kjwayne, on 31 Jul 2013 - 4:39 PM, said: Why would people "in country" want to cash out to get US dollars? The Dinar would be worth more ,if the rate is up, so why cash in , IN COUNTRY?
sold_wife_car_2buy_Dinar: I thinks in country they have to exchange for new money, NOT cash to usd. just LD's. hope that answer your question.
A-Rak-i: A little confused as to why there would be a time limit out of country CE... Is it not our own country going to cash us in and won't that IQD go to our treasury and be held as a reserve currency? What happened to both currencies coexisting for two years?
Thanks for the great update Steve and Ray... 30 days is way more time than ill need to cash out anyways! Lol
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Stevel: A-Rak-i, Just reporting what we are being told. Maybe you can ask TerryK or HotDog Tony. They probably have your answer.
BANE, on 31 Jul 2013 - 5:16 PM, said: Thank you so much! However a year or so ago and maybe my memory is hazy it was said that the currency would coexist side by side for 2 years or was it 10 years together? 30 days seems awfully short.
I mean you United States guys could probably go to the bank that day etc. but us Mexican folks gotta do some serious planning to even get to the states etc. I was hoping to cash a little in to move back and wait it out.
Stevel: Bane, Just reporting what we are being told. Maybe you can ask TerryK or HotDog Tony. They probably have your answer.
thewoods, on 31 Jul 2013 - 4:36 PM, said: Thank you SooooooMuch Steve & Ray for the updates !! :wub: Can someone explain why it would be left up to the "Government" ? I always thought the CBI could revalue without any other government influence. Would Turki be refering to the "laws" we are waiting on?
Seven Seas: Hello thewoods, My guess would be that the government needs to implement (and maybe still even sign off on) the release of the lower denominations (since that part will need to happen at the same time) along with the details explaining the exchange for the citizens. Thank you, Steve and Ray as always!
Ahwman: thewoods, I was hoping someone would bring this up, thank you. The CBI's main initiative is to set and implement monetary policy. How then does the final say get passed off to the GOI, especially when the CBI has been outspoken on the autonamous nature of who they are and how they operate.
Furthermore, the CBI has stated on several occasions that the three zero notes would coexist with the LD's for two years. This just doesn't line up with what has been stated time and time again directly from the CBI.
kjwayne, on 31 Jul 2013 - 4:39 PM, said: Why would people "in country" want to cash out to get US dollars? The Dinar would be worth more ,if the rate is up, so why cash in , IN COUNTRY?
Searzy: Ya, that makes zero sense to me. Even if it is just exchanging old money for the new lower bills. No way everyone could make it to the banks in 15 days to do so. Also, and I'm not sure that this is what SteveI meant, but I don't see anyway for them giving us 30 days to cash in our dinars. That just doesn't make sense. Maybe SteveI meant something different.
But then again, stranger things have happened, I suppose. The banking news sure sounds great!
Chawsra: I agree with you searzy.. I know Steve is just sharing what his contact tell them, but there is no way a whole country could go through the bank in 15 days... Don't believe they have a bank on every corner like we have... I like all the rest but that part just doesn't fit.. Chawsra
Writer: If there is a time limit, What are they going to do? change the money? sounds like it to me, or release the LDs and hand the large notes in perhaps? no matter what this will pose a problem for those of us outside the USA I fear. Any ideas anybody????
GPCartgp er: According to that NY times article at the time of the Kuwait RV, they too were given a short window of time for an exchange. They were given from March 24 to April 7 to exchange the old Dinar for the new ones. I know the two situations are different but this does show that I short window is possible.
goods10: I want to first say thank you to Steve and Ray for your on going efforts to bring us the most accurate and factual info you can get your hands on. your integrity is second to none.
I am going to type what I am thinking off the top of my head. Please feel free to shoot holes in it but please do it nicely! Wouldn't the 30 day window for out of country cash in create an opportunity for the CBI to come out with a low intro rate for that 30 days while everyone is cashing in then after the 30 days raise the rate to the intended rate of the dinar ($3.42 +/- a couple of pennies) so the CB's around the world wont have to pay out at the rate of 3.42?? That is all I was thinking. Please be gentle to me.
Houseafire: If this is the case I would look into depositing dinar into an account as "electronic dinar". There should be a way to do this from the states once the IQD becomes international. Citi Bank and Bank of America have branches there now, maybe they will have an option of depositing dinar into an account just dealing with Iraqi currency. If this is possible, you wouldn't have to convert to USD until the rate increases. Just speculating.
Stevel: GP Carter, Thank you for sharing. I do believe this will be the case also.
Lamplighter: Thank you for the post, GP. I just read the article you linked. And if I'm reading it right, Kuwait actually gave the citizens until May 7th to exchange, not April 7th....[hence: from March 24 -May 7th] which even goes more to your point that the Iraqi RV may be handled just like Kuwait, in that the Kuwaitis were given a window of roughly 30 days -- precisely what we're being told may be the case with our IQD. Thanks again for the very helpful post!
Desertdog: Just to clear a few things up. The Iraqi people and us on the outside have been told over the past two years that it would be 30 days inside and 45 outside. That has now been shortened. The banks are all ready to handle the exchange to the new dinar inside country within the 15 day window. Us on the outside will have to get our rears in gear and get somewhere and cash in for usd.
There will be a 2% float on the dinar when it rv's, as I've been told, so there won't be a huge change in the value within 30 days. Hope this helps. Blessings, Ray
8675309: goods10, Solution: exchange your large notes for the LD's, then sit on them until your target rate is reached by the CBI.
Stevel: 8675309, And Just where are you going to find those?
Draco: Steve, That is a great question. I think I will just take what the going rate is and run for the hills! Draco Thanks again Steve and Ray
GP Carter: goods10, Interesting question. My thoughts, based purely on speculation, is that the rate they come out with will be the final rate. Even if they did come out with a low rate intro rate it would not hurt those in country.
Remember, the people in Iraq will probably not be doing an exchange of their notes for USD or some other currency. They will likely be exchanging large IQD notes for smaller IQD notes. If they think the rate would rise after 30 days they would simply hold the new notes they receive and wait.
I think the CBI has another reason for these windows of time. Maybe they want to get these large notes out of circulation quickly because they will be worth so much. The probably don't want someone walking around with one piece of paper that is worth over 5 figures. Who knows. Just my speculation.
Mistamista: Good point GP! Also I would think the rate comes out strong to encourage in country spending, jump starting local and regional economics .
Elise03: Ok, summary of Steve's update... Everything is done, concerning outside International entities.
RV release is now in Iraqs hands...Maliki seems to, once again, be the cog in the wheel. Once the RV hits, we will have 30 days to exchange our currency. No guess on date.
GP Carter: Ray, what you said makes perfect sense. Know it will be a 2% float makes me feel much, much better. It never made sense to me for them to come out with a low rate and increase a short time later.
For one, I have always thought that the so-called powers-that-be would not want us to profit from this opportunity TWICE.
For example, if the value came out too low and undervalued people already in this investment could simply cash out and purchase more at the new rate. We would then hold and sell once the price rises.
Remember, once they become an internationally traded currency it will be even easier to get your hands on it. Those who missed the boat the first time would surely jump on board and try to get their hands on IQD.
In some ways coming out too low would hurt other currencies if all of a sudden people were trying to liquidate other currencies and get IQD. Imagine what would happen if people started liquidating other classes of investments and using the funds to get IQD. I don't think our government or any other wants that to happen.
Sorry, but I forgot to thank you and Steve for your update today. Thanks to both of your for your time, efforts AND for giving us VIP treatment WITHOUT charging us any fees for anything.
BlueyesinLevis: GP Carter, Huh? You can't exchange your IQD for a new rate... then buy it back at the same new rate and make a profit.. especially if there is any cost or spread involved... you would actually lose money.
In other words... once you can exchange IQD for a profit.. you could not then go back in time and buy more at the old, lower rate.
Ermest T: May I make this suggestion? Once the "Event", happens go to a bank that will allow you to open a Foreign Currency account, and deposit your IQD as...IQD.
Cash out whatever you want, but leave the rest in IQD. At that point your IQD will neither be large or small denoms, just digitized IQD.(Just like right now when you deposit your dollars.
It's not sitting there in 5's, 10's, 20's, 50's or 100's. It's digital money). Then...sit and watch the rate rise to whatever it's going to be. Maybe it takes a month. Maybe it takes a year or two to rise to $3.44, or whatever it's going to be. What do you care, because you're invested in a foreign currency. I hope that makes sense. PS: Thanks Steve and Ray!
Seven Seas: Hi GPCarter, I agree 100% on your comments above and below and believe that your speculation is completely accurate regarding the reason for exchanging of notes inside of Iraq!
Emissary: Once again, GP, you make perfect sense. THANK YOU! [LOVE having a voice of reason, especially one familiar with forex. :)] RV NOW & FYB!!!!!!!!!!!!!
Stormtytan: Just so I'm clear on this, does it mean that the old dinar will be worthless after the 30-day period has expired? Thanks,
Peanut46: stormtytan the answer to that would be YEPPERS
Elise03: GP What happens after the 30 day window? Will our Dinar be useless?
GP Carter: Just my opinion. think that after the government's time line has expired all the outstanding notes will be discontinued and no longer accepted as legal tender. That is the whole point of giving the people time to exchange their notes. This is exactly what Kuwait did when they gave the deadline for people to exchange their notes for the new notes.
Stevel: Elise03, I sure you can find a use for it someplace in your house or out house. :)
JeffB: But the magic question.... Will the dinar be tradable, for those thirty days?
Reviival: First thing first, Thank you Steve and Ray for a wonderful post! You two are amazing and so are the others that contribute there is no way i would know any of this stuff without all of you so thankful for your sharing hearts may God Bless you abundantly for all you do/share! :)
I was encouraged as the word revalue was mentioned several times, that IMO is huge. The other is they are talking to the ppl and telling them everything is done so if we look at it as the Iraq citizens would view this after hearing everything is done, they will begin to demand what they have been promised.
Finally, I remember reading that since Chapter 7 has been lifted they are encouraged to use the dinar and not be using 2 forms of currency. Another reason this needs to RV soon, they are using both currency and chapter 7 has been lifted Like everything is done, music to my ears.
Know this is Iraq, :( so we wait and let it come to us! :) Prayerful for God's perfect timing.
Blessing to all who make PD a site of integrity, ReVival Let's see an RV now
Captain Hook: What is a 2% float I'm sorry I'm new at this trying to understand thank you
GP Carter: JeffB, It has to be tradeable otherwise it would not be possible to exchange. We can't exchange the IQD we have now because it is not tradeable. Once it is, we can exchange. The fact that they say it can be exchanged in-country AND outside of the country suggests it will be internationally traded. Otherwise it could not be exchanged outside of Iraq.
In regards to inside Iraq, I think when they say "exchange" they are referring to the people turning in the large notes for lower denominations of IQD. When we people outside of the country say exchange we are typically referring to exchanging their IQD for another currency (cashing in).
Barney Fife: When this happens it will be an international tradable currency. Once it's internationally tradable if you want to cashout have at it, however I will be heading to a wealth manager at one of the big banks and will open up a forex trading account and will deposit my currency in it.
It will become digitized and when ever I so choose I can sell it on the market because it's tradable currency it's not the large notes any more because I turned them in with in the alloted time.
Now I can take more time on how to handle my investment sense I no longer hold the large denoms. It's digital, ETB explained it earlier ;) So in my opinion there is no need for a mad rush
GP Carter: Barney, It won't exactly be that easy. When it does become internationally traded it will be classified as an exotic currency just like the Kuwaiti Dinar and all the other Dinar Currencies.
Just try to find a broker that offers KWD or any other Dinar currency. It is very hard because only a handful of reputable, legit brokers offer it. Exchanging IQD is one thing.
Trading it on the forex market will be totally different. It won't be something you can easily do as you can with USD, EUR or other currencies.
99.9% of all forex brokers will not deal with IQD because they only deal with the majors and the non-exotic currencies. In the case of forex accounts, when you open an account you will only be allowed to hold the balance in one of the major currencies---not an exotic. The balance in the account will be expressed in some currency like USD, EUR, GBP, CHF etc.
In the case of a multi-currency bank account they too typically only allow funds to be held in one of the major currencies or metals such as gold, silver, platinum etc. You will likely have to find a bank or forex broker based in Iraq or somewhere else that will let you have deposits expressed in IQD.
Barney Fife: GP, Well we have one in Houston at a major bank he's been very forth coming with infomation and has advised of this game plan. He understands our situation exactly. So GP we found I guess the only one in the country!!!
GP Carter: Kuwait did it in around 30 days. And they did it with a lot of the banks not having electricity, phone service and severely short staffed. Iraq has much more outside help than Kuwait did. They also have an infrastructure that Kuwait did not have when they did the exchange.
Also, don't forget the last time Iraq did an exchange. It it was the 1 for 1 exchange they did of the old dinar to the ones we have now.
According to one article I read, if it is accurate, they did it from October 2003 to January 2004. That is more than two weeks but in this case I think the people will have more motivation.
Take some one struggling, starving, suffering and tell them their toilet paper is now worth a fortune and I bet they will find a away to make the deadline.
Plus don't forget that not everyone in Iraq is holding IQD and don't think that everyone holding IQD has it in cash. Some people hold physical IQD notes but some have digital money.
Many people there trust USD more than IQD. We just read that article released yesterday where they were complaining because they had to make deals with countries using USD instead of Dinar. So it will not be the entire country running to the banks to do an exchange.
GP Carter: Barney, So you are telling me you have found a bank that will allow you to do what the biggest forex brokers and banks in the US won't even do with the Kuwait Dinar? I work directly with several forex companies as an IB and I have PAMM accounts at several brokers where I manage investor accounts.
All the brokers have all advised me that they will NOT offer IQD trading. They will exchange the currency but will not offer the currency on their trading platform.
I have plenty of clients that would be interested in what you said. If what your banker said is true I have 100s of people I can refer to you. So are you saying you have a bank that will allow you trade IQD just as I can do with other currencies?
Barney Fife: As I said this is what I'm doing GP brag all you want about who you work with but in my case with this broker your wrong. So your brokers have advised you they won't ,great mine will.
All I was trying to do was to enlighten people on what my plan was then you said "you doubt it." Fine doubt me but don't ask for my help with you 100s of clients.
Yea I know your being sarcastic but your wrong. By the way typically I find in most cases when someone starts throwing their resume around their trying to be-little everyone else because their the expert, when in fact their not.
Ms Biz: also, remember last year for a long period of time the Iraqi citizens were told to bring in their 10k & 25k notes, and they've gone through that process already so I don't think they have a lot of those floating around, and they were also educated already about a currency change last year as well,
we seen the articles we read them, so Iraqi's won't need a lot of time to exchange, and I also think not a one of us will either considering the time we've waited which I believe our gov. has considered that too, 30 days is a lifetime to us right now in the wait mode,
as far as maliki being the hold up, I believe that too, perhaps that's why they have been so eager to get rid of him, because they know he's been the stall, jmo of course.....thanks for the explanations GPC, steveI & ray, much appreciation always)
Ms Biz: perhaps once the currency is deemed tradable by our department of treasury what is not in play now will be then.......... :)
the explanation of the Iraq currency at the moment with our treasury department is considered and deemed "non-recognized" that's only because it is not tradable, once it is, things will change, but, why would anyone consider depositing valuable IQD anywhere digital :wacko: I guess i'm uneducated on that big time, my grandpa taught me about coffee cans and dirt since I was a little girl :lol:
ahwman, on 31 Jul 2013 - 11:03 PM, said: I was hoping someone would bring this up, thank you. The CBI's main initiative is to set and implement monetary policy. How then does the final say get passed off to the GOI, especially when the CBI has been outspoken on the autonamous nature of who they are and how they operate. Furthermore, the CBI has stated on several occasions that the three zero notes would coexist with the LD's for two years. This just doesn't line up with what has been stated time and time again directly from the CBI.
Indraman: I will take a stab at this. I have always felt that w/o a stable GOV the CBI would not pull the trigger on the RV. Could this be their way of letting the GOV know that the ball is in their court?
As for the time-period for exchanging the 000's, I could definitely see a reason for pulling these notes off the street as quickly as possible. How easy would it be to transfer very large sums of money with just a briefcase? Indy
ChefBoyRd: Thanks for the information as well as your intent to enlighten people Barney, There will be options available even though some say no right now ,
This is an unprecedented event like none other not even in comparison to Kuwait , money talks period, One does not have to look in all the normal places to find what you are looking for.
Most fx broker accts are leveraged and / or margin-ed, which is one of the reasons why most don't deal with exotic currencies. Cash is another realm within itself and normal business procedures in some financial institutions.
Most US banks and brokerages are basically gambling houses using your cash and credit to do it with imo. Don't always follow the road most traveled folks.