Popular Post proteus Posted July 30, 2011 Popular Post Report Share Posted July 30, 2011 Ok Friends, Here ya go... I listen to Tony Breitlings audios regularly, as I like his logical train of thought, So, I learned that asking the right questions will get you the right answers.... and that regularly he states that when he cashes in, he's just going to go to BofA, and that regularly everyone says it so much cheaper to go to ALI or other places, that only charge a FLAT RATE for the exchange(Ali says $150 per Million IQD), instead of going directly to a local bank of my choice... everyone has heard this... Well Now here is my story... I have avoided getting involved in Rumors or BANK STORIES, on purpose, cause I hold my cards close to the chest in games like this... So today the Bank of America is open from 9am to 2pm on Saturdays, and I go in to cash a check, and use my debt card to avoid monthly account charges! So my friend is the Bank Manager in this branch, not a teller, not a greeter, THE MANAGER... and I'm thinking to myself, How can i get some good currency Info(Reliable Info), and not tip my hand to them, so i start the conversation asking about random currency exchange questions and policies, knowing that I do not want to explicitly ask about the IQD, i ask about currency exchanges in general... Questions like these... "What does the bank charge for a percentage on currency exchanges?", "How do they get the rate or updates on the rate?", "Who designates the rate of exchange?" and "How does the exchange occur...CASH?...ACCOUNT DEPOSIT?, HOW?" So here is what she answered me to the questions I asked... "What does the bank charge for a percentage on currency exchanges?" "She Said: that the bank does not charge a percentage to exchange currency, it is an even exchange for the rate!" "How do they get the rate or updates on the rate?" "She Said: Every Morning they get an update from the TREASURY!" "Who designates the rate of exchange?" "She Said the FED is the one that designates the RATE and it is updated daily, every morning!" "How does the exchange occur...CASH?...ACCOUNT DEPOSIT?...DAYS WAITING TO BE AUTHENTICATED... HOW?" "She Said: The exchange is made at the teller window, They have a big book listing all acceptible currencies, and unless it is done by a drop deposit transaction in the drop box, or by a private banker, which then the transaction is done privately in a confidentially stall, for the customers benefit, and that usually for larger transactions an appointment would be nice to schedule ahead of time, but the appointment is not needed if the customer would like to wait for their turn, in the banks waiting area!" SO, being myself, an inquiring mind... I went on to ask more questions, I still did not mention the IQD, as I did not want her to clam up and feel uncomfortable .. So I asked: "How does the bank make money on the transaction if they make no percentage on the transaction?" "She told me that the rate comes directly from the FED and they payout that specified rate, but that the rate they pay, does not mean that, the rate paid to customers is the same rate the FED pays the BANK for redemption of the currency!" We also talked about the spread between the BUY and SELL Prices, and "How to BUY CURRENCY the buyer pays the SELL RATE, and to SELL CURRENCY the seller pays the BUY RATE, and How confusing this process was to the average customer... SO, Seeing my chance to clarify this further I made an analogy to her... I said: "So it is kinda like Pop Bottles, the deposit rate that i receive from the bottle, is like the FED rate that banks pay directly to their customers for the transaction, and as such, the store who redeems the Pop Bottles is not doing this for free, they have employee labor involved and temporary storage, as well as liability while in storage, and so, the Distributor or Bottler whom buys the Pop Bottles back from the store, Provides them a greater rate than the pay-out transaction rate, that the customer receives from the store!" She Said: YES, Exactly, that she had never thought of it like that, as she never considered the comparison, but that this analogy I provided her was an excellent example of the process, that the BANK experiences!" SO, the moral of the story is: That the FED can set whatever rate they want to redeem foreign currency, and that the IMF sets guidelines to the rate, but that does not mean that the FED has to offer that rate, they could offer more or less, just like currency traders do, and just because standardized rates are stated by the FOREX or IMF or CENTRAL BANK, the FED can specify any rate it wants, and if you do not like the rate of exchange, you can exchange the currency to another exchange source, on the open market! Understandably, like any other thing in life, the value of anything is what it is worth to whom wants it... and the fact is, that BANKS can not exchange your money and then take it to a foreign country to trade it in, THEY MUST use the FED as the Middle Man for the transaction to get their money back, Simple as that... and the bank does make a profit on the transaction, outside of the stated rate of exchange when they redeem it to the FED... PLEASE UNDERSTAND, this is only BANK of AMERICA practices, or so I was directly told by the BANK MANAGER, other banks could and probably do have other practices internally, and other policies specific to that bank! BUT when the time comes, "Do Not Be Afraid to go to your bank and ask what the percentage is on the foreign currency transaction?" BEST WISHER, Hope this helps, Proteus 35 Link to comment Share on other sites More sharing options...
Choppermike Posted July 30, 2011 Report Share Posted July 30, 2011 Great post dude!!!!! Link to comment Share on other sites More sharing options...
Alex38 Posted July 30, 2011 Report Share Posted July 30, 2011 Thank you for the info!!! Link to comment Share on other sites More sharing options...
DAME1 Posted July 30, 2011 Report Share Posted July 30, 2011 I don't know if I'm allowed to say this..... if I'm wrong Sorry you can delete me...I heard from someone who buys their dinars from another place that they could lock into the CBI rate if they exchanged with them, but you are locked in....if the rate comes in low well that's going to be ugly, but if it comes in higher than expected then they are supposed to give you the actual CBI rate - 150 per million transaction fee. I heard that from another investor so.....I would love to be faced with this dilemma !!!!!!! Right now!!! Link to comment Share on other sites More sharing options...
crnamiss Posted July 30, 2011 Report Share Posted July 30, 2011 Thanks for the information Proteus Link to comment Share on other sites More sharing options...
dog53 Posted July 30, 2011 Report Share Posted July 30, 2011 +1 Excellent !! Link to comment Share on other sites More sharing options...
SPECIAL LADY Posted July 30, 2011 Report Share Posted July 30, 2011 An honest to goodness information source for the first time. I wonder though, would they change their practice if lots of customers came in with millions to cash in? hmmm!!!! 1 Link to comment Share on other sites More sharing options...
tim5400 Posted July 31, 2011 Report Share Posted July 31, 2011 ty good post Link to comment Share on other sites More sharing options...
Spiff Posted July 31, 2011 Report Share Posted July 31, 2011 Good post. Thank you! Link to comment Share on other sites More sharing options...
capt.cliff Posted July 31, 2011 Report Share Posted July 31, 2011 I always thought that if you traded in your dinars to a US bank that you would get the fed stated rate---they are the middleman here and want to get the best DEAL for your transaction to a US bank---thier deal is already cut --if you think that the bank is only getting thier front end fee from you usually a low fee ,feel your head becuase they will benefit on the back end from the FED and receive a check back from the Fed--normal business if you don't believe this put your head back between your legs and kiss yourself---the FED wants to redeem the exchange as cheaply as possible ,even with the pay back to the bank so The Fed can resell the currency at the highest exchange rate as possible--- in this case not the CBI but they will get that rate as a bench mark but IQDS for oil ,the price can fluctuate all it wants as the price of a barrel of oil has been preset for redemetion--just need to get our dinar as cheaply as possible to maxinize the fullest potential! NOW Adams offer with the VIP is good ,He has made arrangements to GET the best possible deal on spread and fees---the reason is the Banks can see by doing a massive volume in exchanges they can charge less, off more attractive rates and make up in spades by the VOLUME of transactions--- I am not a pumper for Adam but think about the logic of all this---we often look to quickly and make hasty decisions---think about it just about all of the gurus and pumperssay quietly somewhere about you looking for the best deal with all banks before cashing in all the while shouting why it is best to cash in with them. LAST thing I am going to say is I am hesitant about cashing in with anyone who has ANY cloud of suspicion about thier business practises in the last 6 months--one thing shipping out your purchase ,another thing cashing in and waiting for your money ---that makes me nervous to no end. take the best deal you can find---don't get greedy, pay your taxes, never buy more than you can afford even if the intell says RV in 24 hrs. capt cliff 1 1 Link to comment Share on other sites More sharing options...
NevadaAl Posted July 31, 2011 Report Share Posted July 31, 2011 Thank you very much for this informative post proteus! Link to comment Share on other sites More sharing options...
redsand Posted July 31, 2011 Report Share Posted July 31, 2011 Yeah! This guy is someone I trust! I like it. Link to comment Share on other sites More sharing options...
zantac Posted July 31, 2011 Report Share Posted July 31, 2011 "So it is kinda like Pop Bottles, the deposit rate that i receive from the bottle, is like the FED rate that banks pay directly to their customers for the transaction, and as such, the store who redeems the Pop Bottles is not doing this for free, they have employee labor involved and temporary storage, as well as liability while in storage, and so, the Distributor or Bottler whom buys the Pop Bottles back from the store, Provides them a greater rate than the pay-out transaction rate, that the customer receives from the store!" You have got to be S*****G me man, if you had a conversation with a bank manager at such lengths’ for FREE & no disrespect to the ladies on DV She YES she had this knowledge in her head without going to ask someone or going to a reference book she (SHE) must be virgin bloody Marie Not buying this 4 8 Link to comment Share on other sites More sharing options...
CAPT JACK Posted July 31, 2011 Report Share Posted July 31, 2011 Great Post So now we know the FED will make money of the exchanges we make and then tax us afterwards. Perfect solution for the Debt crisis. Link to comment Share on other sites More sharing options...
keepmwlknfny Posted July 31, 2011 Report Share Posted July 31, 2011 I find it funny he says he will be using BOA to cash in when they don't have any plans to deal with the dinar period......just add it to the rest of the list of things he mentions that don't make much sense I guess.....not bashing you proetus....but good thing you didn't ask them bout dinar.... 2 1 Link to comment Share on other sites More sharing options...
cisole Posted July 31, 2011 Report Share Posted July 31, 2011 thanks for the post proteus Link to comment Share on other sites More sharing options...
Doc31 Posted July 31, 2011 Report Share Posted July 31, 2011 (edited) You have got to be S*****G me man, if you had a conversation with a bank manager at such lengths’ for FREE & no disrespect to the ladies on DV She YES she had this knowledge in her head without going to ask someone or going to a reference book she (SHE) must be virgin bloody Marie Not buying this OTFLMAO ... OMGosh ... you mince words my friend! Nah ... it didn't track for me either ... I checked with 5th third more than a year ago and found that the TREASURY's rate was 17% on either side of the "buy-actual-sell" prices of KWD ... phrased more succinctly ... a 34% spread on KWD I know I've heard all sorts of reports that "NO CURRENCY IN THE HISTORY OF THE WORLD HAS BEEN MORE THAN 10%" ... Bollocks! is it my English friend? At the same time I asked about an all time favorite the EUR ... 10.5% on either side of the "buy-actual-sell" price ... read that as 21% spread on EUR. Folks ... shop around ... that's the answer ... sales people ... bank managers ... yes they are trying to sell you on their services ... are trying to get their piece of the pie ... from your piece of the pie ... regardless of the fact that they didn't invest in any pie! "SHOP AROUND" Again, thanks Zantac ... got a good chuckle from your very British understated post ... lol ... I gave you a "+" but they are already on you my friend! Peace Doc31 Edited July 31, 2011 by Doc31 1 Link to comment Share on other sites More sharing options...
proteus Posted July 31, 2011 Author Report Share Posted July 31, 2011 DOC, That was one of the points I was hoping to make behind this post... read everything, believe far less, execute what works for you so like DOC Said: SHOP AROUND as you will not know, what you have, until you ask! IMHO, I simply suggest you wait until the time is right, to ask obvious questions like I tried to avoid, BUT, this was the truth... it happened to me! and most of all... I agree that: BANK EMPLOYEES are not told anything more than they need to know to do their daily job, BUT, because someone seems oblivious to the questions you are asking, does not mean that they do not know the answer to what you asked! BEST WISHES... Proteus 1 Link to comment Share on other sites More sharing options...
wookie Posted July 31, 2011 Report Share Posted July 31, 2011 Thank you very much proteus. Link to comment Share on other sites More sharing options...
randalln Posted July 31, 2011 Report Share Posted July 31, 2011 Thank You finally someone went inside I find it funny he says he will be using BOA to cash in when they don't have any plans to deal with the dinar period......just add it to the rest of the list of things he mentions that don't make much sense I guess.....not bashing you proetus....but good thing you didn't ask them bout dinar.... They will when they see the spread 1 Link to comment Share on other sites More sharing options...
chara55 Posted July 31, 2011 Report Share Posted July 31, 2011 I bank with Bank of Colorado I flat out ask them about the Dinar and I was told that they would cash me in at 15.00 no matter how much i had, He said.... BUT as of now it is not a tradable currency he said when it was he would be more than happy to handle the transaction. I guess my point is you can probably do better with your own bank than paying 150.00 per Million God Bless Go RV 1 Link to comment Share on other sites More sharing options...
Carrello Posted July 31, 2011 Report Share Posted July 31, 2011 I bank with Bank of Colorado I flat out ask them about the Dinar and I was told that they would cash me in at 15.00 no matter how much i had, He said.... BUT as of now it is not a tradable currency he said when it was he would be more than happy to handle the transaction. I guess my point is you can probably do better with your own bank than paying 150.00 per Million God Bless Go RV The $150 is just the fee to use their service. You also pay a spread, the difference in what the CBI price is, and what BoC will pay you. Look at it like wholesale and retail. I can sell your widget for $200, so I want to buy your widget from you for $100 to make some money, or the spread, plus I charge you a fee of $150 for my services. The spreads will vary, so you need to shop around. Don't forget that you have a lot of leverage in this case. The banks need you to make the money, and the more dinar you have, the more leverage. There are exchangers that should be looked at too 1 Link to comment Share on other sites More sharing options...
Dinariana Posted August 1, 2011 Report Share Posted August 1, 2011 You have got to be S*****G me man, if you had a conversation with a bank manager at such lengths’ for FREE & no disrespect to the ladies on DV She YES she had this knowledge in her head without going to ask someone or going to a reference book she (SHE) must be virgin bloody Marie Not buying this I'm completely puzzled by this bizarre comment. Perhaps I don't understand what you're saying. Are you saying that you don't think you can have a lengthy conversation with a bank manager for free? I have done so many times...are you saying that this knowledge of how to exchange some foreign currency is so involved that you don't think a bank employee or manager could know it without looking it up? It sounds like standard procedure to me. And you're saying that a woman could not retain that amount of information? 1 Link to comment Share on other sites More sharing options...
nnnorrie Posted August 1, 2011 Report Share Posted August 1, 2011 I thought this post was reliable because I went thru the same thing with Wells Fargo. Just not the same length of time. And I did say it was the Dinar.she said as soon as it shows up on the computer they will cash in for no charge. I think they will make money when they sell it but it's good for them also to have all that money in their bank....duh ! Link to comment Share on other sites More sharing options...
Recommended Posts