phlip

NMP2017 Thanks very much for your response. I'm the person using Firefox and Windows 7 with a security exception in place as mentioned in the letter and so have always been able to access Warka's sites as long as they were up and running. However, your advice is very much appreciated as I have friends who are having troubles accessing and I will direct them to your reply. I'm committed to retrieving my funds from Warka and will hang on to my access as long as I can. I've held IQD for 16 years now and have had a Warka account for 12 years. Between the fall of 2010 and the spring of 2012 I was able to transfer USD from my Warka account to my US account 4 separate times before I got shut out. Now Warka is again solvent and free of the CBI guardianship but there simply is not enough USD in Iraq for Warka to purchase at auction and set us free. In fact, physical cash is in short supply everywhere in the world including the USA. Hopefully, digital USD will be the future in Iraq and we can bring our funds home. Thanks again and the best of luck to us all.

Somehow, part of this letter got deleted when I originally posted it. Here is the full version: Dear Mohammad K Issa Please, be advised that many Warka Account holders are no longer able to access the Warka Bank website at http://www.warka-bank.com/ . Also, many Warka Account holders are now unable to access Warka Bank’s Online Banking at https://onlinebanking.warka-bank-iq.com/IBS/index.jsp . The reason is that Warka Bank’s Online Security Certificate is not valid and is viewed as a security risk by most popular browsers, including Firefox, Internet Explorer and Chrome. These browsers will not allow a user to name an exception in order to bi-pass the browser security protocol and thereby access the Warka Bank Online Banking; even when it is a security risk. Warka Account holders that have been using the Firefox Browser with the Microsoft Windows 7 Operating System have so far been able to claim an exception in order to bi-pass Warka Bank’s invalid Security Certificate and therefore have been able to use Warka Bank Online Banking to access their accounts. Now Microsoft no longer supports the Windows 7 Operating System and are forcing users to upgrade to the Windows 10 Operating System. The Windows 10 Operating System does not allow an exception to be made, no matter which browser is used. Without access to Warka Bank’s Online Banking, Warka Account holders will no longer be able to systematically upgrade their passwords in order to keep current access to their accounts. Consequently, those Warka Account holders will be cut off from their accounts. What will happen to the funds in those accounts? At your earliest convenience, please advise all Warka Account holders when Warka Bank plans to upgrade the Online Security Certificate in order to make it current and safe to access by all Operating Systems and Browsers. Thank you very much for your time to solve this problem. I look forward to hearing from you with a solution. Warm Regards,

Dear Mohammad K Issa Please, be advised that many Warka Account holders are no longer able to access the Warka Bank website at http://www.warka-bank.com/ . Also, many Warka Account holders are now unable to access Warka Bank’s Online Banking at https://onlinebanking.warka-bank-iq.com/IBS/index.jsp . The reason is that Warka Bank’s Online Security Certificate is not valid and is viewed as a security risk by most popular browsers, including Firefox, Internet Explorer and Chrome. These browsers will not allow a user to name an exception in order to bi-pass the browser security protocol and thereby access the Warka Bank Online Banking; even when it is a security risk. Now Microsoft no longer supports the Windows 7 Operating System and are forcing users to upgrade to the Windows 10 Operating System. The Windows 10 Operating System does not allow an exception to be made, no matter which browser is used. Without access to Warka Bank’s Online Banking, Warka Account holders will no longer be able to systematically upgrade their passwords in order to keep current access to their accounts. Consequently, those Warka Account holders will be cut off from their accounts. What will happen to the funds in those accounts? At your earliest convenience, please advise all Warka Account holders when Warka Bank plans to upgrade the Online Security Certificate in order to make it current and safe to access by all Operating Systems and Browsers. Thank you very much for your time to solve this problem. I look forward to hearing from you with a solution. Warm Regards,

I absolutely agree with Yendor in that an overnight RV of the dinar to $0.10 would be quite the shock for an Iraqi citizen and the Iraqi economy. Here are my questions to further define Yendor’s question: If oil is at about $70 per barrel before an RV would the price have to go to $8750 per barrel to keep up with the new purchasing power of the dinar? If the purchasing power of the IQD 2500 banknote goes from $20 to $2500 overnight what does that do to the exchange rates between the USD and the Euro, or the USD and the British Pound, or the USD and the Japanese Yen or the USD and the Chinese Yuan?

It is my understanding that once the CBI implements this 2 year IQD Redenomination plan the Iraqis will have only those 2 years to turn in their large denomination banknotes. According to the plan, after the 2 years is up all large denomination IQD banknotes would become null and void as currency ~ and would no longer be accepted anywhere in Iraq to pay for anything. They would become souvenirs only. The same thing happened in 2004 when the Coalition Provisional Authority sent Paul Bremer to Iraq as the person in charge. He brought with him the charter for the newly established CBI as well as several C130 Hercules plane loads full of both IQD and USD cash shrink wrapped to pallets to be transported to banks around Iraq ~ in order to stimulate a collapsed economy. I saw some of those shrink wrapped pallets with my own eyes and I personally witnessed the US Army delivering bank sacks full of USD cash to Forward Operating Bases from the back of open ended Humvees. It was an eye opening experience even in an active war zone. Kind of like the wild wild west ~ only different. I still own a set of the old Saddam faced currency as a war souvenir. In 2004, the CPA announced that all Iraqis had only 90 days to turn in their Saddam faced currency (without the extra 3 zeros) in exchange for the large denomination IQD banknotes ~ which could then be exchanged for USD when the need arose. It was my experience even back then that the Iraqis who worked for the CPA to do work on the FOBs preferred to be paid in USD’s and not the new large denomination with the added 3 zeros. A matter of trust, I suppose. As I said in my post, it’s never been adequately explained (to me) where a foreign speculator with a wad of large denomination IQD will fit into a CBI Redenomination plan. After the proposed 2 year exchange period is up any large denomination IQD notes will become souvenirs only ~ no exceptions. That fact seems to lend itself to the idea that once the CBI Redenomination plan is announced and implemented in Iraq, a foreign speculator with a wad of large denomination IQD might want to trade in his banknotes for the new ones being issued as soon as possible. But how? If a person is actually able to trade in his large denomination IQD for low denomination IQD during that 2 year period, what then? IMO, a speculator would still have to trade in that newly legitimate IQD for USD to do himself any good ~ no matter what country he lived in. Then there is the question of value. Even if the newly issued IQD trades at one to one with USD is there a profit in it?

I’m glad that y'all feel that this post raises your spirits about IQD speculation; but just so you understand that the CBI Redenomination plan I mention is well known to be a 2 year plan ~ and it hasn’t even started yet. The CBI plans to make a very public recall of all the big denomination IQD banknotes (with 3 zeros) now in circulation and trade them out for smaller denomination notes (without the 3 zeros) ~ which would bring the 40 Trillion IQD in circulation down to 40 Billion IQD. The 2 years allows ample time for all Iraqis to get rid of their current banknotes and accept either smaller denomination notes or ATM cards loaded with an equal value amount in IQD. Not USD. Once that is accomplished and the ratio between the IQD in circulation and the USD in reserve is approximately 40 Billion IQD against $39 - $40 Billion USD in reserve then the CBI will be able to declare a “pegged to the USD” Fiat exchange rate of one IQD to one USD. I have never been sure where a foreign speculator possessing millions of IQD in large denomination banknotes (with 3 zeros) fits into that scenario nor has it been adequately explained on this site or any other. Once the CBI plan is implemented and the large denomination notes are officially in recall does a foreign speculator try to turn his banknotes in for the smaller denomination versions and then wait some more to trade for USD's? We can be sure that the CBI will not be trading large denomination notes coming from Iraqis for USD’s. Instead, it’ll be IQD for IQD until the exchange ratio approaches one to one. Then the CBI will consider trading smaller denomination IQD notes for USD’s and it will mostly take place by way of ATM machines.

I last accessed Warka’s website and logged in successfully on 26 November 2017, but as of at least 30 November 2017 my browser gets an error message which says it cannot access the Warka server. Hopefully, it means the Warka staff is busy up-grading their security certificate and is getting ready to up-grade our accounts with another 6 months of interest earned. Just a little while ago, Warka expired my account password 7 months early. I had not logged in until 5 months after I had renewed my password in June of 2017. This early expiration makes me feel strongly that the Warka staff would still like to see us login to our accounts at least once every quarter to demonstrate a continued interest. Even though we nominally have a whole 12 months before we should have to login in order to change our passwords, it seems that in reality we do not. Logging in more frequently actually helps Warka protect our accounts because it demonstrates that the account has not been abandoned. Still, it’s kind of a pain in the ass, especially since logging in is a continued reminder of how little control we have over our funds. I requested a new reset password and got one in about 5 business days. I will continue to monitor Warka’s website for the list of Correspondent Banks and look for a US based Correspondent Bank under control of the Fed. When such a bank appears on Warka’s list, it will mean that the Fed has given the green light and Warka is getting ready to transfer USD’s via SWIFT to the US through the Correspondent Bank. From there it is a domestic transfer into our individual private accounts.

IMO, with a reported 40 Trillion IQD in circulation backed up by a reported 39 Billion USD Reserve the CBI could potentially declare an “actual” IQD/USD exchange rate of 1025.64 IQD per 1 USD. That would extrapolate to $0.000975 USD per 1 IQD or to $975 USD per 1 Million IQD ~ if a private bank or a speculator buys directly from the CBI. Using its “Fiat Currency” prerogative it appears as though the CBI is choosing to minimize its current USD Reserve exposure by keeping the IQD pegged to the USD at an artificial “Fiat” rate. IMO, this fiscal policy makes sense, especially if you figure that one of the CBI’s chartered mandates is to protect the currency and also take into account that the IMF committees keeping a close watch during the current SBA would expect the CBI to be doing just that ~ protecting the currency. Currently, the CBI buys USD’s with IQD at the rate of 1180 IQD per 1 USD. At the same time, the CBI also sells USD’s for IQD at the rate of 1190 IQD per 1 USD. This means that a private bank, or a currency dealer or a private speculator has to pay $0.0008474576 USD for 1 IQD or $847.46 USD for 1 Million IQD ~ if they buy directly from the CBI at one of its auctions. On the other hand, if a private bank or currency dealer or private speculator wants to sell 1 Million IQD back to the CBI in exchange for USD’s; then the CBI would only pay out $840.34 USD for it. That’s a CBI profit margin spread of $7.12 USD per 1 Million IQD. If the CBI ever implements its very publically declared (but so far postponed) Re-Denomination (RD) plan for the IQD; and as per that plan, actually manages to reduce the currently exposed 40 Trillion IQD in circulation down to 40 Billion IQD in circulation; then perhaps some cash can actually start flowing inside and to and from Iraq. IMO, if the pressure of keeping up with the ever expanding IQD in circulation is taken off the CBI’s Reserve of 39 Billion USD and the cost of fighting ISIS is brought under control and the sometimes predicted uptick in the future price of oil per barrel happens, then the CBI may finally have the means and the opportunity to be of real service to Iraq by selling CD’s, Bank Cards, Letters of Credit, etc. to the private sector. If the currency ratio actually becomes 40 Billion IQD in circulation backed by that same 39 Billion USD Reserve, then IMO, the CBI’s IQD/USD exchange rate could accurately be declared at 1.025641 IQD per 1 USD. Conversely, that would be $0.975 USD per 1 IQD. In any case, an RD is not a LOP; especially since the CBI’s RD plan specifically calls for a very public neutral event whereby no Iraqi citizen holding current IQD bank notes or electronic bank accounts will be financially harmed in the currency exchange process. Specifically, the USD value of the IQD banknotes (both new and old) and the USD value of all electronic accounts will remain the same before and after the exchange process. Once the CBI’s new (Post-RD) IQD/USD exchange rate is made clear, then IMO the CBI could easily declare a “Fiat” rate with the IQD pegged to the USD at one to one. With the IQD and the USD on par in Iraq, all oil, gas and mineral quotes could be made in either IQD or USD ~ at least inside Iraq. I can’t help but wonder if IQD currency reform ~ however it plays out ~ has to happen before the Iraqi’s and the Kurds, and the rest of the world’s International Corporations invested in Iraqi oil can finally agree on a comprehensive and acceptable long term HCL that benefits all concerned. If the CBI’s IQD/USD exchange rate remained pegged at one to one after a successful RD, then natural recourses prices could be quoted in either IQD or USD and that would have to include all imported or exported goods. IMO, an “on par” IQD/USD currency exchange rate should cause cash to flow much more freely between Iraq and the US and also the rest of the world exposed to the USD. IMO, freely flowing cash to and from and within Iraq (whether it be IQD or USD) could be mostly managed electronically with ATM style cards and pre-paid cards and wire transfers.

Right now the USD/IQD exchange rate is $.0008467:1, the USD/EUR exchange rate is $1.21:1 with the price of crude oil selling around $50/barrel or 59,053 IQD/barrel or 44.57 EUR/barrel. If the IQD were to RV from $.0008467:1 to $0.10:1, that would deflate the value of the USD by 1000% and cause the USD/EUR exchange rate to drop to $0.00121:1 and raise the apparent price of a barrel of crude to $50,000/barrel or IQD 59.05/barrel or 44,570 EUR/barrel. Alternatively, if the FED, the IMF and the other Central Bank’s demanded that the price of crude oil remained the same at $50/barrel and that the other major global commodities (wheat, corn, soybeans, etc.) also be sold for the same price in USD’s so that the global economies could remain stable, then Iraq would still be paying IQD 59,053 or the equivalent of around $5,905/barrel (as determined by the new exchange rate of $0.10:1). With an IQD RV up to $0.10:1, which other Central Bank could possibly publish an acceptable “Fiat” exchange rate that would stabilize the true price of goods and services around the world? How will the FED, the European Central Bank and the other Central Banks around the world cope with a 1000% deflation of the purchasing power of the USD?

What will happen to the other major currencies when the CBI RV’s the IQD/USD exchange rate? The countries using the EUR, the GBP, the CHF, the JPY, and the CNY all have international corporations invested in Iraqi oil with contracts based on today’s exchange rates. How will a radical upward IQD/USD RV (which effectively decreases the value of the USD against the IQD) affect the EUR/USD and the GBP/USD and the CHF/USD and the JPY/USD and the CNY/USD exchange rates? Will these other major global currencies also be devalued and what in your opinion will that do to an already stressed global economy?

rockfl9 What makes you think I don't agree with you? My recent thread is simply asking for opinions on what CBI "fiat" exchange rate WOULD be acceptable to the Central Banking community yet still work inside Iraq. IMO, answers should prove interesting.

DoD I share your frustrations. After I first opened my Warka account and before they initiated the shut-down of services I was able to successfully wire transfer funds back to my home account 4 separate times ~ approximately once per quarter. Each time became more and more difficult as Warka approached the final shut-down. The first time went off without a hitch and the funds landed in my account in less than a week after the email request (even though I think it should have taken only 48 hours). From then, however, it was downhill with the second time taking about 2 weeks, the third about 3 weeks and the fourth time over 1 month until the funds showed up it my account. I tried a fifth time but after 6 weeks of some of the lamest excuses and dodging I‘ve ever experienced, I gave up. Even still, I hold out hope for Warka to come back to full services because it’s been getting increasingly difficult for an American to open a bank account in a foreign venue. This is especially true after Obama sent the IRS gang abroad to threaten and persecute those banks who would not easily give up a list of their American clients. I’ve had accounts in Japan, Hong Kong and Vanuatu. I closed the Japanese account with no problem, but the Hong Kong account took some doing even with my Hong Kong resident agent on site. It became very expensive with extra fees, etc. for their representation especially since the account was tied to my foreign corporation. The Vanuatu account was a credit union supposed to give a fantastic ROI but in the end it simply got “hacked” and I lost it all with no way to recover any compensation. Because of those lessons learned, I was glad to have found Warka which seemed at first to offer the full services I was expecting from an overseas account. If things finally turn around and Warka becomes stable again, I plan to withdraw all but the 30% ROI I’ve gained over the last 6 years while Warka has been on hold. Then the tentative plan is to keep the CD’s turning over and accessing the interest gained through a pre-paid Master Card about once or twice a year from a local ATM without having to go through the wire transfer drill. Right now, as you said it would be re-assuring to know that I could access the funds at any time. Good luck to us all on this IQD/Warka deal.

Thanks for the positive tags given. Actually, this thread is meant to garner opinions about what the international banking community (led by the Fed and the IMF) might tolerate as an acceptable IQD/USD exchange rate before coming to the conclusion that it would be best not to trade with Iraq anymore because of the increased costs in USD’s. An exchange rate is a ratio between two numbers and if you raise the value of one then you effectively lower the value of the other. No getting around it mathematically. For example, if the board of directors of the CBI decide to exercise their “Fiat” prerogative and raise the value of the IQD, then they are effectively lowering the value of the USD in Iraq at the same time. That means a person would have to spend more USD’s to buy stuff in Iraq and that includes barrels of oil ~ which are always sold in petro-dollars. If the international corporations, which have already contracted to pump out Iraq’s oil have to start paying out more USD’s than they anticipated to purchase IQD’s in order to pay the wages of the locals that they hire in the oil fields, how much of a downgrade of the value of the USD would they tolerate before putting those Iraqi contracts on hold and concentrating on other oil fields where they can still make the profit that they anticipated? If oil brokers have to start paying out more USD’s than they anticipated to buy barrels of oil from Iraq how much of a downgrade of the value of the USD would they tolerate before they decide that they’d be better off buying those barrels elsewhere? If the value of the USD is lowered in Iraq, how does that affect those other economies around the world that depend on the USD? IMO the question becomes what “Fiat” exchange rate can the board of directors of the CBI get away with before they start to squelch the Iraqi economy and/or the international banking community just says NO to Iraq.

DoD Thanks for the input, but I’m already well aware of the news announcement that you are referring to. In fact, the announcement that you are referring to is much older than January 2016. Check out Warka’s own news announcements on the same subject posted on these (6) previous dates: November 7, 2015 The Central Bank of Iraq expresses its warm greeting, We would like to inform that as part of the Warka Bank rehabilitation plan the Central Bank of Iraq hereby approves the practice of all your banking activities in accordance with your banking licenses issued by the Central Bank of Iraq in accordance with Central Bank of Iraq bylaws and regulations which includes the entry into the CBI bid auction for the purchase and sale of foreign currency. Best regards, Salman Eidan Abdullah Director General September 6, 2015 Dear Warka Clients, The Central Bank of Iraq board of directors have agreed to rehabilitate Warka Bank for Investment and Finance in accordance with a set get well plan . This decision has been announced and broadcasted through all Iraqi TV networks. Best regards. Warka Bank for Investment and Finance March 31, 2014 Dear Customers Decision to lift the guardianship for Warka Bank for investment and finance Beirut February 6, 2014 Banking and Credit Supervision Committee / Banking Research and Studies Department To: Warka Bank for Investment and Finance Subject: Lifting Custodianship The decision has been reached to lift the custodianship in accordance with the tribunal court for financial services verdict in accordance with its letter no.5 / financial services/2013 /September 9th 2013 Acting Director General Abdulabbass Khalaf Sultan January 21st 2014 December 9, 2013 Dear Warka Clients and Shareholders, Further to our website post dated October 9th 2013 with regards to the court proceedings between Warka Bank for Investment and Finance and the Central Bank of Iraq Warka Bank Board of Directors are delighted to inform our fine clients and esteemed shareholders that the High Tribunal Court – Rasafa Appeal Court on November 28th 2013 has yet again awarded its verdict Reference No. 1752/M/2013 in full favour of Warka Bank for Investment and Finance instructing and enforcing the Central Bank of Iraq to fully rehabilitate Warka Bank for Investment and Finance holding the Central Bank of Iraq fully liable and responsible for all the damages occurred on the bank to complete the rehabilation task efficiently to the best interest of the bank, clients, shareholders and management. The rehabilitation verdict has retained full legal stature where Warka Bank for Investment and Finance is currently waiting for the Central Bank of Iraq to act in accordance with the verdict and court order where we will keep all the good parties well updated attached is a copy of the winning verdict. In this respect Warka Bank Board of Directors would also like to add that the High Tribunal Court – Rasafa Appeal Court on November 28th 2013 issued its final verdict Reference No. 1690/M/2013 rejecting and declining the request of Central Bank of Iraq dated February 4th2013 to reconsider and reopen the bankruptcy case the request of the Central Bank of Iraq to proceed in this matter throwing the case out of court closing this case preventing the Central Bank of Iraq from taking such course of action ordering the Central Bank of Iraq to lift and dismiss the appointment of the second Central Bank Custodian Committee that has been assigned for this specific task which until now the Central Bank of Iraq has not obeyed the courts verdict and decision. In Summary Warka Bank for Investment and Finance on November 28th 2013 has won two verdicts both of which have retained full legal stature: 1- The full rehabilitation of Warka Bank for Investment and Finance holding the Central Bank of Iraq fully liable and responsible ordering the Central Bank of Iraq to efficiently implement and execute the rehabilitation task. 2- Declining dismissing refusing and canceling the request of Central Bank of Iraq for the court to reconsider the bankruptcy case closing this matter ordering the Central Bank of Iraq to lift and cancel the Custodianship appointed by the Central Bank of Iraq for this task. Kindly note that both verdicts have been attached for your fine consideration where Warka Bank for Investment and Finance is currently waiting for the CBI to execute the verdicts and follow the court decisions accordingly. Respectfully, Board of Directors Warka Bank for Investment and Finance October 9, 2013 Dear Warka Clients and Shareholders, On February 29th 2012 the Central Bank of Iraq Board of Directors reached a decision of appointing a CBI custodian committee on Warka Bank for Investment and Finance where in turn Warka Bank for Investment and Finance raised a legal case against the Central Bank of Iraq objecting the appointment of a CBI Custodian Committee and the case was presented to the Tribunal Court for Financial Services reference No.1 / Financial Services / 2012. After many legal sessions and court hearings the Tribunal Court for Financial Services verdict was in full favor of Warka Bank for Investment and Finance lifting the CBI Custodianship on the bank because according to the court the CBI Custodianship did not meet the legal terms, conditions and criteria. This verdict retained full legal stature. Surprisingly on February 4th 2013 the Central Bank of Iraq submitted a request to the Tribunal Court for Financial Services to receive an approval from the court to raise a bankruptcy case against Warka Bank for Investment and Finance reference No. 5/Financial Services/ 2013 and for this purpose the Central Bank of Iraq decided to appoint another CBI Custodian committee on August 26th 2013 right after an earlier board meeting held a day before on February 25th 2013 where the CBI board of directors decided to lift the initial Custodianship which they appointed. Again after many court hearings and sessions as well as presenting the entire case to Financial, Banking, Monetary and Economic experts the Tribunal Court for Financial Services issued its verdict yet again in favor of Warka Bank for Investment and Finance declining the Central Bank of Iraq bankruptcy request and case. As the Central Bank of Iraq was unconvinced with this verdict they appealed it Appeal Court Reference No. 1505/M/2013. On October 7th 2013 the Appeal Court issued its verdict in favor of Warka Bank for Investment and Finance certifying the court verdict issued by the Tribunal Court for Financial Services for the reasons indicated by the Tribunal Court for Financial Services as the Central Bank of Iraq decided to lift the CBI Custodianship on August 25th 2013 in accordance and response to the Tribunal Court for Financial Services verdict (No.1/ Financial Services/ 2012 May 26th 2013) after which the Central Bank of Iraq decided on August 26th 2013 to appoint a new CBI Custodian on Warka Bank for Investment and Finance to raise a bankruptcy case against the bank and due to the fact that the appointment of a CBI Custodian is contrary and discrepant to the verdict reached by the Tribunal Court for Financial Services thus Warka Bank for Investment and Finance objected and raised a legal case against the Central Bank of Iraq for appointing the new Custodianship reference No. 10/ Financial Services/2013 On September 22nd 2013 the court issued its decision declining the objection made by Warka Bank for Investment to lift the new CBI Custodian as the issue on hand does not have any legal grounds as by law to initiate a bankruptcy case against a bank a Custodian must be first appointed for this task where under the current circumstance in accordance with the verdict awarded in favor of Warka Bank for Investment the the CBI bankruptcy case declined thus once the verdict retains and reaches full legal stature the CBI Custodianship will be dismissed with the dismissal of the bankruptcy case as one is interconnected with another the dismissal of one is the dismissal of the other. In Summary Warka Bank for Investment and Finance has won two verdicts both of which have retained full legal stature: 1. The objection case against the appointment of the CBI Custodianship Committee reference No. 1/Financial Services/ 2012 where the court awarded its verdict in favor of Warka Bank for Investment and Finance lifting the CBI custodianship where the verdict retained full legal stature. 2. The CBI request to raise a bankruptcy case reference No. 5/ Financial Services/ 2013 in which the verdict was awarded in favor of Warka Bank for Investment and Finance declining and dismissing the entire CBI request and case for not meeting the legal terms and conditions as well as court criteria. This verdict reached and retained full legal stature. Kind Note: There are still four cases against the Central Bank of Iraq for reputable and financial damages raised by the below: 1. Depositors 2. Shareholders 3. Staff 4. Managing Director demanding the full rehabilitation of the bank by the Central bank in accordance with the reasons indicated in all the court cases noting that as the four cases share legal similarities and are interconnected the court has decided to unite all of them into one case reference No. 1/ Services/ 2013 which is yet to finalized and hearings are still taking place. Thank you for your time and cooperation. Sincerely. Board of Directors Warka Bank for Investment and Finance This latest March 26, 2017 news bulletin that I have referenced on this thread is something else and actually refers to all financial institutions around Iraq including Warka Bank. I added the (Warka) in the translation just for emphasis. The CBI has been keeping a lid on the activities of all 30 private banks in Iraq, not just Warka. Its methods of suppression have included: not providing enough cash by not allowing full participation in the daily auctions, not selling CD’s to the individual banks so that the CD’s can be re-sold to depositors, not extending enough credit so that the individual banks have been limited on the amount of credit they can in turn extend to their depositors, etc. Possible reasons for the CBI doing this to its subsidiary institutions could include: a worldwide cash shortage, ISIS, low oil prices, fears of money laundering, fears of counterfeiting, Sunni-Shiite religious prejudices, and strict monitoring by the IMF under the rules of the SBA. The CBI has been under continuous, renewable IMF SBA’s since it was chartered in 2004. Whatever the case, with this latest announcement things seem to be looking up for all of the CBI’s subsidiary financial institutions ~ not just Warka. Hopefully, this will mean that more cash will be available soon and the Iraqi economy can start to flow and we can use Warka’s full services to our benefit.

IMO, the CBI is already exercising its “Fiat Currency” prerogative by keeping the exchange rate between the IQD and the USD artificially high at 1180:1. According to long established internationally accepted guidelines and Central Bank transparency rules, the exchange rate between one currency and another is usually “guided” by the ratio between the volume of the home country currency (IQD) exposed to trade versus the volume of an internationally accepted reserve currency (USD) held in reserve. With those transparency rules and guidelines, the international banking community can choose to accept any Central Bank’s published “Fiat” rate ~ or not. In Iraq’s case that would be approximately 90 Trillion IQD exposed to trade versus approximately 40 Billion USD held in reserve and that would “indicate” an exchange rate of approximately 2250 IQD to 1 USD (2250:1). The international banking community led by the Fed and the IMF (in which Iraq is a founding member and has kept the IQD pegged to the USD for at least 30 years) have already accepted the CBI’s currently published stronger “Fiat” rate of 1180:1. The CBI trades at that rate daily with its currency auctions and everybody says OK. However, the big question might be how far is the same international banking community prepared to go before it just says NO to an upgraded “Fiat” exchange rate and just stops trading with the country publishing the rate? Such a sanction would simply render any “considered unrealistic” exchange rate null and void right from the get go; so what’s the upper limit before the international Central Banking Community led by the Fed and the IMF just says NO to Iraq and the CBI on its published “Fiat” exchange rate? Instead of the published 1180:1, is 1000:1 going too far? How about 100:1 or 10:1? Where’s the acceptable upper limit?