Complete Guide to Exchanging Iraqi Dinar After Revaluation

How will I exchange my Iraqi Dinar when a significant revaluation occurs?
Will there be any special restrictions for exchange?
Will any forms need to be filled out for exchanging Iraqi currency?
How can I find a reputable company and what will their process for exchange be?

It is likely that only a few banks, if any, in the United States will be able to initially handle Iraqi Dinar exchanges after a significant revaluation. Even the banks that are currently able to handle Iraqi Dinar transactions may be limited in their exchange ability due to their lack of focus on the Iraqi Dinar and their limited exchange resources. Banks that are not already setup to handle Iraqi Dinar transactions will likely be delayed as they work through their own internal procedures and processes to deal with the currency.

The most efficient and secure method for exchanging the Dinar is through a reputable Iraqi Dinar dealer that specializes in quickly and safely handling currency exchange transactions. If it is the same dealer from whom you originally purchased your Dinar, you have the added benefit of already having open lines of communication so that you know the specifics concerning any transactions, such as exchange rates, their procedures for processing Dinar purchases and sales, and their certifications and standing in the currency trading and investing communities.

The key criteria to look for in determining where to exchange Iraqi Dinar:
1. Finding a dealer that has an established reputation for honesty and fairness.
2. Finding a dealer that has the capitalization and banking connections to handle large exchanges.

Criteria 1: Established Reputation

When you initially chose a dealer from which to purchase your Iraqi Dinar, be certain that the dealer is properly certified and has the ability to exchange the Dinar in the future. A dealer should be able to provide documentation about their trading status and information about their company history whenever asked.

 

Better Business Bureau	United States Treasury Department

When choosing an Iraqi Dinar dealer, it is essential to ensure that the company is registered with the U.S. Treasury Department as a legitimate currency dealer. Also, check if the business is accredited and has a good record with the Better Business Bureau.

Criteria 2: Proper Capitalization and Banking Connections

In terms of being able to provide fast and secure financial services for clients, an Iraqi Dinar dealer’s capitalization and banking procedures are of paramount importance. If a Dinar dealer does not have the proper monetary or banking support to back up large transaction, they will be unable to provide their customers with money in exchange for a large amount of Iraqi Dinar.

So how does a reputable Dinar exchange dealer handle the prospects of a potential rapid large increase in the value of the Iraqi Dinar and maintain the means to pay customers for exchanges? Dinar Banker, the largest and longest running U.S. Iraqi Dinar dealer, constantly maintains a proportionate Iraqi Dinar inventory to cover all possible increases in value of the Dinar. Currently, Dinar Banker maintains inventories at a minimal level of 2 Billion Iraqi Dinar (approximately $2,000,000.00 USD).

 

If the Iraqi Dinar rapidly increases in value, Dinar Banker will be able to exchange their inventory quickly through established and reliable banking connections in order to capitalize their United States accounts in U.S. dollars for customer exchanges. This streamlined banking process allows for rapid capitalization within 24 banking hours. Once exchanges begin, currency can be received from customers and converted in Middle East financial centers at a constant rate to maintain capitalization levels. Whatever the Iraqi Dinar exchange rate, these sustainable exchange operations ensure that customers will be able to convert their Iraqi Dinar into US Dollars at full value whenever they wish.

Dinar Banker plans to immediately begin making exchange appointments with clients in the event of any significant Iraqi Dinar revaluation; actual appointments are expected to commence within 18 business hours of a currency revaluation.

Exchange Process Information

The actual process of exchange is expected to be fast and simple. The customer would have to complete the following steps to complete the exchange process and receive US Dollars for their Iraqi Dinar:
1. Provide a valid government issued ID
2. Present their currency for verification
3. Provide bank transfer wiring information
4. Provide proof of purchase including the source, which must be a legitimate legal source or seller
5. Only if the funds transfer is to a foreign bank account or the person exchanging the currency is not a US citizen, be prepared to fill out a FinCEN Form 104.

Currently, there are no reporting requirements for “Iraqi Dinar to wire transfer” transactions under Bank Secrecy Act regulations. If a dealer is reputable and has the appropriate banking relationships, the wire transfer of funds should be visible in the customer’s requested wire transfer account before the customer leaves the dinar exchanger’s office. Additionally, a reputable Iraqi Dealer should have remote wiring capability in order to receive dinar, and wire U.S. dollars from any satellite location in the United States. Dinar Banker has the ability to set up secure remote satellite offices at numerous airport locations nationwide within 24 hours. They have a long history of transporting and securing currency all over the world through their global operations and are prepared for any exchange needs.

As far as costs are concerned, no one knows for certain what the actual exchange costs will for exchanging Iraqi Dinar for U.S. Dollars following the currency revaluation. Watch out for any Iraqi Dinar dealer who sets a fixed price prior to any actual revaluation of the currency. A set percentage price is somewhat acceptable, but an actual dollar amount should be met with suspicion. The reason for this is that the costs of any exchange will depend completely on the actual change in value of the Iraqi Dinar. Transportation costs vary depending on the weight, destination, and value of the currency being transported (for insurance and security reasons)—any legitimate exchanger knows this. Any dealer that sets a fixed price is likely fabricating the ability to exchange the currency to placate exchange customer requests in order to keep selling Iraqi dinar.

Information on Special Restrictions and Exchange Forms

Furthermore, no one knows if there will be any restrictions placed on the exchange of the currency. It is possible that there may be extensive verification requirements from potential exchange customers as to the origin of their Iraqi Dinar. Banks in the United States do not accept large amounts of cash from individuals or companies who can not verify their cash deposit is from a legitimate non-criminal source. Similarly, it is very likely that currency exchange dealers will have additional authentication requirements before they can accept the Iraqi Dinar for exchange. Many people don’t realize that you can’t just deposit even $100,000 US dollars in cash in a U.S. bank without significant scrutiny as to the non-criminal origin of the funds---the Patriot Act and Bank Secrecy Act will not allow it.

For these reasons, it is wise to make sure you always buy from a reputable Dinar dealer where questions of non-criminal origin and legitimacy are always verifiable. If a customer purchased inexpensive dinar from an illegitimate dealer on the internet or obtained through some other questionable source, it is very likely the Dinar will not and can not be acceptable for exchange---it’s against the law. It is similar in concept to the fact that you cannot sell or accept stolen goods or knowingly use laundered money for any purpose.

In order to assure that 100% of the currency we hold is both authentic and of legal origin, Dinar Banker uses a De La Rue 8625 Currency Counter with counterfeit detection on all of our notes. De La Rue, which manufactures the currency counter and verification machine, is the same company that prints the Iraqi Dinar notes, which ensures maximum accuracy in detecting counterfeit banknotes and classifying and tracking previously circulated Iraqi Dinar.

De La Rue 8625 Currency Counting/Counterfeit Detection Machine and Serial Number Certification:

It is also possible that other additional restrictions and taxes will be placed on Iraqi Dinar exchanges which may affect the costs and procedures. The only thing a reputable dinar dealer can do is be prepared and have as many solid banking and transportation connections as possible. They must also be extremely well capitalized and very well established. As previously stated, make certain you buy from a Dinar dealer who has been around for more than a couple of years and has been AUDITED BY THE BANK SECRECY ACT COMPLIANCE DEPARTMENT OF THE IRS. View the Dinar Banker audit certificate here. Ask the dealer to see this documentation as well as proof of their certification with the US Treasury and Better Business Bureau.

If your Iraqi Dinar dealer is selling at a reasonable price and offering legitimate, reputable, BSA standard services, then you can anticipate they will offer a reasonable, reliable exchange service for trading your Iraqi Dinars for U.S. Dollars.

The information contained in this article was provided by Ty Rhame, the President of DinarBanker.com (the website for Sterling Currency Group) and the Dinar Banker staff.