Iraqi Dinar 50 Notes Being Called Back... Now That's Irony - Are 50 Notes Going To Become Worthless?

Over the weekend and potentially even the last week we have been hearing a lot of rumors about Iraqi Dinar 50 denomination notes being cancelled or called back or made worthless. We recently did an article about this sharing the limited bit of information we know and  you can read it HERE.

So why is this situation somewhat ironic? People buy small notes for a variety of reasons but years ago there were rumors that large notes may be taken out of circulation and would need to be swapped out. The rumors surrounded mainly the 25,000 note but also in some instances the 10,000 notes as well.
iraqi dinar 50 denomination note worthless
Iraqi Dinar 50 Notes Being Removed?
The story was that potentially Iraq would do away with larger denomination notes as the currency got stronger and people holding large notes would be left holding the bag. Because of these rumors many people ran out and purchased 50 denomination Iraqi Dinar notes at a very steep premium, oftentimes to the tune of $6,000 or $7,000 per million where as they could have bought the same notes in 25,000 denominations for about $980.

The irony is that people who bought 50 notes to protect against having their notes called back are finding that by doing so they are still finding themselves in that very same situation and would have been better off buying 25,000 notes.

To date however concrete or from credible sources has really come out about if the 50 notes really are being called back and if so will they just stop printing them and allow them to retain the value or will they call them back and make them worthless if not swapped out at an Iraqi bank by March? Only time will tell. Stay tuned and check back for updates on this breaking situation.

Iraqi Dinar 50 Denomination Notes... What's Going On? Are 50 Notes Going To Become Worthless?

There's been a lot of buzz lately on message boards, forums, blogs, and Youtube about the Iraqi Dinar 50 denomination notes being taken out of circulation and made worthless comming here in March. So what's the real story and what's really happening with the 50 notes?

Despite doing a lot of research we really don't have a concrete answer for you. I've heard many people saying you have until March to swap them out and if you don't they become worth $0 and you're holding nothing more than a fancy piece of paper.

iraqi dinar 50 denomination note going away
Are Iraqi Dinar 50 Notes Being Recalled?

That said I've also heard from several different people Iraq is actually planning on rolling out a new 50 denomination note which will be "polymer" or plastic, similar to the Vietnam Dong.

To date however we have yet to hear from a credible source one way or the other about the 50 notes. Here is something interesting however. Despite all our searching we could only find one example of a country doing away with a single note and not the entire currency. This example is the Canadian Dollar. What Canada did is stop printing pennies or 1 cent denominations. If you could like to read the article for yourself you can so so HERE.

One interesting distinction to make between the Canadian example and potential Iraqi Dinar 50 note scenario is that at least initial reports of the Dinar are not that they are just discontinuing the printing of 50 notes, but more importantly that the 50 notes if not turned in by the deadline will become worthless.

The Canadian Dollar however is a completely different story. The Canadian Penny as that article states will still be legal tender. Pennies will still be foating around, you can still spend pennies at the store, they just won't be printing anymore. That differs from what's being reported about the Dinar in that the Penny though discontinued still retains it's value where as the Dinar, at least as far as initial reports are saying will become worthless.

So is this 50 note ordeal really true? Maybe, maybe not, I'm still not yet sold on the story. Here are a couple issues I have with the story as told.

First, the deadline to turn notes in is sometime in March. Not saying this isn't true but typically when a note or currency is outmoded you are generally given about two years to swap out your notes. This seems odd they would only give a matter of months.

Secondly, in the example we gave above of the Canadian penny, a currency being outmoded is different than just geting rid of hte lowest denomination offered which doesn't make financial sense to produce. It seems odd they would make the 50 notes worthless versus just stopping making them and allowing the current ones to circulated.

Lastly on a totally seperate note, what does getting rid of 50 notes mean for the future of the Iraqi Dinar? Well potentially it could mean nothing. It could be that now that they have coins out in the denominations of 25, 50, and 100 there really isn't a need for a 50 note. One thing that it may mean is if the Iraqi Dinar were going to get stronger in value there would be a reason and incentive to keep small notes because they would be more usable in trade than at the current value of 4 cents. If Iraq planned on having a more valuable currency they would probably keep issuing new smaller notes, not taking out of circulation existing small notes.

To date we've yet to see any Dinar dealers roll out a buy back program for 50 notes and honestly, even if one did, unless you have a significant amount of 50 notes it's probably not even worth trying to swap them out. At a value of 4 cents per note, which a dealer will want to take a cut on you'll be lucky to get a penny or two per note.

As soon as some news which is more concrete and more credible comes out we'll update you but this is what we know for now.

Zimbabweans To Be Compensated As Local Currency Is Demonetized - What Does This Mean?

A reader of ours forwarded this article along to us. This article seems to come from a legitimate news organization and some some Guru site. That said what does this mean? Of that we are unsure. Give the article a read yourself and if you have any thoughts or opinions feel free to post in the comments section below...

Image result for zimbabwe
Zimbabweans To Be Compensated Fully

Zimbabweans to be compensated fully as local currency is demonetized

HARARE, Feb. 23 (Xinhua) -- The Reserve Bank of Zimbabwe (RBZ) will use the rate of one U.S. dollar to 35,000 Zimbabwe dollars as it moves to demonetize the local currency and compensate account holders who lost their savings when the government introduced multi-currencies in 2009.

RBZ Governor John Mangudya told Xinhua in an interview Monday that everybody who had an account as of December 2008 would be awarded a blanket five U.S. dollars per account regardless of whether or not there was any credit in their bank balances.

Mangudya's comments allay fears that had beset the banking public which suspected that the RBZ wanted to credit the accounts with only five U.S. dollars and disregard the balances in the accounts at the time of the introduction of the multi-currencies.

The Confederation of Zimbabwe Industries also issued a statement recently urging the RBZ to fully compensate account holders.


Iraqi Dinar Money Scam 2015 - February 1, 2015 Came & Went - NO REVALUE

The Iraqi Dinar Money Scam 2015

Okay, so let me start this off by saying there is no Iraqi Dinar money scam going on in 2015, just as there was no Iraqi Dinar scam going on in 2013 or 2014. The Iraqi dinar is simply a currency. People who buy Iraqi Dinar are simply doing a currency exchange. This is no different than someone buying a few hundred bucks of Mexican Pesos for an upcoming family vacation. There is no scam, you're simply conducting a currency exchange. If you're not happy with the rate you got, you didn't get scammed, you just didn't do a good job of shopping around and comparing rates. With that said keep in mind nobody ever gets the spot rate, that is reserved for large banks and government to government transactions, and even then, they typically pay some margin even if it's fractional and almost nothing.
Is The Iraqi Dinar A Scam?
Is The Iraqi Dinar A Scam?
February 1, 2015 was the day many Gurus and people alike were saying the Iraqi Dinar was going to revalue. Well 02/01/2015 came and went and there was no revalue. On the cbi.iqd website which is the website of the Central Bank of Iraq, the rate is still showing good old 1164/1166.

I honestly cannot say I'm surprised, we have heard dates called and rumors time and time again in the past, however this time there seemed to be even more excitement than usual which peaked my interest a bit, but again, was not expecting anything to happen. As I've said many times in posts, I don't expect an overnight explosion in value or any increase in value necessarily, however if one were to happen as I've said from the start it would be a slow and gradual gain in value not based off rumors but based upon increasingly positive news and developments in Iraq both economically as well as politically and just a stabalization in the daily lives of Iraqi's and a drop in violence and chaos.

So Is The Iraqi Dinar A Scam?

Again, no the Iraqi Dinar in itself is not a scam, nor is buying the Iraqi Dinar. As we stated above that is simply conducting a currency exchange.

So When Does The Iraqi Dinar Become A Scam?

  1. When a Dealer sells options for which they do not have the physical currency in stock to back.
  2. When a Dealer promises or gurantees a specific percentage return on the Dinar.
  3. When a Dealer sells you counterfeit Dinar.
  4. When a Dealer takes your money and doesn't send Dinar.

The above situations are examples of actual scams. Simplying saying something is a scam because you bought it and have not become a millionaire is not a true assessment of a scam. I have invested in many things which have not panned out from stocks to precious metals, that doesn't mean it's a scam, it simply means I didn't make a wise investment or I didn't buy at the right time, remember buy low sell high. Just because an investment doesn't turn profitable doesn't mean its a scam. Some investments are losers for years before finally turning into winners. Just look at Facebook stock. I bought some Facebook stock shortly after the IPO. I sold it when it dropped and lost a boatload of money. Less than a year later Facebook was up. There is a perfect example of how an investment can be a winner or a loser simply based on timing.

The above examples however are clearly examples of unethical business dealers, and in some cases depending on circumstances scams or fraud.

Wrapping up, as we stated, the Dinar is not a scam it's a currency. Buying Dinar is not a scam it's a currency exchange. This isn't to say you should buy Dinar or even that it's a wise investment or a wise use of your money but simply conducting a currency exchange is not a scam as long as you get what you paid for and it's authentic. 

Who Is Cash For Dinars? Should You Sell To Them?

I've gotten a number of comments as well as e-mails from readers asking questions about the company "Cash For Dinars" who operate the website CashForDinars.Com. Most people are asking if it's a trustworthy place to sell Dinar, as well as if I have had any experience with them.

I did however find a review from a customer of theirs on Youtube which you can view below...

Though I have not had any personal experience with Cash For Dinars, I am aware of them and have seen numerous ads of theirs on Google as well as Dinar forums and websites. Below is an image of one of their Google Ads which come up on almost any search regarding the Iraqi Dinar.

As you can see in the Google ad, Cash For Dinars is advertising that they pay $875 per million Dinar. That's a pretty attractive price considering most Dinar dealers are only paying around $780 per million for Dinar. Not only is this above what most other dealers are paying, Cash For Dinars is actually paying more than the Dinar is even officially worth; as the Iraqi Dinar is currently trading between $864 per million and $866 per million. So what's the catch? There has to be a catch right?

After doing a bit of research and calling Cash For Dinars to inquire about their buyin process and what's required to get the full advertised price here is what we've found...

Cash For Dinars Requirements To Get Paid $875

  1. Iraqi Dinar must be in uncirculated condition.
  2. Iraqi Dinar notes must all be in sequential serial numbered order or it will be considered circulated
  3. Must have origional receipts
  4. Must have certificate of authenticity

Again, I cannot personally attest to the service and reliability of this company, it does seem they have plenty of Facebook fans and positive reviews on the internet. It seems as if they are a reliable source to sell your Iraqi Dinar to. That being said they also seem to be stricter than many other dealers in terms of what is required to get their full asking price.

If you have personally dealt with Cash For Dinars feel free to leave a comment below detailing your experience to help other potential Dinar sellers decide where to sell their Dinar. 

Your Iraqi Dinar Notes Are NOT Registered With The US Treasury

For years we have been hearing that you should buy your Iraqi Dinar from dealers who are Registered with the US Treasury. There seems to be some confusion however in what that actually means.

When browsing blogs and forums it's not uncommon to see people making mention of the fact that their Iraqi Dinar banknotes are Registered with the US Treasury. These individuals seem to insinuate that the actual notes they hold are somehow registered by serial number with the US Department of the Treasury. Others seem to insinuate that Dinar sellers get their notes from the US Treasury. We have done a few blog posts in the past clearing up many of these mis-informed ideas however they persist on message boards.

Just to further clarify. An Iraqi Dinar dealer should be registered with the US Treasury as a Money Services Business (MSB) or a currency dealer. The dealer who sells you the currency is registered, however each individual note is not registered.

Is The Iraqi Dinar Going To Revalue February 1, 2015?

Is The Iraqi Dinar Going To Revalue This Sunday?

The internet is a buzz with rumors that the Iraqi Dinar is set to revalue February 1, 2015 which is just a few days away. The rumor is Iraq has passed their budget, though it's officially not going to be released for a few more days and then the Iraqi Dinar will be reset to it's previous value when Saddam Hussein was taken out of power.