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phlip

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Everything posted by phlip

  1. toochez I know of no other way of having funds transferred out of Warka. The method indicated in my How do we withdraw funds from Warka when it is released from CBI Guardianship? post is the only way I’ve found to get it done even when Warka was not under Guardianship and now that they are under Guardianship and have a Conservator calling the shots it will ultimately be up to that entity (an accounting firm) to submit its final approval to the CBI for Warka’s release. In addition, as you can see from the language in the message that you finally received there may be even more legal matters to contend with besides Warka just having the necessary cash flow liquidity required in order to be considered solvent once again. In the past, using follow up emails while attempting to get approval for a wire transfer, I’ve cited the CBI’s own Article 65 plus emailed entire threads of Warka correspondence directly to the CBI without success ~ the transfer was still declined and eventually the CBI email address started coming back as a bad address (as seen by my email service). As yet, I haven’t learned how to use Western Union to transfer Warka funds back to a domestic outlet; but even if I did I doubt that it would work while Warka remains under Guardianship. Same goes for Pay Pal ~ if that option even exists. I’ve tried applying for Warka pre-paid and debit MasterCards without success, but even had I received one or the other prior to the Guardianship period, I doubt that either would work now due to the ban on all outgoing funds. It’s probably best to remember that insolvency is the CBI’s stated reason for putting Warka under Guardianship and that means that the Conservator will view any outgoing cash such as ATM withdrawals, wire transfers or stock purchases as a no-no until there are sufficient cash reserves in the vault to cover all of them. I’m sure that means enough to cover everyone’s requests ~ both foreign and Iraqi ~ and not just your particular request or my particular request. Nobody gets special treatment. It may be best for everyone with a Warka account to get used to the idea that for now we all should just take advantage of the exceptional interest rates while we wait for the CBI to release Warka. Build up our IQD accounts in anticipation of the coming RD/RV which should give us all a solid 14% bump up in value when the new IQD is rated against the USD. Supposedly, part of the CBI/MOF publicly stated plan for the IQD is to raise the rate against the USD from 1/1166 up to 1/1000 sometime during 2013. For those that need the money back home right now due to unforeseen financial circumstances it will end up being a forced wait; but nevertheless, it could still turn out to be more profitable than if the money were pulled out right now. Of course, Warka could be released from Guardianship prior to any RD/RV and then it will still be up to each investor’s individual needs as to the timing of a withdrawal or wire transfer or use of a MasterCard. It might be best to pre-register your preferred wire transfer destination bank online. Here’s a suggestion on how to do that: Log on to your account using your e-banking subscription and password. From the 7 choices on the left side of the page, select Maintain Beneficiaries From the resultant drop down list of options, select Add External Transfer Beneficiary Fill in the blanks using basically the same information that you used on the Outward Remittance form to provide transfer instructions, but with the addition that you will also need your destination bank’s SWIFT code. Once you submit the info, a message in red will appear saying “Operation Successful” When that message comes up, it’s been my experience that it’s best to then log out in order to give your new External Transfer Beneficiary a chance to register in the system. Log back into your account and again go to the Maintain Beneficiaries option From the drop down menu select List External Transfer Beneficiaries to confirm that your added beneficiary has been approved. All of this is for possible future use only, since there is as yet no way for us to transfer funds directly from our Warka accounts to our destination home banks just by logging on to our accounts and requesting it. However, if the destination bank is pre-registered like this it may help later when using the Outward Remittance method. When the time comes, Warka is going to want to be sure exactly who is really requesting the funds before they let them go and part of their due diligence will be a confirmation of both ID and signature from the individual that owns the account. When you think about it, we really wouldn’t want it any other way either; and that’s why the Outward Remittance method described may be the only way to get it done. According to Warka, it is. As frustrating as circumstances are right now, I hope this at least helps to answer your questions.
  2. dontlop, here is a link that states that the Iraqi dinar (IQD) is pegged to the US dollar (USD) ~ several times: http://en.wikipedia.org/wiki/Iraqi_dinar You’ll have to read the “History” section to find the following: The dinar was pegged at par with the British pound until 1959 when, without changing its value, the peg was switched to the United States dollar at the rate of 1 dinar = 2.8 dollars. The Dinar is currently pegged to the dollar at a rate of 1166/1164 (sell/buy) dinars per dollar as can be seen on the Central Bank Of Iraq's home page. The exchange rate reportedly available on the streets of Iraq is around 1200 dinars per US dollar. The IMF as part of the rebuilding of Iraq is monitoring their finances and for this purpose uses a single rate (not a sell/buy) of 1170 dinars per dollar.
  3. Texas 1, to answer your question here is the clipped question in its entirety: ----------------------------------------------------------------------------------------------- Adam, I’m still trying to understand the mechanics of an IQD RV as you have explained it. For example, in a recent DV forum post a member copied and pasted parts of a 2003 Coalition Provisional Authority (CPA) mandate that said in part: The CBI shall be responsible for the exchange of Iraqi dinar banknotes currently circulating in Iraq……… During the Conversion Period, 1990 dinar banknotes, Swiss dinar banknotes and coins, and New Iraqi dinar banknotes shall all be legal tender banknotes in Iraq and each type of Iraqi dinar may be used as such in proportion to its Official Conversion Rate. The New Iraqi dinar banknotes mentioned here are the high denomination IQD banknotes currently in circulation; so my question is this: Why do you now think that this time around the CBI will RV just these existing high denomination IQD banknotes before it introduces the new lower denomination IQD banknotes and then allows all 3 currencies (2 IQD’s and the USD) to coexist during a specified Conversion Period ~ just like they did the last time? ---------------------------------------------------------------------------------------------------- For clarity here is a link to the entire “2003 CPA Mandate” that I mentioned; which is actually called Coalition Provisional Authority Order Number 43: http://www.casi.org.uk/info/cpa/20031015_CPAORD43.pdf
  4. This post is a follow up to my previous post called “Some Central Bank of Iraq Highlights” which can be found in the DV Forum called Warka and Iraqi Banking or by following this link: http://dinarvets.com/forums/index.php?/topic/142384-some-central-bank-of-iraq-highlights/ When the current CBI was founded under the authority of the Coalition Provisional Authority (CPA), L. Paul Bremer was the Administrator in charge of the CPA and he kept himself busy by issuing CPA Orders ~ to be followed by the folks under his authority. One such order had to do with the CBI and with Iraq’s last currency redenomination (RD)/revalue (RV) which took place during a Conversion Period between 14 October, 2003 and 15 January, 2004 ~ roughly a 90 day period. This particular order was called Coalition Provisional Authority Order Number 43 which Bremer signed into force on 14 October, 2003. A copy of it can be found at this link: http://www.casi.org.uk/info/cpa/20031015_CPAORD43.pdf It’s my opinion that anyone currently invested in the Iraqi Dinar (IQD) would be best served by reading the entire 4 page (widely spaced) document at least once in order to familiarize themselves with what actually happened the last time Iraq RD/RV’d its currency. It might just help to cut out some of the wide spread speculation regarding the actual mechanics of another such IQD RD/RV ~ which may or may not happen very soon. In keeping with the theme of highlights, here are some excerpts from CPA Order #43: Understanding that there is an urgent economic need for the issuance of banknotes that will instill public confidence and facilitate the use of money for its traditional purposes; “New Iraqi dinar” means the new series of Iraqi dinar banknotes that are issued by the CBI after the date that this order enters into force. “1990 dinar” means banknotes issued by the CBI from 1990 up to and including the date that this order enters into force. “Swiss dinar” means banknotes and coins issued by the CBI from 1959 up to and including 1989. The CBI shall be responsible for the exchange of Iraqi dinar banknotes currently circulating in Iraq and may issue Administration Instructions consistent with this order, for the purpose of implementing and facilitating the issuance of the New Iraqi dinar and the currency change. New Iraqi dinars shall be legal tender within Iraq, effective on the first day of the Conversion Period. The exchange of currently circulating 1990 dinar banknotes and Swiss dinar banknotes and coins against New Iraqi dinar banknotes shall take place during the Conversion Period by exchanges at the Official Conversion Rates, free of charge, at the offices of the CBI and banks and other institutions designated by the CBI. The 1990 dinar banknotes and the Swiss banknotes and coins shall be exchanged against New Iraqi dinar banknotes at the official conversion rates of one (1) 1990 dinar to one (1) New Iraqi dinar and of one (1) Swiss dinar to one-hundred-and-fifty (150) New Iraqi dinars. During the conversion period, 1990 dinar banknotes, Swiss dinar banknotes and coins and New Iraqi banknotes shall all be legal tender banknotes in Iraq and each type of Iraqi dinar may be used as such in proportion to its Official Conversion Rate. After January 15, 2004 only New Iraqi dinar banknotes issued by the CBI shall be legal tender banknotes. Effective January 16, 2004, all references in legal instruments to the Swiss dinar shall be converted by law to the New Iraqi dinar. OK, with that said, a few more descriptions for clarification might be in order: The New Iraqi dinar banknotes indicated in the order are printed in England and, of course, are the same ones that are circulating currently in Iraq today. They come in denominations of 50, 250, 500, 1000, 5000, 10,000, and 25,000. Curiously, they share a feature with the currently circulating Swiss Franc ~ both have images on them relating to Iraq’s Ancient Sumerian past history. The term Anunnaki in the Ancient Sumerian language literally means “Those who from the heavens came” and refers to a very tall race of beings that the Ancient Sumerians considered to be gods descended from heaven. In this image: Iraqi Dinari we can see that the same image of a seated Anunnaki that is depicted on an Ancient Sumerian pictograph is also on the reverse side of a 25,000 banknote. In this image: Swiss Franc not only are the Anunnaki on the Swiss franc, the entry and exit of Planet X (referred to in Ancient Sumer as Nibiru) from our solar system and the relationship to the Earth's orbit are also shown. Although, coins in denominations of 25 and 100 are also indicated on the CBI website they are not mentioned in CPA Order #43 regarding the New Iraqi dinar. These New Iraqi dinar are not accepted anywhere outside of Iraq, but as per CPA Order #43 are considered legal tender for all debts public and private within the borders of Iraq. The 1990 banknotes indicated in the order refers to the ones which for the most part had Saddam’s picture on them, were printed locally, and were considered legal tender for all debts public and private within the borders of Iraq only. These Saddam banknotes were printed in denominations of ¼, ½, 1, 5, 10, 25, 100, 250 and 10,000. Because of UN sanctions they were never accepted anywhere outside of Iraq. Instead, Saddam used the USD, or the Euro, or the British pound or the Swiss franc for international purchases and payments of debts and for the sale of oil. The Swiss dinar banknotes and coins indicated in the order got their name because the plates were made in Switzerland; however, the notes were mostly printed in England. They came in denominations of ¼, ½, 1, 5, 10 and 25. These banknotes were accepted internationally and were initially pegged to the British pound at par up until 1959, when without changing value, they were pegged to the USD at 1 dinar = $2.80. Even when UN sanctions ostensibly made these Swiss dinars unacceptable internationally in 1989, the Kurds in the north continued to use them (only) without accepting or using the Saddam dinars. Because the Kurds didn’t have the Swiss plates for reprinting, the supply of these Swiss dinars remained the same or decreased because of use and therefore they appreciated in value against the Saddam dinar. In order to determine what might happen during Iraq’s next RD/RV a person could do a comparative study of the conditions that existed during the CPA Order #43 Conversion Period with the conditions that exist for the Iraqi dinar (IQD) currency today. For example, back then there were 3 different currencies to deal with (New Iraqi dinar, 1990 Iraqi dinar and Swiss Iraqi dinar) just as there are (potentially) 3 different currencies to deal with now (High denomination IQD, low denomination IQD and the USD). Back then the 2 currencies that were accepted only within the borders of Iraq (the New Iraqi dinar and the 1990 Iraqi dinar) were exchanged at par or 1 to 1 within Iraq and without any gain or loss for any Iraqi Citizen. The 90 day Conversion Period appeared to be enough time for the exchange and possibly because there was no speculating on official conversion rates. Today, the CBI and the Ministry of Finance (MOF) have already gone on record numerous times to emphasize the idea that when they finally get around to a Conversion Period to exchange high denomination IQD banknotes for low denomination IQD banknotes and coins within Iraq it will be done with no loss or gain for any Iraqi Citizen. Furthermore, both the CBI and the MOF have emphasized that during the Conversion Period both the high denomination IQD banknotes and coins and the low denomination IQD banknotes and coins would be allowed to co-exist in circulation and both could be used as legal tender in proportion to their official conversion rates. Back then, since the Swiss dinar continued to be used by the Kurds even after it was disendorsed by the CBI as legal tender inside Iraq, a person could assume that possibly it was still accepted internationally (albeit on a very limited scale due to UN sanctions) since the Kurds did do business autonomously outside of their own borders; and because of that, the Swiss dinar could be compared to the USD of today insofar as the Swiss dinar was the only IQD ever accepted internationally and the USD is now the de-facto international currency of Iraq today. Back then the Swiss dinar had a conversion rate value above 1 to 1 (par) with the circulating Saddam dinar inside Iraq, just as the USD has value above par against the New Iraqi dinar today. That being the case, any Conversion Period which allowed the co-existence of currencies and allowed their use in proportion to their official conversion rates inside Iraq would have to also include the USD ~ at least at CBI designated institutions inside Iraq. The CBI of today is already an old hand at this RD/RV stuff and it’s hard to imagine that the Executive Board would try to reinvent the wheel by conducting another RD/RV much differently than they did the last time. Last time there was a simultaneous RD (from the Saddam Iraqi dinar to the New Iraqi dinar) and RV (with the New Iraqi dinar against the Swiss dinar). This next time around, there might also be a simultaneous RD (from the high denomination IDQ to the low denomination IDQ) and RV (with the low denomination IQD against the USD). The Official Conversion Period and the Official Conversion Rates will, of course, be up to the CBI; but whatever they do will also have to be acceptable to both the Iraqi Citizens and to the rest of the international community or it simply won’t work. For instance, whatever Official Conversion Rate that the CBI designates for the “new” lower denomination IQD banknotes and coins against the USD will simultaneously have to encourage Iraqi Citizens to de-dollarize inside Iraq, as well as convince Iraqi businesses, their international partners and the MOF that the rate will support expeditious exportation of Iraq’s main revenue resources. In other words, if the “new” lower denomination IQD rate against the USD is too high, then Iraqi oil becomes too expensive and international oil companies will shop elsewhere for their go juice. At the same time, if the “new” lower denomination IQD rate against the USD is too low, then Iraq will end up pissing off its neighbors and competitors. For example, China is currently pissing off most of the world by keeping its yuan renmembi currency rate artificially low against other major exporter’s currencies and thereby making its own exports the go to bargain; but Iraq can ill afford to piss off anybody right now.
  5. Adam, I’m still trying to understand the mechanics of an IQD RV as you have explained it. For example, in a recent DV forum post a member copied and pasted parts of a 2003 Coalition Provisional Authority (CPA) mandate that said in part: The CBI shall be responsible for the exchange of Iraqi dinar banknotes currently circulating in Iraq……… During the conversion period, 1990 dinar banknotes, Swiss dinar banknotes and coins, and New Iraqi dinar banknotes shall all be legal tender banknotes in Iraq and each type of Iraqi dinar may be used as such in proportion to its Official Conversion Rate. The New Iraqi dinar banknotes mentioned here are the high denomination ones currently in circulation, so my question is why you now think that this time around the CBI will RV just these existing high denomination IQD banknotes before introducing new lower denomination IQD banknotes and allowing all 3 currencies (2 IQD’s and the USD) to coexist during a specified conversion period ~ just like they did the last time?
  6. In keeping up with the latest Warka communications response times: One Warka Client followed the recommended drill regarding an Authorization Letter with email addresses and language and sent an e-banking renewal request on 19 March, 2013. He was able to log back on to his account on 25 March, 2013 and received a confirmation email on 27 March, 2013. That’s 4 Baghdad business days to renew the password and 6 business days to confirm. Not exactly the swiftest service in the world, but at least they’re still in business and that means there’s still the possibility of wire transferring our money back ~ hopefully in the near future. Anyway, here’s a copy of the email thread ending in the confirmation: ----- Forwarded Message ----- From: Mohammad K. ISSA <ifrd@warka-bank-iq.com> To: laith alamir <e-bank.ms@warka-bank-iq.com> Cc: Warka Client (name & address protected) Sent: Wednesday, March 27, 2013 1:10 AM Subject: Re: XXXXXX e-bank subscription (account number protected) From: laith alamir <e-bank.ms@warka-bank-iq.com> Date: Mon, 25 Mar 2013 14:57:40 +0300 To: Mohammad Kamal <ifrd@warka-bank-iq.com> Subject: RE: XXXXXX e-bank subscription (account number protected) Dear Sir, The e-banking department confirm that your online annual subscription has been renewed you can now access your account using the same login details. Please note that the online link is: https://onlinebanking.warka-bank-iq.com/IBS/index.jsp Should you have further questions or inquiries regarding your online account please contact the e-banking team e-bank@warka-bank-iq.com we will provide our full cooperation and support. Best regards, E-banking Team Warka Bank for Investment and Finance This e-mail is confidential and the information contained in it is privileged. It should not be read, copied or used by anyone other than the intended recipient. If you have received it in error, pleasecontact the sender immediately by return email, and delete the e-mail and do not disclose its contents to any person. -------------------------------------------------------------------------------------------------------------------------------------------------------------------- From: Warka Client (name & address protected) Reply-To: Warka Client (name & address protected) Date: Tue, 19 Mar 2013 00:58:26 +0300 To: Ashraf Amr <e-bank@warka-bank-iq.com> Cc: Mohammad Kamal <ifrd@warka-bank-iq.com>, Customer Services <c.services@warka-bank-iq.com> Subject: XXXXXX e-bank subscription (account number protected) E-Banking Services Department Customer Services Department International Foreign Relations Attached to this transmission please find the file copy of a signed Authorization Letter renewing my Subscription to E-banking Services. I expect to hear from you shortly with a confirmation of renewal. Thank you. Best Regards, Warka Client XXXXXX ----------------------------------------------------------------------------------------------- A few things to make note of here: First, it looks like there’s a new player in Warka’s E-Banking Department ~ Laith Alamir seems to have taken the place of Ashraf Amr. It’s anybody’s guess as to whether the new guy is an assistant or a replacement and whether the substitution is permanent or temporary. Second, for whatever unknown reason Laith Alamir sent the confirmation email to Mohammad K Issa, but not to the Warka Client and then Mo had to resend it to the Warka Client ~ but only as a CC ~ not as the original recipient. What up with that, Homey?! Thirdly, FYI Mohammad K Issa’s middle name appears to be Kamal. Another Warka client followed the recommended drill regarding an Authorization Letter with email addresses and language and sent a request to purchase an IQD CD on 17 March, 2013. He received an e-mail confirming the purchase on 27 March, 2013. That’s 7 Baghdad business days to confirm a straight forward purchase of a CD. This same Warka client also followed the drill and sent a request to renew his e-banking subscription on the same day 17 March, 2013. On 26 March, 2013 he tried to log on to his account to find out when the CD was actually started, but was unable to because his password was still expired. That’s 6 Baghdad business days and his password hadn’t even been renewed, let alone confirmed by email ~ so go figure. A person just has to soldier on with patience when it comes to Warka and hope that someday dealing with them will become something resembling normalcy.
  7. In keeping up with the latest Warka communications response times: One Warka Client followed the recommended drill regarding an Authorization Letter with email addresses and language and sent an e-banking renewal request on 19 March, 2013. He was able to log back on to his account on 25 March, 2013 and received a confirmation email on 27 March, 2013. That’s 4 Baghdad business days to renew the password and 6 business days to confirm. Not exactly the swiftest service in the world, but at least they’re still in business and that means there’s still the possibility of wire transferring our money back ~ hopefully in the near future. Anyway, here’s a copy of the email thread ending in the confirmation: ----- Forwarded Message ----- From: Mohammad K. ISSA <ifrd@warka-bank-iq.com> To: laith alamir <e-bank.ms@warka-bank-iq.com> Cc: Warka Client (name & address protected) Sent: Wednesday, March 27, 2013 1:10 AM Subject: Re: XXXXXX e-bank subscription (account number protected) From: laith alamir <e-bank.ms@warka-bank-iq.com> Date: Mon, 25 Mar 2013 14:57:40 +0300 To: Mohammad Kamal <ifrd@warka-bank-iq.com> Subject: RE: XXXXXX e-bank subscription (account number protected) Dear Sir, The e-banking department confirm that your online annual subscription has been renewed you can now access your account using the same login details. Please note that the online link is: https://onlinebanking.warka-bank-iq.com/IBS/index.jsp Should you have further questions or inquiries regarding your online account please contact the e-banking team e-bank@warka-bank-iq.com we will provide our full cooperation and support. Best regards, E-banking Team Warka Bank for Investment and Finance This e-mail is confidential and the information contained in it is privileged. It should not be read, copied or used by anyone other than the intended recipient. If you have received it in error, pleasecontact the sender immediately by return email, and delete the e-mail and do not disclose its contents to any person. -------------------------------------------------------------------------------------------------------------------------------------------------------------------- From: Warka Client (name & address protected) Reply-To: Warka Client (name & address protected) Date: Tue, 19 Mar 2013 00:58:26 +0300 To: Ashraf Amr <e-bank@warka-bank-iq.com> Cc: Mohammad Kamal <ifrd@warka-bank-iq.com>, Customer Services <c.services@warka-bank-iq.com> Subject: XXXXXX e-bank subscription (account number protected) E-Banking Services Department Customer Services Department International Foreign Relations Attached to this transmission please find the file copy of a signed Authorization Letter renewing my Subscription to E-banking Services. I expect to hear from you shortly with a confirmation of renewal. Thank you. Best Regards, Warka Client XXXXXX ----------------------------------------------------------------------------------------------- A few things to make note of here: First, it looks like there’s a new player in Warka’s E-Banking Department ~ Laith Alamir seems to have taken the place of Ashraf Amr. It’s anybody’s guess as to whether the new guy is an assistant or a replacement and whether the substitution is permanent or temporary. Second, for whatever unknown reason Laith Alamir sent the confirmation email to Mohammad K Issa, but not to the Warka Client and then Mo had to resend it to the Warka Client ~ but only as a CC ~ not as the original recipient. What up with that, Homey?! Thirdly, FYI Mohammad K Issa’s middle name appears to be Kamal. Another Warka client followed the recommended drill regarding an Authorization Letter with email addresses and language and sent a request to purchase an IQD CD on 17 March, 2013. He received an e-mail confirming the purchase on 27 March, 2013. That’s 7 Baghdad business days to confirm a straight forward purchase of a CD. This same Warka client also followed the drill and sent a request to renew his e-banking subscription on the same day 17 March, 2013. On 26 March, 2013 he tried to log on to his account to find out when the CD was actually started, but was unable to because his password was still expired. That’s 6 Baghdad business days and his password hadn’t even been renewed, let alone confirmed by email ~ so go figure. A person just has to soldier on with patience when it comes to Warka and hope that someday dealing with them will become something resembling normalcy.
  8. To support my speculation that most Iraqi Citizens would still prefer the USD over the IQD here’s a link to a 3 page news article that originally came from an on-line Middle East news journal called Al-Monitor at http://www.al-monitor.com/pulse/home.html There are some die-hard DV individuals who claim that this particular Iraq Business News web-site is supported by western minded “opinion” pieces rather than real news stories and is therefore not to be referenced or believed. I would say that this particular story carries weight as news, not just opinion, but you can judge for yourself. http://www.iraq-businessnews.com/2013/03/20/irans-role-in-iraqi-dinar-devaluation/ Here are a couple of quotes from the article: “The increase in government spending means higher per-capita income. Subsequently, spending increases, and there is an increased need for importing goods. Providing these goods requires an increased demand for foreign currency, which led to the increased exchange rate.” “Iran has nothing to do with the increased exchange rate. The CBI sells foreign currency to Iraqi customers to be used in funding trade transactions outside the country.”
  9. I have read Adam’s rate thesis and cash in guide and Adam has even attempted to answer my questions during his March 6th and March 13th chats, but for whatever reason I still can’t seem to get a complete picture (at least not one that I can understand) regarding an overnight IQD RV ~ as seen from an Iraqi Citizen’s point of view. Especially, if such an overnight RV happens before the new lower denomination IQD banknotes have been introduced into circulation in Iraq. I’ve noticed that both ‘millionaire in training’ and ‘driver’ have asked similar questions that were (in my opinion) not quite answered fully either; so apparently I’m not alone in this need for a fresh perspective. I’m not trying to drag either of them into what I’m saying here, but their questions (at least to me) felt like they were trying to get answers to similar (or maybe even the same) questions that I have and that’s the only reason I mention them now. I’m seeking some fresh perspective on this issue ~ especially since RV related concerns have been dragging on since the initial start up of the current CBI in the Fall of ‘03. First of all, a little background might be in order so that I’m not misunderstood. I’ve had deployments to South Pacific islands such as Kwajalein (2 years) and Hawaii (1 year), to Japan (5 years) and to Iraq (3 years), so I feel that I have an understanding of other than just western cultures ~ and most especially of the far east and mid-east cultures. A 40 year study of far eastern (Chinese and Japanese) martial arts has also contributed to that feeling of understanding. While deployed to Kwajalein, I also traveled to Truk and Ponope. While deployed to Japan, I also traveled to Singapore, Hong Kong, Malaysia, Thailand, Guam, the Philippines and Indonesia. While deployed to Iraq, I also traveled to Latvia, Moscow, Kuwait and the UAE and met and interacted with Iraqis, UAE Arabs, Kuwaiti Arabs, Pakistanis, Iranians, Indians, Filipinos, Chinese, Bosnians, Russians, Sri Lankans, and people from Bangladesh. The point being that I believe that I can understand where people from these eastern ~ mostly matriarchal ~ societies are coming from in terms of everyday life. I’ve found that their perspectives are usually 180 degrees out from typical western (or at least USA western) ~ mostly patriarchal ~ perspectives regarding social status, wealth, health, etc. For example, every single Iraqi that I met and had any kind of daily interaction with (over terms of weeks, months & years, not just days) preferred the USD over the IQD ~ without exception. These were day laborers, merchants, interpreters, bank employees, business owners and professional folks like barbers, tailors, doctors and lawyers. Most (and probably all) viewed the Iraqi government regimes as just another strong man in charge and switching from Sadaam to Brenner (Coalition Provisional Authority) to Allawi (CPA appointed) to Maliki (elected) didn’t really make much difference to them because they all experienced the same lack of control over their own destinies, no matter who was in charge. Switching from an IQD with Sadaam’s face on it to a high denomination IQD (made in England and imported along with the USD by the CPA) wasn’t any big deal either because they all knew that they couldn’t bring either the Sadaam IQD or the CPA made IQD out of Iraq. First of all, it was illegal to do so and secondly neither one of those currencies could be spent outside of Iraq, anyway ~ so why bother. The Swiss made Iraqi Dinar wasn’t even considered, because any of that currency that was still around was for the most part rumored to be parked in offshore banks in the accounts of the very wealthy that had already fled the country. Most importantly, though, all the Iraqis that I interacted with over the 3 years I was in-country knew that the USD trumped all 3 versions of the IQD in terms of buying power and acceptability both inside and outside of the Iraqi borders. The USD was and still is the de-facto international currency of Iraq. Foreign citizens leaving Iraq were under the same laws as Iraqi Citizens insofar as it was illegal to transport any IQD currency out of Iraq ~ everybody was checked twice at the Baghdad International Airport prior to boarding. The US Military went through US Customs in Kuwait when they left Iraq and US Customs officials didn’t care if you brought a duffel bag full of IQD with you or not. Over the 3 years I was there, I brought back millions of IQD in CPA high denomination banknotes. I finally de-mobbed in the summer of ’07 with an injured right hand after spending a year at what was rumored to be the most dangerous FOB in Iraq (at least between the Summer of ’06 and the Spring of ’07). 5-1/2 years and 2 surgeries later I’m fit enough to re-deploy, but I’d rather not go to Afghanistan if I can help it. I now have some high denomination IQD currency in my home safe, as well as funds at Warka Bank including in both my USD and IQD accounts. At one time a person could fund a Warka account by FedExing high denomination IQD currency to the main Warka branch in Baghdad, but now it is illegal to do so. The reason I’m giving this background outline is to make the point that I figure that I’ve paid my dues in terms of having a credible opinion and/or a valid perspective on this investment. Of course, not everyone will agree with what I have to say, but I’m not worried about that. I, as much as anyone currently invested in the IQD, would love to see a high value RV so that I could take the money and run with it somewhere else; however, after almost 9 years of waiting for a significant RV, perhaps a fresh perspective is in order. Anyway, enough background. Here is an outline of a (hypothetical) scenario that I can’t quite wrap my mind around. In this (hypothetical) scenario, there has been no redenomination process and so the new lower denomination IQD banknotes have not been issued; and in fact, the CBI and/or the MOF have both publicly stated that for various reasons the plan to RD has been put off until at least 2014 if not 2015 and later. So, no IQD banknotes in denominations of 100’s, 50’s, 25’s, 10’s, 5’s, or 1’s are in circulation or expected to be in circulation anytime soon and the same goes for coins in (possible) denominations of .50, .25, .10, .05 or .01. Actually, there are supposedly already some IQD 50’s in existence, but I’ve never seen any and I was unable to bring any home. In this (hypothetical) scenario, Iraqi Citizens have a combination of both high denomination IQD banknotes and USD banknotes in a variety of denominations at their homes ~ in their wallets and in their safes or under their mattresses. Some have IQD bank accounts where the actual cash is stored in bank vaults and can be accessed during banking hours, and some even have digital bank accounts with line items on electronic statements that can be accessed 24/7 via debit cards at ATM’s. In this (hypothetical) scenario, however, it’s safe to say that the majority of Iraqi Citizens and Iraqi banks deal in cash and are led by the CBI policy of daily cash auctions of banknotes in bulk quantities ~ and that’s for both IQD and the USD. The Iraqi currency is not traded internationally and cannot be spent outside of Iraq’s borders and so the daily auctions set the rate against the USD. Since the USD is traded internationally, the rate of the USD against other world currencies may vary, but the CBI generally maintains the rate of the IQD against the USD by way of the cash auctions. In this (hypothetical) scenario, Iraqi Citizens are well aware of the superior buying power of the USD and in fact prefer it over their own country’s currency. They keep both currencies around for the convenience of buying goods and services produced in Iraq with the IQD and for buying goods and services produced outside of Iraq with the USD. In this (hypothetical) scenario, the Iraqi Citizens all know that if push came to shove, they could all more easily get by on just using the USD as opposed to just using the IQD because the preferred goods and services available for purchase are produced outside of Iraq and require the USD to buy them. Goods such as generators for electricity to power foreign made water pumps, as well as cell phones, computers and mp3 players for social and business connectivity are all found outside of Iraq. Basics such as clean water filters, toilet facilities and cooking appliances are produced outside of Iraq as well and require USD to buy them. Iraq depends heavily on foreign made vehicles for transportation purchased with the USD, not the IQD. For all practical purposes, right now it is far easier to make change for purchases of smaller everyday items with the USD currency than it is to make change with the IQD banknotes/coins and that’s even before any significant RV has happened. In this (hypothetical) scenario, the CBI has a posted net foreign reserve of US$67Billion and has a posted foreign debt of approximately US$92Billion. In this (hypothetical) scenario, the CBI has so far issued approximately IQD64.6Trillion worth of currency in high denomination banknotes; which is worth approximately US$55.5Billion if traded in at the current posted rate of 1/1166. In this (hypothetical) scenario, the Iraqi HCL has been passed, Iraq has been released from UN Chapter 7 sanctions and the CBI has completed a satisfactory (2nd) Stand-by Arrangement (SBA) probationary period with the IMF. The IMF Board of Directors has released the CBI from probation, thereby giving the CBI Board of Directors the green light to conduct business on a truly international scale ~ including trading currencies with the other approximately 170 countries in the IMF. The CBI has a free hand to set the international rate of the IQD as it sees fit. In this (hypothetical) scenario, the rate of exchange for IQD against the currencies of these approximately 170 countries may at first seem complicated, but the CBI board realizes that if they just revalue their currency to a satisfactory rate against the USD, then all the other rates will quickly be reconciled because those other currencies already have existing rates against the USD ~ the most used and recognized currency in the world. In this (hypothetical) scenario, even though RV rates of the USD against one IQD have been predicted to be coming out at anywhere from US$0.10 to US$4.00, I’d like to look at a relatively small RV rate with an easy to calculate figure ~ let’s say US$0.01 or a single penny for every IQD. It seems to me to be just as plausible as any other predicted rate and especially if the RV happens prior to any newer low denomination IQD banknotes and coins being introduced into circulation. In this (hypothetical) scenario, of an overnight IQD RV of US$0.01 per IQD1.00: IQD 25,000 would be worth US$250 (a 1066% profit margin from a $21.44 cost) IQD 10,000 would be worth US$100 (a 1066% profit margin from an $8.58 cost) IQD 5,000 would be worth US$50 (a 1066% profit margin from a $4.29 cost) IQD 1,000 would be worth US$10 (a 1063% profit margin from a $0.86 cost) IQD 500 would be worth US$5 (a 1063% profit margin from a $0.43 cost) IQD 250 would be worth US$2.50 (a 1090% profit margin from a $0.21 cost) IQD 50 would be worth US$0.50 (an 1150% profit margin from a $0.04 cost) In this (hypothetical) scenario, every Iraqi Citizen that I ever encountered or even heard of during my 3 years in-country would literally jump at the chance to make a 1000% plus profit margin on a currency exchange that he or she didn’t even have to work for since the necessary IQD banknotes and coins would already be in his or her possession. In this (hypothetical) scenario, every Iraqi Citizen (including the Kurds up north) would rush to the nearest bank or to the nearest ATM machine to make the exchange and the devil take the hind-most for the consequences ~ those consequences could be figured out later and besides the USD already spends very well inside Iraq ~ thank you very much!! In this (hypothetical) scenario, there would be an extremely hard run on the CBI’s cash reserves of US$67Billion and the CBI would have to scramble hard just to supply its banks, ATM’s and Citizens with USD to keep up with the demand for this once in a lifetime exchange. In this (hypothetical) scenario, it certainly wouldn’t take long for everybody in Iraq to possess nothing but USD banknotes, with all the high denomination IQD banknotes overflowing the local bank vaults waiting to be physically shipped back to the CBI for further redemption and/or destruction depending on the CBI Executive Board’s intention for initiating the RV in the first place. At the same time most banks would be empty of USD cash reserves and would be waiting for the CBI to supply more. In this (hypothetical) scenario, even the CBI would be getting in on the act since the approximately IQD64.6Trillion dinar worth of currency that has already been issued in high denomination IQD banknotes and which was previously worth approximately US$55.5Billion would overnight jump to a new value of about US$646Billion. In this (hypothetical) scenario, the CBI’s next move would be hard to predict; therefore, one can only speculate on any move that would potentially fix the country being suddenly overwhelmed with USD in lieu of IQD. Speculation: Perhaps the CBI decided that emptying the country of all the high denomination IQD banknotes inside of days or just weeks with an overnight RV was way easier than an RD which allowed 3 currencies to co-exist over a 90 day to 2 year period followed by an on-par RV. Speculation: Perhaps the CBI executive board and the MOF figure that in order to re-establish the IQD as the official legal currency they would plan to introduce the new lower denomination banknotes and coins after a significant once in a lifetime overnight RV had settled down a bit. Perhaps the CBI and the MOF figured that after all those Iraqi Citizens who had missed out on the lottery type overnight RV (because they didn’t have very much IQD at the time) had got over their “mad as hell” attitudes and all those Iraqi Citizens who had been able to take full advantage of it had gotten over their initial giddiness, it would be time to get back to reality with some new currency. Speculation: Perhaps one way to re-introduce the new lower denomination IQD banknotes as the official Iraqi currency would be to announce that despite the fact that most everyone had exchanged their high denomination IQD banknotes for USD, they still lived in Iraq and all debts public and private such as taxes and mortgages had to be paid only in IQD. In addition, an announcement that all public officials such as police, military personnel, politicians, teachers, utility employees, health care workers, etc would be paid only in the new lower denomination IQD banknotes which would be subject to the new rate of US$0.01 per IQD1.00. Speculation: If that were the case, then the new lower denomination IQD banknotes and coins would have values like this: IQD 100 would be worth US$1.00 IQD 50 would be worth US$0.50 IQD 25 would be worth US$0.25 IQD 10 would be worth US$0.10 IQD 5 would be worth US$0.05 IQD 1 would be worth US$0.01 All the new IQD coins would be worth less than a US penny. Speculation: It seems that an Iraqi Citizen would still need lots of IQD to buy stuff. Speculation: It seems that most Iraqi Citizens would still prefer the USD over the IQD. Speculation: It seems that the intent of the CBI/MOF to re-establish the IQD over the USD as the official currency (after a significant RV) wouldn’t quite work with this (hypothetical) scenario since even those 2 establishments would have to spend a large portion of that new found (hypothetical) US$646Billion to buy back all the high denomination IQD now in circulation and then have to find even more dough to finance the cost of printing and issuing the new notes and coins. Anyway, that’s an outline of a (hypothetical) scenario for the RV of the IQD (sometime in the future) that I can’t quite wrap my mind around as being a legitimate plan that will work. Whatever the case, I’m already fairly busy getting my house and other affairs ready for me to ship out again and I might not be able to respond to any replies to this post. Therefore, thanks in advance for any fresh perspective that might help me see the way for a significant RV to work in Iraq so that those of us who are foreign investors might realize an overnight financial windfall too. Good luck to us all who at least took the chance!!
  10. Response to Goodlife post ~ with all due respect: Goodlife Question: Why would you keep any money in USD apart from the absolute minimum to keep the account open? You have the authority on-line anytime to transfer IQD to USD and it only takes seconds. Phlip Answer: Already answered in the post, but here it is again ~ “Now however, with finances getting tighter at home and with Warka dealing with its own public image and cash flow problems, I tend to be a little more cautious. I now tend to keep about a (3) month quarter’s worth of living expenses in my USD account earning only 4% interest, but constantly ready to wire back to my home bank account as soon as Warka is up and running again with honoring wire transfer requests”. Goodlife Opinion: Any money in the USD account is effectively useless in terms of the intent of the investment and the low returns of interest. If it RVs any money in the USD account is dead wood in terms of this investment. To be avoided. Phlip Response: Your intent of this investment is obviously different from mine, which should be OK with you or anyone else since I am absolutely free to run my own life and affairs as I see fit. Also obvious is that anyone with a Warka account can choose to do whatever he or she wants with their own accounts without feeling that they have to justify their choices to anyone. Goodlife Opinion: Cds are good but I would avoid long term cds at present. Phlip Response: Agreed, and as I’ve already stated in the post ~ “The rest of the funds I keep in my IQD account earning 7% with a large portion constantly rolling over in ever increasing (3) month CD’s”. Anyone with a Warka account knows that 3 months is the shortest term IQD CD’s on offer from Warka and besides that they earn 8.5% annual interest compounded monthly. I doubt if I can get 4% from a USD CD ~ let alone a USD savings account ~ anywhere in the US, which is why I’ve chosen Warka. Same thing goes for a 3 month (short term) CD at 8.5%. Goodlife Speculation: If it RVs…………… Phlip Response: I’ve been invested since the summer of ’04, have always paid only CBI rate prices for my IQD, and have never purchased cash via the internet at highly inflated prices ~ plus shipping. The IQD has revalued from 1/1500 up to 1/1166 which represents a return on investment for me of 22% ~ better even than most mutual funds available in the states. An overnight RV representing a 10,000% plus (or more) ROI hasn’t happened yet…………………. I’m not holding my breath anymore ~ breathing deeply, daily is just one key to a long healthful life. A simple reminder ~ this post was originally intended to benefit those with Warka accounts who might not have known the information posted here. Including some personal information was meant to give a perspective on the investment that might otherwise have gone unnoticed. Best of luck to us all. Live free and choose your own path ~ I have.
  11. In order to take money from your account for any reason, Warka will require a signed authorization form with specific instructions and since there are 3 different kinds of IQD CD’s available, that is especially true in order to purchase one. When I first started my account with Warka we were more or less free to purchase an IQD CD for almost any amount, but now Warka requires that any IQD CD that you purchase must be a minimum of at least IQD 1,000,000 (One Million Iraqi Dinar). You can also purchase a USD CD, but I’ve never bought one so I don’t know if there’s a minimum USD amount limit or not, nor do I know what that minimum amount might be. I created the authorization form to purchase a CD in MS Word, but I imagine almost any word processor software or even a typewriter would work as well since once you’ve created it you’ll have to print it, sign and date it, scan it into a pdf or a jpg file format, name the file appropriately and then save it to your desktop (or somewhere else that’s convenient) ~ ready to attach to an email that you will send to Warka. The form as I’ve shown it below requires that you input information specific to you and your own needs, but just to demonstrate the outline I’ve made it to read as an authorization to purchase an IQD CD for IQD 1,000,000 (One Million Iraqi Dinars) for 3 months at 8.5% annual interest (compounded monthly). You don’t need to specify “compounded monthly” because that happens automatically, but you could choose to purchase one for 6 months at 9.5% annual interest or one for 1 year at 10.5% annual interest ~ either way it will still have to be for a minimum of at least IQD 1,000,000 (One Million Iraqi Dinars). I prefer to make my attached files clear with regard to their content and purpose, so I usually name my attached file copies something like this: (Type your 6 digit account # here) Authorization to Purchase an IQD CD. That way when the Warka staff receives the email and the attached file name resembles the subject of the email they are not confused as to what the purpose of the transmission is ~ even before opening the file. It’s been my experience that the Warka staff responds more to your 6 digit account number than to your name. That number is who you are to them and that way they don’t have to struggle with pronunciation or whether you are male or female. Whatever the case, please feel free to use all or even just part of the suggested form as it is shown below. ----------------------------------------------------------------------------------------------------------------------------------------------------- Authorization Instructions to Purchase a Certificate of Deposit To: Warka Bank for Investment and Finance c.services@warka-bank-iq.com Re: (Type Your Full Name here) ~ Account number 790/000000/1/2521/0 I, (Type Your Full Name Here), authorize Warka Bank for Investment and Finance to withdraw from my IQD Savings Account mentioned above in order to purchase an IQD 1,000,000 (One Million Iraqi Dinar) Certificate of Deposit for Three Months @ 8.5% Please, confirm this purchase with an email to: (Type your email address here) Thank you very much for your time. Best Regards, _________________________________________ Date: _________________________ Type your signature name here ------------------------------------------------------------------------------------------------------------------------------------------------------ Once you’ve created the form, printed it and signed it and have it saved as a pdf or a jpg file ready to attach, you’ll want to send it attached to an email that is addressed to the right folks at Warka and which includes some simple but concise and polite language to expedite the process. Basically, a CD is a financial product that Warka can readily sell even while under CBI Guardianship because the funds never really leave the bank; so the transaction can easily be handled by Rowaida Mohammed of Customer Services for International Foreign Relations at c.services@warka-bank-iq.com. However, just to be safe, I’ve always CC’d my requests to Mohammed K Issa, the Director in charge of the entire International Foreign Relations Department and which also includes the Customer Service Department for International Foreign Relations. I don’t really like to bother him with the mundane tasks taken care of by other departments, so this is just my version of a more or less polite nod to acknowledge that he’s still in charge of the whole shebang even while I still send it to the proper department to get processed. It’s just my way of giving him the ‘face’ he deserves without being maudlin about it ~ especially since ‘face’ is such a big part of any eastern culture. It’s also my subtle hint that if the transaction doesn’t get taken care of properly he knows that I already know who he is and how to contact him and that I probably won’t hesitate to do so if his assigned subordinates don’t do their jobs. It’s been my experience that he usually seems to ensure that Customer Service does their job just so that he’s not bothered with complaints. Whether that assumption on my part is actually true or not, I don’t really know; but I’ve continued to do it this way since I started buying CD’s from Warka and my feeling is that it has streamlined the process. Anyway, below is my version of an email to purchase a CD from Warka including addresses, the subject and some simple language for the body of the email. Feel free to use any or all of the information as you see fit. ------------------------------------------------------------------------------------------------------------------------------------------------------ Email Language to Purchase CD Adapt to fit, Copy, Paste, & Send To: c.services@warka-bank-iq.com CC: ifrd@warka-bank-iq.com Subject: (Type your 6 digit account # here) Authorization to Purchase an IQD CD Customer Services Department International Foreign Relations Attached to this transmission please find the file copy of my signed Authorization Letter to purchase a CD. I will expect to hear from you shortly with a confirmation of purchase. Thank you. Best Regards, Type your signature name here Type your 6 digit account # here ------------------------------------------------------------------------------------------------------------------------------------------------------ Prior to this whole Warka insolvency debacle it had been my habit to maintain (4) separate one year CD’s at 10.5%. I usually had a Spring CD started sometime around April 1st every year, then a Summer CD started around July 1st, a Fall CD started around October 1st and finally a Winter CD started around January 1st every year. I figured that way I’d never be more than a (3) month Quarter away from one of the CD’s maturing and dumping funds that I might need (plus interest earned) into my IQD Savings Account. If I didn’t need to wire the funds back, then I would just renew the CD with the original amount increased by the rounded off figure of interest earned. Talk about compounded interest! Now however, with finances getting tighter at home and with Warka dealing with its own public image and cash flow problems, I tend to be a little more cautious. I now tend to keep about a (3) month quarter’s worth of living expenses in my USD account earning only 4% interest, but constantly ready to wire back to my home bank account as soon as Warka is up and running again with honoring wire transfer requests. The rest of the funds I keep in my IQD account earning 7% with a large portion constantly rolling over in ever increasing (3) month CD’s. Not so spread out, but more controllable and still earning much more by far than I can get for CD products stateside. The interest earned is probably a little less than a well managed mutual fund, but I consider my funds safer at Warka than in the hands of a gambler type dude from the (wall) street. I could be wrong, but time will tell.
  12. Over the years that I’ve had my Warka account I’ve experienced both very good and very bad communications from Warka’s staff. In my own way I’ve learned to streamline the process in order to try and elicit the most efficient responses possible from them. With that said, I’d like to share my version of an authorization letter to renew an E-banking Services Subscription which I created on MS Word and adapted to fit my own specific information. Anyone else can do the same as easily as signing in to DV and then copying and pasting the information shown below into their own Word document. Of course, it’s short enough to just retype something similar into your own word processing program if that seems easier to you. Once you have the form looking like you want it to, you can then print it, sign and date it, scan it to either a pdf or a jpg file, rename it appropriately for clarity and save it to your desktop (or somewhere else convenient to you) ready to be attached to an email and sent to Warka. I suggest a file name like: (type your 6 digit account # here) Authorization to renew E-Banking Services Subscription so that the Warka staff is clear just from the name of the document what it is and what you’re asking them to do. It’s been my experience that the Warka staff relate much easier to your individual 6 digit account number than they do to your name ~ which makes it kind of like a real numbered account ~ only different. Anyway, here is the authorization form. ------------------------------------------------------------------------------------------------ Authorization to Renew E-banking Services Subscription To: Warka Bank for Investment and Finance Attn: Mr. Ashraf Amr e-bank@warka-bank-iq.com Re: Annual E- banking Subscription for 790/000000/1/2521/0 I, (Type Your Full Name Here), authorize Warka Bank for Investment and Finance to withdraw IQD 15,000 from my IQD Savings Account (above) to pay the annual fee for a Subscription to E-Banking Services. Please send confirmation of renewal to this email address: (Type your email address here) Thank you Best Regards, ________________________________________ Date: _________________________ Type Your Signature Name Here ----------------------------------------------------------------------------------------------- Once you have the authorization form signed, scanned and ready to attach; the next step is to prepare an email to attach it to. Unfortunately, it’s been my experience that if you follow the Warka website recommendation of sending the email just to e-bank@warka-bank-iq.com it will likely just end up lost in cyberspace and you will probably never get any kind of response. Why that is I’m not sure, but I have the suspicion that either Ashraf Amr doesn’t have enough command of English to respond or maybe he doesn’t even exist. Even with the proper authorization form and an email sent to the right folks, lately it is still taking the Warka staff about a week (as opposed to a couple of days back in December 2012) to renew subscriptions and turn passwords back on again. Also, most of the time they’ll renew the subscription and turn on the password well before they send an email confirmation and about 50% of the time they’ll just renew the subscription without the email confirmation at all. It will end up being up to you to keep trying your password until it works again. Whatever the case, below are the email addresses, subject title and language that myself and others have used successfully to renew e-banking with Warka. ------------------------------------------------------------------------------------------------ Email language to renew E-banking Services at Warka Adapt to fit, Copy, Paste, & Send To: e-bank@warka-bank-iq.com CC: c.services@warka-bank-iq.com and ifrd@warka-bank-iq.com Subject: (your 6 digit account #) E-Banking Services Subscription Renewal E-Banking Services Department Customer Services Department International Foreign Relations Attached to this transmission please find the file copy of my signed Authorization Letter to renew my Subscription to E-banking Services. I expect to hear from you shortly with a confirmation that my subscription and password have been renewed. Best Regards, Your Name Your 6 digit account # ------------------------------------------------------------------------------------------------
  13. Everyone has different sized investments in the IQD and in Warka Bank and so whether it is before or after a significant RD/RV, everyone’s need to withdraw funds via wire transfers from Warka is unique to each individual investor. In the past, I have successfully wire transferred funds from my Warka USD account back to my stateside account 4 separate times and assisted fellow investors to do the same thing twice. Along the way I learned a few things about communicating with the Warka staff that might prove helpful to someone else who also wants to wire funds back to their home account. The following tips presuppose that you already have an active Warka E-banking Services Subscription and password and that you know how to log onto your Warka accounts via the internet and finally that you are aware of the features available once you’ve accessed your account ~ including how to transfer funds from one account to another. I’ve divided the information into 3 parts. ---------------------------------------------------------------------------------------------- First, for your own information here is some reverse math for a Warka Wire Transfer. Just to make sure you have a record of how to figure out how to move the correct amount of IQD into your USD account to order to affect a transfer (hopefully in the very near future), here's one example of a process for future reference: $1,000 ~ net spendable amount (as an example) $1,000 plus $20 (your US bank fee for accepting incoming deposit) = $1,020 $1,020 divided by 0.997 (SWIFT service takes .003 of the amount transferred) = $1,023 $1,023 ~ amount of transfer requested in order to net $1,000 $1,023 plus $52 (Warka's fee for affecting the transfer) = $1,075 $1,075 ~ amount needed to move from IQD into USD account $1,075 plus $150 (minimum USD deposit required to already be in account) = $1,225 $1,225 ~ total amount needed in USD account in order to transfer $1,023 $1,075 X 1179 (Warka's in house exchange rate to transfer IQD into USD) = IQD 1,267,425 IQD 1,267,425 ~ amount of IQD needed to transfer to add $1,075 to USD account Note: When you transfer USD to your IQD account (either after interest is paid on your USD account or after you've transferred USD to your Warka account) the exchange rate is whatever the CBI is offering. At this time it is $1.00 buys 1166 IQD. For example, if you wanted to send that extra $5.00 of interest earned in your USD account into your IQD account: $5.00 X 1166 = 5830 IQD So, Warka makes its money in currency exchange from the difference between its buy and sell rates: IQD 1179 - IQD 1166 = 13 IQD per dollar moved/exchanged 13 IQD divided by 1166 IQD = 1.11% 1.11% of $1.00 = 1 cent per dollar moved (either way) For future transfers use the same process and just substitute the $1,000 with whatever amount you plan to transfer. ------------------------------------------------------------------------------------------------ Once you’ve transferred the correct amount of IQD into your USD account and are ready to apply for the transfer, it would be wise to have a clear and concise form containing the instructions to the bank and all of the necessary information that Warka’s Wire Transfer Department requires to make the transfer a success. When I first opened my account at Warka, Mohammad K Issa the Director of the International Foreign Relations Department sent me an email containing 3 pages of information about the bank and at that time Warka’s language for a request for a wire transfer was an Application for Outward Remittance. Consequently, I have used that as a title for all my wire transfer requests ever since. The form outline below is one that I’ve used in at least 6 successful wire transfers and will continue to use in the future. I created it in MS Word (including with my own specific information) then printed it, signed and dated it, scanned it into either a pdf or a jpg file, renamed the file as: (My Six Digit Account # here) Application for Outward Remittance and then saved it to my desktop ready to attach to an email to Warka. The form outline below is kind of a generic template suggestion that anyone could create on MS Word or some other word processing software or even on a typewriter. Of course, everyone would still have to fill in their own specific information where indicated. Application for Outward Remittance of USD To: Warka Bank for Investment and Finance nasser@warka-bank-iq.com Re: Wire Transfer of USD I, (Your Full Account Name here), authorize Warka Bank for Investment and Finance to withdraw $00,000.00 (XXXX Thousand Dollars exactly) from my USD Savings Account #790/000000/2/2521/000 and transfer said amount to the bank indicated below as per the following instructions: Receiving Bank Name: Receiving Bank Branch: Receiving Bank Branch Address: Receiving Bank Branch Tel: Receiving Bank Branch Code: Federal Wire (ABA) Number: Receiving Bank Account Name: Receiving Bank Account Number: Please, take all bank transfer fees from my USD Savings Account and send confirmation of this transaction to my email address:________________________________ Thank you Best Regards, _________________________________________ Date: _________________________ Type Your Signature Name Here ------------------------------------------------------------------------------------------------ Once you’ve transferred enough IQD into your USD account and have the Application for the transfer signed and ready to attach to an email the final step would be to actually create the email, attach the application (along with the color copy of whichever original notarized “True Copy” ID you used to open the account) and send it to the proper email addresses at Warka. Below is an outline of email information that I’ve used successfully in the past and will continue to use in the future. Send it To: nasser@warka-bank-iq.com and swift.m@warka-bank-iq.com With a CC to: ifrd@warka-bank-iq.com and c.services@warka-bank-iq.com Subject: (Your Six Digit Account # here) Application for Outward Remittance of USD The body of your email message should read something like this: Warka Bank Wire Transfer Department Warka Bank SWIFT Department Manager Customer Services Department International Foreign Relations Department Dear Sirs: Attached to this transmission please find a pdf copy of my signed Application for an Outward Remittance of USD and a color copy of my government issued ID ~ notarized as a “True Copy” ~ which your Compliance Department can verify. I greatly appreciate your time in facilitating an expeditious completion to my request and I look forward to your immediate confirmation of receipt of this email. At your earliest convenience, please confirm exactly which day your Wire Transfer Department and SWIFT Department will execute my Wire Transfer Request. Thank you for your kind attention to my accounts. Best Regards, (Type Your Signature Name Here) (Type Your Six Digit Account Number Here) ------------------------------------------------------------------------------------------------------------------------------------------------ The copy of your government issued ID that you attach to this email should be the exact one that you used to open your account and your signature on your application should match it exactly ~ just for the sake of consistency and for ease of identification by the Warka staff. Note: if you just send the email with the 2 attachments to the Wire Transfer Department at nasser@warka-bank-iq.com like the Warka website suggests, then most likely it will just be ignored. I’ve never been sure why, but that’s been my experience. Sending it also to the SWIFT Department Manager at swift.m@warka-bank-iq.com and to Rowaida Mohammed of International Foreign Relations Customer Service at c.services@warka-bank-iq.com and to Mohammad K Issa, the Director in charge of International Foreign Relations at ifrd@warka-bank-iq.com lets everyone there know what you’re trying to do and keeps them on their toes. Besides that, it’s been my experience that Mohammad will make sure everyone else does their job. He seems to care about Warka’s reputation. The most important thing is to have your attached application be clear and concise with all the pertinent information required. Final Note: If you send the email with just the application, but without a copy of your ID, then it’s been my experience that the Warka staff will just wait a couple of days or even a week before contacting you to reapply including a color copy of your government issued ID that can be verified by their “Compliance Department”. Whether that was just a delaying tactic at the time or a real security concern on their part I never really determined, but from then on I’ve always included the ID along with a reference to it in the language in the body of the email.
  14. Not sure what this means in terms of our being able to (finally) affect a wire transfer of USD back to a US account or purchase stock from the ISX through the Warka ISX Department, but it’s the first positive peep we’ve heard out of Warka in over a year with regard to their insolvency issues. At least Warka has never stopped renewing E-banking subscriptions, or selling CD’s and has always faithfully paid interest on all accounts on time. In addition, it’s been my experience that as of at least December 2012, there has been a marked improvement in Warka’s communication skills at all levels. I would definitely have to agree with Goldiegirl’s assessment on this: “For many of us, we never wavered from the thought that our money was safe. What do you say now all you folks who told us it was down the toilet....???” Notice that Warka’s Legal Department didn’t deny that Warka Bank does indeed still have liquidity problems; only that those liquidity problems are the fault of the MOF and the CBI ~ as confirmed by the Iraqi Supreme High Court. Most of this solvency problem came about when the MOF and the CBI decided to suddenly withdraw large amounts of cash in the form of public officials’ pension and payroll funds from the private sector (including Warka) and put it into state run banks instead. At the time this was done, the private banks were actually doing the CBI a favor by efficiently running and growing these various funds with much greater effect than could be expected from the state run banks, yet no consideration was given to what these sudden cash withdrawals would do to the private sector liquidity. Although Warka wasn’t the only bank affected, it was the largest and lost the most cash. I do know that in order for Warka to be able to successfully wire USD back to the US and into the proprietary territory of the Federal Reserve Bank, Warka will first need a corresponding US bank to accept the funds via an international SWIFT transfer. Then, that same corresponding US bank can send the funds onward to their final destination via the FED’s Federal (ABA) routing system. In order for the FED to even allow one of its banks to be Warka’s US corresponding bank, the FED’s board of directors will have to be convinced and/or otherwise persuaded that Warka is truly up and running again and has really solved it’s liquidity problems. Previously, Citibank NA in New York was given the nod as Warka’s corresponding US bank, and I don’t see why that same arrangement couldn’t happen again, once Warka’s liquidity problems are solved. In the end, even when the current CBI appointed Conservator has (finally) sold enough of Warka’s non-performing and/or unsecured loans (at a discount); or otherwise brokered a merger with another financial institution, it will still be up to the CBI to give Warka the permission it needs to operate again at full capacity inside Iraq. Also, since the world currently operates as it does; that is, without regard to the peasants (including most US citizens or Citizens of the United States of America ~ if you prefer a more Constitutional as opposed to corporate designation) the final decision will be a Central Bank to a Central Bank (FED to CBI) one. The FED, being the dominating Central Bank within the IMF will have to give permission to the CBI, who will then have to pass that same entitlement (reluctantly or not) on to Warka. Who knows, but with this Iraqi Supreme Court decision it may be that the CBI now owes Warka all the bail out money it needs to get going again. We can only hope that if that is the case then the CBI does the honorable Islamic banking thing (100% honesty in all financial matters) and pays up quickly. However, the fact is that even though Iraq is a member country of the IMF; its own CBI itself still isn’t yet in full compliance with the IMF rules, so I wouldn’t hold my breath waiting for the CBI to pay Warka for the damages it caused. It has always been my opinion, and especially now that the Iraqi Supreme Court has confirmed it, that this whole Warka Bank insolvency crisis was due to a hostile takeover attempt by the CBI so that they could take advantage of the Bunnia Family’s hard work and investments which created Warka Bank for Investment & Finance ~ the largest financial enterprise in the country. It’s notable that the Bunnias who are 52% owners of Warka are Sunni and Maliki’s MOF is Shiite dominated. I believe it’s also best to keep in mind that the CBI absolutely still needs the 120 branch, 350 ATM machine infrastructures that the Bunnia’s have created with Warka in order to introduce electronic banking into an otherwise cash dominated society. The CBI needs these infrastructures in place so that any currency redenomination attempt to introduce new lower denomination (international) banknotes can be aided and abetted by debit and credit cards that can be used at ATM’s all over Iraq and eventually all over the world. Likewise, any CBI attempt to revalue its currency to international standards will depend on already in place ATM machines so that at the very least tourists can come to Iraq and exchange their own currencies for the new Iraqi banknotes and or conveniently withdraw funds from their home country accounts in order to take advantage of all the thrills and chills that Iraqi tourism has to offer. Welcome to Iraq, Habibi, but don’t forget to duck if you hear a large explosion!!
  15. When I renewed my e-banking, bought a 3 month CD and asked for a wire transfer back in December 2012, all 3 requests were answered immediately, politely and professionally. If not the same day, then within 2 business days (max). Of course, I didn’t get the transfer, but was still encouraged by a prompt professional reply; especially since it was a notable departure from the previous year’s delaying tactics and Warka’s outright ignoring of my requests. My latest attempt in asking Warka for a wire transfer (see below) was not answered for 8 days (6 business days) and was slightly less friendly than last time since they did not even start out with the salutation of “Dear Sir” like they did in December. They just stated the party line, which is now undoubtedly in a “copy and paste” format for the convenience of Customer Services, but at least they answered without my having to send multiple nagging emails. I guess now they’re tired of me asking instead of just waiting for the announcement by the CBI; but as it’s now been a year since they stopped fulfilling my wire transfer requests and went under “guardianship”, I feel that they ought to be able to put up with a little nagging now and again. In fact, I still encourage everyone with a Warka account to put in for a wire transfer ~ just for drill. It’s good to have the procedure down pat for when the time comes, and I think it’s important to try and goose the CBI appointed Conservator to get it done, already. Maybe with enough requests on record they’ll do something radical enough to open up again. It’ll be kind of like voting ~ only different. As a reminder, what the Conservator is currently attempting to do is sell enough of Warka’s assets in order to come back into solvency ~ which means to have the ability to pay all legal debts and meet all financial obligations. Warka’s known assets are their outstanding loans, which will undoubtedly have to be sold at a discount. The problem is who is going to want to buy the paper ~ especially if the loan is ‘non-performing’ and/or unsecured. The global recession/depression has affected everyone, not just the US. Actually, I’m glad Warka is located in an Islamic country because Islamic law (supposedly) requires bankers to be 100% honest and protects depositors like us first ~ with institutions taking second place when it comes time to (finally) pay out. As we all know, in the western (so called) “civilized” countries like the US and Great Britain, it’s just the opposite. Bankers are bailed out first with hardly any transparency in the process; then the bank’s doors are closed with the majority of the depositors just having to suck it up and get on with life. As far as I can determine, Warka has about IQD500billion in loans outstanding with who knows what in current cash reserves. They are still paying interest on savings accounts and CD’s, selling e-banking subscriptions and might even be back to selling stocks on the ISX through their ISX brokerage department. I’m not really sure about the Warka ISX Department because I haven’t tried to buy stock in a while. IQD account to IQD account interbank wire transfers are no problem but they’re definitely not fulfilling (outgoing) wire transfer requests and are probably not issuing either debit or credit cards either since that would mean outgoing funds before they are solvent enough to back them up. In order to meet minimum CBI requirements they need to sell enough assets to have approximately IQD300billion on hand to cover depositors (like us) plus IQD250billion in cash reserves ~ the CBI minimum for all Iraqi banks as of June 30, 2013. At this point, God only knows when the Conservator will have sold enough assets and/or brokered a deal to merge Warka with another institution with some excess cash, but at least Warka’s not going under. The CBI needs that Warka 120 branch, 350 ATM machine infrastructure in order to drag Iraq out of the ‘Stone Age’ of cash auctions and into the 21st century electronic/digital age of global currency foreign exchange. Waiting for Warka is just not any fun anymore, but the high interest on savings and CD’s takes the sting out of it ~ sort of. Anyway, see below for a record of my latest wire transfer attempt. Here’s the answer I got back on February 17th: As the bank is currently under CBI Guardianship all wire transfers will be processed and executed after the CBI guardianship finalizes their internal procedures with our bank where the goal of the CBI is to strengthen the financial position of the bank in coordination with the Ministry of Finance restoring its liquidity in accordance with the official press statements made by the CBI. A notice will be posted on our website www.warka-bank.com once the CBI issues its instructions Many thanks and best regards Customer Services International Foreign Relations Dept. Here’s my email request sent on February 9th: Wire Transfer Department Manager Swift Manager Customer Services Department International Foreign Relations Attached to this transmission please find the file copies of: 1. My signed application for a wire transfer 2. A True Copy of my government issued color ID that your compliance department can verify. I will expect to hear from you shortly with a confirmation of receipt of my request, and completion of transfer. Thank you. Best Regards,
  16. Three Questions for Adam: 1) If the dinar RV’d to a US$0.10 per IQD1.00 rate overnight and it happened before the new lower denomination banknotes were in circulation how could Iraq possibly maintain the IQD as its official currency since all the Iraqi citizens would surely rush to the nearest bank to exchange all their dinars for USD in order to take advantage of a once in a lifetime, lottery like 11,582.24% profit margin? 2) After such an overnight 10 cent RV the current lowest denomination dinar of IQD250 would be worth US$25, so what would be an Iraqi Citizen’s incentive for re-exchanging his newly acquired USD back to the current high denomination IQD banknotes; especially since there would be no way to make change when purchasing everyday smaller items except with USD? 3) Wouldn't such an overnight 10 cent RV effectively cause the IQD to vanish from circulation and the USD to dominate inside Iraq ~ contrary to the CBI/GOI publicly stated intentions for the currency?
  17. Some Central Bank of Iraq Highlights Previous to the allied March 2003 invasion, there was no independent Central Bank of Iraq (CBI) like there is today. There was only Saddam Hussein with control over everything that the other uber-rich Ba’ath Party Sunnis in his outfit didn’t already have control over ~ including all banks, central or not. The largest bank robbery in human history took place on March 18, 2003; just before the US led invasion. Saddam used a handwritten note to rob his own so called “central bank” of US$920 Million Dollars in cash. His brother Qusay and one other masked desperado used the note to empty the bank of all of its USD banknotes ~ all in boxes, all in $100 bills. It took 5 hours, but Qusay and his homey hung in there like the record setting bank robbers they were and got it done. Since then Qusay was killed in a firefight. Parts of the $920 million in cash have been recovered; most has not. That’s some pretty bulky stuff to hide and/or take to the laundry to be cleaned. The CBI of today was modeled after a hybrid of the Bank of England and the Federal Reserve Bank. The CBI is meant to be independent of government control, just like the FED and the BOE are independent of their own respective governments. The CBI board of directors will not necessarily be accountable to or answering to the Government of Iraq (GOI), except in a public, political display sort of way, orchestrated by the real owners of the CBI ~ whoever they are. Nobody knows who really owns the FED or the BOE either. In 2003 there had not yet been an election post Sadaam, so the GOI consisted of members that had been hand-picked by the victors of the invasion ~ the allied forces of British and US troops. The allies called this shared power over Iraq between the British and US governments the Coalition Provisional Authority (CPA) and the first order of business right after “Mission Accomplished” was the money supply in Baghdad. The CBI of today was established as Iraq’s central bank by the 2004 Central Bank of Iraq Law; which was written by a think tank subcontractor to the CPA and then voted into effect on September 19, 2003 by the CPA’s hand-picked GOI. Once they had someplace to put it, both the British Government and the US Government got busy supplying the new CBI with enough cash to keep the country going ~ sort of. The Brits flew in approximately IQD 46 Billion (made in England) high denomination IQD cash currency ~ the same stuff that everybody has in their pockets and safes today. The US flew in approximately US$21 Billion dollars in $100 bills; all shrink wrapped to pallets inside the cargo bays of C130 Hercules Air Transports. Get a heavily armed MP column to deliver it and wango tango; you’re back to the Wild West set right smack in the middle of the original Alibaba and the Forty Thieves territory. Both shipments were meant to bolster the Iraqi economy ~ especially in Baghdad ~ over the hump of war and widespread devastation to follow. The CBI was in charge of all that mullah ~ kind of. All of this newly printed cash was funded by frozen Iraqi assets which were put into a trust fund called the Development Fund for Iraq (DFI) and administered with a US House Committee acting as the trustees. Pretty handy ~ especially with no Iraqi oversight committee for the 1st year and a half to complain about how the money was being spent. Most of that first $21 billion in cash vanished into the economy from the top down, but didn’t manage to repair much infrastructure or stimulate many small businesses. The 1st year and a half of occupation by the CPA also saw all the monitoring meters on the outgoing oil pipelines disengaged so that calculating the volume of “free” Iraqi oil sold by the CPA for its own use was impossible to do. The current GOI’s complaints about both the missing oil and some 6 billion (plus) of missing USD cash has been the cause for quite a bit of the slow process of the GOI getting out from under the UN sanctions and also the CBI getting out from under the probationary periods mandated by the International Monetary Fund (IMF). On the front page of the CBI website there are links to 2 articles covering the current relationship between the IMF and the CBI. What’s interesting about the articles is that they both outline how the Executive Board of the IMF still has the CBI and the Iraqi Ministry of Finance (MOF) under close scrutiny ~ even after all these years. This scrutiny has actually been going on since the CBI was first chartered by the CPA in 2004. This scrutiny, (way more than any ongoing disagreement with Kuwait), is probably the main reason that Iraq has not been taken out from under the final few of the UN mandated Chapter 7 sanctions. As their now (2nd) chance to update and modernize the functions of the CBI, the Directors of the CBI in conjunction with the GOI/MOF were supposed to have had only (2) more years to bring the financial affairs of Iraq (including having a viable, tradable, international currency) into compliance with the IMF and the World Bank financial (transparency) rules that the other (approximately) 170 IMF member countries follow. Iraq started its (2nd) final probationary period, called a Stand-By Arrangement (SBA) in February 2010; and that SBA was supposed to have ended in February 2012. Iraq (thru the CBI) asked for and received 2 extensions to that SBA ~ the first for 5 months and the second for 7 months. The 2nd extension ends in February 2013 ~ 1 year later than the current SBA probationary period was supposed to have ended. An IMF declared end to the current Iraqi SBA probationary period is probably only going to happen if Iraq has a respectable international currency and some working electronic banking procedures in place. At this point, at the beginning of 2013, and with no CBI publicly stated intention of processing even an internal RD, let alone an international RV, I’d say look for an extension request from the CBI, or a brand new (3rd) chance SBA offered by the IMF with the stipulated amount loaned through the World Bank. The UN and the IMF and the World Bank are certainly not going to allow the CBI to mix currencies with the rest of the international community until Iraq has completed a satisfactory financial probationary period and can demonstrate an ability to trade for goods and services globally and with its own currency managed through the CBI. So far, Iraq has no international currency of its own and still needs the USD as an alternative international currency just to function ~ especially because it is still such a cash-based economy. Because there is still no international IQD currency and still no signed Hydro Carbon Law (HCL) in place all of the Iraqi oil revenues produced are sold out the back door through Jordan. Since the current high denomination IQD banknotes cannot be traded internationally, the sale of the oil has to happen in either Jordanian Dinar or in Euros or in USD ~ and you can bet that there are some substantial oil broker fees and currency exchange fees levied on Iraq in the process. 5% of the oil revenues produced still go directly to Kuwait in payment for debts owed. It’s notable that because someone has to figure out the 95% versus 5% split in order to present enough evidence to satisfy the UN mandate; we can be sure that there is still someone monitoring oil sold for cash out of Iraq pretty closely. The other 95% of these oil revenues go back to Baghdad to run the GOI and so far that process hasn’t left much else for the provinces and those province chiefs to distribute at the grass roots level. The Iraqi citizens themselves as a whole have not benefited in proportion to the elected and appointed government officials. All the rest of the Iraqi provinces want the same deal as the Kurds ~ to deal directly with the big international oil conglomerates like Exxon-Mobil for the oil within their own province and to have a bigger voice as to what percentage of the revenue goes back to Baghdad. Lots of voices still to be heard about that particular issue before a signed HCL can be put into effect. The CBI continues to set the rate of exchange between the IQD and the USD with daily bulk cash auctions instead of on a globally traded, foreign exchange platform. This Jordanian oil trade agreement, which is ongoing even without a signed HCL, is working well enough to produce sufficient funds to at least back a budget and at least give the appearance to the rest of the world that the Maliki run GOI is engaged in capitalistic and democratic pursuits ~ so I don’t expect big changes too soon. The CBI has until the end of February 2013 (at least) to complete the requirements outlined in their current SBA with the IMF. Don’t expect a significant RV anytime before the end of February 2013 just because of that; but instead, look for an extension of the current SBA; especially if the CBI has somehow not fully complied with the IMF and the World Bank regulations and needs more time to get its house in order. The CBI has already publicly stated that it will become more and more dependent on the electronic processes (such as a debit card) as a tool to bridge the gap between an all cash society and a society at least financially adept at attracting business from around the world. The CBI has publicly declared (with press releases) at least 3 times this past year in 2012 that they would be putting off the redenomination (RD) process of issuing new lower denomination notes into circulation (as substitutes for the IQD and USD cash currencies currently being used in Iraq) until at least 2014 and possibly even later than that, depending on the Iraqi Politicians’ ability to actually get along and do some work that benefits a normal Iraqi Citizen ~ like signing the HCL so that the oil revenues can be more widely spread beyond just Baghdad. If an RV process were started prior to an RD, the new notes wouldn’t be available to make change for Iraqi citizens inside Iraq nor would the new notes be available for exchange with the USD outside of Iraq; the whole process would probably come to a halt almost immediately in the streets of Iraq. The Iraqis would likely just stick with the USD for purchases outside of Iraq and with the current large denomination IQD banknotes for purchases inside of Iraq. For any RD, followed by an (on par) RV to work, the new lower denomination IQD notes would have to have at least as much (or more) purchasing power both inside and outside of Iraq than even the USD or the higher denomination IQD notes have now; and therefore be more desirable to possess by the majority of Iraqi Citizens. Until a proper RD/RV process is well on its way, neither the FED, nor the IMF, nor the World Bank are going to allow the CBI to introduce the IQD into the world’s foreign currency exchange markets. Right now, Iraqi Citizens can’t exchange their own high denomination currency for anything but goods and services found inside Iraq, including for the USD. If in the future, Iraqi Citizens can’t exchange the new lower denomination IQD notes internationally, then they will be no better off than they are right now and Iraq still won’t be able to do business (sell oil) as a sovereign nation ~ and that’s true either with or without a signed and sealed HCL and/or a final release from all other UN Chapter 7 sanctions. You can be sure that the CBI process of the RD/RV will be planned so as to make it be the most desirable option for the Iraqi people to collect and use the new IQD denominations (instead of the USD or the existing IQD notes) and at the same time for those same citizens to be happy to be introduced to the new electronic world of credit cards and debit cards and finding ATMs everywhere you look. That whole transition from cash to digital will be under heavy scrutiny by the Islamic Clergy who will be looking for violations of Islamic banking laws; but, it will have to take place if Iraq hopes to attract foreign visitors with foreign capital to rebuild its infrastructure. The CBI itself is also going to have to embrace the digital world by having fewer cash auctions and more trading on the world currency market in order to set its own new international (revalued) rate of exchange against the USD ~ and every other currency, for that matter. Likewise, the majority of the IMF board members are going to have to be OK with whatever exchange rate the CBI releases or the IQD will never show up as a worldwide exchangeable currency. Typically, as an emerging nation, the GOI will probably want to keep the exchange rate of the IQD for the USD as close as possible to be on par (or a little less) so that Iraqi companies can be competitive internationally with selling other goods and services besides just oil. After the initial IQD international RV presentation, it will be the global market itself that drives the exchange rate back up to any pre-war $2 to $3 USD per IQD ~ and that’s if it even ever gets that high again. Meanwhile in 2013, there is still a good chance that the CBI, in conjunction with the MOF, will continue to push for a gradual rise in the value of the IQD against the USD. That’s always a good sign for those of us who are invested for the long term run. There is mounting evidence that the official rate will rise from IQD1166 per USD1.00 to IQD1000 per USD1.00 and quite possibly it will happen in 2013. That’s an approximate 15% increase, which is an excellent return on investment; especially compared to most financial instruments (including most mutual funds) that are currently available to the average USD investor today. It’s also a great incentive to stick with this IQD investment until the currency becomes internationally exchangeable. For a recent news article related to this predicted increase see the article called “Iraqi Dinar could rise as much as 15%” at: http://www.iraq-businessnews.com/2013/02/05/iraqi-dinar-could-rise-as-much-as-15/
  18. Regarding: the Deletion of Zeros, the HCL, the Budget and Chapter 7 “No Deletion of Zeros” from Dinar in 2013 A member of the Parliamentary Finance Committee has ruled out dropping the three zeros from the Iraqi currency in 2013 because “the ground is not prepared yet”. MP Majida al-Timimi told AIN: “The process of deleting zeros from the Iraqi currency in 2013 depends on the nature of the policy of the Central Bank of Iraq’s new governor. “[The] committee did not received a letter from the CBI about this proposal or postponing it.“ The MP cited fears of counterfeit dinars, resulting in inflation, as one of the reasons for the delay. http://www.iraq-businessnews.com/2012/12/19/no-deletion-of-zeros-from-dinar-in-2013/ Iraqi Dinar could rise as much as 15% The General Secretariat of Iraq’s Council of Ministers has ruled out the replacement of the currency or cancellation of three zeros “at this stage”, and it is seeking to raise the value of the dinar against the dollar. The Secretary General of the Council of Ministers said that the project to replace the currency, dropping the three zeros, was discussed but is not a priority for the government at this time being, and “there is no real problem in this field”. He noted that replacing currency requires “large adjustments”, and the process of withdrawing the existing money is an enormous and difficult task. He stressed that some have the mistaken impression that deleting the zeros will “reduce the size of the money in circulation as a block”, but in fact it does not reduce it even by 1 percent, and while the government believes that the change of currency is a good thing under appropriate conditions, it is not a priority. The Secretary-General said the dinar should be stronger than it is now, and implied that an exchange rate of 1,000 dinars to the dollar — a rise of about 15 percent — might be sustainable. http://www.iraq-businessnews.com/2013/02/05/iraqi-dinar-could-rise-as-much-as-15/ Iraq “has little interest in Oil Law” A leading Sunni figure has said that Iraq is not likely to pass a Hydrocarbon Law anytime soon, as the government has little interest in pushing a draft through parliament. Adnan Al-Janabi, a member of the Iraqi-ya Party, and the head of Iraq’s parliamentary Oil and Energy Committee, told Reuters: “It is at the bottom of the government’s list. The centralists of the ruling party have no interest to sustain a federal policy or pass a federal law … Therefore the government and IOCs (independent oil companies) will continue the risk of working in a legal vacuum.“ A draft for the unified Iraqi Hydrocarbon Law has been under discussion in parliament since 2007, but infighting among the country’s factions has so far thwarted attempts to pass the legislation. Despite the absence of an oil law, foreign oil companies have signed contracts throughout Iraq. But all involved in the development of Iraq’s energy sector would breathe easier if legal guidelines were in place. http://www.iraq-businessnews.com/2013/02/13/iraq-has-little-interest-in-oil-law/ Iraq “Losing $27m/day” Due to Budget Delay A member of the Shiite-dominated National alliance coalition told a press conference at the weekend that Iraq is losing almost $27 million per day because delays in agreeing the budget. Haider Abadi, Chairman of the parliamentary Finance Committee, is reported as insisting that the budget is issued as soon as possible. Iraq’s budget deficit is expected to fall from the $12 billion that was planned for 2012 to $4 billion at end-2014, as the country benefits from increased oil proceeds. http://www.iraq-businessnews.com/2013/02/26/iraq-losing-27mday-due-to-budget-delay/ “Chapter Seven” – Foreign Minister Receives United Nations Kobler Foreign Minister Hoshyar Zebari has met with Mr. Martin Kobler, Representative of the Secretary-General of the United Nations (UNAMI) in Iraq. During the meeting they discussed the mandate of the UN Mission in Iraq and its role in helping Iraq, and the role of the Mission to assist in the upcoming electoral processes. They also discussed the developments in the political situation and the country’s need for a mechanism to launch national dialogue to address the crisis. They also discussed the ongoing deliberations in the Security Council on ending the mandate of the Special Coordinator on the missing Kuwaitis and property, Iraq’s international obligations and the developments in Iraq-Kuwait relations, especially after the approval of the Kuwaiti parliament recently on the Regulation of navigation and joint management in the Khawr Abdallah. The meeting was attended by Undersecretary for Policy Planning and bilateral relations, adviser to the Minister, Chairman of the Department of organizations. http://www.iraq-businessnews.com/tag/chapter-seven/
  19. Will the IQD RV in 2013 as predicted? On the front page of the Central Bank of Iraq (CBI) website there are links to 2 articles covering the current relationship between the International Monetary Fund (IMF) and the CBI. What’s interesting about the articles is that they both outline how the Executive Board of the IMF still has the CBI and the Iraqi Ministry of Finance (MOF) under close scrutiny ~ even after all these years. This scrutiny has actually been going on since the CBI was first chartered by the Coalition Provisional Authority (CPA) in 2004. This scrutiny, way more than any ongoing disagreement with Kuwait, is the main reason that Iraq has not been taken out from under the final few of the UN mandated Chapter 7 sanctions. As their now (2nd) chance to update and modernize the functions of the CBI, the Directors of the CBI in conjunction with the GOI/MOF were supposed to have had (2) more years to bring the financial affairs of Iraq (including having a viable, tradable, international currency) into compliance with the IMF and the World Bank financial (transparency) rules that the other (approximately) 170 member countries follow. Iraq started its (2nd) final probationary period, called a Stand-By Arrangement (SBA) in February 2010; and that SBA was supposed to have ended in February 2012. Iraq (thru the CBI) asked for and received 2 extensions to that SBA ~ the first for 5 months and the second for 7 months. The 2nd extension ends on February 2013 ~ 1 year later than the current SBA probationary period was supposed to have ended. There can be no significant revaluation (RV) of the Iraqi Dinar (IQD) against the USD without both the IMF and the World Bank giving final approval to the functions of the CBI and certainly not without the IMF approving the end of the current Iraq SBA in February of 2013. The IMF ending the SBA would effectively end Iraq’s financial probationary period and (theoretically) make Iraq eligible to join the international community. That’s of course unless the CBI asks for another extension because they know they are not ready yet. An IMF declared end to the current Iraqi SBA probationary period is going to happen only if Iraq has a respectable international currency and some working electronic banking procedures in place. At this point, at the beginning of 2013, and with no CBI publicly stated intention of processing even an internal RD, let alone an international RV, I’d say look for an extension request from the CBI, or a brand new (3rd) chance SBA offered by the IMF with the stipulated amount loaned through the World Bank. The UN and the IMF and the World Bank are certainly not going to allow the CBI to mix currencies with the rest of the international community until Iraq has completed a satisfactory financial probationary period and can demonstrate an ability to trade for goods and services globally and with its own currency managed through the CBI. So far, Iraq has no international currency of its own and still needs the USD as an alternative international currency just to function ~ especially because it is still such a cash-based economy. Because there is still no international IQD currency and still no signed Hydro Carbon Law (HCL) in place all of the Iraqi oil revenues produced are sold out the back door through Jordan. Since the current high denomination IQD banknotes cannot be traded internationally, the sale of the oil has to happen in either Jordanian Dinar or in Euros or in USD ~ and you can bet that there are some substantial oil broker fees and currency exchange fees levied on Iraq in the process. 5% of the oil revenues produced still go directly to Kuwait in payment for debts owed. Because someone has to figure that out enough to present evidence enough to satisfy the UN mandate tells you that someone is monitoring oil sold for cash out of Iraq pretty closely. The other 95% of these oil revenues go back to Baghdad to run the GOI and so far that process hasn’t left much else for the provinces and those province chiefs to distribute at the grass roots level. The Iraqi citizens themselves as a whole have not benefited in proportion to elected and appointed government officials. All the rest of the Iraqi provinces want the same deal as the Kurds ~ deal directly with the big international oil conglomerates like Exxon-Mobil for the oil within your own province and have a big voice in what percentage of the revenue goes back to Baghdad. Lots of voices to be heard about that particular issue before a signed HCL can be put into effect. The CBI continues to set the rate of exchange between the IQD and the USD with bulk cash auctions instead of on a globally traded, foreign exchange platform. This Jordanian oil trade agreement, which is ongoing even without a signed HCL, is working well enough to produce enough funds to at least back a budget and at least give the appearance to the rest of the world that the Maliki run GOI is engaged in capitalistic and democratic pursuits ~ so don’t expect big changes too soon. Despite what any politician in any country says, this financial harmony between the CBI and the global banks and their international banking procedures will have to happen before any significant RV of the IQD will be allowed to happen. The CBI has until February 2013 (at least) to complete the requirements outlined in their current SBA with the IMF. Don’t expect a significant RV anytime before February 2013 just because of that; but instead, look for an extension of the current SBA; especially if the CBI has somehow not fully complied with the IMF and the World Bank regulations and needs more time. The CBI has already publicly stated that it will become more and more dependent on the electronic processes (such as a debit card) as a tool to bridge the gap between an all cash society and a society at least financially adept at attracting business from around the world. The CBI has publicly declared (with press releases) at least 3 times this past year in 2012 that they would be putting off the redenomination (RD) process of issuing new lower denomination notes into circulation (as substitutes for the IQD and USD cash currencies currently being used in Iraq) until at least 2014 and possibly even later than that, depending on the Iraqi Politicians’ ability to actually get along and do some work that benefits a normal Iraqi Citizen ~ like signing the HCL so that the oil revenues can be more widely spread beyond just Baghdad. There can be no significant revaluation (RV) of the Iraqi Dinar (IQD) against the USD without a proper RD, because any attempt to RV prior to an RD would cause an immediate marketplace demand for the new lower denomination notes (anyway). If an RV process were started prior to an RD, the new notes wouldn’t be available to make change for Iraqi citizens inside Iraq nor would the new notes be available for exchange with the USD outside of Iraq; the whole process would come to a halt almost immediately in the streets of Iraq. The Iraqis would just stick with the USD for purchases outside of Iraq and the current large denomination IQD banknotes for purchases inside of Iraq. For any RD, followed by an (on par) RV to work, the new lower denomination IQD notes would have to have at least as much (or more) purchasing power both inside and outside of Iraq than even the USD or the higher denomination IQD notes have now; and therefore be more desirable to possess by the majority of Iraqi Citizens. Until a proper RD/RV process is well on its way, neither the FED, nor the IMF nor the World Bank is going to allow the IQD into the world’s foreign currency exchange markets. Right now, Iraqi Citizens can’t exchange their own high denomination currency for anything but goods and services found inside Iraq, including the USD. If in the future, Iraqi Citizens can’t exchange the new lower denomination IQD notes internationally, then they will be no better off than right now and Iraq still won’t be able to do business (sell oil) as a sovereign nation ~ and that’s true either with or without a signed and sealed HCL and/or a final release from all other UN Chapter 7 sanctions. The process of the RD/RV will be planned so as to make it be the most desirable option for the Iraqi people to collect and use the new IQD denominations (instead of the USD or the existing IQD notes) and at the same time for those same citizens to be happy to be introduced to the new electronic world of credit cards and debit cards and finding ATMs everywhere you look. That whole transition from cash to digital will be under heavy scrutiny by the Islamic Clergy who will be looking for violations of Islamic banking laws; but, it will have to take place if Iraq hopes to attract foreign visitors with foreign capital to rebuild its infrastructure. The CBI itself is also going to have to embrace the digital world by having fewer cash auctions and more trading on the world currency market in order to set its own new international (revalued) rate of exchange against the USD and every other currency. Likewise, the majority of the IMF board members are going to have to be OK with whatever exchange rate the CBI releases or the IQD will never show up as a worldwide exchangeable currency. Typically, as an emerging nation, the GOI will want to keep the exchange rate of the IQD for the USD as close as possible to be on par (or a little less) so that Iraqi companies can be competitive internationally with selling other goods and services besides just oil. After that, it will be the global market itself that drives the exchange rate back up to any pre-war $2 to $3 USD per IQD ~ and that’s if it even ever gets that high again. From an Iraqi Business Perspective ~ High IQD rate against the USD (IQD 1166 for $1.00 USD) is competitive, Low IQD rate against the USD (IQD 1.00 for $1.00 USD) is not as competitive. Which way do you think the Iraqi business community (including all the Mom and Pop run businesses) is going to want the exchange rate with the USD to go? Whatever the case, according to the latest from the CBI news bulletins, any significant change in the exchange rate between the IQD and the USD seems to have been put off until at least 2014.
  20. How does Warka Bank under Guardianship fit in with an IQD RV? There can be no significant (upward) revaluation (RV) of the Iraqi Dinar (IQD) against the USD without Warka Bank coming out of its own insolvency and stepping up to the task of servicing its client’s (both Iraqi and international) with all of its branches and ATMs immediately when the RD and RV processes start. According to its own website, the CBI is the Central Bank for 52 individual banks and within those 52; the Private Sector is the largest sector with 23 banks. Of those 23 Iraqi Private Banks, Warka has by far the largest footprint in Iraq with 120 branches and 350 ATM machines scattered around the country. In fact, currently, Warka supposedly has the largest financial footprint of any bank in Iraq whether it is State, Commercial, Private or Islamic. Warka Bank has been touted as a semi-major player in the upcoming CBI RD process. I look for the CBI to help Warka Bank re-emerge out from under Guardianship as the number one go-to private bank for investment and finance in Iraq in order to attract max foreign capital in preparation for the internationalization and/or globalization of the IQD. Being invested in the IQD since the summer of 2004 and having never paid anything but CBI published bank prices for the IQD that I still have left in my Warka account means I’m up around 24% from my original investment ~ and that’s just on the gradual rise of the IQD against the USD from 2004 (1/1450) to 2012 (1/1166). If after a successful RD, the exchange rate between the new IQD and the USD goes to US$1.00 per IQD1.167 or US$0.86 per IQD1.00, I will still be up only 24% from my original investment because a redenomination will be conducted at par with no Iraqi citizen getting short changed in the exchange. However, if shortly after the initial RD, there is a market push RV up to US$1.00 per IQD1.00, then I will be up a total of 39% just in the difference between purchase and sale prices. Plus, I’ve been netting a solid 9.25% as an aggregate annual interest gained between my 7% Warka IQD Savings interest, my 10.5% Warka IQD CD interest and my 4% Warka USD savings interest ever since I converted all my IQD cash into a Warka account. The ISX is up over 30% for 2012 and Warka has an ISX brokerage department. I’m hoping that once the CBI passes international financial muster with the IMF in February of 2013, things will get better down line and the CBI/MOF will then have the muscle to sort out the Bunnia Family (56% owners of Warka Bank) and get Warka properly and (finally) merged with some other money outfit with fresh capital ~ our capital to be exact. Whatever the case, here’s a possible rundown of events leading up to a significant revaluation of the IQD against the USD: • The current SBA between Iraq and the IMF expires in Feb 2013 and thereby leaves the possibility open that the IQD could be allowed to trade with other world currencies at the whim of the CBI and/or Maliki’s GOI. • The CBI announces that Warka Bank is officially out from under “Guardianship” and is now a current, upstanding member of the international banking community, capable of controlling its own destiny ~ under whatever its merger name turns out to be. The date of this announcement is completely unpredictable; since the CBI itself still has to get right with the IMF under its own probationary period. • Kind of like the blind leading the blind ~ only different. • Look for Warka Bank merger speculation news in the Iraqi Business News columns as a sign that Warka is getting solvent again. • After getting right with the IMF, the CBI announces (probably sometime in 2014 or 2015) that the plan to RD the IQD will be implemented and that the current high denominational IQD banknotes will be recalled and traded with either a debit card account or the new lower denomination banknotes ~ still yet to be issued. • Once the redenomination process starts, the 3 currencies (existing IQD banknotes, new IQD banknotes and USD banknotes) will all co-exist in circulation at the same time inside Iraq and will be traded at par (right now $8.56 USD buys either an existing IQD10,000 note or a new IQD10 note) for about a year with the current large denomination banknotes and the USD banknotes being withdrawn and exchanged for the new lower denomination IQD banknotes as they are turned in to the local banks. • Look also for Warka debit and pre-paid MasterCards, and for some State Bank sponsored debit and credit cards as well to be introduced as alternatives to just the new cash notes. Cards for Iraqi citizens will be especially useful for purchases outside of Iraq ~ for example via the internet. • Once the Iraqi citizenry is used to these new processes, Iraq will be ready to go international with a CBI stated exchange rate approved by the IMF and applicable to the new IQD (only) ~ since the existing larger denominations will have been largely withdrawn from circulation by that time, anyway. • Once the new IQD currency is re-introduced into the global economic community the market will attempt to move the USD rate of exchange upward, but will likely end up close to 1 to 1 soon after the RV and just stop there. • It will take years of global market pressure to push the exchange rate past 1 to 1 because the CBI and the GOI will resist it in order to keep the IQD to USD rate competitive enough to get the most out of selling its resources.
  21. Lately, Warka Bank’s SOP for USD wire transfer requests and/or ISX stock purchase requests from clients has been a complete stonewalling by Mohammad K Issa and his entire crew, including: Rowaida Mohammed in Customer Services, Nasser in the Wire Transfer Department, Mr. Ashraf Amr in the E-banking Department, Mr. Alaydi Fadi the Swift Department Manager, and the Swift Operations Team. The most effective way for them to stonewall is to just ignore your email and the second most effective way is to respond to your email with nonsense and then just go back to ignoring you. However, don’t blame them too much because they are currently under orders from the Central Bank Auditor not to allow outgoing transfers of USD; or even purchases of stocks on the ISX through Warka’s ISX Department while the CBI “Guardianship” audit process is ongoing. This practice of takeover, conservatorship, and merging with a larger bank actually happens hundreds of times per year in this country as when the Federal Reserve Auditors close bank after bank with forced mergers after forced mergers. One could only assume that Warka’s broad accounting goal would have to be to keep the bank’s overall balance in the plus column (including depositors’ saving balances) throughout the audit process. If that is true, then the amount of the transfer in USD requested by a US client wouldn’t necessarily matter. Any amount would be looked upon by Warka as too much. Warka Bank complies with The Central Bank of Iraq and also with Citibank, NY and its Federal Reserve Bank rules. Therefore, any wire transfer of USD from Warka would have to comply with the anti-everybody financial restrictions as enforced by the Department of Justice through any number of its armed enforcement gangs ~ all of which are linked to the Treasury Department and are tasked to follow the myriad of new martial law statutes as outlined in the Patriot Act. The CBI and Warka Bank have to dance to that tune also if they want to get along with the rest of the world. I think there is a good reason for most people to attribute the sum of $10,000 to wire transfers and or cash transactions; however, it’s my opinion that the actual ruling as dictated under the Patriot Act is usually misunderstood. It is my understanding that each individual in the US is allowed to wire transfer a maximum of $10,000 per calendar year before (any) Federal Reserve System Bank Branch (including yours) becomes obliged to record and keep track of exactly how much over the $10,000 per year limit each client went. The same goes for cash deposits to electronic accounts ~ $10,000 per year maximum and if you go over that then the bank is obliged to report it to the IRS. That being the case, most banks aren’t taking any chances on being high flagged and held up by any of the Treasury Department thugs. So, most banks just keep track of every single wire transfer made no matter what size it is or where it’s going; and the same is true for cash deposits ~ both are filed digitally and are easily traceable per client. It certainly isn’t illegal in any way for an individual to either wire transfer or to deposit more than $10,000 per year; but, the US banks are under this presumed obligation to report totals of both cash deposits and wire transfers for each individual to the Treasury Department. Once the total is more than $10,000 in any calendar year, then the Treasury Department can feel free to question you about it at any time ~ according to the Patriot Act. That’s what your local bank wants also ~ the Treasury Department to investigate you ~ not them. Therefore, your local Fed System banks are going to stay way ahead of micro managing each client’s transactions and are going to be ready to report every detail (along with plenty of gossip) to the first dude in a suit who flashes a badge at them ~ even if it’s only a threat through the mail. Close down the account, freeze the assets??!!! Immediately, Effendi??!! Oh, yes sir, right away your Highness!!! It will be done before end of business, your Excellency!!! Remember me, your Worship; I’m loyal to the system!! Please don’t audit me!!! Local Federal System Banks and their employees are notably vulnerable to pressure by any one of the Treasury Department gangs; but most especially by the IRS. It appears that Warka Bank may have chosen to interpret the $10,000 Federal Reserve Bank ruling by limiting every individual foreign client to an outgoing USD wire transfer maximum of $10,000 per day to be transferred back to Citibank, NY. It could be that the restriction is true for Warka USD wire transfers back to the Federal Reserve System but not for other wire transfers to other Central Bank Systems. From Warka to Belize, for example, may not be affected by totals limits. I don’t know that for sure ~ just guessing. Then again, the Belize dollar is pegged to the USD at 2 to 1 and the Belize Central Bank wants to get along with the FED just like everybody else on this continent. As determined by the authority of our own Central Bank (which controls every banking transaction within the continental USA and beyond), Warka Bank’s single access to the entire Federal Reserve System of banking on this continent has only been allowed exclusively through Citibank, NY and without even another branch of Citibank being allowed to participate. No Canadian bank and no Mexican bank either. This restriction is no doubt due (in no small part) to the fact that UN Chapter 7 Sanctions are still in effect (as of the end of May 2012) and therefore the US and every other UN nation cannot quite get along fully with Iraq until they are fully lifted. This restriction put on Warka (and therefore Iraq) has now grown bigger to become a temporarily closed portal for any outgoing USD sent to Warka via the Citibank, NY connection. I’m fairly certain that the official party line from the Federal Reserve Board will be something to the effect that “we can’t do business with a (known to be insolvent) bank in order to protect Amrikans……from financial ruin, etc...” Meanwhile, Mohammad K Issa has finally started to answer at least (9) months of email nagging (from me and everybody else) regarding a client’s ability to wire transfer USD back to the USA ~ no matter what the amount of the transfer requested happens to be. I recently sent in a request for my fourth outgoing wire transfer of USD within the last (9) months. The first three were completed, but each one took an increasing longer time to finish even though all were for under $10,000. In September of 2011 it took me 14 days, In November of 2011 ~ 17 days and in February 2012 ~ 24 days including a fee of .008 instead of the usual .003 to SWIFT. I finally received my last funds on March 21st 2012. Prior to that, my friend received her requested $3600 in about 9 days on February 27th. Since then, another friend finally quit trying after starting on March 10th and sending his last email to the CBI on April 15th. On this 4th request of mine, I waited about five days after sending the 1st email with attachments, before I sent a 2nd reminder email telling Mr. Issa (specifically) to take the first email and request very seriously indeed. He then tasked Rowaida in Customer Services fairly promptly to send me this email: Dear Warka Client: We have received your fine request and as the bank is currently under CBI Guardianship your wire transfer will be processed and executed after the CBI guardianship finalizes their internal procedures with our bank where the goal of the CBI is to strengthen the financial position of the bank in coordination with the Ministry of Finance restoring its liquidity in accordance with the official press statements made by the CBI. A notice will be posted on our website http:// www.warka-bank.com once the CBI issues its instructions Best regards, Warka Bank for Investment and Finance This e-mail is confidential and the information contained in it may be privileged. It should not be read, copied or used by anyone other than the intended recipient. If you have received it in error, please contact the sender immediately by return email, and delete the e-mail and do not disclose its contents to any person. From: Mohammad K. Issa [mailto:ifrd@warka-bank-iq.com] Sent: Sunday, May 20, 2012 9:52 AM To: Customer Services Subject: FW: 8XXXXX Wire Transfer Request 19 May 2012 It appears that putting a hold on the return of deposits “for a maximum of 3 months” is provided for in Iraq’s banking law. The law is available on the CBI website. Article 65 of the law states: “If required to protect the financial condition of a bank for which a conservator has been appointed, the CBI may at any time declare deposits and investments by the public in the bank, other than deposits and investments in segregated fiduciary accounts, to be totally or partially blocked for a maximum period of three months, provided that measures are taken which, in the opinion of the CBI, will preserve the approximate value of these deposits and investments together with interest accrued before and during the moratorium. In extraordinary cases, the conservator, with the approval of the CBI, may at any time permit the withdrawal of some or all of the deposits held in the name of a natural person not to exceed 5 million dinars for each such case.” It was possibly near the end of March 2012 that the CBI stepped into its “Guardianship” role with Warka Bank. So, the 3 month maximum hold on USD wire transfers would last through April, May and June, and possibly into July, at least. Then Ramadan starts in August, so the soonest time slot for a possible wire transfer back appears to be early September ~ about the same time I started with my wire transfer requests last year. I wouldn’t count on Warka’s current list of potential wire transfer requests to remain current for too long of a time. Instead, count on having to renew any request again as soon as the announcements about renewed solvency are made on the Warka Bank website and/or the CBI website. However, there are probably other provisions of the laws of Iraq that allow the conservator to hold on to deposits beyond 3 months in the best interest of Warka and the Iraq banking system. Overall, the CBI involvement in Warka appears to be a good thing right now, and seems to better protect all depositors’ interests ~ at least more than a private bank with no oversight might do. We’ll just have to wait and see if July 2012 brings out a new and improved Warka, or not. As it turns out, Warka has actually answered the $10,000 daily wire transfer limit restriction inquiries with this email to a Warka client requesting a USD wire transfer of more than $10,000 from his Warka account to a USA bank: Dear Sir Please proceed with contacting the CBI where in accordance with the law any transfer exceeding USD $10000 must be reported to the local anti money laundering authority the local and your state tax authority where this is the firm law set by the CBI where any transfer exceeding the said amount will be blocked... Many thanks and best regards, Customer Services International Foreign Relations Dept. This appears to be a statement to the effect that the CBI is well aware of the “local” US Treasury laws under the Patriot Act and are telling its own clients, including Warka Bank and Warka Bank’s depositors that if you want to move more than USD $10,000, then you’ll probably have to supply the Warka crew and therefore the CBI with a scanned copy of a completed Currency Transaction Report (CTR) ~ which is probably best filed at the local bank where you expect to receive the wire transfer into your account. A CTR is actually FINCEN Form 104. FINCEN stands for Financial Crimes Enforcement Network which reports directly to the Department of the Treasury. This means that completing and filing a CTR is also sharing your private transactions of any sort ~ terrorist or not and (either cash or wire transfer) upward with the US Secret Service (our very own SS) and again laterally with the IRS, another agency toiling under the Department of the Treasury. The IRS will inform your local State Tax Authority which will inform your local County Tax Assessor who can use the County Sheriff’s Department to investigate and/or enforce rulings about you that the Sheriff’s Department will actually know nothing about. Telling all about yourself seems to be almost compulsory these days. One little form and shared by so many. For those Warka clients who still need to transfer USD back; regardless of what is going on with the upcoming redenomination and revaluation plans and regardless if Warka Bank is in conservatorship hands or not, then there might just be one last resort. According to Article 65 of the CBI banking law: “In extraordinary cases, the conservator, with the approval of the CBI, may at any time permit the withdrawal of some or all of the deposits held in the name of a natural person not to exceed 5 million dinars for each such case.” 5 Million Dinar divided by 1179 (cost to move funds from IQD to USD) = $4,240.88 $4,240.88 less $52 (Warka cost to wire transfer) = $4,188.82 $4,188.82 X .997 (SWIFT cost to your local account) = $4,176.32 deposited to account $4,176.32 - $16 (Local bank fee to accept wire transfer deposit) = $4,160.32 net. Working the other way around, if you decided that the max net amount you needed to work with could be $4,100 or less, then you could figure on how much IQD to withdraw from your IQD Savings account and deposit in your USD account. $4,100 plus the bank fee of $16 gives the minimum amount needed to be deposited after the SWIFT fee = $4,116. $4,116 divided by .997 (.003 SWIFT Fee) = $4,128.39 minimum wire transfer amount. Round up the figure to an even $4,130 to be transferred plus $52 Warka fee = $4,182 $4,182 X 1179 = IQD 4,930,578 to be moved from your IQD to your USD account. That’s probably as close to the CBI conservatorship rules as you’ll want to come and still stay under the IQD 5,000,000 maximum total moved. Of course, requesting a wire transfer for around $4000 and specifically asking the CBI Conservator to treat it as a special case so that the transfer would go through even during the audit period when most other transfers have been blocked or stonewalled is reaching for the plan of last resort and you are still at the mercy of the whim of whoever’s in charge enough to grant your request. Even so, putting in the request as a hardship case and then be willing to wait patiently for approval might just get the job done the fastest. But, you’ll only get to do it once. Any continuous attempts to bring back those same amounts time after time will undoubtedly be denied ~ and then looked into as a kind of “funding a terrorist” act ~ or something. Warka has grown tremendously with lots of support from the CBI. The CBI is going to fix this insolvency situation for the good of Warka's investors and depositors. Warka Bank customer service will still be what it is, but hopefully sometime in July anybody that needs to will have an actual shot at another wire transfer request before Ramadan 2012 kicks in. Otherwise, we’ll be talking about September 9th or so before Warka is back up to speed with the $10,000 daily limit in place and the Warka crew at least working up to their usual capacity pace.
  22. Lately, Warka Bank’s SOP for USD wire transfer requests and/or ISX stock purchase requests from clients has been a complete stonewalling by Mohammad K Issa and his entire crew, including: Rowaida Mohammed in Customer Services, Nasser in the Wire Transfer Department, Mr. Ashraf Amr in the E-banking Department, Mr. Alaydi Fadi the Swift Department Manager, and the Swift Operations Team. The most effective way for them to stonewall is to just ignore your email and the second most effective way is to respond to your email with nonsense and then just go back to ignoring you. However, don’t blame them too much because they are currently under orders from the Central Bank Auditor not to allow outgoing transfers of USD; or even purchases of stocks on the ISX through Warka’s ISX Department while the CBI “Guardianship” audit process is ongoing. This practice of takeover, conservatorship, and merging with a larger bank actually happens hundreds of times per year in this country as when the Federal Reserve Auditors close bank after bank with forced mergers after forced mergers. One could only assume that Warka’s broad accounting goal would have to be to keep the bank’s overall balance in the plus column (including depositors’ saving balances) throughout the audit process. If that is true, then the amount of the transfer in USD requested by a US client wouldn’t necessarily matter. Any amount would be looked upon by Warka as too much. Warka Bank complies with The Central Bank of Iraq and also with Citibank, NY and its Federal Reserve Bank rules. Therefore, any wire transfer of USD from Warka would have to comply with the anti-everybody financial restrictions as enforced by the Department of Justice through any number of its armed enforcement gangs ~ all of which are linked to the Treasury Department and are tasked to follow the myriad of new martial law statutes as outlined in the Patriot Act. The CBI and Warka Bank have to dance to that tune also if they want to get along with the rest of the world. I think there is a good reason for most people to attribute the sum of $10,000 to wire transfers and or cash transactions; however, it’s my opinion that the actual ruling as dictated under the Patriot Act is usually misunderstood. It is my understanding that each individual in the US is allowed to wire transfer a maximum of $10,000 per calendar year before (any) Federal Reserve System Bank Branch (including yours) becomes obliged to record and keep track of exactly how much over the $10,000 per year limit each client went. The same goes for cash deposits to electronic accounts ~ $10,000 per year maximum and if you go over that then the bank is obliged to report it to the IRS. That being the case, most banks aren’t taking any chances on being high flagged and held up by any of the Treasury Department thugs. So, most banks just keep track of every single wire transfer made no matter what size it is or where it’s going; and the same is true for cash deposits ~ both are filed digitally and are easily traceable per client. It certainly isn’t illegal in any way for an individual to either wire transfer or to deposit more than $10,000 per year; but, the US banks are under this presumed obligation to report totals of both cash deposits and wire transfers for each individual to the Treasury Department. Once the total is more than $10,000 in any calendar year, then the Treasury Department can feel free to question you about it at any time ~ according to the Patriot Act. That’s what your local bank wants also ~ the Treasury Department to investigate you ~ not them. Therefore, your local Fed System banks are going to stay way ahead of micro managing each client’s transactions and are going to be ready to report every detail (along with plenty of gossip) to the first dude in a suit who flashes a badge at them ~ even if it’s only a threat through the mail. Close down the account, freeze the assets??!!! Immediately, Effendi??!! Oh, yes sir, right away your Highness!!! It will be done before end of business, your Excellency!!! Remember me, your Worship; I’m loyal to the system!! Please don’t audit me!!! Local Federal System Banks and their employees are notably vulnerable to pressure by any one of the Treasury Department gangs; but most especially by the IRS. It appears that Warka Bank may have chosen to interpret the $10,000 Federal Reserve Bank ruling by limiting every individual foreign client to an outgoing USD wire transfer maximum of $10,000 per day to be transferred back to Citibank, NY. It could be that the restriction is true for Warka USD wire transfers back to the Federal Reserve System but not for other wire transfers to other Central Bank Systems. From Warka to Belize, for example, may not be affected by totals limits. I don’t know that for sure ~ just guessing. Then again, the Belize dollar is pegged to the USD at 2 to 1 and the Belize Central Bank wants to get along with the FED just like everybody else on this continent. As determined by the authority of our own Central Bank (which controls every banking transaction within the continental USA and beyond), Warka Bank’s single access to the entire Federal Reserve System of banking on this continent has only been allowed exclusively through Citibank, NY and without even another branch of Citibank being allowed to participate. No Canadian bank and no Mexican bank either. This restriction is no doubt due (in no small part) to the fact that UN Chapter 7 Sanctions are still in effect (as of the end of May 2012) and therefore the US and every other UN nation cannot quite get along fully with Iraq until they are fully lifted. This restriction put on Warka (and therefore Iraq) has now grown bigger to become a temporarily closed portal for any outgoing USD sent to Warka via the Citibank, NY connection. I’m fairly certain that the official party line from the Federal Reserve Board will be something to the effect that “we can’t do business with a (known to be insolvent) bank in order to protect Amrikans……from financial ruin, etc...” Meanwhile, Mohammad K Issa has finally started to answer at least (9) months of email nagging (from me and everybody else) regarding a client’s ability to wire transfer USD back to the USA ~ no matter what the amount of the transfer requested happens to be. I recently sent in a request for my fourth outgoing wire transfer of USD within the last (9) months. The first three were completed, but each one took an increasing longer time to finish even though all were for under $10,000. In September of 2011 it took me 14 days, In November of 2011 ~ 17 days and in February 2012 ~ 24 days including a fee of .008 instead of the usual .003 to SWIFT. I finally received my last funds on March 21st 2012. Prior to that, my friend received her requested $3600 in about 9 days on February 27th. Since then, another friend finally quit trying after starting on March 10th and sending his last email to the CBI on April 15th. On this 4th request of mine, I waited about five days after sending the 1st email with attachments, before I sent a 2nd reminder email telling Mr. Issa (specifically) to take the first email and request very seriously indeed. He then tasked Rowaida in Customer Services fairly promptly to send me this email: Dear Warka Client: We have received your fine request and as the bank is currently under CBI Guardianship your wire transfer will be processed and executed after the CBI guardianship finalizes their internal procedures with our bank where the goal of the CBI is to strengthen the financial position of the bank in coordination with the Ministry of Finance restoring its liquidity in accordance with the official press statements made by the CBI. A notice will be posted on our website http:// www.warka-bank.com once the CBI issues its instructions Best regards, Warka Bank for Investment and Finance This e-mail is confidential and the information contained in it may be privileged. It should not be read, copied or used by anyone other than the intended recipient. If you have received it in error, please contact the sender immediately by return email, and delete the e-mail and do not disclose its contents to any person. From: Mohammad K. Issa [mailto:ifrd@warka-bank-iq.com] Sent: Sunday, May 20, 2012 9:52 AM To: Customer Services Subject: FW: 8XXXXX Wire Transfer Request 19 May 2012 It appears that putting a hold on the return of deposits “for a maximum of 3 months” is provided for in Iraq’s banking law. The law is available on the CBI website. Article 65 of the law states: “If required to protect the financial condition of a bank for which a conservator has been appointed, the CBI may at any time declare deposits and investments by the public in the bank, other than deposits and investments in segregated fiduciary accounts, to be totally or partially blocked for a maximum period of three months, provided that measures are taken which, in the opinion of the CBI, will preserve the approximate value of these deposits and investments together with interest accrued before and during the moratorium. In extraordinary cases, the conservator, with the approval of the CBI, may at any time permit the withdrawal of some or all of the deposits held in the name of a natural person not to exceed 5 million dinars for each such case.” It was possibly near the end of March 2012 that the CBI stepped into its “Guardianship” role with Warka Bank. So, the 3 month maximum hold on USD wire transfers would last through April, May and June, and possibly into July, at least. Then Ramadan starts in August, so the soonest time slot for a possible wire transfer back appears to be early September ~ about the same time I started with my wire transfer requests last year. I wouldn’t count on Warka’s current list of potential wire transfer requests to remain current for too long of a time. Instead, count on having to renew any request again as soon as the announcements about renewed solvency are made on the Warka Bank website and/or the CBI website. However, there are probably other provisions of the laws of Iraq that allow the conservator to hold on to deposits beyond 3 months in the best interest of Warka and the Iraq banking system. Overall, the CBI involvement in Warka appears to be a good thing right now, and seems to better protect all depositors’ interests ~ at least more than a private bank with no oversight might do. We’ll just have to wait and see if July 2012 brings out a new and improved Warka, or not. As it turns out, Warka has actually answered the $10,000 daily wire transfer limit restriction inquiries with this email to a Warka client requesting a USD wire transfer of more than $10,000 from his Warka account to a USA bank: Dear Sir Please proceed with contacting the CBI where in accordance with the law any transfer exceeding USD $10000 must be reported to the local anti money laundering authority the local and your state tax authority where this is the firm law set by the CBI where any transfer exceeding the said amount will be blocked... Many thanks and best regards, Customer Services International Foreign Relations Dept. This appears to be a statement to the effect that the CBI is well aware of the “local” US Treasury laws under the Patriot Act and are telling its own clients, including Warka Bank and Warka Bank’s depositors that if you want to move more than USD $10,000, then you’ll probably have to supply the Warka crew and therefore the CBI with a scanned copy of a completed Currency Transaction Report (CTR) ~ which is probably best filed at the local bank where you expect to receive the wire transfer into your account. A CTR is actually FINCEN Form 104. FINCEN stands for Financial Crimes Enforcement Network which reports directly to the Department of the Treasury. This means that completing and filing a CTR is also sharing your private transactions of any sort ~ terrorist or not and (either cash or wire transfer) upward with the US Secret Service (our very own SS) and again laterally with the IRS, another agency toiling under the Department of the Treasury. The IRS will inform your local State Tax Authority which will inform your local County Tax Assessor who can use the County Sheriff’s Department to investigate and/or enforce rulings about you that the Sheriff’s Department will actually know nothing about. Telling all about yourself seems to be almost compulsory these days. One little form and shared by so many. For those Warka clients who still need to transfer USD back; regardless of what is going on with the upcoming redenomination and revaluation plans and regardless if Warka Bank is in conservatorship hands or not, then there might just be one last resort. According to Article 65 of the CBI banking law: “In extraordinary cases, the conservator, with the approval of the CBI, may at any time permit the withdrawal of some or all of the deposits held in the name of a natural person not to exceed 5 million dinars for each such case.” 5 Million Dinar divided by 1179 (cost to move funds from IQD to USD) = $4,240.88 $4,240.88 less $52 (Warka cost to wire transfer) = $4,188.82 $4,188.82 X .997 (SWIFT cost to your local account) = $4,176.32 deposited to account $4,176.32 - $16 (Local bank fee to accept wire transfer deposit) = $4,160.32 net. Working the other way around, if you decided that the max net amount you needed to work with could be $4,100 or less, then you could figure on how much IQD to withdraw from your IQD Savings account and deposit in your USD account. $4,100 plus the bank fee of $16 gives the minimum amount needed to be deposited after the SWIFT fee = $4,116. $4,116 divided by .997 (.003 SWIFT Fee) = $4,128.39 minimum wire transfer amount. Round up the figure to an even $4,130 to be transferred plus $52 Warka fee = $4,182 $4,182 X 1179 = IQD 4,930,578 to be moved from your IQD to your USD account. That’s probably as close to the CBI conservatorship rules as you’ll want to come and still stay under the IQD 5,000,000 maximum total moved. Of course, requesting a wire transfer for around $4000 and specifically asking the CBI Conservator to treat it as a special case so that the transfer would go through even during the audit period when most other transfers have been blocked or stonewalled is reaching for the plan of last resort and you are still at the mercy of the whim of whoever’s in charge enough to grant your request. Even so, putting in the request as a hardship case and then be willing to wait patiently for approval might just get the job done the fastest. But, you’ll only get to do it once. Any continuous attempts to bring back those same amounts time after time will undoubtedly be denied ~ and then looked into as a kind of “funding a terrorist” act ~ or something. Warka has grown tremendously with lots of support from the CBI. The CBI is going to fix this insolvency situation for the good of Warka's investors and depositors. Warka Bank customer service will still be what it is, but hopefully sometime in July anybody that needs to will have an actual shot at another wire transfer request before Ramadan 2012 kicks in. Otherwise, we’ll be talking about September 9th or so before Warka is back up to speed with the $10,000 daily limit in place and the Warka crew at least working up to their usual capacity pace.
  23. Prior to the inevitable redenomination of the existing Iraqi Dinar banknotes and coins, the only way to truly invest in the IQD and actually see a return on your investment is to open a Warka Bank account and then wait for an international revaluation of the IQD against the USD. Altering the face value of a currency without reducing its (fixed) foreign exchange rate is a redenomination, not a lop and not a revaluation. Revaluation (RV) means a calculated rise in a country’s official (fixed) foreign exchange rate of its own currency, relative to another country’s currency. Mazhar Mohammad Saleh, a senior member of the CBI Advisory Panel has repeatedly stated publicly that the GOI has adopted a CBI drafted two-pronged plan to restructure the national currency ~ to include physical banknotes and coins and electronic bank accounts. One prong is the long overdue (domestic) redenomination of the existing large denomination banknotes by introducing new banknotes and coins into circulation. The other prong is a simultaneous (international) revaluation of the new banknotes and coins to increase the value of the IQD against the USD. Iraqi Dinar Currency Buying IQD on the internet and/or holding IQD in cash form, in my opinion is useless for a foreign investor especially since the CBI is about to recall all the existing banknotes and exchange them for the new banknotes (and the new banknotes probably won’t be available for trade-in or purchase via the internet once they are introduced into circulation). Existing banknotes with the (current) CBI fixed exchange rate of 1: 1166, can only be used inside Iraq, will never be used internationally and will never be able to be universally exchanged outside of Iraq. Existing IQD Banknotes: • IQD 25,000 = $US 21.44 • IQD 10,000 = $US 8.58 • IQD 5,000 = $US 4.29 • IQD 1,000 = $US 0.86 • IQD 500 = $US 0.43 • IQD 250 = $US 0.21 • IQD 50 = $US 0.04 There are also IQD 100 and IQD 25 coins but they are not currently in circulation, and are not for sale to foreign investors on the Internet. New banknotes with the anticipated CBI fixed exchange rate of 1: 1.17 are still yet to be issued, will replace the existing notes and the USD over time; and will be able to be exchanged and used for purchases outside of Iraq ~ only after an official international revaluation has been established and recognized by the IMF, World Bank and the rest of the international community. New IQD banknotes and coins not yet issued: • IQD 100 = $US 85.76 • IQD 50 = $US 42.88 • IQD 25 = $US 21.44 • IQD 10 = $US 8.57 • IQD 5 = $US 4.28 • IQD 1 = $US 0.85 • IQD 0.50 = $US 0.42 • IQD 0.25 = $US 0.21 • IQD 0.10 = $US 0.09 • IQD 0.05 = $US 0.04 When the redenomination process starts (reportedly in late 2012 or early 2013) these new banknotes and coins with their new CBI (fixed) exchange rate will be introduced into circulation and will co-exist with the already existing banknotes and their old CBI (fixed) exchange rate along with the USD, until the existing notes and the USD are sufficiently removed from circulation ~ to the satisfaction of the CBI and the GOI. In the recent past (2003) when the existing notes replaced those with Sadaam’s picture on them the process took approximately 90 days. That was because of the war and the Coalition Provisional Authority (the US and the British) introducing both the USD and the currently used IQD banknotes (made in England) into the Iraqi economy. Everybody was in a hurry so that the economy didn’t collapse completely. This time around the CBI is going to allow both kinds of banknotes (the newer lower denomination bills and the existing larger denomination bills) to co-exist for a (reportedly) 1 - 2 year period until the CBI is satisfied that the redenomination has been successful. Redenomination success would mean that the majority of the existing large denomination IQD banknotes are exchanged out of circulation and the Iraqi citizens become confident enough in the value of their own new low denomination currency that the use of USD banknotes is phased out as well. The Saddam banknotes could not be spent outside of the borders of Iraq. Instead, there was an international version of the IQD that was made in Switzerland and recognized and exchanged for other currencies by the international community. Similarly, the existing IQD banknotes cannot be spent outside of the borders of Iraq. Instead of an international version of the IQD made in Switzerland, the Iraqis currently use the USD, made in the US, and recognized and exchanged for other currencies by most of the international community. In order for the new low denomination IQD banknotes to replace the USD as the Iraqi international currency, the new low denomination IQD banknotes will have to recognized and be exchangeable by the international community in order for them to be used for the purchase and importation of goods and services into Iraq. UN Sanctions under Chapter 7 will probably have to be resolved and the Iraqi HCL will have to be in place (and effective) before the international community will unilaterally recognize the new lower denomination Iraqi banknotes (yet to be issued) as the legitimate international (and exchangeable) currency of Iraq. That being the case, when the redenomination process starts, all three types of currency (the existing high denomination IQD, the new low denomination IQD and the USD) will at first all be recognized, exchanged and used inside the borders of Iraq and only the USD will (still) be spendable outside of Iraq. The existing large denomination banknotes will be exchanged at the current CBI rate of $1:1166 (or whatever the exchange rate is by the time redenomination starts) and the new lower denomination banknotes will be exchanged at the new rate of $1:1.166. That way an existing IQD10000 banknote and a new IQD10 banknote will both be able to be exchanged for US$8.57 and the economy will absorb the two different rates and the 3 different currencies (including the USD) smoothly and without a lot of strife. Iraqi merchants will just have to decide whether to advertise their goods and services at the existing currency rate or the new currency rate. Either way, IQD10000 or IQD10 or US$8.57 will all spend equally. Since the existing notes will never have the new exchange rate attached to them, they will not even be useful for future interbank transfers inside Iraq and will likely just be destroyed once they have been collected. The Iraqi people will certainly be able to cope with using three different currencies, because they are already dealing with the existing IQD and the USD. What the Iraqi people really want is to become international citizens again with their own IQD international currency, instead of having to depend on the USD to purchase goods and services outside of Iraq. In fact, the Iraqis are so ready for equality that they are already using the existing domestic IQD notes against the USD in a de-facto ‘unofficial’ street level exchange rate of 1: 1000. For example, right now in Iraq and mainly because there’s no practical way to make small change: • IQD 25,000 = $US 25 • IQD 10,000 = $US 10 • IQD 5,000 = $US 5 • IQD 1,000 = $US 1 • IQD 500 = $US 0.50 • IQD 250 = $US 0.25 • IQD 50 = $US 0.05 Something that needs to be re-emphasized ~ the existing IQD banknotes and coins can only be used and/or exchanged for USD inside Iraq ~ nowhere else. So, if anyone is holding the existing large denomination banknotes outside of Iraq, how are they supposed to cash them in for USD outside of Iraq? The answer is that they are not going to be able to ~ not now, not after the redenomination process starts inside Iraq and not even after the international revaluation of the new Iraq Dinar notes has been declared and recognized. The reason is that no bank outside of Iraq will ever recognize the existing large denomination banknotes as legitimate international currency and so will refuse to cash them in, even at the existing exchange rate of 1: 1166. There will of course be exceptions, whereby an enterprising financial institution or even a forward thinking US bank may choose to trade through a third party that is willing to transport the physical notes back to Iraq for the final exchange with the CBI; however, the existing large denomination IQD notes will never be on that same bank’s ‘accepted currencies’ list for foreign exchange with the USD. The larger than normal fee for this (potential ) exceptional service will most certainly wipe out any profit that might be anticipated. Anyone holding existing IQD notes outside of Iraq won’t even be able to get their costs back outside of Iraq (minus exchange fees). When an international revaluation takes place and the IQD is again recognized by the global community, it will be only the new notes with the new rate that will be recognized and exchanged and/or accepted as payment outside of Iraq ~ not the existing notes with the larger denominations. A foreign investor holding the existing large denomination notes outside of Iraq may be able to at least retain what value the CBI gives the notes now by immediately converting the physical notes into USD cash (via EBay or an online IQD trader) and then wire the USD cash into an electronic line item in a bank account ~ provided the bank will support an IQD account. There are not too many (if any) of those banks around outside of Iraq. Even though the value the CBI has assigned to the notes at the current rate of 1: 1166 might be far less than what the foreign investor paid for them over the Internet; it would still be a way of rescuing the investment from being a total loss, and might even be a way of gaining more value (at least up to par) through financial products that such a bank has to offer ~ such as Certificates of Deposit or Savings Accounts with higher rates of interest than are currently offered by US banks. Out of necessity, such a bank would have to be a private bank and probably would also have to be located in Iraq in order to accept physical notes for a deposit. One such bank is the Warka Bank for Investment and Finance with 120 plus branches and 350 plus ATM machines scattered throughout Iraq. http://www.warka-bank.com Right now Warka Bank is under the Guardianship of the CBI due to liquidity problems which have made it temporarily insolvent, but that state of affairs will soon be adjusted by an independent Auditor appointed by the CBI. Warka Bank IQD Account Once you have opened an account at Warka ~ with both USD and IQD savings accounts ~ you can wire transfer USD to your Warka account and then choose to deposit the funds in either your USD or your IQD account. Besides remarkably higher interest rates offered for both USD and IQD savings accounts and certificates of deposit, Warka also has an Iraqi Stock Exchange (ISX) department which acts as a broker for anyone wanting to invest in the ISX. Current interest rates are: 4% interest on a USD Savings account 5% interest on a USD Certificate of Deposit 7% interest on an IQD Savings account 8.5% on a 3 month IQD Certificate of Deposit 9.5% on a 6 month IQD Certificate of Deposit 10.5% on a 12 month IQD Certificate of Deposit There is strong historical evidence from other (recent) currency redenominations that when the redenomination process is started in Iraq, electronic IQD bank accounts will also have their balances adjusted by the same method as the physical banknotes and coins. That is, the total bank account balance will be reduced a thousand fold with the movement of the decimal point 3 places (to the left), but at the same time the exchange rate will be increased upward a thousand fold so that the value in USD remains the same after the redenomination as it was before the redenomination. In such a case, all electronic accounts in IQD would be affected worldwide; including the foreign currency reserves held by the various central banks and governments around the world. Emotionally, it might be wise to accept that even thousands of USD invested in an electronic IQD bank account won’t make anyone an instant overnight millionaire ~ and that would hold true for Iraqi Citizens as well as foreign investors outside of Iraq. The advantage of a Warka Bank account (and other private bank accounts inside Iraq) is that because they are electronic they will be uniquely positioned to take advantage of future international revaluations of the IQD ~ possibly even up to past exchange rates of US$2+ to US$3+ per IQD. That could double or even triple the initial investment. The Iraqi Stock Exchange (ISX) Trading on the ISX through a Warka ISX Department broker could mean explosive potential as the country and core infrastructure companies grow with the economy. The process to be eligible to trade on the ISX with Warka Bank appears to be at least a 4 month process to receive a Warka ISX trading account number but may well be worth the effort for future wealth. In 2011 the aggregate growth of the Iraqi Stock Market was 36% for the year. It is expected to do as well or better in 2012. Until the Warka Bank Audit process is over you won’t be able to wire transfer USD back to the States or purchase stock on the ISX through the Warka Bank ISX Department. It would be wise to visit http://www.iraq-businessnews.com/category/banking-finance often in order to keep up on the latest news of Warka Bank, the Iraqi Stock Market and the Iraqi Dinar Re-denomination process. I don’t see the USD ever recovering from its decades long decline, so I’m sticking with gold, silver and copper bullion and the IQD at Warka to put my savings into. The IQD Revaluation (RV) When all of this redenomination has successfully taken place, the Iraqi currency as a whole (including the new lower denomination IQD banknotes, electronic Warka accounts and stock prices on the ISX) will (finally) be in a position to incorporate a significant revaluation to match the growing Iraqi economy. A revaluation could take the exchange rate from $1:1.166 to $1:1 or even more; but while the rest of the world (and especially IQD foreign investors) wouldn’t mind a revaluation to $2:1 or even $3:1, the CBI and the GOI are going to want to keep that exchange rate as low as possible in order to be competitive exporting Iraqi oil, natural gas, gold, silver, dates, copra, etc…… The GOI will also want to encourage tourism and foreign investment into its infrastructure, so it will serve the Iraqi economy best to be the new international “bargain” by keeping the exchange rate of its currency as low as possible. For us IQD investors it will mean a chance to possibly double or triple our Warka investments in the future; but in the meantime while we are waiting, we can still enjoy 7% on savings, 8.5%, 9.5% and 10.5% on CD’s and possibly even more by investing in the ISX. You never know when an Iraqi company might suddenly take off and become the next “Microsoft” of the investing world, especially with the encouragement of foreign investment and technology. No foreign investor or any Iraqi citizen for that matter is suddenly going to be a millionaire based just on a new revaluation of the IQD, but that doesn’t mean the investment is a bad idea. In fact, in my opinion it’s still the best choice available to the average investor. For additional information on the owner’s of Warka Bank go to: http://www.al-bunnia.com/HMBS.pdf
  24. Prior to the inevitable redenomination of the existing Iraqi Dinar banknotes and coins, the only way to truly invest in the IQD and actually see a return on your investment is to open a Warka Bank account and then wait for an international revaluation of the IQD against the USD. Altering the face value of a currency without reducing its (fixed) foreign exchange rate is a redenomination, not a lop and not a revaluation. Revaluation (RV) means a calculated rise in a country’s official (fixed) foreign exchange rate of its own currency, relative to another country’s currency. Mazhar Mohammad Saleh, a senior member of the CBI Advisory Panel has repeatedly stated publicly that the GOI has adopted a CBI drafted two-pronged plan to restructure the national currency ~ to include physical banknotes and coins and electronic bank accounts. One prong is the long overdue (domestic) redenomination of the existing large denomination banknotes by introducing new banknotes and coins into circulation. The other prong is a simultaneous (international) revaluation of the new banknotes and coins to increase the value of the IQD against the USD. Iraqi Dinar Currency Buying IQD on the internet and/or holding IQD in cash form, in my opinion is useless for a foreign investor especially since the CBI is about to recall all the existing banknotes and exchange them for the new banknotes (and the new banknotes probably won’t be available for trade-in or purchase via the internet once they are introduced into circulation). Existing banknotes with the (current) CBI fixed exchange rate of 1: 1166, can only be used inside Iraq, will never be used internationally and will never be able to be universally exchanged outside of Iraq. Existing IQD Banknotes: • IQD 25,000 = $US 21.44 • IQD 10,000 = $US 8.58 • IQD 5,000 = $US 4.29 • IQD 1,000 = $US 0.86 • IQD 500 = $US 0.43 • IQD 250 = $US 0.21 • IQD 50 = $US 0.04 There are also IQD 100 and IQD 25 coins but they are not currently in circulation, and are not for sale to foreign investors on the Internet. New banknotes with the anticipated CBI fixed exchange rate of 1: 1.17 are still yet to be issued, will replace the existing notes and the USD over time; and will be able to be exchanged and used for purchases outside of Iraq ~ only after an official international revaluation has been established and recognized by the IMF, World Bank and the rest of the international community. New IQD banknotes and coins not yet issued: • IQD 100 = $US 85.76 • IQD 50 = $US 42.88 • IQD 25 = $US 21.44 • IQD 10 = $US 8.57 • IQD 5 = $US 4.28 • IQD 1 = $US 0.85 • IQD 0.50 = $US 0.42 • IQD 0.25 = $US 0.21 • IQD 0.10 = $US 0.09 • IQD 0.05 = $US 0.04 When the redenomination process starts (reportedly in late 2012 or early 2013) these new banknotes and coins with their new CBI (fixed) exchange rate will be introduced into circulation and will co-exist with the already existing banknotes and their old CBI (fixed) exchange rate along with the USD, until the existing notes and the USD are sufficiently removed from circulation ~ to the satisfaction of the CBI and the GOI. In the recent past (2003) when the existing notes replaced those with Sadaam’s picture on them the process took approximately 90 days. That was because of the war and the Coalition Provisional Authority (the US and the British) introducing both the USD and the currently used IQD banknotes (made in England) into the Iraqi economy. Everybody was in a hurry so that the economy didn’t collapse completely. This time around the CBI is going to allow both kinds of banknotes (the newer lower denomination bills and the existing larger denomination bills) to co-exist for a (reportedly) 1 - 2 year period until the CBI is satisfied that the redenomination has been successful. Redenomination success would mean that the majority of the existing large denomination IQD banknotes are exchanged out of circulation and the Iraqi citizens become confident enough in the value of their own new low denomination currency that the use of USD banknotes is phased out as well. The Saddam banknotes could not be spent outside of the borders of Iraq. Instead, there was an international version of the IQD that was made in Switzerland and recognized and exchanged for other currencies by the international community. Similarly, the existing IQD banknotes cannot be spent outside of the borders of Iraq. Instead of an international version of the IQD made in Switzerland, the Iraqis currently use the USD, made in the US, and recognized and exchanged for other currencies by most of the international community. In order for the new low denomination IQD banknotes to replace the USD as the Iraqi international currency, the new low denomination IQD banknotes will have to recognized and be exchangeable by the international community in order for them to be used for the purchase and importation of goods and services into Iraq. UN Sanctions under Chapter 7 will probably have to be resolved and the Iraqi HCL will have to be in place (and effective) before the international community will unilaterally recognize the new lower denomination Iraqi banknotes (yet to be issued) as the legitimate international (and exchangeable) currency of Iraq. That being the case, when the redenomination process starts, all three types of currency (the existing high denomination IQD, the new low denomination IQD and the USD) will at first all be recognized, exchanged and used inside the borders of Iraq and only the USD will (still) be spendable outside of Iraq. The existing large denomination banknotes will be exchanged at the current CBI rate of $1:1166 (or whatever the exchange rate is by the time redenomination starts) and the new lower denomination banknotes will be exchanged at the new rate of $1:1.166. That way an existing IQD10000 banknote and a new IQD10 banknote will both be able to be exchanged for US$8.57 and the economy will absorb the two different rates and the 3 different currencies (including the USD) smoothly and without a lot of strife. Iraqi merchants will just have to decide whether to advertise their goods and services at the existing currency rate or the new currency rate. Either way, IQD10000 or IQD10 or US$8.57 will all spend equally. Since the existing notes will never have the new exchange rate attached to them, they will not even be useful for future interbank transfers inside Iraq and will likely just be destroyed once they have been collected. The Iraqi people will certainly be able to cope with using three different currencies, because they are already dealing with the existing IQD and the USD. What the Iraqi people really want is to become international citizens again with their own IQD international currency, instead of having to depend on the USD to purchase goods and services outside of Iraq. In fact, the Iraqis are so ready for equality that they are already using the existing domestic IQD notes against the USD in a de-facto ‘unofficial’ street level exchange rate of 1: 1000. For example, right now in Iraq and mainly because there’s no practical way to make small change: • IQD 25,000 = $US 25 • IQD 10,000 = $US 10 • IQD 5,000 = $US 5 • IQD 1,000 = $US 1 • IQD 500 = $US 0.50 • IQD 250 = $US 0.25 • IQD 50 = $US 0.05 Something that needs to be re-emphasized ~ the existing IQD banknotes and coins can only be used and/or exchanged for USD inside Iraq ~ nowhere else. So, if anyone is holding the existing large denomination banknotes outside of Iraq, how are they supposed to cash them in for USD outside of Iraq? The answer is that they are not going to be able to ~ not now, not after the redenomination process starts inside Iraq and not even after the international revaluation of the new Iraq Dinar notes has been declared and recognized. The reason is that no bank outside of Iraq will ever recognize the existing large denomination banknotes as legitimate international currency and so will refuse to cash them in, even at the existing exchange rate of 1: 1166. There will of course be exceptions, whereby an enterprising financial institution or even a forward thinking US bank may choose to trade through a third party that is willing to transport the physical notes back to Iraq for the final exchange with the CBI; however, the existing large denomination IQD notes will never be on that same bank’s ‘accepted currencies’ list for foreign exchange with the USD. The larger than normal fee for this (potential ) exceptional service will most certainly wipe out any profit that might be anticipated. Anyone holding existing IQD notes outside of Iraq won’t even be able to get their costs back outside of Iraq (minus exchange fees). When an international revaluation takes place and the IQD is again recognized by the global community, it will be only the new notes with the new rate that will be recognized and exchanged and/or accepted as payment outside of Iraq ~ not the existing notes with the larger denominations. There is at least one “Dinar Guru” out there with three internet sites tied to an IQD news network that claims that he will be able to get the best group rate available when it comes time to “cash in” your IQD banknotes. All you have to do to get this great exchange rate for your existing IQD banknotes is join his VIP group and pool your banknotes together with a larger group for the leverage of a bulk exchange to take advantage of the best rates available. His stance is confusing because he seems to combine the redenomination process and the international RV into one event and at the same time ignores or seems to dismiss what the CBI senior board members have already put out to the public regarding the redenomination of the existing banknotes. Here is a November 2011 quote from him: “If the RV is at a dime and there is a mandatory turn-in of old notes, I am going to cash out half or more ~ I will be happy with that return. Then, I’ll reinvest the other half back into Dinar, so that I can take advantage of the future rate increases. Many people who have never heard of the Dinar will hear about it, and they will buy Dinar at US$0.10 because honestly, once the rate goes that high I don’t think it will go down. It will only go up and others will think so too. So, the notion that nobody will invest at a low rate of US$0.10 is just wrong in my opinion. Regarding the lower notes (the existing IQD500, IQD 250 and IQD50 notes), if there is a recall or a mandatory cash in of the notes, it will be across the board. Don’t listen to the pumpers that say low notes will be safe. That’s just a sales pitch” This guy has about 30,000 to 35,000 followers (his estimate) holding IQD cash who are heeding his advice and expecting to be able to cash in their existing IQD banknotes through him when the time comes. I’m sure that his popularity has increased in this regard, since most who have inquired about cashing in IQD with their local bank have probably already been told that it’s a ‘scam’ and can’t be done. Now, he is their only hope. A foreign investor holding the existing large denomination notes outside of Iraq may be able to at least retain what value the CBI gives the notes now by immediately converting the physical notes into USD cash (via EBay or an online IQD trader) and then wire the USD cash into an electronic line item in a bank account ~ provided the bank will support an IQD account. There are not too many (if any) of those banks around outside of Iraq. Even though the value the CBI has assigned to the notes at the current rate of 1: 1166 might be far less than what the foreign investor paid for them over the Internet; it would still be a way of rescuing the investment from being a total loss, and might even be a way of gaining more value (at least up to par) through financial products that such a bank has to offer ~ such as Certificates of Deposit or Savings Accounts with higher rates of interest than are currently offered by US banks. Out of necessity, such a bank would have to be a private bank and probably would also have to be located in Iraq in order to accept physical notes for a deposit. One such bank is the Warka Bank for Investment and Finance with 120 plus branches and 350 plus ATM machines scattered throughout Iraq. www.warka-bank.com Right now Warka Bank is under the Guardianship of the CBI due to liquidity problems which have made it temporarily insolvent, but that state of affairs will soon be adjusted by an independent Auditor appointed by the CBI. Warka Bank IQD Account Once you have opened an account at Warka ~ with both USD and IQD savings accounts ~ you can wire transfer USD to your Warka account and then choose to deposit the funds in either your USD or your IQD account. Besides remarkably higher interest rates offered for both USD and IQD savings accounts and certificates of deposit, Warka also has an Iraqi Stock Exchange (ISX) department which acts as a broker for anyone wanting to invest in the ISX. Current interest rates are: 4% interest on a USD Savings account 5% interest on a USD Certificate of Deposit 7% interest on an IQD Savings account 8.5% on a 3 month IQD Certificate of Deposit 9.5% on a 6 month IQD Certificate of Deposit 10.5% on a 12 month IQD Certificate of Deposit There is strong historical evidence from other (recent) currency redenominations that when the redenomination process is started in Iraq, electronic IQD bank accounts will also have their balances adjusted by the same method as the physical banknotes and coins. That is, the total bank account balance will be reduced a thousand fold with the movement of the decimal point 3 places (to the left), but at the same time the exchange rate will be increased upward a thousand fold so that the value in USD remains the same after the redenomination as it was before the redenomination. In such a case, all electronic accounts in IQD would be affected worldwide; including the foreign currency reserves held by the various central banks and governments around the world. Emotionally, it might be wise to accept that even thousands of USD invested in an electronic IQD bank account won’t make anyone an instant overnight millionaire ~ and that would hold true for Iraqi Citizens as well as foreign investors outside of Iraq. The advantage of a Warka Bank account (and other private bank accounts inside Iraq) is that because they are electronic they will be uniquely positioned to take advantage of future international revaluations of the IQD ~ possibly even up to past exchange rates of US$2+ to US$3+ per IQD. That could double or even triple the initial investment. The Iraqi Stock Exchange (ISX) Trading on the ISX through a Warka ISX Department broker could mean explosive potential as the country and core infrastructure companies grow with the economy. The process to be eligible to trade on the ISX with Warka Bank appears to be at least a 4 month process to receive a Warka ISX trading account number but may well be worth the effort for future wealth. In 2011 the aggregate growth of the Iraqi Stock Market was 36% for the year. It is expected to do as well or better in 2012. Until the Warka Bank Audit process is over you won’t be able to wire transfer USD back to the States or purchase stock on the ISX through the Warka Bank ISX Department. It would be wise to visit www.iraq-businessnews.com/category/banking-finance often in order to keep up on the latest news of Warka Bank, the Iraqi Stock Market and the Iraqi Dinar Re-denomination process. I don’t see the USD ever recovering from its decades long decline, so I’m sticking with gold, silver and copper bullion and the IQD at Warka to put my savings into. The IQD Revaluation (RV) When all of this redenomination has successfully taken place, the Iraqi currency as a whole (including the new lower denomination IQD banknotes, electronic Warka accounts and stock prices on the ISX) will (finally) be in a position to incorporate a significant revaluation to match the growing Iraqi economy. A revaluation could take the exchange rate from $1:1.166 to $1:1 or even more; but while the rest of the world (and especially IQD foreign investors) wouldn’t mind a revaluation to $2:1 or even $3:1, the CBI and the GOI are going to want to keep that exchange rate as low as possible in order to be competitive exporting Iraqi oil, natural gas, gold, silver, dates, copra, etc…… The GOI will also want to encourage tourism and foreign investment into its infrastructure, so it will serve the Iraqi economy best to be the new international “bargain” by keeping the exchange rate of its currency as low as possible. For us IQD investors it will mean a chance to possibly double or triple our Warka investments in the future; but in the meantime while we are waiting, we can still enjoy 7% on savings, 8.5%, 9.5% and 10.5% on CD’s and possibly even more by investing in the ISX. You never know when an Iraqi company might suddenly take off and become the next “Microsoft” of the investing world, especially with the encouragement of foreign investment and technology. No foreign investor or any Iraqi citizen for that matter is suddenly going to be a millionaire based just on a new revaluation of the IQD, but that doesn’t mean the investment is a bad idea. In fact, in my opinion it’s still the best choice available to the average investor. For additional information on the owner’s of Warka Bank go to: http://www.al-bunnia.com/HMBS.pdf
  25. 20 MillionDinar: Thanks for your condolences; however, there is no loss here. The money simply stayed in the aforementioned Warka Client’s account. The Warka Client mentioned in this post is still earning 7% on the money when it’s in his IQD account and 4% when it’s in his USD account. I myself managed successfully to wire transfer funds from my own account 3 times within the last 12 months and am witness to another Warka Client being recently successful also. My wire transfer last September took 14 days, my wire transfer this past November – December took 17 days and my last wire transfer just this past February – March took 24 days to complete. I also witnessed a friend’s wire transfer that was completed in just 9 days this past February. The Warka Client mentioned in the post was apparently just a little bit too late with his request. The major problem I believe is that Citibank, NY is refusing to do business with Warka Bank while Warka remains insolvent. Since there is no alternative US based correspondent bank offered by Warka, there is no way for wired funds to re-enter into the Federal Reserve Bank’s system and therefore no way for them to be forwarded onward to someone’s individual bank. For wire transfers going the other way (that is, from a local US bank to Warka), Warka Bank has already informed those clients that have asked that they are now directed to use Warka’s corresponding bank in Germany ~ Commerzbank. This is according to Warka’s “updated” working procedures; even though, on their website, they still list Citibank, NY as their US correspondent bank. So, it appears that we can still deposit funds into our Warka accounts via the Commerzbank in Germany; but we won’t be able to wire transfer funds back to the US or to purchase stock on the ISX through the Warka ISX department until Warka finalizes its affairs with the Iraqi Company Registration Office and the bank’s working capital increases to a point where it is again considered to be solvent. Basically, it looks like Warka will be allowed to deposit all the incoming cash it can get to raise the balance sheet in its favor; whereas the Auditor won’t allow outgoing cash for either wire transfers or ISX purchases until he finds a way for Warka to boost its operations by either selling assets or collecting outstanding debt owed to it. From an accounting point of view it makes sense. The point is that although wire transfers from Warka through Citibank, NY to a stateside account are probably not possible right now, they most likely will be again when the Iraqi Central Bank Auditor completes his work and Warka’s liquidity problems have been solved. As examples of what I’ve outlined above, here are some reprinted email correspondences from Warka Bank to clients as found on certain forum posts at www.dinarvets.com: In answering one Warka Client’s inquiry regarding ISX stock purchases, Warka answered with: The CBI has been appointed guardian and trustee of the bank to support the bank in finalizing its capital increase and boost its operations as well as collecting its debt from creditors The daily operations of the bank are running smoothly and regularly where we are accepting deposits and opening accounts standard daily practice With regards to Warka stock once we finalize our affairs with the Iraqi Company Registration Office and Capital Increase we will trade regularly on the ISX Thank you for banking with us! Best Regards, ISX Department Warka Bank for Investment and Finance As to the problem of having recent wire transfer (deposit) funds bounce back from Citibank, NY; on 10 April 2012 Warka answered an email inquiry with the following: According to our updated working procedures your wire transfers are to be directed to our corresponding bank in Germany through Commerzbank in accordance with the wire instructions confirmed by our bank Below are Warka Bank for Investment and Finance account details at Commerzbank in which you direct your USD bank wire transfer to fund your account at our bank noting that it is important to also include your Warka USD savings account number and full name when sending funds to our bank. Receiving Bank Name: Commerzbank Receiving Bank Branch: AG Frankfurt, Germany Receiving Bank Branch Address: 60261 Frankfurt, Neue Mainzer Stasse 32 – 36, Frankfurt, Germany Receiving Bank Branch ID: BLZ 50040000 Receiving Bank Account Name: Warka Bank for Investment and Finance Receiving Bank Account Number: 400875402000 SWIFT Address: COBADEFFXXX Beneficiary Account Name: (Your Government Issued ID full name here) Beneficiary Account Number: 790 / ###### / 2 / 2521 / 000 Upon sending your funds please notify our customer accounts department at c.accounts@warka-bank-iq.com to send you a confirmation once your funds have been received and credited to your account noting that it takes 4 – 5 business days to receive an international payment where Friday and Saturday is a weekend in Iraq. The USD funds transferred will be exchanged to IQD and further credited to your account noting that the minimum balance will be maintained in your USD account $150. The bottom line is that we’ll just have to wait for the Auditor to finish before wire transferring USD back to the US or purchasing stock on the ISX through Warka’s ISX Department. In the meantime it looks like we can still send USD for deposit and purchase CD’s.
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