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rockfl9

IQD on FOREX

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Don't look  for IQD on FOREX for a (long ) while. My guess is NEVER. The reason is simple. OFFICIALLY the IQD DOES NOT EXIST..  The CBI wants it that way. IT was Never intended to leave the country..  What you have was smuggled out. The banks and pro currency traders  know that .  IF the CBI were to issue a BUY BACK it would only  happen in country .  Currencies  are traded on FOREX because people want to BUY things that must be paid for in a country's  domestic  currency..  Right now Iraq doesn't produce anything that is exported except oil and gas priced in dollars. 

 

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You telling me Tescos, Natwest, HSBC and Barclays bank all smuggled my currency illegally out of Iraq. Some how I don't think so Rock. Hello again been a while

Edited by dinarbeleiver
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Wondered what happened to you.

NO .!!!!!!   Way back, some how banks were able to get dinar through official channels .  Possibly a US bank operating with the CPA.  Then , I'm guessing here ,  that bank ceased  to operate . Or policy changed and taking dinar out of the country was prohibited.  My guess about 2006.

If you read the CBI law it makes some specific statements that the IQD  intended for consumption ONLY . IN IRAQ.  That is it is not to be transported IN or OUT of the country.  I remember a email from Mr .Issa when asked by a member here if they could send IQD to be deposited into an account and he replied, NO!  IT would NOT be  accepted.

SO when you bought IQD in those days , it was somehow obtained from banking channels but it was a mistake. and the banks no longer offered it. 

That opened the door for the dealer channel , to find unscrupulous Iraqi's to smuggle it out .

Only time will tell if the GOI will change the law and allow it back into the country. 

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The first thing to understand about "the Forex" is that there is no globally regulated single exchange called "the Forex". like the NYSE or the NASQD or the CBoT  That term refers to a number of markets (not exchanges) that trade currencies.  At the top is the Interbank Foreign Exchange market which consists of the dozen or so largest banks in the world that have mutual currency trading agreements with each other and all use Reuters Dealing and EBS to trade currency pairs in very large amounts (the smallest trade here is likely in the millions of dollars).  They mostly only trade the 5 major pairs being EUR/USD, USD/JPY, GBP/USD, USD/CHF, AUD/USD and USD/CAD (https://www.investopedia.com/articles/forex/06/interbank.asp) Other minor or exotic currency pairs have individual market makers that have established a reputation for knowledge about that currency.   All of that is over the counter in the sense that there is no exchange that guarantees the transaction it's strictly between buyer and seller.  Likewise there is no overall regulation dictating what currencies can or can not be traded.  It's all a matter of supply and demand.   When folks look at something like forex.com that is an aggregation by a broker of the various currencies even if they are not actually offered (i.e. just because a currencies exchange rate to some other currency is show that does not mean there is a market in that pair).   Markets develop for currency pairs needed by importers and then if those get big enough there will be demand from speculators as well.  Pegged currencies are of little interest in these markets since if they are available at all then their associated central bank is the best source (through downstream banks) and their exchange rate against other currencies if they change at all are mostly due to the other currency (i.e. peg's don't move that much).  Main take away:  the IQD will never be "on the forex" (Rock is correct on that one).

 

But also If there is profit to be made getting a currency across borders whether it is legal or not, then a way will likely be found to do so.  Whether or not entering into a transaction with such parties is wise is another question.   If Iraq ever executes a redenomination then the market to buy IQD (eBay, dealers, etc) will collapse.  At that point there may be a market to buy them back at a substantial discount and some means found to get them back to Iraq (so the dealer can make money) but that all remains to be seen and "buyer (or in this case seller) beware" would be good advise.

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EC,, A good explanation .!  The FOREX is only a reporting service.  There are currency traders around the who post bids and offers and the FOREX generally posts the mid-point .  

But I am sure they are in some way regulated.  For example the Interbank market limited to the central banks and large money_centered banks are regulated by the BIS . It is a very elite group that trades in private.  Currencies are commodities and regulated as such.This is what you will find on forex.  Regulated by a countries commodity regulators.

A note here is that these dealers seldom deal with Physical currencies . The trades are between accounts.The problem dinar holders will have is to find an  institution that will collect the dinar and when they find they may have more than they can sell locally , send the excess back to the CBI. That institution does not exist today.

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5 hours ago, rockfl9 said:

 The FOREX is only a reporting service. 

...

But I am sure they are in some way regulated.  For example the Interbank market limited to the central banks and large money_centered banks are regulated by the BIS .

"the forex" certainly includes a reporting service but it's a pretty fuzzy term in that "the forex" is often used to denote the trading relationships between the banks that comprised the interbank foreign currency market, the market makers in minor currencies and often even encompassing retail currency brokers.  What it is NOT (as we have both said) is a centralized exchange that a currency can "get on" if it meets some set of requirements.

 

While the Bank of International Settlements regulates its member central banks as to reserve requirements, I do not think they impose any regulation about what currencies those banks may or may not trade or (ironically given their name) how currency transactions must be settled.  Further I think most of the activity on the interbank forex is not from central banks but just the worlds largest commercial banks and those are not regulated by the BIS (I'm not sure if central banks trade directly on the IBF at all, they don't usually engage in such trades unless trying to influence their currency, if it is floating, and they might do that through one or several commercial banks)..  Even the central banks are "regulated" only as when they become a member of the BIS to avail themselves of its services they agree to abide by certain rules, but the BIS has no global authority to force a non-member central bank (of which there are very few) to comply with its rules (e.g. reserve capacity).  I don't think the BIS can even force a member central bank into compliance in some way other than dropping its membership (which would be extremely bad press for the respective economy).

 

Global commercial banks are each regulated to varying degrees by their respective host country's but there is no global entity (that I know of) that regulates how settlements in foreign currencies must occur or who is liable if one party does not carry out the trade etc.  That is all up to the two  banks executing the transaction and the regulation jurisdiction each is under in its host country.  So each side of a transaction may be subject to a different set of regulations which is why each bank has separate agreements in place with each of the other banks which is what makes "the forex" a distributed market with no central exchange.

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On ‎7‎/‎30‎/‎2020 at 6:02 PM, rockfl9 said:

Wondered what happened to you.

NO .!!!!!!   Way back, some how banks were able to get dinar through official channels .  Possibly a US bank operating with the CPA.  Then , I'm guessing here ,  that bank ceased  to operate . Or policy changed and taking dinar out of the country was prohibited.  My guess about 2006.

If you read the CBI law it makes some specific statements that the IQD  intended for consumption ONLY . IN IRAQ.  That is it is not to be transported IN or OUT of the country.  I remember a email from Mr .Issa when asked by a member here if they could send IQD to be deposited into an account and he replied, NO!  IT would NOT be  accepted.

SO when you bought IQD in those days , it was somehow obtained from banking channels but it was a mistake. and the banks no longer offered it. 

That opened the door for the dealer channel , to find unscrupulous Iraqi's to smuggle it out .

Only time will tell if the GOI will change the law and allow it back into the country. 

I am still a dinar RV believer but don't spend hours researching or waiting for news on it. Been learning to arbitrage bet on sports market and a technique called matched betting. I'm doing pretty well at it and have several incomes now. I will be in the nearer future be learning actual trading like stocks and forex but wont be putting any money into it until I have mastered it. From what I gather (and I don't know a lot ) to be successful with trading involves doing lots of little trades for around 6 hours a day. I have been advised that there is no easy root to doing well at trading so to avoid BOTs ect and to do well involves hours of work which I am prepared to do. From the people I will be learning from they expect to double their money every 3 months. it would be nice if you can help advise me on trading. I have heard once you master one market the rest are the same principles.

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I wish you luck DB .. It looks like you are going at it the right way, that is Learn as much as you can BEFORE putting any real money to work.  Even then be prepared to make some mistakes .  One tip I can give is when you learn you have made a mistake GET OUT .. Dont waste time and money trying it save a bad trade. When I buy a stock I pick a point , time and amount for keeping it , and if it fails that test i'm out.

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EC, from what I have read the BIS is like the Supreme Court of the banking world. Central banks don't have a choice .  If they want to deal with other central banks they must abide by BIS directives.  The penalty is ISOLATION.  

One thing for certain the BIS does not allow banks to manipulate it's exchange rate to make a profit .  It expects inter bank exchanges to be at par , that is buy and sell at one price over a period of time.  

 

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