not concerning yourself with any rumored “timelines” for cash-in.
- When holding electronic funds, you can cash-in by simply giving the bank instructions to wire your funds to you whenever you wish into whatever country, bank, or currency in which you hold another bank account.
Here are the risks of holding an Iraqi Bank account:
- If you don’t know the bank, it could take a considerable time getting them to respond or send your funds.
- Iraq’s version of customer service is NOT the same as the western world’s.
- The volatility of Iraq is concerning. Can the banks be protected, and will Iraq hold up? If they can’t and it doesn’t, then I’d say your current holdings of physical currency really doesn’t matter. You’d lose either way.
- Creating an account in a foreign country is concerning because there’s no real way to even become familiar with the bank OR the country enough to feel your funds are safe. It’s not an easy decision.
- There aren’t a LOT of options for Banks citizens of the western world to be able to work with and set up an account within. This poses a concern for many.
With all the above said, all I can say is be vigilant. Don’t get in a hurry to set up a “Warka” account. Know your options!
Here are a few of them for your consideration:
- Decide what percentage of your holdings, should you choose to hold some of your Dinar in a bank account in Iraq, you are willing to entrust with an Iraqi Bank.
- Decide which institution you feel comfortable setting up a bank account with.
- Know there are MORE options than just Warka Bank.
- Make sure you are comfortable with their level of customer service, and with the way you can make deposits with them (i.e. shipping your holdings half-way around the world into a unpredictable country) before you send your Dinar to their care.
This is an extensive list of concerns and things to think about prior to your making a decision in this regard. I’m just doing my best to help prepare anyone who will listen. I am working on a solution to many of the concerns listed above that I believe I’ll be able to introduce within the next month, maybe even sooner. If the above is just too much for you, then please be patient and wait for me to come forward with a potentially more palatable option for everyone wherein I’ve received approval from the highest sources to introduce. I hope you can understand where I’m coming from, and know I’m not “down” on this investment other than I’m very impatient for things to “change” in status. It’s clear greed and power have interfered with what should have happened a LONG time ago. I still fully hold confidence and hope the value of the Dinar both you and I hold will increase in value against the other currencies of the world.
The * Dinar Daddy: Clarification on Previous Post (Dinar, RV, Cash-in, Banks, etc.) by Dinar Daddy's Tidbits, unless otherwise expressly stated, is licensed under a Creative Commons Attribution-ShareAlike 3.0 Unported License.
Comments
-
-
Follow Dinar Daddy
-
-
Currency Converter Powered by Forex pros - The Forex Portal -
