Dinar Daddy: The Weekly Tidbit Newsletter Publication No.25 (12/08/11)
Thursday, December 8, 2011
I present to you Publication No.25 of The Weekly Tidbit. I'm confident you'll be exposed to a wealth of helpful information as you continue to grow and develop in your understanding of what is best for you and your personal, family, and financial situation.
Go Tidbits... Go Dinar!
Denomination Strategies: Pros & Cons
By Dinar Daddy
I'm writing this to help many become clear on the pros and cons of becoming an owner/holder of each of the different denomination banknotes that are made publicly available by the Central Bank of Iraq. Taking a Dinar holder's perspective in mind, I'm hoping this will help bring clarity to each reader about how they wish to handle their different denominations now and going forward.
Here are my thoughts on the different banknote denominations offered by Iraq.
25K, 10K, 5K, and 1K Dinar Notes (Large Denoms)
• These notes are the least expensive and most readily available to obtain at present.
• Holding these bills makes it easy to carry the most value in the smallest space.
• They are much easier to store than the lower denomination notes. One million Dinar worth of 25K notes only takes 40 total bills to equal 1 Mil IQD. One million dinar worth of 50 Dinar notes requires 20,000 total notes to equal 1 Mil IQD. That's the difference between a half a shoe box in space versus an entire pallet of banknotes.
• You can carry more value "on your person" (with you personally) with these larger denomination notes than any other without bringing attention to yourself.
• As these notes are the most widely accepted Dinar bills, one's liquidity with these notes with Dinar Dealers and participating banks around the world (at present / Pre-RV) is the greatest, especially with the 25K note.
• Cashing in these notes is simply the easiest and fastest, both pre-RV and post-RV because there are less notes to cash in to regain your value.
• They are the easiest Iraqi Dinar bills to obtain throughout the world, especially the 25K note.
• As "3 zero" higher denomination banknotes, unverifiable news articles and rumors have them being replaced by the Central Bank of Iraq with those of lower denominations (500, 250, 50, and lower).
• Rumors state if anyone doesn't already have a bank account established within Iraq, they will only have as little as 10-30 days to cash the larger notes in if Iraq re-denominates their large bills to those of less than 3 zeroes. This would place many in a difficult position to liquidate their holdings in time if this were to actually happen.
• Should the Dinar increase in value in any significance, these bills would represent a significant amount of money in a single bill. As such, it would be dangerous to carry too many of these notes around post-RV.
• Though these notes represent the easiest notes to acquire at present, and are the cheapest to obtain, they could be the most difficult to liquidate should circumstances change around the currency of Iraq.
500, 250, and 50 Dinar Notes (Lower Denoms) Pros:
• According to news articles, they don't seem to be included in Iraq's plans to re-denominate their currency. They are two (2) and one (1) zero notes, and as such may not even be impacted by any rumored changes, and are hence sitting in the "safe zone" of denominations to acquire.
• Should the Dinar significantly increase in value (RV), holding these notes post-RV will provide the carrier more flexibility to exchange in a more subtle fashion. Having lower denominations on hand makes it easier to sell amounts less than would place the holder on any sort of governmental or local radar for a person who has received a financial windfall.
• Holding these notes gives the holder more time to cash-in should there be pressure to sell the higher denoms within a fixed period of time (i.e. 30 days, 90 days, 6 months, etc.), as they would not be impacted by the same rules or pressures rumored about the 3-zero denomination notes. This extra time would allow the holder the ability to make better decisions over time without the pressure of a cash-in time period hanging over their head.
• Holding lower denoms gives the owner diversification beyond the standard 3-zero notes that are readily available.
• Lower Denoms have a stronger "secondary market" than the higher denomination notes. They, on average, are sold at between 2-4 times the value for the same value of notes as those of the larger denoms. Supply and demand drives these notes, and as such, they seem to be a better play at the moment on the secondary market than the 3-zero notes.
• There is a chance that post-RV, these notes will be a very hot item. Speculation around the power of these notes could be strong now and in the future, which gives them a strong play, especially if the Dinar turns out to be a slow grow currency instead of a sudden rise revaluation.
• These notes are the most expensive to obtain at present.
• They take up the most space to store, so you'll either need to purchase a small amount, or you'll need to create more space for your lower denomination holdings.
• The lower denomination notes are difficult to sell back to any Dinar Dealers at present, unlike the larger denominations such as the 25K, 10K, 5K, and 1K notes.
• Transporting even one million Dinar of any of these notes can prove to be difficult, so for those who don't have the capacity or means, these could pose a problem upon cash-back or cash-in.
I'm confident this list isn't complete, and others could add to it, but I think I put together something fairly comprehensive that will help each reader gain a greater understanding of the different denominations and how they can impact the holder one way or the other. You can see that each has positives and negatives on either side of the argument, and knowing these things is essential for the physical currency holder prior to exchanging their domestic currency for that of the speculative play called Iraq.
I pray each of you is wise in your currency purchase decisions, and that you take the time to understand all your options and the information and news surrounding the currency of Iraq prior to acquisition or ongoing accumulation. Things are only going to get more interesting, so now is the time to know why you do what you choose to do.
Go Learning... Go Understanding... Go Dinar! Dinar Daddy