[WSBAPT] Iraqi Dinars - how to liquidate?

[Karl Flaccus]

PR of an estate has ended up with lots of Iraqi dinars in crisp 25,000 dinar bills.  Neither Chase nor Bank of America will exchange them. Does anyone have any knowledge how to liquidate dinars?  There is a website that looks promising (https://currencyliquidator.com/iraqi-dinar-security-features/), but the estate does not want to be scammed, of course. At the same time, the estate needs liquidity.

Here is some information from Wikipedia:

Since Iraq has few exports other than oil, which is sold in dollars, there is little demand for dinars, resulting in an extremely high exchange rate<https://en.wikipedia.org/wiki/Exchange_rate> compared with other currencies: on 2 March 2019, the Central Bank's indicative exchange rate was 1,190 dinars for one dollar, or 1,355 dinars for one euro.[4]<https://en.wikipedia.org/wiki/Iraqi_dinar#cite_note-cbi-4>

However, the downfall of Saddam Hussein<https://en.wikipedia.org/wiki/Saddam_Hussein> resulted in the development of a multi million-dollar industry involving the sale of dinars to speculators. Such exchange services<https://en.wikipedia.org/wiki/Bureau_de_change> and companies sell dinar at an inflated price, pushing the idea that the dinar would sharply increase in value<https://en.wikipedia.org/wiki/Deflation> to a profitable exchange rate some time in the future, instead of being redenominated<https://en.wikipedia.org/wiki/Redenomination>. This activity can be either a legitimate service to currency speculators<https://en.wikipedia.org/wiki/Market_speculation>, or foreign exchange fraud<https://en.wikipedia.org/wiki/Foreign_exchange_fraud>: at least one major such currency exchange provider was convicted of fraud involving the dinar.[5]<https://en.wikipedia.org/wiki/Iraqi_dinar#cite_note-5> The phenomenon re-surged following the election of Donald Trump<https://en.wikipedia.org/wiki/Donald_Trump> in November 2016, with many buyers believing that Trump would cause value of the dinar to sharply increase.[6]<https://en.wikipedia.org/wiki/Iraqi_dinar#cite_note-6>

In 2014, Keith Woodwell (director of the Utah Division of Securities) and Mike Rothschild (writer for Skeptoid<https://en.wikipedia.org/wiki/Skeptoid> blog) stated that the speculation over the Iraqi dinar originated from a misunderstanding of why the value of the Kuwaiti dinar<https://en.wikipedia.org/wiki/Kuwaiti_dinar> recovered after the first Gulf War<https://en.wikipedia.org/wiki/First_Gulf_War>, leading to an assumption that the Iraqi dinar would follow suit after the fall of Saddam: Woodwell and Rothschild noted substantial differences with the economic and political stability of Iraq and Kuwait, with Iraq facing pervasive sectarian violence amid near-total reliance on oil exports.[7]<https://en.wikipedia.org/wiki/Iraqi_dinar#cite_note-7>[8]<https://en.wikipedia.org/wiki/Iraqi_dinar#cite_note-8>

In response to the growing concerns with fraud and scams<https://en.wikipedia.org/wiki/List_of_confidence_tricks#Iraqi_Dinar> related to investment in the Iraqi dinar, State agencies such as the Washington state,[9]<https://en.wikipedia.org/wiki/Iraqi_dinar#cite_note-9> Utah,[10]<https://en.wikipedia.org/wiki/Iraqi_dinar#cite_note-10> Oklahoma,[11]<https://en.wikipedia.org/wiki/Iraqi_dinar#cite_note-11> Alabama[12]<https://en.wikipedia.org/wiki/Iraqi_dinar#cite_note-12> and others have issued statements and releases warning potential investors. Further alerts have been issued by news agencies.[13]<https://en.wikipedia.org/wiki/Iraqi_dinar#cite_note-13>

These alerts usually warn potential investors that there is no place outside Iraq to exchange the dinar, that they are typically sold by dealers at inflated prices, and that there is little evidence to substantiate the claims of significant appreciation of their investment due to revaluation of the currency.

In February 2014, the Better Business Bureau<https://en.wikipedia.org/wiki/Better_Business_Bureau> included investing in the dinar as one of the ten most notable scams in 2013:[14]<https://en.wikipedia.org/wiki/Iraqi_dinar#cite_note-14> There has also been a book written on the subject.[15]<https://en.wikipedia.org/wiki/Iraqi_dinar#cite_note-15>


In 2011, the Washington Department of Financial institutions wrote this:  "What consumers are not told is that the Dinars can be redeemed only in Iraq, as most of the established currency exchange houses and banking institutions cannot convert the Dinar to US dollars. Since no exchange exists for the Iraqi Dinar, dealers can charge whatever they want to sell and buy back the Dinars.  These dealers often register with the U.S. Treasury as a Money Services Business (MSB). An MSB registration is nothing more than a form they file; it does not reflect any experience in trading currency nor entail any qualifications on the part of the dealer, other than basic anti-money laundering requirements. The reason dealers seek this registration is to lend legitimacy to their scam and avoid more stringent regulation. In addition, most of these websites are operating illegally in Washington State, without a currency exchange or money transmission license issued by the Washington State Department of Financial Institutions. Make sure you only deal with licensed, legitimate companies when making financial decisions."
Thank you.

Karl

FLACCUS LAW
7010 35th Ave. N.E.
Seattle, Washington  98115
206 523-0297
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