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phlip

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About phlip

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  1. Questions For Adam's Update 5-24-2017

    Right now the USD/IQD exchange rate is $.0008467:1, the USD/EUR exchange rate is $1.21:1 with the price of crude oil selling around $50/barrel or 59,053 IQD/barrel or 44.57 EUR/barrel. If the IQD were to RV from $.0008467:1 to $0.10:1, that would deflate the value of the USD by 1000% and cause the USD/EUR exchange rate to drop to $0.00121:1 and raise the apparent price of a barrel of crude to $50,000/barrel or IQD 59.05/barrel or 44,570 EUR/barrel. Alternatively, if the FED, the IMF and the other Central Bank’s demanded that the price of crude oil remained the same at $50/barrel and that the other major global commodities (wheat, corn, soybeans, etc.) also be sold for the same price in USD’s so that the global economies could remain stable, then Iraq would still be paying IQD 59,053 or the equivalent of around $5,905/barrel (as determined by the new exchange rate of $0.10:1). With an IQD RV up to $0.10:1, which other Central Bank could possibly publish an acceptable “Fiat” exchange rate that would stabilize the true price of goods and services around the world? How will the FED, the European Central Bank and the other Central Banks around the world cope with a 1000% deflation of the purchasing power of the USD?
  2. Questions For Adam's Update 5-10-2017

    What will happen to the other major currencies when the CBI RV’s the IQD/USD exchange rate? The countries using the EUR, the GBP, the CHF, the JPY, and the CNY all have international corporations invested in Iraqi oil with contracts based on today’s exchange rates. How will a radical upward IQD/USD RV (which effectively decreases the value of the USD against the IQD) affect the EUR/USD and the GBP/USD and the CHF/USD and the JPY/USD and the CNY/USD exchange rates? Will these other major global currencies also be devalued and what in your opinion will that do to an already stressed global economy?
  3. I think i've found a problem!!!

    rockfl9 What makes you think I don't agree with you? My recent thread is simply asking for opinions on what CBI "fiat" exchange rate WOULD be acceptable to the Central Banking community yet still work inside Iraq. IMO, answers should prove interesting.
  4. Warka's Latest News Bulletin

    DoD I share your frustrations. After I first opened my Warka account and before they initiated the shut-down of services I was able to successfully wire transfer funds back to my home account 4 separate times ~ approximately once per quarter. Each time became more and more difficult as Warka approached the final shut-down. The first time went off without a hitch and the funds landed in my account in less than a week after the email request (even though I think it should have taken only 48 hours). From then, however, it was downhill with the second time taking about 2 weeks, the third about 3 weeks and the fourth time over 1 month until the funds showed up it my account. I tried a fifth time but after 6 weeks of some of the lamest excuses and dodging I‘ve ever experienced, I gave up. Even still, I hold out hope for Warka to come back to full services because it’s been getting increasingly difficult for an American to open a bank account in a foreign venue. This is especially true after Obama sent the IRS gang abroad to threaten and persecute those banks who would not easily give up a list of their American clients. I’ve had accounts in Japan, Hong Kong and Vanuatu. I closed the Japanese account with no problem, but the Hong Kong account took some doing even with my Hong Kong resident agent on site. It became very expensive with extra fees, etc. for their representation especially since the account was tied to my foreign corporation. The Vanuatu account was a credit union supposed to give a fantastic ROI but in the end it simply got “hacked” and I lost it all with no way to recover any compensation. Because of those lessons learned, I was glad to have found Warka which seemed at first to offer the full services I was expecting from an overseas account. If things finally turn around and Warka becomes stable again, I plan to withdraw all but the 30% ROI I’ve gained over the last 6 years while Warka has been on hold. Then the tentative plan is to keep the CD’s turning over and accessing the interest gained through a pre-paid Master Card about once or twice a year from a local ATM without having to go through the wire transfer drill. Right now, as you said it would be re-assuring to know that I could access the funds at any time. Good luck to us all on this IQD/Warka deal.
  5. Thanks for the positive tags given. Actually, this thread is meant to garner opinions about what the international banking community (led by the Fed and the IMF) might tolerate as an acceptable IQD/USD exchange rate before coming to the conclusion that it would be best not to trade with Iraq anymore because of the increased costs in USD’s. An exchange rate is a ratio between two numbers and if you raise the value of one then you effectively lower the value of the other. No getting around it mathematically. For example, if the board of directors of the CBI decide to exercise their “Fiat” prerogative and raise the value of the IQD, then they are effectively lowering the value of the USD in Iraq at the same time. That means a person would have to spend more USD’s to buy stuff in Iraq and that includes barrels of oil ~ which are always sold in petro-dollars. If the international corporations, which have already contracted to pump out Iraq’s oil have to start paying out more USD’s than they anticipated to purchase IQD’s in order to pay the wages of the locals that they hire in the oil fields, how much of a downgrade of the value of the USD would they tolerate before putting those Iraqi contracts on hold and concentrating on other oil fields where they can still make the profit that they anticipated? If oil brokers have to start paying out more USD’s than they anticipated to buy barrels of oil from Iraq how much of a downgrade of the value of the USD would they tolerate before they decide that they’d be better off buying those barrels elsewhere? If the value of the USD is lowered in Iraq, how does that affect those other economies around the world that depend on the USD? IMO the question becomes what “Fiat” exchange rate can the board of directors of the CBI get away with before they start to squelch the Iraqi economy and/or the international banking community just says NO to Iraq.
  6. Warka's Latest News Bulletin

    DoD Thanks for the input, but I’m already well aware of the news announcement that you are referring to. In fact, the announcement that you are referring to is much older than January 2016. Check out Warka’s own news announcements on the same subject posted on these (6) previous dates: November 7, 2015 The Central Bank of Iraq expresses its warm greeting, We would like to inform that as part of the Warka Bank rehabilitation plan the Central Bank of Iraq hereby approves the practice of all your banking activities in accordance with your banking licenses issued by the Central Bank of Iraq in accordance with Central Bank of Iraq bylaws and regulations which includes the entry into the CBI bid auction for the purchase and sale of foreign currency. Best regards, Salman Eidan Abdullah Director General September 6, 2015 Dear Warka Clients, The Central Bank of Iraq board of directors have agreed to rehabilitate Warka Bank for Investment and Finance in accordance with a set get well plan . This decision has been announced and broadcasted through all Iraqi TV networks. Best regards. Warka Bank for Investment and Finance March 31, 2014 Dear Customers Decision to lift the guardianship for Warka Bank for investment and finance Beirut February 6, 2014 Banking and Credit Supervision Committee / Banking Research and Studies Department To: Warka Bank for Investment and Finance Subject: Lifting Custodianship The decision has been reached to lift the custodianship in accordance with the tribunal court for financial services verdict in accordance with its letter no.5 / financial services/2013 /September 9th 2013 Acting Director General Abdulabbass Khalaf Sultan January 21st 2014 December 9, 2013 Dear Warka Clients and Shareholders, Further to our website post dated October 9th 2013 with regards to the court proceedings between Warka Bank for Investment and Finance and the Central Bank of Iraq Warka Bank Board of Directors are delighted to inform our fine clients and esteemed shareholders that the High Tribunal Court – Rasafa Appeal Court on November 28th 2013 has yet again awarded its verdict Reference No. 1752/M/2013 in full favour of Warka Bank for Investment and Finance instructing and enforcing the Central Bank of Iraq to fully rehabilitate Warka Bank for Investment and Finance holding the Central Bank of Iraq fully liable and responsible for all the damages occurred on the bank to complete the rehabilation task efficiently to the best interest of the bank, clients, shareholders and management. The rehabilitation verdict has retained full legal stature where Warka Bank for Investment and Finance is currently waiting for the Central Bank of Iraq to act in accordance with the verdict and court order where we will keep all the good parties well updated attached is a copy of the winning verdict. In this respect Warka Bank Board of Directors would also like to add that the High Tribunal Court – Rasafa Appeal Court on November 28th 2013 issued its final verdict Reference No. 1690/M/2013 rejecting and declining the request of Central Bank of Iraq dated February 4th2013 to reconsider and reopen the bankruptcy case the request of the Central Bank of Iraq to proceed in this matter throwing the case out of court closing this case preventing the Central Bank of Iraq from taking such course of action ordering the Central Bank of Iraq to lift and dismiss the appointment of the second Central Bank Custodian Committee that has been assigned for this specific task which until now the Central Bank of Iraq has not obeyed the courts verdict and decision. In Summary Warka Bank for Investment and Finance on November 28th 2013 has won two verdicts both of which have retained full legal stature: 1- The full rehabilitation of Warka Bank for Investment and Finance holding the Central Bank of Iraq fully liable and responsible ordering the Central Bank of Iraq to efficiently implement and execute the rehabilitation task. 2- Declining dismissing refusing and canceling the request of Central Bank of Iraq for the court to reconsider the bankruptcy case closing this matter ordering the Central Bank of Iraq to lift and cancel the Custodianship appointed by the Central Bank of Iraq for this task. Kindly note that both verdicts have been attached for your fine consideration where Warka Bank for Investment and Finance is currently waiting for the CBI to execute the verdicts and follow the court decisions accordingly. Respectfully, Board of Directors Warka Bank for Investment and Finance October 9, 2013 Dear Warka Clients and Shareholders, On February 29th 2012 the Central Bank of Iraq Board of Directors reached a decision of appointing a CBI custodian committee on Warka Bank for Investment and Finance where in turn Warka Bank for Investment and Finance raised a legal case against the Central Bank of Iraq objecting the appointment of a CBI Custodian Committee and the case was presented to the Tribunal Court for Financial Services reference No.1 / Financial Services / 2012. After many legal sessions and court hearings the Tribunal Court for Financial Services verdict was in full favor of Warka Bank for Investment and Finance lifting the CBI Custodianship on the bank because according to the court the CBI Custodianship did not meet the legal terms, conditions and criteria. This verdict retained full legal stature. Surprisingly on February 4th 2013 the Central Bank of Iraq submitted a request to the Tribunal Court for Financial Services to receive an approval from the court to raise a bankruptcy case against Warka Bank for Investment and Finance reference No. 5/Financial Services/ 2013 and for this purpose the Central Bank of Iraq decided to appoint another CBI Custodian committee on August 26th 2013 right after an earlier board meeting held a day before on February 25th 2013 where the CBI board of directors decided to lift the initial Custodianship which they appointed. Again after many court hearings and sessions as well as presenting the entire case to Financial, Banking, Monetary and Economic experts the Tribunal Court for Financial Services issued its verdict yet again in favor of Warka Bank for Investment and Finance declining the Central Bank of Iraq bankruptcy request and case. As the Central Bank of Iraq was unconvinced with this verdict they appealed it Appeal Court Reference No. 1505/M/2013. On October 7th 2013 the Appeal Court issued its verdict in favor of Warka Bank for Investment and Finance certifying the court verdict issued by the Tribunal Court for Financial Services for the reasons indicated by the Tribunal Court for Financial Services as the Central Bank of Iraq decided to lift the CBI Custodianship on August 25th 2013 in accordance and response to the Tribunal Court for Financial Services verdict (No.1/ Financial Services/ 2012 May 26th 2013) after which the Central Bank of Iraq decided on August 26th 2013 to appoint a new CBI Custodian on Warka Bank for Investment and Finance to raise a bankruptcy case against the bank and due to the fact that the appointment of a CBI Custodian is contrary and discrepant to the verdict reached by the Tribunal Court for Financial Services thus Warka Bank for Investment and Finance objected and raised a legal case against the Central Bank of Iraq for appointing the new Custodianship reference No. 10/ Financial Services/2013 On September 22nd 2013 the court issued its decision declining the objection made by Warka Bank for Investment to lift the new CBI Custodian as the issue on hand does not have any legal grounds as by law to initiate a bankruptcy case against a bank a Custodian must be first appointed for this task where under the current circumstance in accordance with the verdict awarded in favor of Warka Bank for Investment the the CBI bankruptcy case declined thus once the verdict retains and reaches full legal stature the CBI Custodianship will be dismissed with the dismissal of the bankruptcy case as one is interconnected with another the dismissal of one is the dismissal of the other. In Summary Warka Bank for Investment and Finance has won two verdicts both of which have retained full legal stature: 1. The objection case against the appointment of the CBI Custodianship Committee reference No. 1/Financial Services/ 2012 where the court awarded its verdict in favor of Warka Bank for Investment and Finance lifting the CBI custodianship where the verdict retained full legal stature. 2. The CBI request to raise a bankruptcy case reference No. 5/ Financial Services/ 2013 in which the verdict was awarded in favor of Warka Bank for Investment and Finance declining and dismissing the entire CBI request and case for not meeting the legal terms and conditions as well as court criteria. This verdict reached and retained full legal stature. Kind Note: There are still four cases against the Central Bank of Iraq for reputable and financial damages raised by the below: 1. Depositors 2. Shareholders 3. Staff 4. Managing Director demanding the full rehabilitation of the bank by the Central bank in accordance with the reasons indicated in all the court cases noting that as the four cases share legal similarities and are interconnected the court has decided to unite all of them into one case reference No. 1/ Services/ 2013 which is yet to finalized and hearings are still taking place. Thank you for your time and cooperation. Sincerely. Board of Directors Warka Bank for Investment and Finance This latest March 26, 2017 news bulletin that I have referenced on this thread is something else and actually refers to all financial institutions around Iraq including Warka Bank. I added the (Warka) in the translation just for emphasis. The CBI has been keeping a lid on the activities of all 30 private banks in Iraq, not just Warka. Its methods of suppression have included: not providing enough cash by not allowing full participation in the daily auctions, not selling CD’s to the individual banks so that the CD’s can be re-sold to depositors, not extending enough credit so that the individual banks have been limited on the amount of credit they can in turn extend to their depositors, etc. Possible reasons for the CBI doing this to its subsidiary institutions could include: a worldwide cash shortage, ISIS, low oil prices, fears of money laundering, fears of counterfeiting, Sunni-Shiite religious prejudices, and strict monitoring by the IMF under the rules of the SBA. The CBI has been under continuous, renewable IMF SBA’s since it was chartered in 2004. Whatever the case, with this latest announcement things seem to be looking up for all of the CBI’s subsidiary financial institutions ~ not just Warka. Hopefully, this will mean that more cash will be available soon and the Iraqi economy can start to flow and we can use Warka’s full services to our benefit.
  7. IMO, the CBI is already exercising its “Fiat Currency” prerogative by keeping the exchange rate between the IQD and the USD artificially high at 1180:1. According to long established internationally accepted guidelines and Central Bank transparency rules, the exchange rate between one currency and another is usually “guided” by the ratio between the volume of the home country currency (IQD) exposed to trade versus the volume of an internationally accepted reserve currency (USD) held in reserve. With those transparency rules and guidelines, the international banking community can choose to accept any Central Bank’s published “Fiat” rate ~ or not. In Iraq’s case that would be approximately 90 Trillion IQD exposed to trade versus approximately 40 Billion USD held in reserve and that would “indicate” an exchange rate of approximately 2250 IQD to 1 USD (2250:1). The international banking community led by the Fed and the IMF (in which Iraq is a founding member and has kept the IQD pegged to the USD for at least 30 years) have already accepted the CBI’s currently published stronger “Fiat” rate of 1180:1. The CBI trades at that rate daily with its currency auctions and everybody says OK. However, the big question might be how far is the same international banking community prepared to go before it just says NO to an upgraded “Fiat” exchange rate and just stops trading with the country publishing the rate? Such a sanction would simply render any “considered unrealistic” exchange rate null and void right from the get go; so what’s the upper limit before the international Central Banking Community led by the Fed and the IMF just says NO to Iraq and the CBI on its published “Fiat” exchange rate? Instead of the published 1180:1, is 1000:1 going too far? How about 100:1 or 10:1? Where’s the acceptable upper limit?
  8. The CBI must be getting serious and doing something right under its current 3 year (2016 – 2019) Stand By Agreement (SBA) with the IMF. This is the latest (March 26, 2017) news bulletin from Warka Bank translated from the Arabic: Our Valued Customers The Central Bank of Iraq has notified all governmental institutions and companies that it has removed guardianship over them and therefore allows this bank (Warka) to exercise all of its activities and services. IMO, this opens the door for the CBI to start selling CD’s to all subsidiary banks including Warka Bank. If Warka Bank buys Cd’s from the CBI and then resumes the sale of CD’s to its foreign depositors, that may open the door for Warka to again start allowing internal transfers within our accounts ~ from our USD accounts to our IQD accounts and back again. If Warka starts to allow internal account transfers, then that may open the door for Warka to start allowing external transfers from our USD accounts back to our home banks. If Warka starts to allow external transfers, then that may open the door for Warka to again start selling pre-paid Master Cards which we can fund and set limits on from our Warka accounts and use to get USD anywhere in the world. Of course, without a correspondent bank somewhere in the country where our home accounts exist, an external transfer to our home accounts is a no go. IMO, it will pay for us to log on to our accounts to check when transfers are again an option under the Inquiries button. Also, I think it’s a good idea to continue to monitor Warka’s home page for the list of correspondent banks in our home countries, as well as the interest rates for our savings accounts and potential CD accounts. The CBI note did say “exercise all activities and services”.
  9. Questions For Adam's Update 4-19-2017

    IMO, Lady Grace’s Daddy has asked an excellent and important question. As a follow up, I would add that under its 2004 Central Bank Charter the CBI is tasked with continuing to keep the IQD competitive against other currencies in order to promote the sale of Iraqi oil and the Iraqi economy. Since the CBI is currently under a 3 year (2016 – 2019) SBA with the IMF, wouldn’t it be a conflict of interest to raise the value of the IQD to the point where oil dealers would go elsewhere to buy? Also, wouldn’t the IMF monitors at the CBI have something to say about it under the SBA?
  10. Warka Web Page Blocked

    On 26 February I sent a note to Mohammad Issa as I’m sure plenty of others did. As of 28 February, I’m able to log on to my account and access all the buttons including for Display Accounts and Internet Statement without getting the web page blocked error. I guess we’re back to the new normal for our accounts: watch but don’t touch.
  11. Questions For Adam's Update 3-1-2017

    As you stated in one of your previous updates the Iraqi Dinar is a fiat currency “and the value is not based on M2 or M3 or the GDP or the price of tea in China... it's based on investors FAITH in the country. It’s based on how people FEEL” You also gave the opinion that “The Iraqi Dinar is worth whatever people want it to be worth… and when TPB decide they are going to raise the value, there’s going to be a LOT of support for that move!” Question 1: What does TPB mean? Question 2: If the IQD/USD exchange rate and the IQD purchasing power is in fact not based on the price of oil, or the price of tea in China, then why do you think that we have to wait for a Hydro Carbon Law to be passed before an IQD RV ~ based on feelings ~ can be implemented?
  12. After spending 3 years living in Iraq and 12-1/2 years speculating in the Iraqi Dinar I’d like to share some personal observations on the status of our Warka Accounts: · There is a shortage of cash in Iraq · Iraqi citizens can withdraw only a percentage of their savings balances · All 30 private banks in Iraq, including Warka, are strapped for cash · The IMF under the current SBA may first have to approve of CBI international banking practices before the CBI is allowed to sell GOI Bonds or CD’s to the private sector. · Warka can’t sell CD’s to account holders until the CBI is allowed to sell CD’s to Warka. · With its peg to the dollar, the CBI is artificially keeping the exchange rate higher than it should be @ 1182 dinar per dollar. · Warka gave most foreign account holders about 1175 dinar per dollar when accounts were first opened by foreign speculators. · Even with the dinar’s (0.006%) loss in value from 1175 to 1182, Warka clients are still earning a positive rate of interest on savings accounts (on paper). · As of at least 2/26/17, there’s a new error message waiting for you if you attempt to use the Online Banking link on Warka’s Home page Warka Accounts versus Fed dominated US Banks Accounts If you think banking with Warka is scary, you might want to read this article with regard to your own US bank accounts: Could the Banksters Grab Your Bank Deposits? http://jonathanturley.org/2013/03/31/could-the-banksters-grab-your-bank-deposits/ The above article explains that most of us do not realize that when we deposit money in a bank, it becomes the property of the bank and we become unsecured creditors of the bank! Although few depositors realize it, legally the bank owns the depositor’s funds as soon as they are put in the bank. Our money becomes the banks’, and we become unsecured creditors holding IOUs or promises to pay. Even though the current USD fiat currency is nothing more than IOU’s or promises to pay notes from the Federal Reserve Bank, at least you can still pay your mortgage with them. Of course, the same is true of the Canadian dollar, the British pound, the Australian dollar and the Euro ~ just to name a few. As everyone knows by now over 100 banks a year have failed across the USA since the Barry Bailout scheme went into effect in 2008. If your local bank failed and went into bankruptcy and you as an “unsecured creditor” got only bank stocks as compensation, could you pay for goods and services with a failed bank’s stock certificates? I doubt it. You’d also find very few buyers if you just wanted to get rid of the stocks. Here’s hoping that Warka Bank takes a different view of depositors and that Islamic law requiring 100% honesty in financial and banking matters has influenced the legalities enough in Iraq to put depositors like us in priority positions of payback instead of the other way round; especially if Warka should ever actually fail. As it stands now, it looks like we have a better chance of recovering our money from Warka than from our own home banks ~ should either one ever actually fail. The interest earned is certainly better at Warka. Here is a link to another article similar to the one above: Think your bank deposits will always be 100% guaranteed by the FDIC? Think again. http://americablog.com/2013/04/fdic-uk-nz-deposit-confiscation.html The good ole USA gets more and more third worldly every day!! Finally, these 2 articles help make me still feel OK about Iraq in general and about our Warka Accounts specifically: How Some Investors are taking the Long View of Iraq http://www.cnbc.com/2016/12/11/how-some-investors-are-taking-the-long-view-of-iraq-despite-war.html?__source=yahoo%7Cfinance%7Cheadline%7Cheadline%7Cstory&par=yahoo&doc=104157911&yptr=yahoo Iraq signs UN Transparency Convention http://www.iraq-businessnews.com/2017/02/17/iraq-signs-un-transparency-convention/
  13. Warka Web Page Blocked

    Well, I went back to try to get a copy of that error message and found that I could not even log-in to my account. I am able to log on to Warka's home page, but when I click on the Online Banking Tab I get the error message and can go no further.
  14. Warka Web Page Blocked

    I received the same Web Page Blocked error and not just on the Display Accounts page. I got the same error message from any page I tried to go to after logging on. Just for drill, I copied that first page showing the date and time that I logged, on as well as my password expiration date. Now I've at least got that initial log-on page as a pdf ~ which I might need to show Warka in the future as proof that my account is still active. Whatever the case, I think I will also get a pdf copy of that error message and send it to the Warka customer service staff just to see if there is a response.
  15. exchange rate

    Selling IQD 190,233 for US$158 is the same as selling IQD 1 Million for US$830.56 ~ at an exchange rate of 1:1204. At its own officially posted (buying USD) rate of 1:1182, the CBI would pay IQD 1 Million for US$846.02 and IQD 190,233 for US$160.94. Buying IQD 190,233 for only US$158 means there is a built-in profit. Currently, the CBI will buy back IQD at the (selling USD) rate of 1:1184 and so would pay US$844.59 for IQD 1 Million and US$160.65 for IQD 190,233. To sell IQD 190,233 for US$160.65 when it was bought for US$158 means a profit of $2.65 or a 1.68% ROI. Congratulations on a good buy!
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