crazy bid/offer spread

[WorkerBee]

If everyone could get past the "it's a scam" part of this post for a second please. How do you think Mr. Montana was able to negotiate a great rate for his VIP's? The larger the deal the better the rate. These banks have pricing models, it's pretty much an exact science. Those that have a lot of money get better deals. Do you for one second think that the person cashing in 1 million dinar is going to get the same deal/spread as someone cashing in 10 million? There is such a thing called exception pricing and it is used for high valued clients. High valued clients are aware of this and use it to their advantage all t he time.

I"m just asking for those of you with an open mind to please go back and read for understanding. I would not be so eager to dismiss the entire post just because he said it was a scam. The dinar dealers are making a killing.

[BlueJeanBaby]

If everyone could get past the "it's a scam" part of this post for a second please. How do you think Mr. Montana was able to negotiate a great rate for his VIP's? The larger the deal the better the rate. These banks have pricing models, it's pretty much an exact science. Those that have a lot of money get better deals. Do you for one second think that the person cashing in 1 million dinar is going to get the same deal/spread as someone cashing in 10 million? There is such a thing called exception pricing and it is used for high valued clients. High valued clients are aware of this and use it to their advantage all t he time.

I"m just asking for those of you with an open mind to please go back and read for understanding. I would not be so eager to dismiss the entire post just because he said it was a scam. The dinar dealers are making a killing.

I read that part and responded to it. If there are fools who will pay the exorbitant fees, why shouldn't a shyster try to make a buck? I have no problem with that - it's spot on, actually.

What I DO have a problem with is this guy who comes in here out of the blue and makes it sound like he's doing us a favor by telling us something that we don't already know.

I really wish they'd just tell us the OTHER nickname that we know them as and end the charade.

[realfxtrader]

For those of you wondering why I posted...let me answer. The reason is that I'm partly curious...and very annoyed by the number of dinar calls that my team takes each day. We're trying to do legitimate business and I get these idiots on the phone telling me that my bank is one of the major Iraqi dinar dealers and accuse me of lying to them when I say we don't deal in dinar. What am I supposed to say to someone like that? I recently learned that a relative of mine bought a grand or so worth of dinar. I suppose that's what really made me mad. I've seen hundreds of scams over the last 15 years working at the bank, but this one really takes the prize. The sad thing is that selling paper currency for absolutely crazy exchange rates is perfectly legal...which is why this scam has been around so long.

Best of luck folks. I think you stand a better chance investing in an aggressive portfolio of lottery tickets.

[magicchris]

For those of you wondering why I posted...let me answer. The reason is that I'm partly curious...and very annoyed by the number of dinar calls that my team takes each day. We're trying to do legitimate business and I get these idiots on the phone telling me that my bank is one of the major Iraqi dinar dealers and accuse me of lying to them when I say we don't deal in dinar. What am I supposed to say to someone like that? I recently learned that a relative of mine bought a grand or so worth of dinar. I suppose that's what really made me mad. I've seen hundreds of scams over the last 15 years working at the bank, but this one really takes the prize. The sad thing is that selling paper currency for absolutely crazy exchange rates is perfectly legal...which is why this scam has been around so long.

Best of luck folks. I think you stand a better chance investing in an aggressive portfolio of lottery tickets.

OK got it, the rates are really bad, but why do you call it a scam. Do you think there will be any ROI at all?

[WorkerBee]

I read that part and responded to it. If there are fools who will pay the exorbitant fees, why shouldn't a shyster try to make a buck? I have no problem with that - it's spot on, actually.

What I DO have a problem with is this guy who comes in here out of the blue and makes it sound like he's doing us a favor by telling us something that we don't already know.

I really wish they'd just tell us the OTHER nickname that we know them as and end the charade.

Ok, I guess my take was different from yours. BUT, I totally understand how you feel. Been there, done that.

[YaTaHe]

For those of you wondering why I posted...let me answer. The reason is that I'm partly curious...and very annoyed by the number of dinar calls that my team takes each day. We're trying to do legitimate business and I get these idiots on the phone telling me that my bank is one of the major Iraqi dinar dealers and accuse me of lying to them when I say we don't deal in dinar. What am I supposed to say to someone like that? I recently learned that a relative of mine bought a grand or so worth of dinar. I suppose that's what really made me mad. I've seen hundreds of scams over the last 15 years working at the bank, but this one really takes the prize. The sad thing is that selling paper currency for absolutely crazy exchange rates is perfectly legal...which is why this scam has been around so long.

Best of luck folks. I think you stand a better chance investing in an aggressive portfolio of lottery tickets.

We are dealing in currency. Not Amway. I have heard the same thing.

[Jaxinjersey]

For those of you wondering why I posted...let me answer. The reason is that I'm partly curious...and very annoyed by the number of dinar calls that my team takes each day. We're trying to do legitimate business and I get these idiots on the phone telling me that my bank is one of the major Iraqi dinar dealers and accuse me of lying to them when I say we don't deal in dinar. What am I supposed to say to someone like that? I recently learned that a relative of mine bought a grand or so worth of dinar. I suppose that's what really made me mad. I've seen hundreds of scams over the last 15 years working at the bank, but this one really takes the prize. The sad thing is that selling paper currency for absolutely crazy exchange rates is perfectly legal...which is why this scam has been around so long.

Best of luck folks. I think you stand a better chance investing in an aggressive portfolio of lottery tickets.

But, you don't know what will happen. That is what is annoying. And if you do know for sure that it will never RV/RI, please post your proof for all to see, so that you will save us from ourselves. You speak with arrogance and in absolute terms... that in itself is dishonest. Provide more evidence...

[YaTaHe]

But, you don't know what will happen. That is what is annoying. And if you do know for sure that it will never RV/RI, please post your proof for all to see, so that you will save us from ourselves. You speak with arrogance and in absolute terms... that in itself is dishonest. Provide more evidence...

Are you sure as to what you will pay at the pumps tomorrow when you go to get gas? Nothing in this life is a SURE THING. Otherwise, we would all be rich,.....Right?

[realfxtrader]

It's certainly possible that the dinar will strengthen relative to the dollar, but it's not going to make anyone rich. Let's say that it gained 40% relative to the dollar. That would be a massive move for any currency... and it still wouldn't make up for the horrible spread you paid to buy the dinar. I talked to a guy a few weeks ago that had bought about $25k worth of dinar and thought it was going to worth $50 million or so. After a few years of holding the dinar, he'll probably sell it back to some dinar website for $15k and they'll turn around sell it to some new investor. The folks buying and selling dinar are making an absolute killing.

[YaTaHe]

It's certainly possible that the dinar will strengthen relative to the dollar, but it's not going to make anyone rich. Let's say that it gained 40% relative to the dollar. That would be a massive move for any currency... and it still wouldn't make up for the horrible spread you paid to buy the dinar. I talked to a guy a few weeks ago that had bought about $25k worth of dinar and thought it was going to worth $50 million or so. After a few years of holding the dinar, he'll probably sell it back to some dinar website for $15k and they'll turn around sell it to some new investor. The folks buying and selling dinar are making an absolute killing.

This investment is what it is....an investment..The people that are selling it are in it to make money too. Isn't everyone? This is a crap shoot at best. Have a beer and chill out. either it happens, or it doesn't Hopefully, you haven't invested more than you can afford to loose.

[magicchris]

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Edited June 30, 2011 by magicchris

[realfxtrader]

Good night folks. I'm confident that when I pull up IQD on my Bloomberg terminal tomorrow that it will show the exact same exchange rate it showed today. I may or may not visit this chat room again. I do feel better after posting here...kind of therapeutic in a way. I'm sorry if this depressed anyone, but if I keep even one person from investing more of their hard earned savings in this so-called investment then I've done a good thing. I feel especially bad for the men and women of our armed forces that have fallen victim to this. They deserve better...

[YaTaHe]

The OP posted this was a scam, and gave great reasons which I agree with about how we are over the barrel with what most of us are paying for for our investment. I agree with that 100%. But what i do not understand is where is the scam? Iraq will either RI, RV, or RD. i think these are the only options. No matter which way they go, you can get a return on your investment. Whether it is here in the US or you have to go to Iraq. You WILL get a return on your investment. Therefore I do not see how this is a scam.

This is just my opinion.

It is a gamble.....Straight up.

[Kanga]

I'm a Director on the fx desk of a major bank. We get dozens of calls about IQD each day. Unfortunately, we don't deal in dinar (although most of the callers think I'm lying) and have no plans to ever deal in dinar. I'm really jealous of whoever is running this scam though. My bank makes hundreds of millions of dollars each year on spread revenue... i.e. the difference between the interbank rate and the rate we offer to customers for wires, trades, etc. The MOST we ever spread a trade is 4% relative to the interbank rate...and most transactions are priced much tighter than that. In fact, for really large corporate clients we're lucky if we make any money at all on some transactions where they're pricing us against several other banks. Anyway, the websites selling Iraqi dinar are charging a FIFTY PERCENT (50%) spread. For example, the dinar is currently pegged to the dollar at 1169 to 1. That means that 1MM dinar should cost $855 (1MM divided by exchange rate). However, I often see prices in the range of $1200 for one million dinar. That's crazy...

Anyway, I firmly believe that it's all a scam when it comes to the revaluation stuff. Sorry to be the bearer of bad news... not that anyone here will listen to me though.

Actually their spead is high, but how about you. Would your spead be higher if the deals you dealt in were under 2000 dollars??

I am thrilled with First Convience bank at their rate of about 1050 dollars for a million Dinars, if you take out charges, that leaves them with about 200 dollars. They probably put in up to 4 manhours to get it to me. Yes 50 dollars an hour may seem a lot. As a business owner I certainly am not outraged by them getting a profit. That is what capitalism is all about. Just my

[magicchris]

Good night folks. I'm confident that when I pull up IQD on my Bloomberg terminal tomorrow that it will show the exact same exchange rate it showed today. I may or may not visit this chat room again. I do feel better after posting here...kind of therapeutic in a way. I'm sorry if this depressed anyone, but if I keep even one person from investing more of their hard earned savings in this so-called investment then I've done a good thing. I feel especially bad for the men and women of our armed forces that have fallen victim to this. They deserve better...

Just in case you do decide to look again.

If Iraq re-denominates, we will have an option to exchange our currency. Whether it is here in the US or in Iraq we WILL be able to exchange out currency. There is no question about that. At that point we will be able to ride it up as it WILL naturally increase in value.

If it RV's or RI's well....that will be a great day.

This is not a scam at all.

[BlueJeanBaby]

For those of you wondering why I posted...let me answer. The reason is that I'm partly curious...and very annoyed by the number of dinar calls that my team takes each day. We're trying to do legitimate business and I get these idiots on the phone telling me that my bank is one of the major Iraqi dinar dealers and accuse me of lying to them when I say we don't deal in dinar. What am I supposed to say to someone like that? I recently learned that a relative of mine bought a grand or so worth of dinar. I suppose that's what really made me mad. I've seen hundreds of scams over the last 15 years working at the bank, but this one really takes the prize. The sad thing is that selling paper currency for absolutely crazy exchange rates is perfectly legal...which is why this scam has been around so long.

Best of luck folks. I think you stand a better chance investing in an aggressive portfolio of lottery tickets.

What you're supposed to do is DO YOUR JOB, keep taking the calls, and eventually things will die down.

Between now and then, pull up your big boy pants and leave us be!

The ONLY thing that's even remotely 'scam-like' are the ones jacking up the rates for buying the dinar - but, again, if there are suckers who pay for it, who's fault is it!? PT Barnum said it best: "There's a sucker born every minute."

As for me, I got my dinar at a legitimate currency exchange place and only paid $3.00 for the transaction fee each time I went there (yes, three dollars. I didn't purchase that much, but even if I wanted to get a million dinar, or however much they had to clean them out, the most they would have charged me is $15. That is their cap.) Until it either revalues, or it is announced that the currency will not revalue by the CBI, I will remain hopeful, optimistic, and otherwise positive about what may come. Given all of the strides that Iraq has taken to become a full member of the WTO, getting their government in place, etc ... why NOT believe in it? It just might happen ... right? YOU can't say for sure one way or another, can you?

REALLY ... what is your point in coming here? Everyone knows that you're not telling us anything we don't already know, so why not just come clean?

[Jaxinjersey]

Good night folks. I'm confident that when I pull up IQD on my Bloomberg terminal tomorrow that it will show the exact same exchange rate it showed today. I may or may not visit this chat room again. I do feel better after posting here...kind of therapeutic in a way. I'm sorry if this depressed anyone, but if I keep even one person from investing more of their hard earned savings in this so-called investment then I've done a good thing. I feel especially bad for the men and women of our armed forces that have fallen victim to this. They deserve better...

You seem to skirt people's legitimate concerns and questions... perhaps because you can't answer them. That's fine, but just say so... instead of being the guy that just wants to say "I told you so!" Personally, I find it rather condescending for you to tell any of us "you know better"... because you work at a bank. If I listened to all the "experts" over my years... I would have missed out on many opportunities. I prefer to make my own decisions, like most here. So, respectfully, thank you for your "warning" as I will call it... and hope you will find other places than here to provide your advice...

[BlueJeanBaby]

Just in case you do decide to look again.

If Iraq re-denominates, we will have an option to exchange our currency. Whether it is here in the US or in Iraq we WILL be able to exchange out currency. There is no question about that. At that point we will be able to ride it up as it WILL naturally increase in value.

If it RV's or RI's well....that will be a great day.

This is not a scam at all.

Sweetie ... if it re-denominates, why exchange your bills? Unless you actually live in Iraq, you can't spend it on anything -right? So it's pointless to exchange big bills for smaller when you can't spend them.

If it re-denominates, I'll keep mine close at hand for the revaluation that should follow ... but there's really no need to switch them in for smaller ... which, now that I think of it, will likely be impossible in any case. I can't see the CBI sending out smaller bills to the banks in the US and around the world. What would be the point?

For me, it's RV or bust, all the way. This isn't a scam. I totally disagree with the one who claims to work at FOREX.

[magicchris]

Sweetie ... if it re-denominates, why exchange your bills? Unless you actually live in Iraq, you can't spend it on anything -right? So it's pointless to exchange big bills for smaller when you can't spend them.

If it re-denominates, I'll keep mine close at hand for the revaluation that should follow ... but there's really no need to switch them in for smaller ... which, now that I think of it, will likely be impossible in any case. I can't see the CBI sending out smaller bills to the banks in the US and around the world. What would be the point?

For me, it's RV or bust, all the way. This isn't a scam. I totally disagree with the one who claims to work at FOREX.

Truth be told, I wont travel to Iraq if the CBI decides to exchange in country only. If it RD's and they have to be turned in in country. I'm not that invested that much to travel.....lol.....

But for those that have $40,50,60Mil+ it is certainly worth the trip and deposit in an account while you are there. and ride the rate up. It will go up, there is no doubt. It will go higher then 1170/1.

Therefore in regards to OP, this is not a scam.