* Currency Newshound (CNH) Commentary: Wells Fargo International Weekly: Iraqi Dinar as a currency investment

[KCT]

dvsarchitect [/url]

Feb 12 |14:20 PM

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

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:

LINK

Just Hopin

[KCT]

dvsarchitect [/url]

Feb 12 |14:20 PM

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

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:

LINK

Just Hopin

[BanG]

Posted Twice? Why?

[smee2]

Also posted in the wrong forum ... this is news ... you have posted an opinion. About a third of a way down the list of topics is the opinion choice. Next time?

smee2

[Dinar-Hustle]

thanks for the read.

[Nitrobuzz]

If you Google Wells Fargo you will find several pages of articles dealing with the Dinar. Mostly discouraging to anyone who doesn't know better.. However, if you go to the Forex linked site ADVFN.com you'll find a list of Banks That will deal in the Dinar and their one of them! Hmmmmmmm!

FYI: If you go looking at the avdfn.com site be prepared to spend some time navigating to get to the Dinar info page. I can't even tell you how I got there. But, it is there. I've read it twice now.

[KCT]

Sorry!

I thought I was in the opinion section when I clicked add new topic. Mods, would you mind moving this thread please?

Also I had no intention of posting twice. I was trying to edit the typo in the subtitle and when I clicked "save changes" I got a popup error message, and even though it was in the full editor to be able to edit the post it must have been posted incorrectly through error.

[jeepguy]

the proof of ownership of dinars will be shown in the end ,,,,i mean ,,,,i`m willing to say that a hole bunck of banks will come out of the closet with a bunch of dinar owners being the banks,,,,,alot of bank employess who turned the opportunity down,,,will ,,,be lower on the ranks of staff at that bank ,,,,or better,,,,,welcome too wal-mart greeter,,,,i ha\/e heard a lot of famous folks are into this fun roller-coster ride ,,,roll that film footage of the r.\/ e\/ent at a busy bank that is buying the dinar,,,, will look like the day before christmas sale,,,lines out too the parking lots--------gooooo R.\/.

[Rayzur]

Well like I said last time this same article was posted....

I would guess the guy wrote this in recognizing the dinar to be a super hot topic.... this of course was likely fueled by the thousands of us on these forums calling them daily in total hysteria at even the slightest blip on the RV radar…..

Of course there was the one night that people were actually racing to grocery stores in the middle of the night to get calling cards so they could call some bank in Kuwait..... I think the tally was in the thousands by the end of that shift, with answers running the whole gamete despite calling the exact same bank. There are other thousands of us who have traipsed through the bank asking about this thing called the dinar…. And I am thinking any astute banker would probably notice there was something going on after number 3099 person walked in with the same questions about dinar and RV….

So now he has to write a news letter and sound somewhat coherent in formulating his opinions. He didn’t reference one current event evenly remotely connected to this…. Indeed, you’ll note his references are about as dated and superficial as can be….. about as far as the first Google entry with a lot of plausible words that seem to make sense….And like was just said earlier…. He is selling WF products, understands those products,, and makes money off the products he’s paid to understand and sell daily…

Its pretty clear he used metrics that he understands relative to an index he can appreciate and really didn’t’ do much research beyond a few Google hits….and even that he missed in using such dated material to form his analysis…. I am sure that his level of understanding what he sells relative to his knowledge about the dinar would lead him to make the exact conclusions he did…. Pretty straight up…. They were made based upon a false foundation and limited understanding framed by knowledge of products completely unrelated to what is happening to the dinar. He completely missed this to be a dynamic rather organic process, and treated more like the static products he offers….

Not slamming WF products in any sense and actually I like the bank…. Just saying that this analysis is fairly predictable given the variables he used to formulate the question and the index framing his analysis…

I’d be suspicious had he said anything different…

Oh and he’s wrong, and this will RV and perhaps he will then understand the dynamics of what is unfolding before him…and probably smack his head that he wrote this while watching the Super Bowl ! .

[KC69]

Nothing new. Been around for awhile on other sites.