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Posts posted by phlip

  1. On 3/24/2018 at 2:31 PM, yendor said:

    I am trying to get my mind around the reality effect an RV would have on an Iraqi citizen..... Let us say that he had a 25,000 Dinar  note  (worth approximately $20.00) the day before an RV and the next day the announcement came that instead of 1 dinar being worth $0.0008. it is now worth $ 0.10 ...... My question is has the buying power of that Iraqi's  (in Iraq) actually gone to  $2,500 ? And has the price of the products  in Iraq increased accordingly ? I am just trying to get a feeling of what that citizen will be facing with an RV.  It is like Uncle Sam telling all of us that that $1.00 bill in our wallet is now worth $100.00 or more. It is mind boggling to me.


    I absolutely agree with Yendor in that an overnight RV of the dinar to $0.10 would be quite the shock for an Iraqi citizen and the Iraqi economy.

    Here are my questions to further define Yendor’s question:

    If oil is at about $70 per barrel before an RV would the price have to go to $8750 per barrel to keep up with the new purchasing power of the dinar?


    If the purchasing power of the IQD 2500 banknote goes from $20 to $2500 overnight what does that do to the exchange rates between the USD and the Euro, or the USD and the British Pound, or the USD and the Japanese Yen or the USD and the Chinese Yuan?

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  2. It is my understanding that once the CBI implements this 2 year IQD Redenomination plan the Iraqis will have only those 2 years to turn in their large denomination banknotes. According to the plan, after the 2 years is up all large denomination IQD banknotes would become null and void as currency ~ and would no longer be accepted anywhere in Iraq to pay for anything.

    They would become souvenirs only.  


    The same thing happened in 2004 when the Coalition Provisional Authority sent Paul Bremer to Iraq as the person in charge. He brought with him the charter for the newly established CBI as well as several C130 Hercules plane loads full of both IQD and USD cash shrink wrapped to pallets to be transported to banks around Iraq ~ in order to stimulate a collapsed economy.


    I saw some of those shrink wrapped pallets with my own eyes and I personally witnessed the US Army delivering bank sacks full of USD cash to Forward Operating Bases from the back of open ended Humvees. It was an eye opening experience even in an active war zone. Kind of like the wild wild west ~ only different.

    I still own a set of the old Saddam faced currency as a war souvenir.


    In 2004, the CPA announced that all Iraqis had only 90 days to turn in their Saddam faced currency (without the extra 3 zeros) in exchange for the large denomination IQD banknotes ~ which could then be exchanged for USD when the need arose.

    It was my experience even back then that the Iraqis who worked for the CPA to do work on the FOBs preferred to be paid in USD’s and not the new large denomination with the added 3 zeros. A matter of trust, I suppose.


    As I said in my post, it’s never been adequately explained (to me) where a foreign speculator with a wad of large denomination IQD will fit into a CBI Redenomination plan. After the proposed 2 year exchange period is up any large denomination IQD notes will become souvenirs only ~ no exceptions.


    That fact seems to lend itself to the idea that once the CBI Redenomination plan is announced and implemented in Iraq, a foreign speculator with a wad of large denomination IQD might want to trade in his banknotes for the new ones being issued as soon as possible. But how?


    If a person is actually able to trade in his large denomination IQD for low denomination IQD during that 2 year period, what then?

    IMO, a speculator would still have to trade in that newly legitimate IQD for USD to do himself any good ~ no matter what country he lived in.


    Then there is the question of value. Even if the newly issued IQD trades at one to one with USD is there a profit in it?   

  3. I’m glad that y'all feel that this post raises your spirits about IQD speculation; but just so you understand that the CBI Redenomination plan I mention is well known to be a 2 year plan ~ and it hasn’t even started yet.



    The CBI plans to make a very public recall of all the big denomination IQD banknotes (with 3 zeros) now in circulation and trade them out for smaller denomination notes (without the 3 zeros) ~ which would bring the 40 Trillion IQD in circulation down to 40 Billion IQD.

    The 2 years allows ample time for all Iraqis to get rid of their current banknotes and accept either smaller denomination notes or ATM cards loaded with an equal value amount in IQD. Not USD.



    Once that is accomplished and the ratio between the IQD in circulation and the USD in reserve is approximately 40 Billion IQD against $39 - $40 Billion USD in reserve then the CBI will be able to declare a “pegged to the USD” Fiat exchange rate of one IQD to one USD.



    I have never been sure where a foreign speculator possessing millions of IQD in large denomination banknotes (with 3 zeros) fits into that scenario nor has it been adequately explained on this site or any other.

    Once the CBI plan is implemented and the large denomination notes are officially in recall does a foreign speculator try to turn his banknotes in for the smaller denomination versions and then wait some more to trade for USD's?

    We can be sure that the CBI will not be trading large denomination notes coming from Iraqis for USD’s. Instead, it’ll be IQD for IQD until the exchange ratio approaches one to one. Then the CBI will consider trading smaller denomination IQD notes for USD’s and it will mostly take place by way of ATM machines.    

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  4. I last accessed Warka’s website and logged in successfully on 26 November 2017, but as of at least 30 November 2017 my browser gets an error message which says it cannot access the Warka server. Hopefully, it means the Warka staff is busy up-grading their security certificate and is getting ready to up-grade our accounts with another 6 months of interest earned.

    Just a little while ago, Warka expired my account password 7 months early.

    I had not logged in until 5 months after I had renewed my password in June of 2017. This early expiration makes me feel strongly that the Warka staff would still like to see us login to our accounts at least once every quarter to demonstrate a continued interest.

    Even though we nominally have a whole 12 months before we should have to login in order to change our passwords, it seems that in reality we do not.


    Logging in more frequently actually helps Warka protect our accounts because it demonstrates that the account has not been abandoned.

    Still, it’s kind of a pain in the ass, especially since logging in is a continued reminder of how little control we have over our funds.


    I requested a new reset password and got one in about 5 business days.


    I will continue to monitor Warka’s website for the list of Correspondent Banks and look for a US based Correspondent Bank under control of the Fed.

    When such a bank appears on Warka’s list, it will mean that the Fed has given the green light and Warka is getting ready to transfer USD’s via SWIFT to the US through the Correspondent Bank.

    From there it is a domestic transfer into our individual private accounts.

  5. IMO, with a reported 40 Trillion IQD in circulation backed up by a reported 39 Billion USD Reserve the CBI could potentially declare an “actual” IQD/USD exchange rate of 1025.64 IQD per 1 USD.

    That would extrapolate to $0.000975 USD per 1 IQD or to $975 USD per 1 Million IQD ~ if a private bank or a speculator buys directly from the CBI.


    Using its “Fiat Currency” prerogative it appears as though the CBI is choosing to minimize its current USD Reserve exposure by keeping the IQD pegged to the USD at an artificial “Fiat” rate.

    IMO, this fiscal policy makes sense, especially if you figure that one of the CBI’s chartered mandates is to protect the currency and also take into account that the IMF committees keeping a close watch during the current SBA would expect the CBI to be doing just that ~ protecting the currency.


    Currently, the CBI buys USD’s with IQD at the rate of 1180 IQD per 1 USD.

    At the same time, the CBI also sells USD’s for IQD at the rate of 1190 IQD per 1 USD.


    This means that a private bank, or a currency dealer or a private speculator has to pay $0.0008474576 USD for 1 IQD or $847.46 USD for 1 Million IQD ~ if they buy directly from the CBI at one of its auctions.

    On the other hand, if a private bank or currency dealer or private speculator wants to sell 1 Million IQD back to the CBI in exchange for USD’s; then the CBI would only pay out $840.34 USD for it.

    That’s a CBI profit margin spread of $7.12 USD per 1 Million IQD.


    If the CBI ever implements its very publically declared (but so far postponed) Re-Denomination (RD) plan for the IQD; and as per that plan, actually manages to reduce the currently exposed 40 Trillion IQD in circulation down to 40 Billion IQD in circulation; then perhaps some cash can actually start flowing inside and to and from Iraq.


    IMO, if the pressure of keeping up with the ever expanding IQD in circulation is taken off the CBI’s Reserve of 39 Billion USD and the cost of fighting ISIS is brought under control and the sometimes predicted uptick in the future price of oil per barrel happens, then the CBI may finally have the means and the opportunity to be of real service to Iraq by selling CD’s, Bank Cards, Letters of Credit, etc. to the private sector.


    If the currency ratio actually becomes 40 Billion IQD in circulation backed by that same 39 Billion USD Reserve, then IMO, the CBI’s IQD/USD exchange rate could accurately be declared at 1.025641 IQD per 1 USD.

    Conversely, that would be $0.975 USD per 1 IQD.


    In any case, an RD is not a LOP; especially since the CBI’s RD plan specifically calls for a very public neutral event whereby no Iraqi citizen holding current IQD bank notes or electronic bank accounts will be financially harmed in the currency exchange process.

    Specifically, the USD value of the IQD banknotes (both new and old) and the USD value of all electronic accounts will remain the same before and after the exchange process.


    Once the CBI’s new (Post-RD) IQD/USD exchange rate is made clear, then IMO the CBI could easily declare a “Fiat” rate with the IQD pegged to the USD at one to one.


    With the IQD and the USD on par in Iraq, all oil, gas and mineral quotes could be made in either IQD or USD ~ at least inside Iraq.


    I can’t help but wonder if IQD currency reform ~ however it plays out ~ has to happen before the Iraqi’s and the Kurds, and the rest of the world’s International Corporations invested in Iraqi oil can finally agree on a comprehensive and acceptable long term HCL that benefits all concerned.


    If the CBI’s IQD/USD exchange rate remained pegged at one to one after a successful RD, then natural recourses prices could be quoted in either IQD or USD and that would have to include all imported or exported goods.


    IMO, an “on par” IQD/USD currency exchange rate should cause cash to flow much more freely between Iraq and the US and also the rest of the world exposed to the USD.

    IMO, freely flowing cash to and from and within Iraq (whether it be IQD or USD) could be mostly managed electronically with ATM style cards and pre-paid cards and wire transfers. 

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  6. 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?  

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  7. 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?

  8. On 4/21/2017 at 10:58 AM, rockfl9 said:

    SMH = Shaking  MY Head   Thanks  , I couldn't fig that one out.

    Just think what it would be like ... Congratulations Hamed,  We have just raised your salary by a factor of 10 !!!!  The bad news is we can't pay you until we print 10 TIMES MORE DINAR.   Think what that would do to the REAL value of the dinar.

    Until the GOI gets MORE USD coming in  from oil sales there will not be an increase in REAL purchasing power of the dinar.

    The CBI can say the exchange rate , IN IRAQ , is whatever rate it will use to make IN-COUNTRY exchanges BUT the Central banking community (if it ever will trade outside of IRAQ) will develop  it's own rate. 


    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.

  9. 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.

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  10. 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.

  11. 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.




    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.


    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.

    • Upvote 1

  12. 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?

    • Upvote 5

  13. 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”.

    • Upvote 4

  14. 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?

    • Upvote 1

  15. 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.

  16. 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?

    • Upvote 1

  17. 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?   


    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.


    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


    Iraq signs UN Transparency Convention


    • Upvote 3

  18. 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.

    • Upvote 1

  19. 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!

  20. It’s no secret that the CBI has voluntarily entered into a Stand By Agreement (SBA) with the IMF until 2019, has renewed its 30 year dinar peg to the dollar, has current US Federal Reserves of approximately $50 Billion and since the summer of 2015 has accepted a number of loans so that it is now on the hook for approximately $7.373 to the IMF, $4.75 Billion to the World Bank, $3.7 Billion to the Fed, $2.34 Billion to the Bank of Japan and $500 Million to the Islamic Development Bank; therefore, in your opinion, if the CBI chooses to RV at 10 cents will this approximately $18.663 Billion worth of international debt be repaid by the CBI at the rate at which it was borrowed (1 dinar = $0.00084) or will the CBI choose to pay off these loans at the new rate where 1 dinar = 10 cents ~ and secondly, in your opinion, will these lenders accept payment with such a deeply discounted USD which the 10 cent RV represents?  

  21. Using Mozilla’s Firefox as a browser, I was unable to bypass Firefox security protocol and so could not access Warka Online Banking from Warka Bank’s home page link.


    Using Microsoft’s Internet Explorer as a browser, I clicked on Warka Bank’s home page link to Online Banking and two tabs popped up.

    One tab contained the warning about an unsecure connection, but the other tab was a direct link to Warka’s Online Banking and from there I was able log on following Warka’s security protocols and access my accounts.


    I printed my own Warka online home page and scanned it to a pdf file ready to be attached to a future email if necessary.

    It shows today’s date, the date of the last time that I logged on, and my current password expiration date.

    It’s proof of a valid password and an expiration date just in case my password is expired early again.

    I also printed the page showing my account balances because it shows the new IBAN numbers associated with my Warka USD and IQD account numbers.


    Very encouraging to (finally) have an International Bank Account Number associated with my Warka account numbers.

    It points to the idea that in future we may not need a US corresponding bank ~ like Citibank NA ~ but instead may be able to wire funds directly from our Warka accounts to our local accounts using the IBAN numbers.

    I’m also looking forward to the last six months’ worth of interest due at the end of the year. Compounded monthly adds up quick.


    Using Google’s Chrome as a browser, I clicked on Warka Bank’s home page Online Banking link and the unsecure connection message popped up; but this message had a button labeled “Advanced”, and I clicked on that.

    Clicking on the “Advanced” button popped up a further message that had the option to continue ~ labeled (not safe) ~ at the bottom of the page and I clicked on that. From there I was able to access my accounts thru Warka’s Online Banking link.


    So, it’s my experience that you can get there with Internet Explorer and with Chrome, but not with Firefox.

    All three connections are still labeled not secure, even when Internet Explorer and Chrome allow you to get there, anyway.


    However, once you your browser allows you to get there, it seems that you are logging on in a secure environment, anyway ~ despite the warnings.

    • Upvote 1

  22. For at least the last 6 weeks I have been unable to access my Warka account because every time I attempted to log on using Warka’s own Online Banking Link I got an error message from my browser telling me the connection was not secure.

    Sometimes in the past when I got that message, there was a button to click on which allowed my browser to bypass the warning and connect anyway.

    Not this time.

    Apparently, Warka’s own security subscription has run out and they haven’t renewed it yet.

    After a month, I got tired of waiting and sent an email to Warka.

    No response for 2 weeks so far.

    Anybody else having the same problem?


    Here’s the email I sent:


    Dear Mr. Mohammad K Issa

    I cannot access Warka Bank’s Online Banking.

    Please see the attached copy of the error message I receive when I use this link: .

    Has the address of Warka Bank’s Online Banking link been changed to a more secure address?

    I will be very grateful for any advice from the Warka Bank Staff on how to overcome this problem.

    Best Regards


    Connection is not Secure.pdf

  23. Why at this time is Warka bothering to be so pro-active on individual accounts and then at the same time decently responsive to an individual client’s urgent requests for password resets?

    Why not just go on as unresponsive as they have been in the last 3 – 4 years?


    IMO, the Warka Bank Staff can see the time coming when the CBI will successfully complete the IMF and UN required transparency tests and therefore be able to start selling CD’s to the Iraqi private banking sector again; which would eventually allow Warka and all the other 30 or so Iraqi private banks to begin selling CD’s to clients, funding MasterCard Accounts, funding and trading with client ISX Accounts, maintaining Letters of Credit, etc.


    When that flow of funds starts happening, IMO, the next logical step would be for the possibility of first internal and then external transfer of funds.

    Our ability to transfer USD from our Warka Accounts to our Fed dominated local bank accounts would then depend on the Fed appointing an intermediary US bank to handle all incoming traffic from Warka.


    Historically, Warka’s USA Correspondent Bank has specifically been the Citibank, NA, New York, NY Branch of the Federal Reserve System.


    If in the near future the Fed decides that Warka Bank for Investment and Finance can be trusted to have the liquid inventory necessary to service its clients with the transfer of USD’s then perhaps Citibank, NA New York, NY may again be nominated to be Warka’s correspondent bank for the USA.


    Whatever the case, no correspondent bank means no USD or Euro transfers; so if a person wants to know if Warka is ready to send them some of their own mulla, my advice would be to look for a Warka correspondent bank in their area.


    The current list can be accessed from Warka’s website homepage.

    Here’s a link to Warka’s current list of correspondent banks:


    All of the correspondent banks listed deal with funds denominated in either USD’s or Euro’s (only) ~ including the two banks in Germany dealing in both USD’s and Euro’s.

    Meanwhile, right now there is not a single correspondent bank listed on either of the American Continents.

    Nothing for the Australian Continent and only the two German banks to handle Europe.


    Even though the two banks in Germany are still listed as Warka correspondent banks, I’m fairly certain that Warka is still not allowing either USD or Euro transfers to either of them.


    All of the Iraqi private banks (including Warka and a couple of others that deal with foreign clients) are currently under cash shortage restrictions whereby they are limiting withdrawals by local Iraqi clients to only certain percentages of the entire account balances and just to be able to do that they have had to cut off foreign client’s access to funds entirely ~ for now.


    IMO, it’s still better than finding out that you only have 40% of what you thought you had on balance as happened in Cyprus ~ at one time one of the go to offshore account venues to consider.

    Also, whatever paid interest percentages have been reduced to by Warka are IMO still better than the best of what is offered in the Fed system and way better than those other banks around the globe offering negative interest on savings accounts.

    • Upvote 1
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