Well... here we are again! It is now nearing the end of the 2nd Quarter. Again... a perfect (budget/bookkeeping) time for a currency RV. The CBI has been working diligently toward this goal. They have been successful in removing over 39 Trillion worth of the "000" notes from the streets. They have issued new lower denomination notes as low as the 50 Dinar note and are also distributing coins that will most likely cover the need for even lower amounts of change (although I haven't heard anything on the value of these coins as yet). CBI has the tools and is now ready to implement the mechanism to raise the value of their currency. I have heard and am hopeful this happens within the next week.

On a side note, Mahdi is cutting it pretty close. He has till the end of this month (one more week) to complete his government, or he will become subject to a vote of No Confidence. There are those that believe not having a complete Cabinet has been the holdup for CBI implementing the mechanism. I am NOT one of those. I believe, although CBI works with the government, it is separate from the government. Their sole purpose is to maintain Financial Stability within Iraq. I believe regardless of whether Mahdi completes his government or not, CBI has the authority to move forward with adding value to their currency. I guess we'll see what transpires over the next week.

Another tidbit... Years ago we were told to go to our local Bank of choice when the time came to exchange. Lately, I have been hearing that there will be 800 #'s posted to set up appointments for exchange at "Redemption Centers". An established exchange rate, higher than CBI's posted rate, would be locked-in for a limited amount of days. At this time, I have heard nothing more about these Redemption Centers, so I will have to wait till those 800 #'s are released to find out how they process the exchange. In the meantime I have had several talks with my banker and was told that their local bank branches do not have the Del-A-Rue Machines required to verify our Dinar, but their Vault does. So, if I exchange at my bank, they will credit my account at the current CBI posted exchange rate, then the Dinar would be sent off to "The Vault" to be verified. Once verified, my funds would be released for my use. And since no one would be allowed to know where, or allowed to go to "The Vault" themselves, our dinar would be out of our sight for several days. Not a comfortable thought, but it is what it is.

Tax wise... I'm still hearing this investment will not be Taxed. That is a nice thought but I wouldn't count on it. Bush's tax free credit expired during Obama's administration and I have read enough to rule out Capital Gains as well. Plan on Ordinary Income @ 35%, depending on how much you earn at exchange. And Please check with your Tax professional at the appropriate time. The IRS has had plenty of time to give this a lot of thought. I'm sure they will have a ruling by time taxes are due.

That's all I have to say for now. Let me know your thoughts as well. We are all in this together. Thanks and take care.