Denomination Question

[CET]

Can someone please tell me if it is better to invest in the lower denoms now ?? I wanted to purchase more IQD but wanted to buy wisely. Thank you.

[4aprofit]

The smaller denominations are not for everyone, as many consider them too expensive...but, that is primarily due to there being more notes to make the same million...(i.e.)...A million of the 50 notes equals 20,000 notes, can cost from $7-10,000.00 +....takes up about as much room as a small foot locker, not to mention that there is much more expense as per the shipping costs due to weight, other logistics, especially as per time in handling, counting, moving bulk, etc....Some still consider these as an insurance policy...like say the dinar comes in at 1.00...then rises after the call in of the larger notes....(if this happens)...say the dinar rate goes to $2, 3, 4 or 5.00 over a period of time that there are no restrictions on turning in the smaller notes..(if this happens this way)...for a hypothetical, let's say it rises at a later date from a $1.00 rate to a $4.00 rate, therefore then one could take appx. let's say 1/4 of the amount of dinar in the smaller notes, (that they may have paid upwards of the amount of let's say $2000.00+/-)....compared to what they previously held in large notes, at appx. half the costs, and possibly get the same 1 million dollars later down the road...but, this is not what the main issue is that some are looking at...many wish to use these smaller notes to tithe, for gifting to friends and relatives, etc., help siblings, primarily putting them in a position to be able to just cash in smaller amounts, and/or cash in various smaller amounts through different family members or a spouse, as per tax advantages, so as not to go over a certain amount of taxation per year, (as per staying under a certain amount redeemed in a given year as per the taxation for the same)...some have mentioned using them for travel, (The main thing I have heard, is let's say that a parent has a need from a child, that needs to pay tuition for college, or let's say they want to buy a car, a church needing some help, etc., etc...Many dont want to go down to a bank and create a large tax event and issues involving the Bank, CPA, Tax Attorney, any issues involving Trust's or LLC's filings and paperwork, not to mention, the taxation that may be deducted, before they even get started, due to being such a large amount of money to deal with, so as just to get a little money for small needs...when they may possibly and legally...(Check all laws first)....give the recipient a smaller note, and let them deal with the tax complications themselves, instead of both of you paying taxes up front, (Some folks have notes, large and small, already transferred to those that they wish to help prior to an RV, some will do this post RV, so that it is already out of their name), (Non-Profits are exempt anyway, so why should you pay a non-required tax first, to simply give it away, when they could recieve all of it...legally)...or even if it's not a tax-exempt entity, you dont want to be hit with taxes on the both of you...especially right out of the gate upon gifting...Many have said that they would also like to be able to trade dinars for items, (again,check all laws first)...as sometimes, in some instances, there are no taxes until you sell the item you have traded for...as it is not a typical purchase, but a simple trade...but, from my unerstanding, upon the sale of the item that was traded for, then taxes will be due upon the recieivng of any monies...we will see, but as of now, or to the best of my knowledge, no one knows even what type taxation there will be, from a windfall of an event such as an RV...so, IMO, as with this with the smaller denominations, I dont think anyone knows what can or cant be done, or legally with these either..until it happens...as you can call 10 CPA's, 10 ?Tax Attorneys, and 10 IRS Agents...and will probably get a different answer from all of them...lol.....IMO...I hope this helps....but what do I know?....to each his own?.....for what it worth....

Edited November 17, 2011 by 4aprofit

[CET]

Thank you, it does help .. Appreciate your detailed response

[md11fr8dawg]

Thought everyone might be interested in this article. Any comments as to what it might mean compared to what has already been discussed??

Iraq working to reduce the mass of cash through the deletion of zeros

16/11/2011 14:31

Baghdad, November 16 (Rn) - The Central Bank of Iraq on Wednesday that seeks to reduce the monetary mass of 25 trillion dinars to 15 billion dinars over the deletion of zeros to facilitate cash transactions in the financial markets and banks.

Iraqi dinar, Iraq money The appearance in favor of Bank vice-president, told the Kurdish news agency (Rn) that "Iraq today is dealing lump cash of $ 25 trillion Iraqi dinars, while the largest currency which does not exceed 25 thousand Iraqi dinars, and the purchasing power it does not exceed $ 23."

He pointed out that "in cash transactions in the Iraqi market needs a large amount of banknotes and thus there is a difficulty in the transfer of funds in the form of bags in case of large transactions."

Saleh pointed out that "the Iraqi banks do not accept deposits, sometimes due to problems in number and the account for such large amounts of money."

The vice president of the bank "We want to usurped the money supply of 25 trillion to 15 billion dinars," adding that "the central bank fixes the payments system in Iraq and the policy of the monetary authority."

He stressed, saying "monetary mass will be reduced soon, through the issuance of new currency by three zeros are canceled."

Salih stressed that "this action is an important part of the reform process will facilitate the management of currency and payment system and the elimination of the vestiges of past inflation through the mass of strong cash handling and easy."

From: Sam and dry. Open: Abdullah Sabri

[jmw]

Can someone please tell me if it is better to invest in the lower denoms now ?? I wanted to purchase more IQD but wanted to buy wisely. Thank you.

There is no value in owning smaller denominations...they can't change the value of some of their currency...it has to be all of it. To have smaller denoms you will pay a premium which will make it more difficult to recoup your investment.

If someone tells you it is worth doing they are either uninformed or flat out lying to you...sorry to be blunt...but there isn't a good argument for paying a premium for them.