Some call it cashing out, others call it cashing in, some call it doing a currency exchange. Whatever you call it, what will be needed and won't be needed when you decide to sell your Iraqi Dinar. In this article we are going to kill all the mis-information regarding this issue which is why the article is titled murdering the mis-information.
Without further adue, let's jump into this...
Myth 1: You will need a Certificate Of Authenticity to sell your Dinar?
This is completely false. You don't need a COA to deposit US Dollars into your bank. You don't need a COA to sell off leftove Mexican Pesos from your vacation, and you won't need to show a COA to sell your Dinar. Say hypothetically you are selling your Dinar to a bank. The bank is not going to care what some third party company they have no affiliation with says about the legitimacy of your currency. They will inspect the notes for themselves to verify authenticity. A Certificate is not needed and a bank or currency exchange would have no interest in seeing one.
Why is this? Well first off the COA is issued by the company selling the Dinar, of course they are going to say it's real. It's not like with coins or memorbilia where an unbiased third party company is validating the item. COA's are issued by the very Dinar dealers who are selling Dinar.
Furthermore, a COA really doesn't prove notes are real. I'm not aware of any COA's which record the serial numbers and order number of the purchase. Because of this there is no way to definitively say a particular COA goes with particular notes. A COA could really be paired with any notes, even fake notes, because theres no way to tie them together via serial numbers.
So you may be asking yourself, then what is the purpose of a COA? Well part marketing gimmick, part novelty. A COA has no practical value in cashing in your Dinar as it proves nothing. Now days pretty much every dealer offers a COA, but early on only a few did. It was a way for Dinar dealers to seperate themselves from others. Not knocking them for giving COA's, its kind of a cool collectible item or keepsake. It shows the dealer stands behind their product and gurantees it's legit, however it really has no practical value.
Myth 2: You will need a receipt to cash in
False, you will not need a receipt to cash in. Currently some dealers will only buy back from customers who purchased from them and they may require the origional receipt, however this is just their company policy, it's not a rule for cashing in Dinar.
If you were to sell to a bank or currency exchange they would not ask you to see a receipt, just as the currently don't ask to see receipts to sell them physical foreign currency.
The only value a receipt MAY have is to prove a long term capital gain if potential Dinar profits would be taxed as capital gains. There seems to be a lot of disagreement whether potential Dinar profits will be taxed as a currency exchange, ordinary income, or a capital gain. IF it's taxed as a capital gain having a receipt could prove you owned it over a year making it a long term capital gain as opposed to a short term capital gain. A long term capital gain or one owned for over a year is taxed as a lower rate. There doesn't however seem to be any clear cut answer to how it will be taxed so this may or may not be relevant.
Myth 3: You will get a higher rate calling our Dinar or referring to your Dinar as IQN instead of IQD
Kill, kill, kill, murder, murder, murder!!! This rumor is killed and patently false. There is a similar rumor that if you call your Vietnam Dong or VND the VNN instead of VND you will get a higher rate. Both these rumors are untrue. There is no such currency as VNN or IQN. The currency symbol for Dinar is IQD and Dong VND.
People have said some crazy things in this regard. Some say if you call it by these false names it's gold backed but if you call them by the real names they aren't. This is like saying if you call your silver special silver you'll get $50 per ounce when the going price is $19 per ounce. It's just silly and it's untrue.
Some people have said Uncircualted notes are IQN and circualted are IQD. This is also untrue. Think about it. So you have a uncircualted note. This is called IQN and is backeed by gold, BUT as soon as you bend the note it becomes IQD and no longer backed by gold? It just doesn't make sense. This rumor is false.
Myth 4: You will have to call special 800 numbers to get a better rate & cash out tiers will determine rate
FALSE!!! There are no special 800 numbers. People have been claiming this for some time now and it's completely untrue. Some on message boards and forums are even claiming they personally or know people who have already cashed out at high rates of $40 per Dinar. This is ridiculous. There is no truth to this.
There are not special cash out tiers. There are not special 800 numbers. There aren't certain countries cashing out while others can't. This is all untrue.
Myth 5: You must sign a NDA or Non-Disclosure Agreement to cash out Dinar?
Completely untrue. This kind of goes along with those who believe in secret cash out locations, tiered exchanges, secret rates. This is all completely untrue. No proof or factually based info has ever backed up these assertions.
Some seem to insinuate there's some conspiracy with either elite groups or the Government and they don't want people to know the Government and elite are getting richer so all cashing out will have to sign a NDA.
Let's think about this. Millions and millions of people own the Iraqi Dinar. Do you really think anyone would be able to silence such a big group of people? When all these people of modest means get rich and start buying houses, boats, taking trips, quitting jobs, how are they going to explain that?
Furthermore, let's look at the purpose of a NDA. Typically they are used in business settings when sharing classified information. Could be an inventor for example hiring a CAD designer. To make sure his idea isn't stolen he will have the designer sign an NDA. Assumin that's the only person the inventor shared the invention with, if someone steals the idea it's pretty easy to narrow it down to who did it, the designer, and go after him in court with the NDA being proof he leaked the info or used it for himself.
NDA's are used when a small group of people are given privileged information. When millions of people are cashing out, it would be impossible to figure out who leaked the info about having cashed out at such and such rate and gotten rich. If a NDA can't be used to figure that out, there's no point in having it. The rumors about having to sign non-disclosure agreements is completely false.