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CBI Logic for Selling Dinar


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I'm having trouble understanding why the CBI would sell directly to currency dealers (or anyone for that matter), if the ultimate goal is to reign in the large denominations. I know that they obviously make money selling their currency with a spread. However, it seems to me if they were truly going to revalue their currency in the near term, why continue to sell the currency knowing it's going to cost you a hell of a lot more money to get those large denominations back to the CBI. Maybe that's not the way it works but can anyone help explain?

Thanks!

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I'm having trouble understanding why the CBI would sell directly to currency dealers (or anyone for that matter), if the ultimate goal is to reign in the large denominations. I know that they obviously make money selling their currency with a spread. However, it seems to me if they were truly going to revalue their currency in the near term, why continue to sell the currency knowing it's going to cost you a hell of a lot more money to get those large denominations back to the CBI. Maybe that's not the way it works but can anyone help explain?

Thanks!

They will keep selling currency as long as there is currency and a spread. They make it off the spread whether it's 1170 to 1 or 1 to 3 . Kinda like a bookie. As long as someone is willing to buy it and someone is willing to sell it, it's a endless cycle. Plus i've been told that most large dealers work off of buyback dinars a lot. They have people that buy in and sell out on a monthly basis. COD's not picked up, reserves expired, etc.

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I'm having trouble understanding why the CBI would sell directly to currency dealers (or anyone for that matter), if the ultimate goal is to reign in the large denominations. I know that they obviously make money selling their currency with a spread. However, it seems to me if they were truly going to revalue their currency in the near term, why continue to sell the currency knowing it's going to cost you a hell of a lot more money to get those large denominations back to the CBI. Maybe that's not the way it works but can anyone help explain?

Thanks!

Real quick in layman terms to explain this...one of the purposes of the plan included the reason for the GWB's presidential order allowing investors to invest in Iraq and purchase the IQD let alone the worlds other countries. By doing this allowed the CBI to sell their dinar (dinar dealers), was just one of the ways for the CBI to attain a fat reserve which also is how CBI was allowed to fight inflation and maintain one of the lowest in the world, which in the end will result in Iraq being able to do what is fixing to happen...IE RV/RI.

If I am way off on this I apologize and maybe someone could straighten this out...

I hope this helped.

Edited by tbush
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I'm going to play Devil's Advocate here for a minute. It is not necessarily what I believe so take it easy with the -1's

Iraq could be fixing to screw everyone.

they sell the hell out of the Dinars from 2003-2013 while keeping the rate 1170. They fatten up their reserves with USD's which are basically for free.

In 2013, they roll out the new IQD and tell everyone the IQD we hold now is worthless---basically robbing all of us of our money.

Yea this would piss off the world, BUT in the long run it would greatly benefit Iraq.

Not saying I believe this to be the case, which I do not...but it is a possibility :o

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Also, when we cash in the IQD, the IQD will go to the US Treasury/Federal Reserve to where these agencies will be destroying/removing the large notes for CBI while all of the funds will at this time be electronic.

They will not be physically shipped back to CBI

Edited by tbush
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See this truly concerns me not saying you don't know what your doing but do you truly understand how currency works or did you jump into an investment that someone told you would get rich off of? The US as well as every bank in the world sells currency everyday not just Iraq they are not making a killing of anything. If you look at the forex you see everyone of those currencies well there government has sold that currency and when you play the forex you investing/gambling that the value of that currency will go up. Most currency's are tied to the US dollar so when US dollar sinks they go up in vale and if the value of a US dollar rises they go down. But the are some countries that are back more by gold or in the case of Iraq or any other middle eastern country Oil usually supports their value. While gold back money doesn't fluctuate as much a US dollar back. Sorry Tbush, GWB only made it legal to buy Iraqi tender he had not real hand in how its value is effected they were going to be on the market truly not matter what GWB just made it legal to trade for us as investors. The CBI is not making tons of money by selling there currency all they are doing is putting USD or any other currency in there exchanges. No one is making tons of money anywhere. Also it will take Iraq almost nothing to draw the large bills back in because you will not be selling it back to them your self you will take you currency to a bank and they will give you the lowest amount possible that you willing to take. Dont fool your self either you will get the lowest amount possible the bank will the in turn sell it back to the treasury department for a mark up a small one nothing extreme they will make somewhere between 1-5%. Then our treasury will then trade the 000's dinar back to the Iraq government in trade for there most valuable commodity which happen to be Oil, the US will pay a set amount for each barrel which will be substantially lower than market value for example $50USD per barrel, which Iraq can produce for somewhere in the 5-15 USD per barrel range. So in the end the only ones making big money is the governments after all is done and they make the trades then sell it back to us and then Tax everyone on each step of the process. Remember nothing has changes in thousands of year to victor goes the spoils of war and guess what the US goverment wants they spent ther billions to get here not they want their spoils.

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Justin88 although I agree with you on how currency works and yes it's done every day, I do respectfully disagree on your version as to why GW Bush did what he did. This Iraq situation has been in plan years long before Bush Jr. gave the orders to invade Iraq and greater minds that be to include Bush knew and did know exactly the turnout of interests involved in this and the aquired goals at hand.

Nothing physical will go back to Iraq as everything used to buy oil from the US will be most likely in IQD only electronically.

I do feel that ultimatley the oil purchasing that has always been based by the US dollar will change.

Thanks for the debate..

Edited by tbush
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They will keep selling currency as long as there is currency and a spread. They make it off the spread whether it's 1170 to 1 or 1 to 3 . Kinda like a bookie. As long as someone is willing to buy it and someone is willing to sell it, it's a endless cycle. Plus i've been told that most large dealers work off of buyback dinars a lot. They have people that buy in and sell out on a monthly basis. COD's not picked up, reserves expired, etc.

isn't the dinar iraq's #2 leading export?? besides oil... thats a message right there...

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Then our treasury will then trade the 000's dinar back to the Iraq government in trade for there most valuable commodity which happen to be Oil,

How many barrels of oil will Iraq have to give away to US to reclaim their formerly worthless currency?? How long will it take for Iraq to provide all the barrels to pay for the RV? How will our government front the RV, until Iraq can produce enough to meet the debt? Where exactly are the funds to cover?

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How many times will the same information be hashed over and over. It has been discussed ad nauseum in the forums and I have only been in a few months. I can only imagine the people that have been waiting years are really getting tired of having the same questions asked every single week without the person doing any research themselves.

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It is my opinion that they will profit even more because most of it will come back in as oil credits by other countries. So they are backing there currency with there oil reserves. They make money on the way out and sell oil when it comes back. It is a win win situation. So lets just do it already. :rolleyes:

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It doesn't make sense does it. No matter what anybody tells you. Everyone in the grandma's owns dinar. Either one day you in your grandma and everyone on your block will be millionaires, or will never no you invested and lost a few bucks on fee's.

What do you think is more logical?

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How many times will the same information be hashed over and over. It has been discussed ad nauseum in the forums and I have only been in a few months. I can only imagine the people that have been waiting years are really getting tired of having the same questions asked every single week without the person doing any research themselves.

Well said!

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The only thing your missing is that the CBI is'nt the entity selling the IQD to the dealers. They are auctioning to the banks in-country. In their mandate they are forbidden to sell IQD outside of Iraq as the currency belongs to the people of Iraq. So don't blame the CBI for doing their job.

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