Wells Fargo Bashes the Dinar Investment

[CoffeeDave]

I found this on Currency News Hounds site today I I was wondering about the Dinar R/V as a investment. Is it a dream or are we feeding on all the news and rumors of hoping to be rich on a small investment. Almost like a lottery ticket spend a buck and hope to make millions on our little investment. I have been in this for 7 years now and not giving up. But I really do wonder sometimes. What your Thoughts???

Currency Newshound Commentary: Wells Fargo International Weekly: Iraqi Dinar as a currency investment

Posted: February 9, 2011 by THE CURRENCY NEWSHOUND - Just Hopin in Iraqi Dinar/Politics

Tags: Iraq, Iraqi dinar, Kuwaiti Dinar, middle east, United Nations, United Nations Security Council, United States, World Trade Organization 3

Note: A special thanks to Currency Newshound Facebook friend “Bruno” for providing the following Wells Fargo analysis.

Wells Fargo International Weekly: Iraqi Dinar as a currency investment

The following analysis is conducted by Wells Fargo International Strategy Advisors. The analysis discourages investors from purchasing the Iraqi Dinar. The analysis blames uncertain future; the risk associated with fraud, Iraqi security threatened by terrorism, and the continued disappointment by Iraqi dinar investors as reasons to not invest. This analysis attempts to provide an outlook on the Iraqi situation and examines the rationale of investing into the IQD.

The attached analysis attempts to discourage the investor. I hope my summary reminds the investor why so many remain hopeful.

It is my opinion the analysis makes a decent case outlining the risks involved when purchasing dinar for future exchange. However, the analysis stops short of providing an accurate assessment.

Iraq has made headlines with its terrorist attacks toward military forces as well as against the citizens of Iraq. However the security situation improves daily. In fact, terror attacks are down approximately 50% from just six months ago (Aug 9, 2010 vs Jan 23, 2011). US forces are training Iraqi police to handle day-to-day operations as hands of power exchange Dec. 31, 2011. (Link). Iraq will host the Arab Summit in March which is obviously a voice of agreement from the Arab nation that Iraq’s security situation has become stabilized.

The analysis briefly touches on the great economic and political achievements Iraq has made in recent months. While focusing on the nine month struggle to form a government the analysis does not provide the reader with the accomplishments this new democracy has attained in a short period of time.

Mr. Christopher neglects to discuss accomplishments regarding the United Nations Security Council releasing Iraq from Chapter VII trade sanctions nor Iraq and Kuwait working aggressively to end Chapter VII issues once for all in the near short-term. He further ignored Iraq tackling issues such as the national budget, poverty, and the remaining seats in Maliki’s cabinet which will complete the Iraqi government. Albeit, the process of government is slow and tedious nevertheless democracy is being instilled within the country every time the gavel falls thereby improving the political situation in Iraq.

Mr. Christopher’s summary explains the CBI’s ongoing auctions and narrow trade band over the past two years. While his assessment of the CBI auction is accurate the reasoning is somewhat simplistic and viewed from a non-global position.

The purpose of the CBI auctions is to increase foreign reserves and test the stability of the IQD. The CBI’s ongoing efforts to increase foreign reserves is a positive sign. Large foreign reserves are positive in relation to the value of foreign currency. By strengthening their reserves by selling off IQD for other currencies it allows these reserves to increase. Once these reserves increase, the IQD becomes globally recognized then they will have enough reserves in their banks to defend inflationary pressure.

It is true dollarization reacts negatively on any foreign currency including the dinar. However as global pressures begin weighing in on Iraq the IQD should begin to increase in value against the dollar thereby reducing the effects of dollarization and a release of the current peg.

Christoper explains there are limited banks in the United States which actively sell the dinar and he goes on to say majority of the banks are related to banks located in Iraq. However, investors based on currency forums has stated purchasing IQD from regional and national banks throughout the US. He explains in the event of an RV banks will likely not conduct transactions with the dinar and if they did fees could make the profit margin seem very small. While I can’t speak for bank fees I can say in the event of an RV the dinar will likely be recognized globally reflecting on Forex screens worldwide, and therefore foreign exchange offices would recognize the dinar…and gladly so as the banking business would love extra deposits in their facilities.

Lastly, Mr. Christopher provides examples of war torn countries such as Germany and Kuwait and how post-war economic success will create the need to revalue their currency. While Iraq has spent the past seven years rebuilding its war-torn country Christopher stops short of comparing Iraq to Germany and Kuwait saying the security situation and the uncertainties in Iraq make an RV unlikely or as Christopher stated the same situation may not apply.

Many do like to compare Iraq and Kuwait when discussing the possibilities of a revaluation in currency. Both are war-torn nations, both are located in the Middle east, and both are oil rich nations. Kuwait successfully made an economic recovery and Iraq is well on its way.

Iraq was placed on UN sanctions and forced to rebuild itself from the ground up replacing infrastructure, and undergoing the long process of building international relations. For the past seven years or so, Iraq has moved from a dictatorship to a democracy. Iraq is a trusted member of the United Nations and has established a constitution recognizing freedoms not enjoyed by its Arab neighbors.

By establishing regional and global relationships the United Nations has released Iraq as a terrorist threat and has restored its nuclear capability. Iraq is striving to enter the World Trade Organization which will open its lanes of commerce to all ends of the economic spectrum. Iraq will host the 2011 Arab Summit this spring which will be visited by thousands of Arab leaders from the Middle East. Furthermore, Iraq is one of the top oil-producing nations in the world which will make Iraq one of the wealthiest countries on the planet.

Iraq’s situation compares closely with any war-torn nation that has rebounded economically and later revalued their currency including Kuwait or Germany.

There is a lot of good aspects about Iraq which makes investing in the IQD favorable in my opinion and thousands of other dinar holders from around the world. Mr. Christopher’s analysis uses terms such as “probability” and “may” and discourages the investor. I choose to believe “probability” and “may” are words of encouragement showing possibility, not negativity.

In summary, this is entirely my opinion. There is always risk in any investment. Investors should make every attempt to research an investment. There are no promises or guarantees the dinar will revalue or reinstate as there are no promises with any investment – this is called risk.

I do wonder…Once the dinar revalues will Wells Fargo accept the dinar or more importantly the deposits of dinar investors?

Read the Wells Fargo Analysis pdf by following this link:

http://www.4shared.com/document/kxTIdew5/Iraqi_Dinar_as_a_currency_inve.html

Just Hopin

Edited February 10, 2011 by CoffeeDave

[easyrider]

well dave wells fargo is very contradicting what minute they say to invest and buy dinar another they send out advisiries stating its a huge risk pretty much calling it a SCAM so which one do we believe? im putting money it is a great investment and they do this to discourage people from capitalzing on such an opportunity this is al lmy opinion the bottom line is the Dinar will revalue especially if they will continue bringing investors in why would anyone want to deal with Iraq having a vast amount f oil and not Revaluing their currency doesnt mke any sense so believe what you will I uderstand your frustration I/m riht there with you but don't lose hope it will come to fruition and all of us will be rewarded fo our patience and faith. Hang in there.

P.S. check this out contradicts what they are saying now, makes onewonder what is their motive really?

Hello all,

Found this published by Wells Fargo. I'm not so worried about their advise. Rather, they confirm questions about banks selling the dinar. Figure you've read this...but wanted to make sure you had a credible source. Go RV!

Attached File(s)

• Iraqi Dinar as a currency investment Feb 8 20111.pdf (54.73K)
  Number of downloads: 123

Edited February 10, 2011 by easyrider

[powerpager]

Wells Fargo Stinks !!!

[Papster]

Hey where else can you get this kind of entertainment for 1170 IQD to 1 USD? Thank god I have only been invested for a year and a half and not as long as some. I have read and studied this investment quite abit. I have also seen the Iraqis make great process somewhat slow lol but they are making some strides to the finish line. IMO we are at the finish line, whether it be a day, a week, or a month, something has to happen. IMO I believe we will be happy with the outcome of this investment. As for it being a SCAM. How can it be a SCAM? If you wanted to get most of your money back, call ALI, he will buy them. Besides I know my luck, the sure fire way for this to RV....... is for me to sell mine. lol

God Bless

Papster

[Dinarius Rucker]

CoffeDave-

How much is that on the table?

WOW

[Darin]

CoffeDave-

How much is that on the table?

WOW

I was wondering the same thing! that's a lot of bills....

Not that many 25k bills though!!

[In Iraq]

If it involves a profit every bank out there will be involved, no doubt!