* Dinar Daddy: The BIGGEST Concerns of the Dinar Holder
All,
Over the past several weeks, I’ve been addressing those things that I believe will help everyone holding Dinar prepare for ANY and ALL potential outcomes. This post is a follow up to my previous thoughts, and they address those issues I’ve concluded are the absolute biggest worries those holding Dinar are concerned with. I’ll address each, and will give my response as to what I feel one can do to combat each issue or concern.
WORRY #1: Devaluation
It’s my opinion this concern is very improbable. Why? Because the currency of the country of Iraq has ALREADY been devalued against that of other currencies of the world, including the US Dollar, and the market itself has already driven it back up 50% in value since its original devaluation.
With that said if you are that worried the currency will devalue, your best solution is to simply sell what you have now, take your % loss from what you originally purchased between what you can sell it to any participating bank, exchange counter, and/or Dinar Dealer, or sell the portion you hold you feel you can’t live without. You should probably have never purchased that much Dinar to begin with if you are missing that money in your life now that is currently tied up in the Iraqi Dinar.
Your other option is to be a “hold-out” on the Dinar. Simply take a very long-term approach to what you currently hold, forget about any rumor or short-term outlook, and move on with your life with little thought to the currency of Iraq, knowing one day you’ll hear something that will affect your next decisions relating to your interest in that country and its money. The term “shoe box” investment comes to mind when addressing this attitude. Put it in a shoe box and forget about it… maybe one day it will be worth something. This keeps many a follower sane.
WORRY #2: LOP/Redenomination
In this scenario, many are concerned that all current Dinar notes will “LOP” off the three zeroes from their currency and a 25,000 Dinar note will then become a 25 Dinar note with no change in value.
The only real combating strategy against this are three scenarios: liquidate now, long-term, and preparatory positioning of one’s holdings of the Dinar. Here’s what I mean with each:
- Liquidate Now: This goes without saying. If you can’t stand the heat, then get out of the kitchen.
- Long-Term: Just plan on holding your physical notes for a long time, knowing you may have to wait out such a change in the currency, and speculate over time that the currency can’t remain that low forever. Most would bail in this scenario, as they would be very disappointed with such an outcome.
- Preparatory Positioning: You place your holdings of Dinar in electronic form in order to set yourself up to holding on to your savings in this currency for an extended period of time. This is an add-on effort to the Long-Term scenario above. Instead of concerning yourself with holding currency in the physical form and all the worries that could bring to you as an Dinar owner, you trade it with that of your faith in a bank of your choice in Iraq, hoping your savings will be held safe and readily accessible within the volatile country. Doing this eliminates concerns over cash-in timelines and three-zero banknote denominations elimination.
WORRY #3: Short-Term Cash-in
There are many rumors out there claiming once the Dinar changes status or value (i.e. Revalues, Redenominates) there will be a very short window for holders to deposit their Dinar into an Iraqi Bank or cash in to ensure the value is retained or realized. The cash-in windows discussed have been as short at 10 days and as long as 18 months. Most claims seem to focus on either a 30 day or 90 day window. Neither is verifiable; however, there are some strategies that could help holders with this.
Here are my thoughts:
- Electronic Holdings: If you have a bank account within Iraq or that allows you to deposit Dinars into the account already set up when/if this happens, you’ll be able to quickly and efficiently move the remainder of your physical Dinar holdings into that account. It should only take anywhere from 24-72 hours to safely move all your physical banknotes into electronic form. If you’re concerned about any short-term scenario, you’ll want to ensure this is set up prior to any change.
- Pooling of Funds: This is a risky scenario, but if you were to be in a desperate situation and have no way of cashing in within the allotted timeframe, you could trust someone who already has an account set up with your physical notes to ensure cash-in or deposit of your notes. Yes, you could entrust your currency with them to handle it for you. I’d recommend you never do this without a notarized contract wherein BOTH signors agree to the end result of doing this, whatever that is. I’d consider this a desperate scenario and certainly a last resort between your notes becoming “toilet paper” or obtaining value.
- Fly to Iraq: Yes, this is one option I hope no one will need to resort to. Desperate times may require desperate actions and at the right value this could become a serious reality for some.
- Be One Of The First To Cash-In: If you are great at the game of “chicken”, you can wait and do nothing and hope you find a Dealer willing to cash-in your Dinars post “change”. This could be a real problem considering the millions of people who own Dinar.
WORRY #4: Post-RV Taxes
I’m not even going to address this other than to say… DEAL WITH IT! 
It’ll be a GREAT problem to have if this actually happens. Pay your taxes to those who’ve made the opportunity possible for you AFTER you’ve consulted with those who are experts in this area, then move on with gratitude for the gain. That’s all I’ve got!
The * Dinar Daddy: The BIGGEST Concerns of the Dinar Holder by Dinar Daddy's Tidbits, unless otherwise expressly stated, is licensed under a Creative Commons Attribution-ShareAlike 3.0 Unported License.
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