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Stryker Blog 2.3.2015 The CBI is Ready to Revalue the Dinar Judge for Yourself if I'm Right There are two main reasons that banks buy the USD thru the Central Bank of Iraq’s daily auctions: 1) Bank customers need the USD to pay for imported goods 2) Iraqi citizens need it for purchase of goods in the local market place or to use as an investment tool Through recent news articles, CBI announcements and Article (looking it up now), paragraph 50 of the 2015 Budget Law we know by FACT that the CBI daily auctions (once the budget is implemented completely) will be capped at $75 million per day in the sale of the USD. QUOTE: It is noteworthy that the current year's budget law, committed the Central Bank of Iraq, in paragraph 50, identifying sales of foreign currency (dollar) in daily auction ceiling does not exceed 75 million We also know through recent articles and the 2015 Budget Law that all imports will now go through foreign bank accounts and not through the daily auctions. (Once the budget is implemented completely) QUOTE: The Central Bank of Iraq, announced on Sunday, (the first of February, the current 2015), take five resolutions for "support" the development of the Iraqi economy, stressing his agreement to cover bank accounts abroad to "US dollar" to cover imports So it is easy to conclude that the daily auctions will be limited to the sale of the US dollar for the purchase of goods in the local markets place and investment purposes. What we don’t know is why the change and what does this mean to us dinar holders? In this blog I will show you exactly what it means and why imports are about to be paid for through foreign bank accounts and no longer through the CBI’s daily auctions. But wait, if the daily auctions go down so will the IQD rise higher against the dollar, causing the IQD to go backwards in value, or will it? To answer that question we first need to look at what the CBI is really saying: QUOTE: Bank submit a written application to the Directorate General of investments which enhance the tally required to have correspondents in overseas facilities with a copy of the entry to strengthen the balance of his account in Iraqi dinars from type 216, equivalent to the amount to be converted Wait a minute, what are they saying, strengthen the balance of his account in Iraqi dinars from type 216, equivalent to the amount to be converted? Is this saying what we think it is saying? Let’s uncover all the facts before you answer that question. Let me break this down for you as simple as I can, even then it may get confusing so take your time in reading it: First we need to know what this type 216 is and why would strengthening the balance of his account in Iraqi dinar from type 216 make it equivalent to the amount to be converted? What is type 216 and who is the governing authority, who gets this document and what purpose does it serve? Type 216: is really called BC 216 BANKING ISSUANCE defend as a Type: Banking Circular 216. BC 216 is sent out from the Comptroller of the Currency Administrator of National Banks for the subject matter: Securities Denominated in Foreign Currencies. What Authority: (OCC) Office of the Comptroller of the Currency,  The OCC charters, regulates, and supervises all national banks and federal savings associations as well as federal branches and agencies of foreign banks. The OCC is an independent bureau of the U.S. Department of the Treasury. Knowing who the players are is so important to know the facts. Ok, why are they involved and what does this have to do with our dinars? Who gets this document? Chief Executive Officers of All National Banks, Deputy Comptrollers (District) and All Examining Personnel What purpose does it serve? The purpose of this circular is to advise national banks of the Comptroller of the Currency's policies concerning ownership of securities which are not denominated in U.S. dollars. This will change the way U.S. banks look at the Iraqi dinar folks! Look at how they refer to the SCOPE of this document that is sent to ALL banking institutions in the U.S.: QUOTE:This circular (BC 216) applies to all securities not denominated in U.S. dollars held by national banks. This means U.S. banks will soon hold these securities (IQD) as exchange securities. BINGO Wait but there’s more, here is the background of this BC 216: The supply of investment securities which are denominated in foreign currencies is expanding. Banks that traditionally have not conducted international operations or acquired assets denominated in a foreign currency are now acquiring foreign currency denominated securities for investment purposes. That’s right, they are talking about us dinar holders But there is a risk in exchanging these foreign currencies that have never been denominated before, see here: QUOTE: The limitations applicable to a national bank’s acquisition of securities for investment purposes are listed in 12 USC 24 and 12 CFR 1. Eligible investment securities are not required to be denominated in U.S. dollars. However, national bank portfolio investment in a security which is denominated in a foreign currency introduces a risk in the form of foreign (currency) exchange risk. Foreign exchange risk can be substantially different from the risks ordinarily managed by investor banks, because the value of the foreign currency may fluctuate in relation to the dollar value at which the bank carries the security on its books. OK, here is how they overcome that risk: Foreign currency denominated investment securities must be revalued, reported and recorded in accordance with FASB Statement No. 52, "Foreign Currency Translation" (FAS 52). Except as otherwise provided by FAS 52, gains or losses resulting from the currency revaluation should be included in the determination of net income for the reporting period. This will be us folks: QUOTE: gains or losses resulting from the currency revaluation should be included in the determination of net income for the reporting period. It is not a capital gain but net income when reporting your taxes folks. Accordance with who? The(FASB) Federal Accounting Standards Board FOREIGN CURRENCY TRANSLATION (ISSUED 12/81) Summary And here you can go to see the SUMMARY OF STATEMENT NO. 52 This effects foreign companies operating in Iraq and anyone holding securities in the form of Iraq dinars that gain from the revaluation of it. Do you see it now? When does this go into effect? It stands to reason that it could follow the budget implementation! But you decide! Folks, believe me when I say that I am not bragging but I don’t mind saying, this is the best research that I have done to date on our investment and why I stated in my email update today that God will Bless us all and soon. Supporting documentation: Dinar rises slightly and some bankers are reluctant to sell the dollar. BC - 216 BANKING ISSUANCE 12 U.S.C.A. § 24. Corporate powers of associations 12 U.S. Code § 1 - Office of the Comptroller of the Currency The(FASB) Federal Accounting Standards Board  LINK