sos

It is one thing to have a forum that is open to an offering of unsubstantiated information and an informed exchange of ideas, but it is sad that there is no minimum benchmark standard for the level of education (not academic but a capacity to understand, process and posture LOGICAL streams of thought). Sad that this whole set of three pages of posts and no one pointed out that his initial premise is postured because he can not grasp the simplest of math ratios. If it went from an initial valuation of 4000 IQD to 1 USD to 1117 IQD to 1 USD IT WENT UP IN VALUE NOT DOWN!!!!! Get it? Now what were you saying folks???

Funny how a post that even the poster can say, Never Mind . . . and intentionally not say anything, and there will be 2 pages of replies including this one!

IAMDAMANZ is 100% correct. IRS does not view currency exchange as an investment, even though that was the reason for you acquiring the dinar. The other posters that offer their understanding of profits and losses regarding currencies are speaking of electronic transactions where they are actually trading on futures and hold no physical currency. Though this would be an anomaly, the IRS code that pertains to this situation is typically covering the simple exchange of dollars gained or lost due to currency conversion from and then back to dollars for travel abroad or foreign purchase and then return of products. None the less, any gains one experiences from the increased valuation of the IQD will be taxable as income.

Just under 3 million of my Dinar was purchased via ebay. Never burned. The benefit is that you can bid an amount well under the best "purchase" prices you can get from dealers and some of your bids will survive the auction and you get it cheap. I keep all bills in the envelope and with the receipts that they were shipped with. Over the 2.925 million dinar purchased, I have a net investment of .893 dollars per dinar. That includes any shipping costs. The down side is that when i did win a bid at such a cheap price the seller would sometimes be reluctant to fulfill the transaction and the shipping can be slow. Other downside is that you have to spend the time to bid on everything and right when it comes on ebay, in order to increase your odds of winning the low ones . It took me 1.5 months to acquire that amount from ebay.

I am not sure that I agree with your assessment. If the Dollar is at risk of loosing value due to a revaluation and subsequent exchange to USD, then you would be better off holding the dinar until the dollar stabilizes. Illustration of point: if $1 = 1 dinar at the time of RV and then slides until say $1= .80 dinar; Then instead of getting $1,000,000 US for your 1,000,000 dinar at time of RV, you would get $1,250,000 US for your 1,000,000 dinar after the USD slides to .80 dinar.

The Rothschild's banking enterprises, which either outright own, have controling interest in, or substantial interest in, the central banks of all but 5 nations. The US is NOT one of the 5. The Rothschild's got to where it is today by, among other strategies, financing both sides of virtually every global conflict in the last two hundred years. There can only be one victor in a conflict, but there can be two debt's.

You sound very pedestrian in your grasp and understanding of money matters. A high risk does not mean no returns, it traditionally means potentially high reward commensurate with potentially high risk. i.e.: dot com's of the late '90's.

Haha . . . i just had to relook at the photo. Now I see a guitar, before I thought he just had his gut hanging out.

That is the only senario that is logical, as contrary to the majority of posts here, an RV will be triggered by a restored economy and a sustained upward trending value to the dinar, and it will not be a restored economy triggered by an RV.

In addition to what you are pointing out, even if the translation were correct, and the budget were intentionally expressed in terms of Bahranian Dinar, that in no way means that the exchange rate of NID is the same as the Bahranian Dinar, just as if the budget were expresssed in US Dollars, that would not then mean that the NID would have a 1 to 1 exchange rate with the US dollar. Streams of logic rarely run through these rumor posts, and if they do run, they are not very deep.

The best way to tell is, if they are worth anything, they must be fake.

I find it both amusing and scary how many people come on here and freely illustrate how ignorant they are in their own financial matters and tax obligations. First, if you are holding dinar, it is cash and not a check. You do not cash it in for US dollars, or Euros or any other currency; you exchange it. Therefore, because you hold cash, if the currency you hold (any currency other than US dollars) increases in value against the dollar, even if you are still holding dinar, you are obligated to pay tax on the gain in value calculated in US dollars, by the end of the fiscal year in which you realized the gain. Quit thinking of the NID as a check. A check is a promissory note from the issuer, stating that they promise to pay you a sum of money, that they are holding until you redeem the check (cash it). Therefore you have not yet taken possession of the funds and thus can defer the receipt of the funds, and tax obligation, to a later date. Additionally it is the business of the IRS as to what financial gains you have experienced, and thus it is your responsibility to disclose the gain.

Let me just open the subject that you just closed to point out that if you presented your question to her the way you phrased it here then her answer would be correct but the information you are trying to derive from your question would not be correct. She is correct in saying that there is no tax on exchanging currency in any amount. However, if you experienced a gain (from the revaluation of the dinar in this circumstance), then there would be a tax on the amount realized. It is not the banks responsibility to withhold taxes or to determine if you experienced a gain at all. More over, you do not need to even exchange the dinar, as you may still be holding the dinar at the end of a tax period after it has increased in value, and you will owe taxes on the gain in value, reflected in US dollars, at the end of that year. You are holding cash and not a check so there is no “cashing in” the dinar; it is simply exchanging the currency dinar for US dollars. People want to discount the importance of how posts are crafted, written and constructed, but if you cannot accurately convey what it is that you need to know, or do in fact know, and then you leave room for understandings based on misunderstandings.

Better get yourself another CPA then. You are holding cash, not a check which is promisary note where the issuer holds the sum illustrated on the check until you cash it or redeeem it. The cash you hold just happens to be a different currency from US dollars. When the value changes, up or down, it is a gain or loss at that moment. You are not cashing a check, you are exchanging the currencey. Your tax obligation is based on the value of that asset represented in US dollars, even if still held as dinar, at the end of that tax year.

I offer the following not to support any position on what will or won't happen, but only to help you establish an understanding of why what ever Venezeula does is not an indicator of what could happen. Venezeula is one of only five countries that does not belong to the IMF. Thus they are able to do what ever they like to their currency value for domestic exchange, but this does not change what the IMF member countries recognize as the international exchange value. Infact, they apply one valuation for oil dollars (so their oil prices remain compettetive) and another valuation for domestic exchange so as to create the appearance of a strong economy, and yet another operational value that is recognized by foreign trade partners. The IMF's roll in our world economy is to establish a means by which we are able to maintain a parity of exchange between countries with dissimilar currencies so as to maintain a fair and equitable medium of exchange. This means that no country is able to just determine what their currency is worth based on what they feel benefits them the most. It has to be determined by all economic factors which track their ability to produce & supply goods and services in a free market economy.