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e-mail from my banker

bakerbob

By bakerbob,
in Dinar Rumors

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bakerbob Newbie

bakerbob

Posted
Posted

I have read many posts with interest, but have never posted because I had nothing to offer until now. Following is the email my banker sent to me today of an internal bank memo. This man is also a friend with whom I served on a Board, and who helped me to secure a loan through his bank to purchase my building. Just two days ago we were discussing redeaming my dinars through his bank, because they have been selling them for a while:

" FYI Bob

Pinnacle Bank will no longer offer Iraqi dinar exchanges.

Who does it impact?

Clients wanting to buy or sell Iraqi dinar.

What’s changing?

Pinnacle will no longer buy or sell Iraqi dinar through Foreign Currency Exchange.

When?

March 1, 2011

What do I need to do?

Refer any affected clients wanting to buy or sell Iraqi dinar to other foreign currency exchange companies.

Why?

The risk involved with exchanging Iraqi dinar has escalated above the firm’s risk tolerance level."

The "Why" is the crux of this e-mail. This is a small local bank. It looks like they believe something will happen on March 21 that will alter their business practices regarding the dinar, like they may not have enough money to handle the demands of a high RV. Any comments?

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JuryPicker Newbie

JuryPicker

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Posted

Well the way I see it, if there was no pending change in the currency, then there would be no risk level. Most banks that I have spoken to have told me they would need to send the dinars off to confirm they're real. If they sent off 500K of notes I would imagine they would have to stand good for the currency or insure it in case of loss or theft. That would be my guess for the risk language here. JMO

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sweet B Newbie

sweet B

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The March 1st date make me go hmmmm.....

Other than that, over time a lot of banks have stopped selling the dinar at 1 point due to whatever reason they choose to tell us at that time. My bank stopped selling dinar about 1 1/2 to 2 years ago. I never purchased through them but I recently inquired about it and the lady told me that if they do start cashing them in, my dinar would be sent off thru fedex to the same place they use to purchase them from before I could receive cash for them. I figured she really didn't know much about the dinar because post RV, I'm not gonna fedex my dinar anywhere.

So you never know.....

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Danneedsrvnow Newbie

Danneedsrvnow

Posted
Posted

When?

March 1, 2011

The "Why" is the crux of this e-mail. This is a small local bank. It looks like they believe something will happen on March 21 that will alter their business practices regarding the dinar, like they may not have enough money to handle the demands of a high RV. Any comments?

You first mention it as March 1st.......you then mention March 21st?

Was this just a typo?

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smee2 Newbie

smee2

Posted
Posted

So many people are making assumptions here, and on other postings, that the banks, come RV time, will be overwhelmed with customers hammering the doors down demanding their millions of dollars. Really? Percentage-wise very few people have dinar. Very few people will be going to the bank to make a currency exchange. Certainly not enough to keep the banks open longer hours, hiring extra staff, bringing in so much cash they need more security guards ... silly really.

Most of the transactions will be electronic, Most banks may never see someone cashing in a dinar investment. Small banks especially do not have the internal wherewithall to handle it perhaps. Not all small banks have specialists higher than loan managers and maybe retirement counsellors.

Large banks will handle any and all RV transactions with ease. They have the head office to do their specialty work for them, the internal structure to verify and the funds to pay out. Those funds are not bank funds by the way; they may come from the bank but as the bank pays them out they are getting them back from the CBI, where the dinar will end up, through whatever currency exchange handles that. Minus of course their spread so they make something for doing this for you.

Bottom line is that your bank is no longer handling IQD coming or going. Their reasoning is most likely specific to them, a small bank, following protocols other small banks are. I wouldn't get my knickers in a knot over this. No biggie, as some say.

smee2 ;)

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Frank61 Newbie

Frank61

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Posted

I have read many posts with interest, but have never posted because I had nothing to offer until now. Following is the email my banker sent to me today of an internal bank memo. This man is also a friend with whom I served on a Board, and who helped me to secure a loan through his bank to purchase my building. Just two days ago we were discussing redeaming my dinars through his bank, because they have been selling them for a while:

" FYI Bob

Pinnacle Bank will no longer offer Iraqi dinar exchanges.

Who does it impact?

Clients wanting to buy or sell Iraqi dinar.

What’s changing?

Pinnacle will no longer buy or sell Iraqi dinar through Foreign Currency Exchange.

When?

March 1, 2011

I really dont see the reason. It makes no sense. If a bank cashes you out, they stand to make a large profit and due to fractional banking can increase their loaning ability. Verification could be an issue as far as validating if the IQD is real or not.

What do I need to do?

Refer any affected clients wanting to buy or sell Iraqi dinar to other foreign currency exchange companies.

Why?

The risk involved with exchanging Iraqi dinar has escalated above the firm’s risk tolerance level."

The "Why" is the crux of this e-mail. This is a small local bank. It looks like they believe something will happen on March 21 that will alter their business practices regarding the dinar, like they may not have enough money to handle the demands of a high RV. Any comments?

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bakerbob Newbie

bakerbob

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YEP!!!! The 21st was a typo. Interesting responses. I used to teach "Money & Banking", so I have a "little" understanding about their thought processes. Someone at that bank believes something is going to happen on March 1.

Read more:

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len Newbie

len

Posted
Posted

I agree with your electronic statement. I can't think of 1 good reason to want millions of USD in your possession and walk out of a bank with them. I believe it would be safest, wherever you hopefully cash in, and wire the funds somewhere. JMO.

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elmstreet61 Newbie

elmstreet61

Posted
Posted

would it be a loss or risk to the bank if people just went to cash in and not deposit, even if you had an account ?

i thought they would make something in the exchange

Yes, of course, they would have a spread...a profit on the transaction. just find a bank that WILL deal with IQD, or wait for Ali to setup shop in your country...

Best to find the right bank and setup an appropriate account with them...leave your money in there for a few months...get some interest, to make up for the bank's spread rate.

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olivesman Enthusiast

olivesman

Posted
Posted

Is the bank in question on the "Opt out" list for the new FDIC policy? I was speaking with a friend that is a V.P. at a local branch of one of the six largest banks in the country. He was saying that banks that would be able to insure non-interest bearing accounts are required to have a certain amount in reserve. Sorry, I'm not able to recall the numbers but just a possibility as to why a bank would turn business away.

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Mamafaith Newbie

Mamafaith

Posted
Posted (edited)

I wish I felt the reason was what you said,,, I just don't think a bank would back away from a currency if they thought it has the potential that we all are hoping for. I guess I don't think that email was good news sorry. :(

Back about a month ago I spoke to my daughter in laws Mother who is the VP of a local Bank (hate the way that sounds) anyway she explained to me in great detail why a Bank would discontinue the sale of the IQD and it's not as bad as you think, it's actually something they would do if it suddenly became clear that there could be a fluctuation in any direction in that currency's exchange rate regardless where there is potential for gain or loss. The reason is according to her in Laymans terms the turn around time of these transactions could result in a substantial loss. This made perfect sense to me and resolved my worries over one Bank after another decicding against the sale of IQD. If you order a million dinar at say 1000.00 and that dinar revalues BEFORE the bank tenders then the bank suffers the loss, which IMHO could be significant with this particular currency. In closing she said no Bank would be willing to take this type of risk on the IQD or any currency for that matter. I feel better about my investment as bank after bank adjusts their policy to protect themselves.

Edited by Mamafaith
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