BACKDOC: I WANTED TO SHARE AN IDEA THAT I'VE HAD FOR SOME TIME NOW. THIS MAY BE OF HELP TO SOME.
AS YOU ALL KNOW I BELIEVE THE NEW DIGITAL REALITY IS NOT LIKELY TO SHOW ITS SELF UNTIL AFTER MARCH 20TH SOMETIME.
IT DOES APPEAR HOWEVER THAT AN INTERNATIONAL RATE MAY BE POSSIBLE WHEN THE FED RAISES RATES IN MID DECEMBER AS FRANK HAS BEEN KIND TO SHARE!
THERE ARE TOO MANY THINGS THAT I CAN'T TALK ABOUT DUE TO THE SENSITIVE NATURE OF THOSE DETAILS BUT LET ME SAY THIS, THERE ARE SERIOUS MARKET FORCES THAT WILL BEGIN IN MID DECEMBER, "THE RACE", AND CONCLUDING IN THE SPRING!
THESE SIGNIFICANT FACTORS COULD AFFECT THE VALUE OF WHAT WE HOLD ON EITHER END OF OUR INVESTMENT.
REMEMBER WHAT I TAUGHT YOU IN THINK LIKE A BANK AND THINK LIKE A COUNTRY.
MY PLAN IS TO USE SOME OF MY DINAR AS AN ASSET TO BE HELD IN A BANK VAULT, AND TO TAKE A COLLATERALIZED LOAN AGAINST IT. THIS DOES TWO THINGS POSITIVELY FOR ME.
FIRST IT ALLOWS THE VALUE OF THE DINAR BEING HELD IN THE BANK VAULT TO APPRECIATE OVER TIME.
SECOND, IT ALSO PREVENTS A TAXABLE EVENT FOR THIS YEAR SINCE ITS HIGHLY PROBABLE THE NEW ADMINISTRATION WILL LOWER TAXABLE RATES!
EVEN IF THE SECOND ISSUE IS NOT AN ISSUE BY GOING INTO JANUARY, THE OTHER REASON MAY PROVE VALUABLE BASED ON MY STUDIES!
THIS IS IN NO WAY TO BE TAKEN AS INVESTMENT ADVICE! I'M ONLY SHARING SOME THOUGHTS THAT I HAVE AND WHAT I MAY DO FOR MYSELF!
Eli15: How does one hold dinars as asset back in a vault as collateral .
Is this an arrangement one does with the bank? This is a very interesting concept.
BACKDOC: THINK OF YOUR DINAR AS A HUNK OF GOLD OF A STOCK CERTIFICATE! IT HAS VALUE ONCE ITS INTERNATIONAL!
TELL THE BANK YOU DON'T WANT TO EXCHANGE BUT THAT YOU WANT THEM TO HOLD YOUR COLLATERALIZED ASSET IN THE VAULT FOR NOW. THINK OF IT AS AN ASSET INSTEAD OF JUST A CURRENCY TO SPEND.
REMEMBER A COUPLE YEARS AGO THE U.S. TREASURY CHANGED BANKING RULES ALLOWING U.S. BANKS TO HOLD FOREIGN CURRENCIES AS AN ASSET!
Notthe1: What US Bank will let you hold dinars ... without an exchange rate applied. If there is a way to Deposit Dinar and Keep it a Dinar than a loan sounds great... I no Warka.
BACKDOC: YOU WON'T BE DEPOSITING IT! YOU WILL BE HOLDING IT IN THEIR VAULT LIKE A HUNK OF GOLD OR JEWELRY
Notthe1: Thank you, Backdoc, for your posting ... this would be a good time to find that rule change.. I have no idea how to find it. Maybe someone could post it...
When setting up the meeting with a Financial Advisor this info would be great to have at hand.
BACKDOC: NO NEED THE BANKS ALREADY KNOW IT!
PMac: Would that be because of Basel III or the 2010 MR???
BACKDOC: THESE WERE INTERNAL TREASURY RULES THAT WERE CHANGED!
(Dinar Recaps Note: This post is for informational purposes only. It is not legal, tax or investment advice. Dinar Recaps advises that everyone should do their own due diligence and seek local Professional tax, legal and/or investment advisers.)
BACKDOC: HERE WE SEE CONFIRMATION OF IRAQ GOING INTERNATIONAL IN EARLY DECEMBER!
I ALSO THINK ITS INTERESTING THAT THE BOND SALES SEEM TO BE TIED TO MARCH! IS THAT BEING TIMED WITH THE DIGITAL RELEASE? MMMMM DOC IMO
Firefly: Keywords confirms start selling government bonds next March
Keywords: our agreement with the United States aims to prevent the financing of terrorism, money laundering and delete deferred zeros
Long-Presse / Baghdad
The governor of the Central Bank and the Agency on the Keywords, said on Wednesday that the agreement signed by the United States aims to cut off funding for the organization (Daesh) and other "terrorist organizations and prevent money laundering," and pointed out that the bank will start applying the certified standards internationally in this regard the beginning of December next, with the exception that the process of removing zeros from the local process requires the availability of appropriate conditions, including the general stability in the country, he pointed out that the bank continues to technical preparations in this regard.
Ali said the Keywords, in an interview to the (long-Presse), "The first agreement of its kind between the Federal Reserve Bank and the US Treasury on the one hand and the Central Bank of Iraq, on the other hand, entered into to control the dollar remittances and ensure the prevention of access to illicit destinations," noting that those "The agreement includes cooperation, coordination and exchange of information and financial data relating to the sale of foreign currency and circulation."
He added Keywords, "The agreement aims to prevent the arrival of the foreign currency to Daesh and terrorist organizations, by ensuring and verifying that the financial and banking institutions that you purchase does not involve money laundering or terrorist financing," adding, "The control mechanisms include several measures the most important , building databases and integrated electronic system that collects dollar selling window operations rather than paper processes. "
He said the central bank governor and the agency, that "mechanisms also include the introduction of a program (OFAC List) to verify that the persons and entities prohibited to deal with them globally and to ensure that their entry into dollar selling window, where already been implemented," pointing out that "mechanisms also include work on the application standards and international compliance requirements, particularly in the application of the principle of know your customer to verify the sources of funds and legitimacy, where he was informed banks and the conversion of these requirements, where censorship is taking place and oversee the implementation and training and qualification of cadres working. "
He Keywords that "the bank has provided financial Labour Organization (FATF) action taken to combat money laundering and financing of terrorism," stressing that "the actions taken by the Central Bank of Iraq, which led to eject Iraq from Category gray of the organization."
Keywords and pointed out that "the Bank Enter accredited international standards by an international auditing firm for the classification of financial and banking institutions, including ensure compliance with the requirements of the compliance of the law against money laundering and terrorist financing for the year 2015, where it will be applied to the beginning of December next."
And on the application of the process of deleting the zeros of the Iraqi currency, confirmed the Keywords, that "the Central Bank of Iraq has not set a date for the deletion of zeros from the currency dinar," noting that "subject to availability of appropriate conditions, including the general stability in the country."
He stressed the central bank governor and the agency, the need to "ensure the success of the process of deleting the zeros requirements before starting out, so the central bank will continue technical preparations in order to be practical fit when deciding deletion."
The economists see, that the deletion of zeros from the Iraqi currency went "sensitive and dangerous" in a situation where the country is going through, and while others stressed that the process is left to the decision of the Central Bank of Iraq only for being on the monetary policy of the country, lawmakers stressed the need to be the process of deleting zeroes in accordance with the proper procedures and techniques.
Iraq has signed in the (29 August 2016) was the first agreement of its kind between the Federal Reserve and the US Treasury on the one hand, and the Central Bank of Iraq, on the other hand to monitor the dollar shipments and ensure the prevention of the arrival of these funds to illicit destinations.