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Investing in Iraqi Dinar ~ Cash, Warka or ISX

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This is an attempt to re-emphasize that: prior to the inevitable redenomination of the existing Iraqi Dinar banknotes and coins, the only way to truly invest in the IQD and actually see a return on your investment is to open a Bank account inside Iraq and then wait for an international revaluation of the IQD against the USD.

Note the following:

In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation’s money supply.

The other part of a nation’s money supply consists of bank deposits (sometimes called deposit money), ownership of which can be transferred by means of cheques, debit cards, or other forms of electronic money transfer.

Nearly all contemporary money systems are based on fiat money ~ that is to say modern currency has value only by government order (fiat) and is not backed by gold or silver or oil or even sea shells. Having a lot of oil does not necessarily mean a country will have a high value currency.

Usually, the government declares the fiat currency (typically notes and coins issued by the central bank) to be legal tender, making it unlawful to not accept the fiat currency as a means of repayment for all debts public and private.

In most cases, each private central bank has a monopoly control over the supply and production of its own currency.

To facilitate trade between these currency zones, there are different exchange rates, which are the prices at which currencies (and the goods and services of individual currency zones) can be exchanged against each other.

Currencies can be classified as either floating currencies or fixed currencies based on their exchange rate regime.

Altering the face value of a currency without reducing its (fixed) foreign exchange rate is a redenomination, not a revaluation.

Revaluation (RV) means a calculated rise in a country’s official (fixed) foreign exchange rate of its own currency, relative to another country’s currency.

Mazhar Mohammad Saleh, a senior member of the CBI Advisory Panel has repeatedly stated publicly that the GOI has adopted a CBI two-pronged plan to restructure the national currency ~ physical banknotes and coins.

One prong is the long overdue (domestic) redenomination of the existing large denomination banknotes by introducing new banknotes and coins into circulation.

The other prong is an (international) revaluation of the new banknotes and coins to increase the value of the IQD against the USD.

Iraqi Dinar Currency

Existing banknotes with the (current) CBI fixed exchange rate of 1:1170, can only be used inside Iraq, will never be used internationally and will never be able to be universally exchanged outside of Iraq.

Existing IQD Banknotes:

• IQD 25,000 = $US 21.37

• IQD 10,000 = $US 8.55

• IQD 5,000 = $US 4.27

• IQD 1,000 = $US 0.85

• IQD 500 = $US 0.43

• IQD 250 = $US 0.21

• IQD 50 = $US 0.04

There are also IQD 100 and IQD 25 coins but they are not currently in circulation, and are not for sale to foreign investors on the Internet.

New banknotes with the anticipated CBI fixed exchange rate of 1:1.17 are still yet to be issued, will replace the existing notes and the USD over time; and will be able to be exchanged and used for purchases outside of Iraq ~ only after an official international revaluation has been established.

New IQD banknotes and coins not yet issued:

• IQD 100 = $US 85.47

• IQD 50 = $US 42.74

• IQD 25 = $US 21.37

• IQD 10 = $US 8.55

• IQD 5 = $US 4.27

• IQD 1 = $US 0.85

• IQD 0.50 = $US 0.43

• IQD 0.25 = $US 0.21

• IQD 0.10 = $US 0.09

• IQD 0.05 = $US 0.04

When the redenomination process starts these new banknotes and coins with their new CBI (fixed) exchange rate will be introduced into circulation and will co-exist with the already existing banknotes and their old CBI (fixed) exchange rate until the existing notes are sufficiently removed from circulation ~ to the satisfaction of the CBI.

In the recent past (2003) when the existing notes replaced those with Saddam’s picture on them inside Iraq, the process took approximately 90 days.

Since the existing notes will never have the new exchange rate attached to them, they will not even be useful for future interbank transfers inside Iraq and will likely just be destroyed once they have been collected.

In a practical everyday sense, it will be as if there were two separate currencies being used inside Iraq ~ both of them named the Iraqi Dinar.

The Iraqi people will certainly be able to cope with using two different currencies, because they are already dealing with the existing IQD and the USD.

What the Iraqi people really want is to become international citizens again with their own IQD international currency, instead of having to depend on the USD to purchase goods and services outside of Iraq.

In fact, the Iraqis are so ready for equality that they are already using the existing domestic IQD notes against the USD in a de-facto ‘unofficial’ street level exchange rate of 1:1000.

For example, right now in Iraq and mainly because there’s no practical way to make small change:

• IQD 25,000 = $US 25

• IQD 10,000 = $US 10

• IQD 5,000 = $US 5

• IQD 1,000 = $US 1

• IQD 500 = $US 0.50

• IQD 250 = $US 0.25

• IQD 50 = $US 0.05

Something that needs to be re-emphasized ~ the existing IQD banknotes and coins can only be used and/or exchanged for USD inside Iraq ~ nowhere else.

So, if anyone is holding the existing large denomination banknotes outside of Iraq, how are they supposed to cash them in for USD outside of Iraq?

The answer is that they are not going to be able to ~ not now, not after the redenomination process starts inside Iraq and not even after the international revaluation of the new Iraq Dinar notes has been declared.

The reason is that no bank outside of Iraq will ever recognize the existing large denomination banknotes as legitimate international currency and so will refuse to cash them in, even at the existing exchange rate of 1:1170.

There will of course be exceptions, whereby an enterprising financial institution or even a forward thinking US bank may choose to trade through a third party that is willing to transport the physical notes back to Iraq for the final exchange with the CBI; however, the existing large denomination IQD notes will never be on that same bank’s ‘accepted currencies’ list for foreign exchange with the USD. The larger than normal fee for this exceptional (potential) service will most certainly wipe out any profit that might be anticipated.

Anyone holding existing IQD notes outside of Iraq won’t even be able to get their costs back outside of Iraq (minus exchange fees).

When an international revaluation takes place and the IQD is again recognized by the global community, it will be only the new notes with the new rate that will be recognized and exchanged and/or accepted as payment outside of Iraq ~ not the existing notes with the larger denominations.

There is at least one “Dinar Guru” out there with three internet sites tied to an IQD news network that claims that he will be able to get the best group rate available when it comes time to “cash in” your IQD banknotes.

All you have to do to get this great exchange rate for your existing IQD banknotes is join his VIP group and pool your banknotes together with a larger group for the leverage of a bulk exchange to take advantage of the best rates available.

His stance is confusing because he seems to combine the redenomination process and the international RV into one event and at the same time ignores or seems to dismiss what the CBI senior board members have already put out to the public time and time again regarding the redenomination of the existing banknotes.

Here is a November 2011 quote from him:

“If the RV is at a dime and there is a mandatory turn-in of old notes, I am going to cash out half or more ~ I will be happy with that return. Then, I’ll reinvest the other half back into Dinar, so that I can take advantage of the future rate increases. Many people who have never heard of the Dinar will hear about it, and they will buy Dinar at US$0.10 because honestly, once the rate goes that high I don’t think it will go down. It will only go up and others will think so too. So, the notion that nobody will invest at a low rate of US$0.10 is just wrong in my opinion. Regarding the lower notes (the existing IQD500, IQD 250 and IQD50 notes), if there is a recall or a mandatory cash in of the notes, it will be across the board. Don’t listen to the pumpers that say low notes will be safe. That’s just a sales pitch”

This guy has about 30,000 to 35,000 followers (his estimate) holding IQD cash who are heeding his advice and expecting to be able to cash in their existing IQD banknotes through him when the time comes. I’m sure that his popularity has increased in this regard, since most who have inquired about cashing in IQD with their local bank have probably already been told that it’s a ‘scam’ and can’t be done. Now, he is their only hope.

A foreign investor holding the existing large denomination notes outside of Iraq may be able to at least retain what value the CBI gives the notes right now by converting the physical notes into an electronic line item in a bank account ~ provided the bank will support an IQD account. Not too many (if any) of those banks are around outside of Iraq.

Even though the value the CBI has assigned to the notes at the current rate of 1:1170 might be far less than what a foreign investor paid for them over the Internet; it would still be a way of rescuing the investment from being a total loss, and might even be a way of gaining more value (at least up to par) through financial products that such a bank has to offer ~ such as Certificates of Deposit or Savings Accounts with higher rates of interest than are currently offered by US or UK banks.

Out of necessity, such a bank would have to be a private bank and probably would also have to be located inside Iraq in order to accept physical notes for a deposit.

One such bank is the Warka Bank for Investment and Finance with 120 branches and 350 ATM machines scattered throughout Iraq.

Warka Bank IQD Account

Once you have opened an account at Warka ~ with both USD and IQD savings accounts ~ the bank will accept FedEx shipments of physical IQD banknotes and even USD banknotes for deposit. You can also wire transfer USD to your Warka account and then choose to deposit the funds in either your USD or your IQD account.

Besides remarkably higher interest rates offered for both USD and IQD savings accounts and certificates of deposit, Warka also has an Iraqi Stock Exchange (ISX) department which acts a broker for anyone wanting to invest in the ISX.

There is strong historical evidence from other (recent) currency re-denominations that when the redenomination process is started in Iraq; despite the fact that they are bank deposits and not actually physical banknotes and coins, electronic IQD bank accounts will also have their balances adjusted by the same method as the physical banknotes and coins. That is, the total balance will be reduced a thousand fold with the movement of the decimal point 3 places, but at the same time the exchange rate will be increased upward a thousand fold so that the value in USD remains the same after the redenomination as it was before the redenomination.

The retention of the same value in USD before and after the redenomination process is a point that the CBI has emphasized time and time again through interviews with senior CBI bank officials.

The CBI is interested in regaining the Iraqi Citizen's confidence in their own currency, and cannot afford to mislead them regarding the future value in terms of the USD ~ which is currently the default international currency in Iraq.

In such a case, all electronic accounts in IQD would be affected worldwide; including the foreign currency reserves held by the various central banks and governments.

Emotionally, it might be wise to accept that even thousands of USD invested in an electronic IQD bank account won’t make anyone an instant overnight millionaire ~ and that would hold true for Iraqi Citizens as well as foreign investors outside of Iraq.

The advantage of a Warka Bank account (and other private bank accounts inside Iraq) is that because they are electronic they will be uniquely positioned to take advantage of future international revaluations of the IQD ~ possibly even up to past exchange rates of US$2 to US$3+ per IQD. That could double or even triple the investment.

In addition, trading on the ISX through a Warka broker could mean explosive potential as the country and core infrastructure companies grow with the economy.

The Iraqi Stock Exchange (ISX)

The process to be eligible to trade on the ISX is at least a 4 month process in order to receive a trading account number, but may well be worth the effort for future wealth.

The next 'Microsoft' could easily be born out of the ashes of the Iraqi economy, especially in light of the recent surge in foreign investment pouring into Iraq.

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There is at least one factual error in the post.

You cannot send any currency to Iraq for credit to your Warka account. Can't, Can't, Can't.

It gets confiscated by customs going in.

The second thing to note is that when the RV occurs, the currency will be internationally recognized and traded. Then it will be exchangeable, just like Canadian currency is now.

When the financial sanctions of Chapter 7 of the UN are removed, then everything will change, when they are no longer on "the list" of banned countries for financial practices.

Then they join the WTO. That's clearly going to make some changes.

I'm not going to continue to pick the article apart. It's too much work.

The evidence that this is all bunk is overwhelming, both historically for post-war countries, and given what the finance ministers in Iraq have declared they will do. Even all the turmoil going on in Iraq right now points towards this change taking place. It probably won't be this week, or next, but it is definitely coming.

Just because the article is intelligently and well-written doesn't make it true. Don't let another nay-Sayer blow the air out of your balloon. :)

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Where did this "information" come from? I did not have an account in Mexico when I exchanged pesos, and I did not have an account in Canada when I went to Windsor, and I did not have a account in the UK when I exchanged for a Pound. So Iraq is going to be the only country in the entire world you cannot exchange for? New currecny or not? Sorry, hard to believe.

This part is very hard to believe....

So, if anyone is holding the existing large denomination banknotes outside of Iraq, how are they supposed to cash them in for USD outside of Iraq? The answer is that they are not going to be able to ~ not now, not after the redenomination process starts inside Iraq and not even after the international revaluation of the new Iraq Dinar notes has been declared. The reason is that no bank outside of Iraq will ever recognize the existing large denomination banknotes as legitimate international currency and so will refuse to cash them in, even at the existing exchange rate of 1:1170

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A lot of statements in this post are made as "absolute fact." Where are the footnotes or documentations of such facts? A well-written document not based on actual documented facts is of very little use. What part of this can I actually believe as truth and what part is only meant to illicit an emotional response?


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If I'm understanding what he is saying correctly, he is saying that even though the old and new currency will exist at the same time within Iraq, the old currency will never be internationally accepted...only the new currency will. As a result, the old currency will be worthless outside Iraq. That actually makes some sense. I don't like it, but it does make sense.

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If I'm understanding what he is saying correctly, he is saying that even though the old and new currency will exist at the same time within Iraq, the old currency will never be internationally accepted...only the new currency will. As a result, the old currency will be worthless outside Iraq. That actually makes some sense. I don't like it, but it does make sense.

It's horse puckey. We can buy it outside Iraq. There are even some banks in the US selling it still, I believe. If not, it's been very recent. To think that the old currency won't be exchanged outside country is silly. Iraq would be beyond stone-age stupid to do that, and they aren't that stupid. The WTO and the UN and the IMF won't let them EVER play if they screw over the world that way--lots of countries are holding IQD in their baskets too.

Don't let this article rattle you. It's all crap.

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I'm not sure how it would be "screwing over the world.." Iraq never promised us anything. They have never tried to sell Dinar to investors internationally. That's why it is so speculative. We invested hoping for an outcome that would benefit us, but Iraq never promised us anything. I'm beginning to agree with some that putting money in the bank in Iraq will at least keep us from losing everything, and would allow us to benefit from a gradually rising economy over the years.

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This is an attempt to re-emphasize that: prior to the inevitable redenomination of the existing Iraqi Dinar banknotes and coins, the only way to truly invest in the IQD and actually see a return on your investment is to open a Bank account inside Iraq and then wait for an international revaluation of the IQD against the USD.

Someone's opinion,intelligent yes,but only an opinion.GO RV.Daddy needs a new pair of shoes.

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You guys have done a solid job of picking this articles apart, pointing out the holes, etc. My only quam, is the exchange rate of 1:1.17, stating that the dollar will be stronger than the dinar. I love my dollar. But I'll love my dinar more if it comes in at over a dollar! Know whatta mean? Chao.

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Rather than try to answer every single reply posted to my previous: Investing in Iraqi Dinar ~ Cash, Warka or ISX, I will instead provide some background bona fides and a follow up post.

I completed 3 consecutive tours at Forward Operating Bases in Iraq from the summer of 2004 to the summer of 2007; at which time I was forced to de-mobilize because of injuries.

I started investing in IQD as soon as I got there in 2004 at the CBI rate of $US1 buys IQD1500.

The way it worked is I would engage an Iraqi National who worked inside the FOB, but who went home at least twice a week. I’d give him USD and he’d come back with IQD. Always honest ~ never failed. He’d make what I considered to be an extremely small mark up in the exchange and I always found each transaction to be satisfactory. So did he.

I was, however, always concerned about my future ability to “cash in” stateside after an RV took place, because on every R&R stateside I’d try to find a local US bank who would even consider exchanging the existing large denomination IQD notes for USD. I struck out every time with the label ‘scam’ ringing loudly in my sub-conscious.

Even so, I was not to be discouraged from becoming an instant millionaire who wouldn’t have to re-deploy into combat zones anymore in order to make the income necessary to go on living in the land of the free and the home of the brave with some sense of dignity.

From the very beginning, I was always aware of this Dinar Speculation website and of Warka Bank; but because of the time I’d spent in-country, I considered opening a bank account inside of Iraq as ludicrous due to the (then) instability of the local environment.

Between the summer of 2006 and the spring of 2007 ~ when the Bush administration initiated ‘The Surge’ ~ we were required to wear our 45 pounds of battle rattle, including Kevlar head gear and OTV chest, back and groin protective gear 24/7, whether we were inside the FOB or outside ‘the wire’, because of the daily sniper, RPG and mortar attacks.

To view that particular FOB from a safe distance, go to and input these longitude/latitude coordinates exactly as shown here: 33.283444,44.520482.

Camp Rustamiyah ~ home of the Iraqi Military Academy at Al-Rustamiyah (IMAR) ~ formerly known as Camp Muleskinner (from the 7th Cavalry), and then Camp Quervo (from the last name of the first soldier to die there while taking it from the Iraqis). It was turned back to the Iraqis in the spring of 2009 and now they’ll have to train their own 2nd Lieutenants and rookie policemen.

During the entire time that I was deployed, it was against Iraqi law to transport IQD outside of Iraq because (being an almost all cash society) they needed the dough to stay inside the borders in order to prevent cash shortages.

That being the case, civilians were searched at Baghdad airport on their way out of Iraq and if caught with IQD in their possession were labeled as smugglers, had their IQD confiscated (usually with no USD compensation) and were banned from reentering the country. On the other hand, the US Military exited Iraq via Kuwait through a US Customs check point and nobody cared if you took home a duffle bag full of the stuff ~ especially (no doubt) due to Bush Executive Orders protecting Iraqi Investments. Obama has renewed those Executive Orders.

At one time, I spoke to a young civilian contractor who had somehow ‘acquired’ 50 million IQD from departing soldiers in Kuwait and who had successfully deposited it all into a Swiss bank account. He had transferred from Kuwait to see some ‘real action’ in Iraq but lasted less than a year at a FOB before he went back to Kuwait and then de-mobbed.

That encounter encouraged me to believe it was possible to deposit all of the IQD I had successfully sent home into an offshore bank account not located inside of Iraq. I subsequently tried to deposit my IQD cash (carried in a backpack) on R&R’s to Latvia, St Kitts & Nevis and Hong Kong and failed each time. IQD was not acceptable due to US and UN sanctions, I was told. Even the Swiss bank that the kid from Kuwait had used didn’t want to hear about it unless you had a minimum of $US250,000 to deposit along with it. Somehow, he had apparently charmed a bank rep into opening a Swiss account for him. I’m fairly sure that the 50million IQD being worth over $US40,000 had something to do with it.

Fast forward to the fall of 2009 when I was informed of a rumor that after the annual November G-20 currency exchange meeting, the IMF had imposed an ultimatum on the GOI whereby if they didn’t RV by the end of 2009 ~ at an (unknown) acceptable international rate ~ then the IMF would impose a rate of $US1.89 per IQD1.

Of course, it turned out to be only one of many rumors; but at the time I still felt compelled to get my IQD cash secured into an offshore account ASAP. Consequently, I opened a Warka account.

Below, please find some email excerpts from inquires I sent to Warka, followed by email excerpts from Warka after I successfully FedExed some of my IQD cash to fund the account.

Dear Sir,

Thank you for choosing our bank and taking interest in our fine services.

It is possible to send your Iraqi Dinars by courier service to the following mailing address:

Warka Bank for Investment and Finance - Main Branch – Baghdad Iraq

International Foreign Relations Department - Attn: Mohammad K. Issa

Watheq Square – Salman Faiq St. – Hay Alwihda – Sec. 902 – 14th St.

Upon receiving your package it will be counted both by hand and machine in the presence of three dedicated bank employees under my supervision and we will credit the exact amount received to your account.

Best regards,

Customer Accounts Dept

International Affairs

This e-mail is confidential and the information contained in it is privileged. It should not be read, copied or used by anyone other than the intended recipient. If you have received it in error, please contact the sender immediately by return email, and delete the e-mail and do not disclose its contents to any person

The FedEx number for a cost quote for an International Express Service package to Baghdad is: 1-800-463-3339

Since 2009, costs have gone from $59 to $80 to $130 probably because of increased fuel costs.

FedEx used to stop in Dubai, but now goes straight through to Baghdad International.

Use FedEx Tracking Number: 871694314959 at to see proof of delivery and the person’s name who signed for it.

It’s the same person who sent me the e-mail shown below.

Dear Sir

Thank you for choosing our bank we are looking forward in providing you with all your financial needs and requirements in Iraq, it give us great pleasure to deal with you and to provide you with a very best services and care.

Please note that I deposited your IQD funds in the amount of (IQD 7420000) in your IQD account.

I deposited your USD funds in the amount of ($150) in your USD account.

Your IQD account balance is: IQD 9876039

Your USD account balance is: $ 150

For any further inquiries please do not hesitate to contact us as it is a pleasure you to provide with our sincere services and best customer care.

Many thanks and best regards,

Rowaida Mohammed

Customer Services

International Foreign Relations Dept.

This e-mail is confidential and the information contained in it may be privileged. It should not be read, copied or used by anyone other than the intended recipient. If you have received it in error, please contact the sender immediately by return email, and delete the e-mail and do not disclose its contents to any person.

I’ve actually successfully sent IQD cash via FedEx no less than 4 times to fund my own Warka account, helped others do it no less than 8 times as they switched from strictly cash to Warka accounts and in fact am about to do it one more time again as soon as 4 different people combine their last (hold-out) IQD cash stashes into a single package to save money on the $130 fee.

Just saying Can’t, Can’t, Can’t and describing the process as a ‘factual error’ because you’re actually ignorant of the real facts doesn’t mean it can’t be done.

I actually did encounter several long delays at customs going in, but the contents were never confiscated ~ not even once.

When I finally contacted FedEx about the delays, I discovered (after I had already sent several of the packages) that any package that has its total value listed as more than $100 is automatically stopped at customs and inspected. However, it has been my experience that even after delay and inspection the packages have always made it ~ as evidenced by emails and increased account balances.

I subsequently discovered that the key to avoiding long delays is to make the package as flat as possible, describe the contents on the International Air Waybill simply as Business Documents and always list the total value as less than $100.

Note that the package with tracking number 871694314959 was delivered in just 6 days because FedEx now goes directly into Baghdad International instead of stopping in Dubai first.

In the 2 years since the fall of 2009 until now ~ the fall of 2011 ~ I’ve done nothing else but recover from Iraq, go to funerals, try to get fit enough to re-deploy and research this IQD investment.

Until now, I’ve had no interest in posting my findings on this Dinar Speculation/Dinar Vets website, but instead have concentrated on updating my closest friends and relatives as to my research findings via emails.

Out of the approximately 30 people that I’ve approached with the investment, only 12 have actually made the commitment; and as a result I’ve felt responsible to make sure that at least those 12 know what I have discovered about it ~ and that includes answering the many ‘emotional’ rumors generated from this and other dinar rumor websites.

I’ve sent those 12 investors over 30 blogs attached to individual emails and the one called Investing in IQD ~ Cash, Warka or ISX was actually number 32 out of a total of 35.

Getting calluses from patting myself on the back for having produced a book on the IQD investment and passing the hardest (No 65) financial investment test known to mankind hasn’t interested me either, whereas discovering the real truth of the investment for the sake of the dozen people I’ve influenced into it has.

I’ve been conducting my own independent research since 2004, which I’m sure is simply parallel to many others; and for whatever reason lately, have felt obliged to share my findings with others outside the immediate circle of my dozen closest friends and relatives.

I’ve felt obliged to insert these two posts into the obvious mix of emotion, denial, confusion and misunderstanding that I’ve seen coming from not only this site but from other sites as well.

That being said, it certainly won’t hurt my feelings if someone doesn’t want to invest in the IQD at all.

By the same token, if someone just wants to hang on to their IQD cash and hope for the best instead of converting what they have into an electronic line item on a bank statement (that is accessible from the comfort of their own home via the internet), then that also will be their own individual choice. Freedom, baby ~ yeah!

If looking at the options makes you want to burn your dinar or tell small children the truth about Santa Claus and the Easter Bunny, then there’s nothing I can do about that either. Have at it.

Because of the US Military’s continued presence in Kuwait (even before the 2003 invasion of Iraq) I’m sure you can still purchase and/or exchange your current large denomination IQD at Banks and Currency Exchange sites in Kuwait if for no other reason than to accommodate the US Military and DoD civilian contractors rotating out of the American Embassy in Baghdad.

Likewise, I’m also positive that the exchange rates will be as described in the post called Investing in Iraqi Dinar ~ Cash, Warka or ISX. Once the redenomination process starts, you’ll be able to exchange your large denomination IQD notes for either the new (lower denomination) notes or for USD but at the rates described.

Be aware that this redenomination process is not an international RV and also isn’t just some whim to be delivered by the current GOI any time they think it’s right to do so.

The CBI through Mazhar Mohammad Saleh, a senior member of the CBI Advisory Panel has repeatedly stated publicly that the GOI has adopted a CBI two-pronged plan to restructure the national currency ~ physical banknotes and coins.

What that really means is the CBI draft plan to restructure has been presented to Maliki’s Cabinet of Ministers and those Ministers have had it at least since September 2011. It’s now up to this same Council of Ministers to form the draft plan into workable legislation that can be presented to and eventually passed by the Iraqi Parliament into law.

It’s not going to be some sneaky little secret imposed on the Iraqi citizens by surprise, but instead will be accompanied by a massive amount of public education designed to inform everyone of what the deal is. It will be big news and there’ll be plenty of time to get ready for its actual implementation.

Economic analyst Hilal al-Tahhan told Radio Free Europe that the CBI’s move to re-denominate its currency is long overdue. He said he expects the currency change to go smoothly because of the decision to allow both the old and the new banknotes and coins to co-exist, leading to less turbulence in the economy.

Remember that Warka Bank is at least one bank that has 120 branches and about 350 ATM’s scattered all over Iraq. Warka may even have more of both by now and there are probably other banks inside Iraq and Kuwait following the same model to attract foreign investment as well.

What that means is that there are probably plenty of Iraqi citizens who have learned a thing or two from the invasion forces and now have electronic accounts and ATM cards as well as cash stashed under the mattress or in a home safe.

Try to imagine that the law is finally passed and the redenomination process (not the RV) has started. Now also imagine that you’re either a DoD civilian contractor or a serving member of the US Military working out of the Embassy; but whatever the case, you’re right there in Iraq or Kuwait when it starts. Here’s a fictional scenario to consider:

• The redenomination process starts and it becomes time to turn in those (40) IQD25,000 notes or that wad of (100) IQD10,000 notes or whatever combination you ended up with when you bought your one million IQD from that local dude who runs the internet café, or from that bank or currency exchange site in Kuwait.

• So, you suit up in your Kevlar and your OTV and catch a ride from the Embassy to a downtown bank to cash in.

• As you’re lined up at the bank counter, you notice that all the other bank customers are in fact Iraqi Citizens with the exact same idea as you ~ lose the big notes ASAP!

• The teller offers you (10) of the new international IQD100 notes in exchange for your wad and since the CBI exchange rate is now $US1 to IQD1.17 for those newer notes, their value comes out to $US854.70.

• That works out to $US0.85 per dinar, making the USD stronger than the IQD, not the other way round; but in any case, is just what you paid for the large denomination notes at the CBI rate of 1:1170.

• According to the teller, these new international notes still aren’t allowed to leave the country just yet, because an actual international RV has not yet happened and since Iraq is still a mostly cash society it needs an ample amount of it to remain in country and in circulation.

• It would still be against Iraqi law to transport them outside the borders before an actual (international) RV has occurred, even though serving US military personnel could probably get away with it by going through Kuwait and a US Customs checkpoint on their way home instead of risking getting searched flying out of Baghdad International.

• Since you are planning to go home soon and could de-mobilize tomorrow, given the right circumstances, you decide to take the $US854.70, because it would be the same deal you would get in Kuwait anyway.

• If you could just get the new IQD notes out of the country, out of Kuwait and then back home before the international RV happened, and then you are able to wait for an exchange rate of say $US2.50 to IQD1.00, you could then turn in those new (10) IQD100 notes for $US250 each at your local bank or airport currency exchange site.

• That would be $US2500, less (2%) bank fees for the exchange, or about $US2450, which would be a total profit of $US1595.30 or about 185.65% over your original $US854.70 spent. Way better than a poke in the eye with a sharp stick, or taking a sniper round on the way out of town, but not exactly in the millionaire class status.

• Even an international RV at 1 to 1 would be a 15% increase to what has already been publicly proposed for the redenomination process at 1 to 1.17.

• An international RV at $US0.10 (ten cents) to IQD1.00 would be an extreme devaluation of the currency, would in fact reverse the entire CBI/GOI redenomination plan’s intent and actually makes ZERO SENSE when you take the time to think about it.

Some questions to consider in this fictional scenario are:

What makes you think that you’re going to get $US854,700.00 for your 1million IQD in large denomination notes (at the rate of $US0.85 per IQD1.00) instead of just $US854.70 (at the rate of $US1.00 per IQD1170.00)?

Can you really picture yourself walking out of that Iraqi bank with six figures in USD while all the rest of the Iraqi clients in the bank doing the same thing at the same time get less than a grand in USD?

Why would that be ~ just because you’re an Amrikan?

On the other hand, if you do get all those big bucks, does that mean all of those Iraqi citizens holding large denomination notes in the bank with you on the day and indeed all over the country are also instant millionaires as well?

The whole country goes from abject poverty to overnight instant wealth?

Which of those new Iraqi millionaires would even go to work anymore?

When has that ever happened in history?

If it were true, why would anybody trade in their large denomination notes for the small denomination notes?

The small denomination notes couldn’t begin to compete with the large denomination notes in terms of value in USD, so who would really want them?

What about the CBI/GOI publicly stated plan to restructure the national currency by allowing the older notes to co-exist with the new notes inside of Iraq ~ especially since the new notes are meant to make purchases easier by providing a means of making change for a soft drink or a pack of gum or a pack of cigarettes or an ice cream cone?

What about those lucky Iraqis or those forward thinking foreign investors who just happen to have Warka or other similar electronic bank accounts?

Do electronic accounts get to keep all their zeros during the redenomination process, thereby making their owners instant millionaires, while at the same time those folks with cash only have to lose big value when they turn in their cash?

Wouldn’t that make the majority of the Iraqi population mad as hell? Talk about civil unrest! It would be chaos!

If it can’t be true right there in Iraq and Kuwait, how could it possibly be true here in Amrika or the UK or anywhere else for that matter?

What about investing in the ISX? Would that be a way to save the zeros?

Here’s another fictional scenario to consider:

• Let’s say the worth of Ali Baba Carpet Company traded as ABCC on the ISX is based on the number of shares it has @ IQD1 per share.

• The number of ABCC shares @ IQD1 per share is based on the number of carpets ABCC has in inventory; which are selling at an average of, let’s say, IQD100,000 or $US85.47 per unit, based on today’s exchange rate of $US1 per IQD1170.

• ABCC currently has 10,000 carpets in stock, so at IQD100,000 per unit, the worth of the company is IQD1 Billion, which translates to $US854,700.

• So, before the re-denomination process starts ABCC has 1,000,000,000 (One Billion) shares trading at IQD1 per share.

• When the re-denomination process starts, ABCC will be able to accept either the existing currency in (10) IQD10000 notes, or the new currency in (10) IQD10 notes or the new currency in (1) IQD100 note or $US85 to purchase one of its fine quality IQD100,000 carpets ~ whichever pleases you, Baba, your wish is my command!

• ABCC will quickly realize that to be hep and get with the new program, and also to move some bleedin’ inventory for the sake of Allah; it will have to start advertising prices based on the new CBI valuation of the IQD against the USD @ $US1 per IQD1.17.

• ABCC quickly changes its per unit price from IQD100,000 to IQD100 and stages a major TV advertising campaign declaring that they don’t call the owner of ABCC “Crazy Ali” for nothing!

• Because he has opted to recognize the new currency valuation, Ali now has to face the fact that his company ABCC is not worth the One Billion Shares it once was at the previous IQD valuation against the USD.

• ABCC shares after the re-denomination would be reduced from One Billion to one Million shares, but at the new valuation of $US1 per IQD1.17; so the company would still be worth $US854,700 ~ just like it was before the re-denomination started.

• If you happen to be holding ABCC shares in your ISX portfolio, you will indeed experience a thousand fold drop in the number of shares you own and at the same time a thousand fold jump in the price per share ~ a small miracle, Effendi ~ not to worry……..really!

• The worth of the shares before and after the re-denomination will be exactly the same as expressed in USD. No huge gain, Dude, but nobody loses either ~ instead, think of the potential growth of the company when the whole world learns that Ali of ABCC in Baghdad, Iraq is certifiably the “Craziest” carpet dealer on the planet.

• Maybe Ali will become the next Bill Gates and ABCC the next Microsoft.

• In any case, you’ll be able to buy all of Ali’s Persian carpets you want at ~ tell your friends.

At the end of the day, I want to be totally wrong about the scenarios I’ve presented in these two posts.

I want to be an uber millionaire, not just a working stiff looking at the possibility of having to work until I’m dead.

I want everybody who is brave enough to invest in the IQD (and there’s really not that many of us worldwide) to be fellow uber millionaires flying around in charted jets at 30,000 feet, yakking our heads off on the plane’s $5.00 per minute phones, while on our way to having umbrella drinks on the sand in some exotic location.

And, oh yeah, while we’re there, let’s call on the local banker to see what financial products he has to offer our newly formed International Business Corporations with bank accounts in Chinese Yuan, Vietnamese Dong, Vanguard International Funds of baskets of currencies and other such up and coming currencies set to go the way of our IQD’s.

Of course, there will be gold and silver bullion in the safe at home ~ set aside for possible future hard times, but in any case held in Trust to pass on to the next generation.

Focusing on all those zeros has kept me on a natural high for 7 years and allowed me to really own the feeling of being extremely grateful for all my good luck and wealth ~ which just happens to be the key to the universal law of attraction.

I’m still confident wealth can happen to me ~ one way or another, with or without the IQD ~ and so will always be grateful for my time in Iraq and for the introduction to this IQD investment.

When wealth does happen, I plan to form a Trust to preserve it and also to give away millions through my own Foundation and really do some good with my favorite charities.

At the exact same time that I finally came to these inevitable conclusions about the IQD investment that I’ve outlined in these two posts, I was already anxious from waiting for my (long delayed) renewed passport, for my (one month overdue) ISX trading numbers from Warka and for a substantial wire transfer in route from Warka back to my US account to pay some bills (that in the end took 18 days to complete) ~ all of this waiting occurring at the same time.

When I finally did come to these conclusions, I was already a wreck and it was like the straw that broke the camel’s back.

I actually became physically ill and extremely depressed for at least a week from thinking about it.

I have no real desire to do the same to anyone at this site who reads the posts, but in the end personal integrity demands that I can do no less than state the conclusions as I’ve come to view them.

I apologize for the feeling that these posts are sure to give anyone who cares to think about them for very long.

In retaliation, feel free to do your own (extensive) research to prove me wrong. I’d love to hear about it ~ especially a scenario where we get to keep all of our zeros in our Warka accounts and in the number of ISX stocks that we hold.

Don’t worry about hurting my feelings (sticks and stones, etc…..); instead worry about putting your own foot in your mouth when attacking the messenger. Once it’s out there, it’s hard to take back.

Don’t depend on anyone to do your thinking or your (extensive) research for you. Not to slight any woman already invested, but it’s time to man up and do it yourself or you’ll never own the feeling of confidence that you should have when investing like this.

If you really want to keep up on the latest news out of Iraq try visiting these sites regularly:

Good luck to us all.

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my friend i whole heartedly appreciate your post. it reflects a sincere desire to educate and not harm the community. you provide much detailed information to corroborate your opinion on the dinar. on one point i agree with you and that point is that it is best for those investing in the dinar to hedge their bets by placing percentages of their investment in different venues. i believe it is extremely risky to hold ONLY hard currency. i therefore have some hard currency, as well as a warka savings account and hold stocks listed on the isx. diversification is always better than putting all eggs in one basket. i encourage others to do the same.

however i do not share your belief of an "in country rv". i respect it but do not believe in it one iota. the simple fact that this would contradict ALL of the hard work iraq has generated to enter the international financial community. an iraqi dinar is an iraqi dinar no matter where it lands and has to be honored as such. to stick their finger up at the world and revalue in country only would certainly destroy all credibility of their ability to conduct global business.

another point i would like to make is that warka once did allow transfer of iqd from external entities into their bank. this is definitely no longer the case. i have researched this thoroughly. many of the investors who i follow online used this method to move their dinar to the isx a few years back. warka notified them that the practice was no longer accepted.

another point i would like to make is that it does not take 4 months to get a isx account. i have helped people attain an account in less than 2 business days.

be blessed my friend and thanks for sharing.

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Though I don't agree with all he posted, I understand his perspective and I respect it.

I agree with Trinity, a dinar is a dinar, no matter where you are and once it RV's (hopefully at at least 1 to 1) it will apply to all dinars, not just "in-country". Banks and dealers will be making a ton of money when we cash in our dinars but as long as I make a profit, I'm OK with that!

J.F. is way off base!

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Another attempt to clear up the ongoing confusion and misuse of the terms redenominate and revalue:

In 2010, the Central Bank of Iraq announced its plans to redenominate the Iraqi Dinar to ease cash transactions.

The intention would be to drop three zeros from the nominal (face) value of bank notes; but the (actual) value of the dinar would remain unchanged.

That would mean that an existing 1,000 IQD note (pre-redenomination) and a new 1 IQD note or coin (post-redenomination) would both be worth the same amount in US Dollars (currently about $0.85).

Although the announcement stated that the change would take place by the end of 2010, there has been no redenomination as of December 2011.

However, as of September 2011, the Iraqi Cabinet or Council of Ministers now has the CBI draft plan in hand with the task of turning it into a workable law that can be voted on by the Iraqi Parliament.

No telling when that law will finally be passed, but look for the redenomination law to be passed and the redenomination process (at least starting) to happen before an actual RV can take place ~ since the RV rate will be applied to the newer, lower denomination international banknotes and coins, but not the existing higher denomination domestic banknotes which can only be used for purchases inside Iraq.

The redenomination process could take anywhere from 90 days to 3 years to complete.

As stated by the Central Bank of Iraq, its mandate is to "ensure domestic price stability and foster a stable, competitive market based financial system."

For further references on the redenomination process (which is not an RV of the Iraqi Dinar ~ “in-country” or otherwise) you might want to visit these links (or not):

Regarding the ability to fund a Warka Account with physical IQD banknotes:

I just sent an email inquiry to the Customer Accounts Department at Warka Bank with a cc to the Customer Services Department and a cc to the International Foreign Relations Department. In it, I said the following:

Dear Sirs:

When I first inquired about opening an account with Warka Bank, you sent me an email which contained (in part) the following message:

Thank you for choosing our bank and taking interest in our fine services.

It is possible to send your Iraqi Dinars by courier service to the following mailing address:

Warka Bank for Investment and Finance - Main Branch – Baghdad Iraq

International Foreign Relations Department - Attn: Mohammad K. Issa

Watheq Square – Salman Faiq St. – Hay Alwihda – Sec. 902 – 14th St.

Upon receiving your package it will be counted both by hand and machine in the presence of three dedicated bank employees under my supervision and we will credit the exact amount received to your account.

Best regards,

Customer Accounts Dept

International Affairs

Since that time, I have sent Iraqi Dinars by FedEx to this address numerous times and have helped others to do the same.

However, lately I have become concerned because currently there is a rumor circulating among Iraqi Dinar investors that it is no longer Warka’s policy to accept physical Iraqi Dinar banknotes by courier to fund our accounts.

At your earliest convenience, please confirm that the above mentioned mailing address is still correct and that it is still Warka Bank’s policy to accept physical Iraqi Dinar banknotes sent by courier (FedEx) to fund our accounts.

I greatly appreciate your time to reply to my request and look forward to your confirmation.

Thank you again for your fine service and attention to my accounts.

Best Regards,

Please, see the answer I just received from Mohammad K. Issa below:

Please note that in accordance with the regulations set by the CBI, Iraqi banks are not permitted to hold IQD accounts at their corresponding bank and are prohibited from receiving deposits or wire transfers in IQD currency where the only legal method of funding your account is through a USD bank to bank wire transfer.

Furthermore, and as posted on our website, Iraqi Customs no longer permits courier companies operating in Iraq to receive and deliver packages containing funds of any currency and will be confiscated accordingly.

Should you have any further questions or inquiries please take a moment to visit our website news bulletin to view the latest notices and contact details of the related departments that will best handle your inquiries. We have several departments that will specifically handle each banking affair to your best interest by contacting them directly as they handle customer inquiries and transactions.

Best regards,

Mohammad K. Issa

Deputy Managing Director

Senior Executive

Warka Bank for Investment and Finance

This e-mail is confidential and the information contained in it is privileged. It should not be read, copied or used by anyone other than the intended recipient.

I have searched Warka’s website and still cannot find where it says: Iraqi Customs no longer permits courier companies operating in Iraq to receive and deliver packages containing funds of any currency and will be confiscated accordingly.

Nevertheless, I still stand corrected with egg on my face.

Those friends of mine who were planning to move their cash over to their Warka accounts via FedEx to Baghdad are not going to be pleased.

Especially since even if they label the FedEx waybill as Business Documents with a value under $100 to get past Iraqi Customs, the Warka folks are not going to be happy being complicit in smuggling activities and may refuse to accept the package anyway.

I guess the key phrase is Iraqi Customs no longer permits what was once allowed or at least what was once encouraged by Warka.

BrokeNoMore is correct in saying Can’t, Can’t, Can’t and it was me who was ignorant of the actual (current) facts.

TrinityeXchange is also correct in his assessment.

I extend my apologies to both for my (ignorant) contradiction of their statements.

What I still like about Warka as opposed to holding the investment in cash:

4% interest on a USD Savings account

5% interest on a USD Certificate of Deposit

7% interest on an IQD Savings account

8.5% on a 3 month IQD CD

9.5% on a 6 month IQD CD

10.5% on a 12 month IQD CD

Note: Warka’s CD purchase policy now is for a minimum of IQD 1,000,000 (One Million Iraqi Dinar)

The interest really adds up and helps to alleviate the pain of waiting for an RV.

Plus, once the cash is actually in an Iraqi bank as an electronic line item it is far easier to move around than having to go find someone or some institution willing to consider exchanging (soon to be out of circulation) large denomination banknotes.

Warka’s rules for opening an ISX trading account through their in house ISX Department:

To participate in the Iraqi Stock Exchange according to the firm regulations and requirement set by the ISX to purchase stocks under your name you must first have the following documents certified by the Iraqi Embassy or Iraqi Consulate in your country.

1- Valid Clear Colored Passport Copy and Valid Clear Colored ID Copy

2- Address and contact details.

3- Your three signatures for verification.

The documents must bear the Iraqi Embassy seal and are to be sent to our mailing address where it will be submitted to the ISX for verification and approval. Once approved the ISX (Iraqi Stock Exchange) will register your name and information in their electronic system issuing your investment trading number within a period of 2- 3 weeks where once issued our ISX department will confirm to proceed accordingly with purchasing stocks in your good.

To buy stocks please send a signed buy order by email to our ISX department indicating the company and number shares that you are interested in purchasing authorizing our bank to deduct the purchase amount and commission fees and by visiting the official ISX website bulletin and reports - electronic bulletin you can view a list of the companies that are currently trading and updated market prices to base your stock order noting that the minimum buy order is 200000 shares per company per session and that the commission fee is 1% per buy order. The same fee and procedure is applied when selling shares.

For any further information please feel free to contact on our mailing address to be of best assistance.

Best regards,

ISX Department

Warka Bank for Investment and Finance

Next a review of The Iraqi Embassy requirements:

Iraq Commercial Office

Embassy of the Republic of Iraq

1155 15th St. NW Suite # 1100

Washington, DC 20051

Tel: 202-822-2088

Fax: 202-822-8113

From the Iraq Commercial Office website:

For Legalization of Documents at the Iraqi Commercial Office:

1. Notarize applicable documents.

2. The documents must then be sent to your State for certification.

3. The documents will then need to be sent to the Department of State at the address below:

US Department of State

Authentication Office

518 23rd Street NW Sa-1

Columbia Plaza

Washington, DC 20037

Tel: 202-647-5002


Fax: 202-663-3636


4. Documents must then be delivered to the Iraqi Commercial Office either by courier or mail (DHL, FedEx, etc…) with a pre-paid return envelope.

Iraq Commercial Office

1155 15th Street NW Suite #1100

Washington, DC 20005

5. All commercial documents including the original certificate of origin must be enclosed with a $160.00 for each document (MONEY ORDER ONLY) made payable to Iraqi Embassy/Commercial Office.

Note: it may be that the personal ID document cost is only $5.00 and not $160.00 but that needs to be confirmed.

6. All the documents submitted for legalization MUST include the full address of the company (physical address: Building Number, Street, City, State, Zip Code) in additional to the official telephone and Fax numbers, email, and the company website.

7. Documents will finally be legalized and ready to be picked up (or sent back) within 3-4 business days.

Anybody that can get all that done in 2 days time is a better man than me, Gunga Din.

TrinityeXchange must be using a different method to open an ISX trading account.

It’s good to have faith in something, but I don’t consider my views on the future of the IQD investment to be a belief system.

Rather, I am trying to do my best to correctly interpret the facts as presented by the two institutions that matter most (to me) in this deal ~ the CBI and Warka Bank.

It’s taken me 7-1/2 years of ownership and 2 solid years of extensive research to come from the position that everybody gets to keep their zeros (whether holding IQD in cash or electronically) and will be millionaires come the RV, down to the interpretation that although I won’t be an instant millionaire, Warka and the ISX might still be the best financial investment currently available ~ especially because of the interest on savings and certificates of deposit and the potential growth of the ISX.

I think the key to my change in thinking came from finally understanding the publically announced redenomination process versus the (so far never publically mentioned) revaluation of currency that can be spent and exchanged internationally.

Once I understood the terms, it has been impossible for me to regain my former interpretation where everybody (including every single Iraqi citizen with at least one million dinar of the currently circulating IQD in his fist) gets to be an overnight millionaire.

I want to go back, but I just can’t get there from here.

I am grateful for having already depositing all my cash via FedEx with Warka when it was still OK to do so and am likewise grateful for finally getting my ISX trading account with Warka.

Now I’m on the hunt for the Iraqi version of Apple or Microsoft.

I extend many thanks to both BrokeNoMore and TrinityeXchange for causing me to send that email to Mohammad at Warka in order to find out the real deal.

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thanks for sharing Phlip. i appreciate your candor. like you say, the best of all worlds is having your iqd actively working instead of sitting in a shoe box hoping. i am up pretty nicely on my isx investments at year end even beating warka's cd rates. i can only see the isx continuing to get better. i continue to encourage others to 'get in there'.

be blessed my friend.

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