Well the CBI spread skyrocket after RV?

[Sweetness]

Hello Dinarvets forum,

Through reading the forums I know no one knows what the CBI will charge for a spread for taking back the Dinar after the RV. But I was wondering just what they are legally able to do at the point of the RV. Let me try and explain my concern.. Say that I choose to cash in through Ali at DT and I get charged the $150 per million dinar.. Ali has stated he will not charge any additional spread besides what the CBI's spread is. But let’s say the CBI puts a 50% spread on to the exchange? I mean I could see all of us getting so excited and happy only to find out on cashing in that we will lose 50% if not more... and then we would have to pay taxes on what’s left leaving us with nowhere near what we thought we would get. I know this seems extreme but after all this is Iraq and if they wanted to maximize their profits I could see them doing something like this. So what would stop them from doing this? Is there a limit as to how much they can charge on their spread percentage etc? Im not trying to scare anyone or be negative... But Im just curious.

p.s I did do a search on the forum regarding this before I posted but wasn’t able to find my answer.

[Doc31]

... I did do a search on the forum regarding this before I posted but wasn’t able to find my answer.

Good (researching first)!

And the answer is that they can (possible) but it is unlikely that it will be that drastic (improbable). I am not sure if there is a "global currency spread law" or not.

In practical matters, the thing that we tend to forget with these extremely frustrating clowns is that Iraq wants to be the jewel of the Med. They want a Disney type atmosphere. They want a Phoenix from the ashes. They will have a digital/global stock exchange (vastly different from the other stock exchanges in the area) ... they want gross investment into Iraq.

All of these how can they "screw" us scenarios including LOP, in-country cash-in, gross spread scenarios is that it discourages everything that they actually want. Which again is not to say that they can't ... but it is grossly counterproductive.

We all have to ride it out and see ... so try to be aware of the possibilities but weigh them against the probabilities.

I hope that this brings you some peace.

Doc31

[kjwayne]

Way to go Doc!!

[dinariac]

Doc's answer was pretty much "spot on", but, I see a basic flaw in your rationalization! Example - let's say you have 1,000,000 IQD for which you paid $1,000. Now, let's use an RV rate at $4.00. With your scenario, the spread would be $2.00 for buy back which makes you $2,000,000! You have profited $1,999,000 You're only loosing half in your mind, not in reality. Optimism pays better than pessimism Like Doc stated, and, IMO as well, the scenario that you've painted is very unlikely to happen. Don't count the chickens you've lost before they've hatched You'll definitely sleep better at night. After all, it's now

RRRRRRVVVVVVVVVVVVVV T T T T T T T T T T I I I I I I I I I M M M M M M M M E E E E E E E E E E

[Sweetness]

Good (researching first)!

And the answer is that they can (possible) but it is unlikely that it will be that drastic (improbable). I am not sure if there is a "global currency spread law" or not.

In practical matters, the thing that we tend to forget with these extremely frustrating clowns is that Iraq wants to be the jewel of the Med. They want a Disney type atmosphere. They want a Phoenix from the ashes. They will have a digital/global stock exchange (vastly different from the other stock exchanges in the area) ... they want gross investment into Iraq.

All of these how can they "screw" us scenarios including LOP, in-country cash-in, gross spread scenarios is that it discourages everything that they actually want. Which again is not to say that they can't ... but it is grossly counterproductive.

We all have to ride it out and see ... so try to be aware of the possibilities but weigh them against the probabilities.

I hope that this brings you some peace.

Doc31

Thank you Doc for confirming my 2nd thought I was starting to have after I posted my question lol. I see now if they did that it would "upset" investors etc and most likely kill their support and growth in MANY areas for the future. Not something they want to do as you said above!

Doc's answer was pretty much "spot on", but, I see a basic flaw in your rationalization! Example - let's say you have 1,000,000 IQD for which you paid $1,000. Now, let's use an RV rate at $4.00. With your scenario, the spread would be $2.00 for buy back which makes you $2,000,000! You have profited $1,999,000 You're only loosing half in your mind, not in reality. Optimism pays better than pessimism Like Doc stated, and, IMO as well, the scenario that you've painted is very unlikely to happen. Don't count the chickens you've lost before they've hatched You'll definitely sleep better at night. After all, it's now

RRRRRRVVVVVVVVVVVVVV T T T T T T T T T T I I I I I I I I I M M M M M M M M E E E E E E E E E E

Thanks dinariac for breaking it down a bit more. This was just some random question that flew through my head and I thought Id ask. Next time I'll try and look deeper into the details, numbers etc before posting about it.

Edited November 13, 2010 by Sweetness

[saturday night]

Doc's answer was pretty much "spot on", but, I see a basic flaw in your rationalization! Example - let's say you have 1,000,000 IQD for which you paid $1,000. Now, let's use an RV rate at $4.00. With your scenario, the spread would be $2.00 for buy back which makes you $2,000,000! You have profited $1,999,000 You're only loosing half in your mind, not in reality. Optimism pays better than pessimism Like Doc stated, and, IMO as well, the scenario that you've painted is very unlikely to happen. Don't count the chickens you've lost before they've hatched You'll definitely sleep better at night. After all, it's now

RRRRRRVVVVVVVVVVVVVV T T T T T T T T T T I I I I I I I I I M M M M M M M M E E E E E E E E E E

I agree with your line of thought. People need to look at the gift being handed to they by the Lord, not what the banks need to make as their mark-up, etc. Focus on the million or so you will have in your new account compared with what it was the day before. You need to get use to thinking like a person with money and the proper way to move it forward for yourself as well as OTHERS.

[livingproof]

Brilliant question for a "Newbie" (??? I think you have been lurking for awhile, like me!!), and Great answer from a wonderful DV Veteran!

Lurking is my new pastime (I don't seem to get squat done anymore!!) as I am new at all this too, and "almost" loving this Adrenaline Rush Disney World Roller Coaster Ride!! Can't wait for the new ride of Rich - in more way's than one!

Thanks for the question Sweetness and Best of Luck to you!

Gooooooooooooo RRRRRRRRRRRRRRVVVVVVVVVVVVVVV !!!!!!! :D :D

[Sweetness]

Brilliant question for a "Newbie" (??? I think you have been lurking for awhile, like me!!), and Great answer from a wonderful DV Veteran!

Lurking is my new pastime (I don't seem to get squat done anymore!!) as I am new at all this too, and "almost" loving this Adrenaline Rush Disney World Roller Coaster Ride!! Can't wait for the new ride of Rich - in more way's than one!

Thanks for the question Sweetness and Best of Luck to you!

Gooooooooooooo RRRRRRRRRRRRRRVVVVVVVVVVVVVVV !!!!!!! :D :D

Thanks livingproof and good luck to you as well!