Rocky2

Dear Randy, I would like to understand your statement that the total annual revenue for Iraq is 26 billion dollars. Please consider the revenue from only oil. Iraq is shipping out at least 2.7 million barrels a day. The price of oil is at least $85/barrel. When you multiply 2.7 million times 365 days in a year times $85, the total is over 83 billion dollars. I am using very conservative numbers and have taken into account any revenues from natural gas or any other exports. Please clarify the disparity. Rocky2

TONY TNT not only failed to give a link showing the tax form he got his intel? from but he didn't give us the verbage used on the tax form. I personally checked ALL of the tax forms for 2011 and there is no mention of foreign currency ANYWHERE. TONY TNT is either a liar, an idiot or a DEMOCRAT. Tony must be a Californian democratic granola bar, i.e. once you take out all of the fruits and nuts, all you are left with is a bunch of flakes. GO RV

Since you are in Iraq, can you comment on the post that said an oil company employee went to the bank in Iraq and said that there was a sign that said there was a new exchange rate for the Dinar. He said the new rate was $4.40 per Dinar. Is there a RV of the Dinar in Iraq at this time?

Today, I went to the Fifth Third Bank in Boca Raton, FL and bought 500,000 IQD for $528.50. That is equivalent to $1.057 per thousand or $1,057.00 per million. They said I needed to buy at least $350 worth of Dinar to avoid a $10 service fee and that the transaction had to be paid in cash. They said they would order the currency for me and it would take about one week to arrive, but even if the Dinar RV'd before I received my Dinar, my transaction is locked in at the current price. They also said that their present policy is that a person can only cash in $5000 worth of Dinar per day. Their current cash-in rate is more than 33% lower than their selling price (about $700 per million). They said they expected this policy to change when the currency RV'd. I also asked them to verify the validity of the IQD that I bought from Dinartrade. They did and said the currency was valid and accurate. This relieved my fears about this being a scam or that the currency was counterfeit. It also encouraged me that the RV will happen since the bank is already expecting changes in their policies when the RV happens. I did not get any info about rates or dates. I hope to be able to hold on for 1 year so that I get the highest exchange rate and only pay 15% long term capital gains taxes. GO RV.

I have been looking for a way to reduce my tax liability when the RV happens. I have been told by my CPA that when I cash in my dinar for dollars, I will trigger a taxable event and I will have to pay either short term capital gains tax or ordinary income tax (i.e. about 35%) since I bought my IQD late in 2010. When the RV happens I want to cash in as soon as possible because of all of the trouble in the MidEast. However, my question is can I exchange my IQD for a different foreign currency that will be a lot safer and hold it for one year and pay long term capital gains tax? Does changing one foreign currency to another foreign currency trigger a taxable event or do you only have to pay taxes when you convert your currency investment to dollars? If buying another currency is considered a currency investment and not a taxable event, then which foreign currency should I choose for stability and possible future growth? Also, does anyone know the best way to exchange one foreign currency for another foreign currency? Since the outlook for the US Dollar does not seem to be very good, I am thinking of putting my money in a safer currency anyway in case the US economy has a meltdown. GO RV

Just visited Chase bank, Wells Fargo Bank and Bank of America today and talked to bank managers, investment consultants and personal banking assistants. They all said that their bank will order foreign currencies at the request of their customers, usually for people who are traveling out of the country. THEY ALL SAID THAT THEIR BANKS DO NOT SELL OR BUY IRAQI DINAR. Chase Bank said that they sold Iraqi Dinar in 2009 but they do not sell it now. They all stated that there is a 10% to 25% spread between price of buying a currency and price that the bank will buy a currency. Euros and Canadian Dollars are among the smallest spreads and the Middle East countries tend to have the highest spreads. Wells Fargo main office said that they are planning to be able to buy and sell Iraqi Dinar but that they will not be ready to do so FOR ABOUT 10 MONTHS. None of them had any information about the RV and none of them have ordered De La Rue machines to be able to handle Iraqi currency. They were all skeptical about this type of investment and one manager said that it could be possible that Iraq could recall their current currency and issue new currency at a new rate. I live in Venice, Florida so you can call and verify this information with the banks here. If anyone has different VERIFIABLE INFORMATION, please reply or post it. My opinion is that there will be an RV but I think it is months away and the rate change will be done in small steps. Good Luck to all.

Sorry, you are right. The dates for Jan and Feb should be 2011.

To have its currency revalued, Iraq must submit a request to the IMF and World Bank for revaluation of its currency and give them a desired rate. Iraq also has to submit 2009 and 2010 financial reports and their approved budget for 2011. After the IMF and World Bank review the information they will either approve or disapprove Iraq's request. If they disapprove, they will tell Iraq what rate they will approve and why. If they approve the request, then it will be published on the UN Treasury Opertional Rates of Exhange site on a scheduled date with an effective date of the rate change following a few days later. The Publishing Date for changes in the Rates of Exchange in Jan 2010 are Jan 12 and Jan 28. The subsequent Effective Dates for the Rate of Exchange are Jan 14 and Feb 1, 2010. No new rates for any of the world's 220 currencies were published on Jan 12. The Iraqi Parliament will see the new revised budget for the first time tomorrow, Jan 13. Therefore the earliest that a change in Iraq's rate of exchange can occur will be Feb. 1, 2010. Also several protocols must be passed by the Iraqi Parliament to officially have the UN sanctions lifted therefore allowing a rate change. We have no choice but to wait until Jan 28 and see if Iraq can meet all that is required for a rate change. Prayer can also be a big help. Best Wishes to All.