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I realize that withdrawals cannot be made from Warka at this time, but I am trying find out if there was a previous daily withdrawal limit from Warka Bank. I found some posts that quoted $10,000 per day.
If the RV is 1:1 , and the transfer limit is $10K per day, that would mean one would be able to transfer approximately $2.5M per year if one transferred $10K per day, 5 days a week, minus holidays etc.... For some this would mean many years of withdrawals to get their money out of Warka.
Does anyone have any info on whether the $10K per day transfer number is accurate? If so, are there other suggestions on how to withdraw larger amounts from Warka? I thought about trying to change my personal account to a corporate account at Warka, but not sure if that's even possible, or if the withdrawal limit would be different. Is an IBC an option with Warka? Anyone have any suggestions?
Has anyone opened up an account with another bank other than Warka? I was considering opening up a few different accounts (Warka, Credit Bank of Iraq & Bank of Baghdad).
Searched through threads but couldn't find info on anything but Warka. Thanks in advance for any input/advice.
IMO, there certainly is a possible route for IQD Speculators holding IQD cash to send their physical bricks of cash back to the source in order to get paid ~ something ~ when the time comes to turn it in.
The same opportunities that exist now (internet dealers or banks acting as dealers) should still be there for a limited time after the CBI starts issuing its new currency into circulation for exchange.
I know for certain that once Iraqi Sovereignty set in and Iraqi Custom Inspection Stations were moved from Dubai back to Baghdad it was definitely against Iraqi Law to FedEx or otherwise courier or mail any Iraqi currency from outside of Iraq to anywhere inside of Iraq.
Here’s the email thread that happened when I was about to send my eighth FedEx pack of IQD to the front door of Warka branch # 790 in Baghdad in care of Mr. Issa.
I sent an email enquiry to the Customer Accounts Department at Warka Bank with a cc to the Customer Services Department and a cc to the International Foreign Relations Department.
In it, I said the following:
When I first inquired about opening an account with Warka Bank, you sent me an email which contained (in part) the following message:
Thank you for choosing our bank and taking interest in our fine services.
It is possible to send your Iraqi Dinars by courier service to the following mailing address:
Warka Bank for Investment and Finance - Main Branch – Baghdad Iraq
International Foreign Relations Department - Attn: Mohammad K. Issa
Watheq Square – Salman Faiq St. – Hay Alwihda – Sec. 902 – 14th St.
Upon receiving your package it will be counted both by hand and machine in the presence of three dedicated bank employees under my supervision and we will credit the exact amount received to your account.
Customer Accounts Dept
Since that time, I have sent Iraqi Dinars by FedEx to this address numerous times and have helped others to do the same.
However, lately I have become concerned because currently there is a rumor circulating among Iraqi Dinar investors that it is no longer Warka’s policy to accept physical Iraqi Dinar banknotes by courier to fund our accounts.
At your earliest convenience, please confirm that the above mentioned mailing address is still correct and that it is still Warka Bank’s policy to accept physical Iraqi Dinar banknotes sent by courier (FedEx) to fund our accounts.
I greatly appreciate your time to reply to my request and look forward to your confirmation.
Thank you again for your fine service and attention to my accounts.
I received this answer from Mohammad K. Issa:
Please note that in accordance with the regulations set by the CBI, Iraqi banks are not permitted to hold IQD accounts at their corresponding bank and are prohibited from receiving deposits or wire transfers in IQD currency where the only legal method of funding your account is through a USD bank to bank wire transfer.
Furthermore, and as posted on our website, Iraqi Customs no longer permits courier companies operating in Iraq to receive and deliver packages containing funds of any currency and will be confiscated accordingly.
Should you have any further questions or inquiries please take a moment to visit our website www.warka-bank.com news bulletin to view the latest notices and contact details of the related departments that will best handle your inquiries. We have several departments that will specifically handle each banking affair to your best interest by contacting them directly as they handle customer inquiries and transactions.
Mohammad K. Issa
Deputy Managing Director
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.
This being the case, I’m pretty sure it’s still against Iraqi Law to physically send Bremer era, De La Rue IQD banknotes into Iraq except by some CBI and GOI approved and secured means that are within the guidelines of the Iraqi banking system ~ such as a secured re-supply direct from De La Rue to the CBI, for example.
However, to stay within the law, the CBI could certainly direct De La Rue (or whoever is going to print up the new notes) to re-supply neighboring central banks directly with however much IQD they required to meet customer demands; and without any need for physical IQD to cross the border and break Iraqi Law.
De La Rue receipts and amounts could be accounted for digitally against the CBI’s Total Money Supply ledger.
According to Mr. Issa, the law says “Iraqi banks are not permitted to hold IQD accounts at their corresponding bank and are prohibited from receiving deposits or wire transfers in IQD currency where the only legal method of funding your account is through a USD bank to bank wire transfer”.
That lets out a lot of places under Fed domination; therefore, most, if not all, IQD traders on the internet today buy, sell and ship physical IQD to and from Iraq’s immediate neighbors; or at least those neighbors which have correspondent banks that are allowed to hold IQD accounts for Iraqi Banks located inside Iraq.
Countries such as Kuwait, Jordan, UAE (Dubai) are well known sources for correspondent banks that can sell IQD to dealers outside of Iraq.
When the time comes, the internet dealers will have no choice but to sell back the IQD they redeem from individual Speculators to those same correspondent banks outside of Iraq ~ until those correspondent banks run out of cash Euros or USD’s or Euro/USD credit.
Since the end buyer of those notes is the CBI, it will have to be the CBI that ultimately resupplies those same correspondent banks with either Euro’s or USD’s ~ and that’s counting both electronic and physical cash for both currencies.
So, the eventual return flight of the Speculator Held De La Rue notes might start with a courier flight from individual speculator owners to a gathering point; either on the American continents or somewhere on the Eurasian continent.
Then, a courier flight to either Kuwait, Jordan, or Dubai and a final internal courier drive to the Correspondent Bank of Choice ~ provided the dealer has an IQD account there ~ or knows someone further up the profit chain that does.
Then, a physical deposit with all the De La Rue verifying and counting that such deposits require.
Next, a confirmation is sent to the Iraqi bank inside Iraq that is responsible for the IQD account held at the Correspondent Bank of Choice.
Next, a confirmation is sent to the CBI for final confirmation of credit in Euros and USD’s ~ whether cash or electronic.
When the Iraqi bank inside Iraq receives confirmation from the CBI that credit has been extended against the pallets of IQD piling up inside the vaults of correspondent banks everywhere, then it will confirm Euro and USD credit to its correspondent banks in Kuwait, or Jordan, or Dubai.
Eventually, those pallets of redeemed IQD (non-spendable outside of Iraq) will probably make a short trip to an incinerator to be destroyed ~ rather than go to the bother of physically transporting them back to the CBI vaults.
To replace them, the CBI will simply release into circulation inside Iraq the USD equivalent of new lower denomination and upgraded IQD notes.
The CBI will make an entry and the Iraqi Total Money Supply will be further reduced just like they planned.
Meanwhile, the internet IQD dealers should have their ducks in a row ready to extend electronic credit via SWIFT to a correspondent bank in the individual Speculator’s home country (and which has permission from that country’s central bank to do so) and then finally onward to the individual Speculator’s home bank where an account is already held ready to receive it.
If those De La Rue notes can never cross the Iraqi border as per Iraqi Law, then it seems improbable that they would ever need to be exchanged for the new lower denomination IQD currency anywhere outside of Iraq.
The CBI itself would do the exchanging by directing the destruction of the old notes outside of Iraq and issuing new notes into circulation inside Iraq.
So, the path to redeem physical IQD seems to be very much open.
The CBI will of course pay its own declared fiat rate against the USD and the Euro.
The Iraqi Bank inside Iraq will pay the CBI declared rate, but will charge a fee for moving the funds to correspondent banks outside of Iraq.
The Correspondent Banks of Choice will pay the CBI declared rate, but will charge a fee that covers the one they paid, plus a profit.
The Internet Dealers with IQD accounts in the Correspondent Bank of Choice will extend credit to individual Speculator home country correspondent banks which will then extend credit to the individual Speculator’s home bank account.
A Speculator would have to consider the following costs against what they ultimately receive in compensation when they redeem their IQD cash:
Total cost of initial purchase from dealer including shipping Cost of the courier to send it back to the dealer to be redeemed. Cost of the dealer fee charged to send you a wire or certified check Cost of the home bank fee to accept the transfer ~ if it’s a wire
The IQD dealer will have to consider these costs when quoting prices to individual Speculators wanting to redeem their IQD notes:
Cost to move credit/cash from the Iraqi Bank inside Iraq to the Correspondent Bank of Choice outside of Iraq Cost to move credit/cash from the Correspondent Bank of Choice to the IQD Dealers account at the same bank Cost to move credit/cash from the Dealers account to each Speculators home country correspondent bank and then on to the individual Speculators home bank account.
In the end everybody gets paid ~ if the path remains open long enough ~ but at what net rate of exchange after all those costs.
I surveyed (4) possible Internet Dealers to see what rates they were paying out to redeem physical IQD notes right now.
CBI official rate less 10.68% per IQD Million less $30 send payment fee CBI official rate less 17.49% per IQD Million less $30 send payment fee CBI official rate less 21.29% per IQD Million less $25 send payment fee CBI official rate less 4.39% per IQD Million less $30 send payment fee plus a proof of purchase is required along with FINCEN currency report.
Physical shipments of pallets of IQD cash could run into secure storage loggerheads waiting on turns to redeem from a limited number of authorized correspondent banks outside of Iraq, but eventually all those CBI “promises to pay” notes should make it through to receive credit for redemption ~ whenever the CBI decides to act on all those requests for credit or cash at the same time.
Currently, the CBI is still resolving its currency demands by way of daily auctions without any announced plans to change.
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