Is This a Scam

New and credible information as of today, January 10th, 2015...   copied from dinar recaps

Opinion vs Perspective Intention On The IQD Part 1


Post  Written By Phillip -  Emailed to Dinar Recaps

My Two Cents from a Perspective of: Opinion vs Published Intention on the IQD

It looks like the more popular version of a predictable future for the value of the IQD has come down to simply “Opinion” ~ but without much regard to very public statements made by very well-known Iraqi Banking and GOI representatives since at least 2009, all of whom have reputations and credibility at stake in Iraq.

Having had a Vanuatu Credit Union account in USD, a Japanese Yen account in both USD & Yen, a Hong Kong based Hang Seng Hong Kong Dollar Checking account, a Hang Seng savings account capable of holding funds in six different currencies and now a Warka account with at least two different currency accounts available, I figure I’ve paid some dues and learned a few things about international banking along the way.
The Vanuatu account supposedly got hacked, but I’m certain it was by the very same person who started the Ponzi scheme in the first place ~ before (successfully) bailing out. Fool me once………..

The Japanese yen accounts were just regular checking and savings accounts while in-country and got closed when I moved ~ currencies in both Yen and the USD. Could have had a savings account in Euros, but didn’t.

The Hong Kong based Hang Seng accounts supported a Hong Kong based International Corporation (Hong Kong has a reasonable cap on corporate taxation) and I closed them when the corporation became too expensive to maintain while waiting on a windfall of enormous wealth.

Costs for Hong Kong Resident Agents, Nominated Directors and the annual bookkeeping and filing for the Hong Kong Internal Revenue eventually grew (over a 5 year period) from under $1000 per year to over $2000 per year ~ just so that I could maintain an international façade that was ready to absorb an overnight windfall of wealth.

It became a real pain to keep up with all the official requirements especially since my Resident Agents/Bookkeepers/Nominal Directors moved location almost every year.

Not sure why. 

By the time I finally closed the bank accounts, de-registered the corporation and had the remaining funds sent to me, the extra fees had come out of the woodwork to the tune of at least $1500 more than the usual annual fee; even though I timed the closing well in advance to try to avoid extra fees.

I still have the names and contact information (phone, email, address) of at least two agents in Belize whose business it is to help foreigners who wish to take advantage of Belize law by introducing them to Belize bank managers, to Belize resident agents, and to Belize lawyers who can help them set up Trusts, International Holding Companies, obtain Passports, etc.

Haven’t yet had the need to contact the Belize dudes ~ still not wealthy enough to consider it.

Along the way of this international financial education I learned a few things about off-shore corporations, offshore bank accounts, unbreakable trusts, reliable venues for American LLC’s, and quite a myriad number of ways to represent yourself internationally in this age of corporations and internet identities.

I also learned about currencies and how they operate internationally.

For example, I was in Japan when the King of Siam (Thailand) decided to float the Thai Baht on the international currency exchange platforms free of any pegs (like to the Japanese Yen or China’s Yuan Renmembi) and consequently caused most Asian currencies taking advantage of the low cost “Made in Thailand” label to take a dive against the USD.

The King could do that because technically speaking, being the King, the entire Thai Money Supply belonged to him ~ like a personal bank account.

I had no choice but to deal with the reality of the Yen taking a dive from 85 Yen per USD 1, down to 145 Yen per USD 1. Ouch!!

That Japanese bubble was due to pop anyway, but still!!

It ended up costing me about $35K to $40K over a 5 year period.

Anyway, here is my collection of Opinions and Perspectives on the IQD that I’ve seen expressed (and not just here on DV) and of course my Two Cents Worth will probably creep into the language of interpreting those Opinions and the Perspectives into the following narratives:

Opinion: Those very public announcements stating the CBI/GOI intentions regarding the future of the IQD should be ignored; because they are mostly all smoke and mirrors and those Iraqi spokesman announcing those intentions (regardless of their reputations) aren’t really telling the truth, anyway.

“They” want to keep foreign speculators and Iraqi citizens in the dark regarding the CBI’s true intentions for the IQD so that the CBI and Iraq itself can realize the most profit from this up-coming redenomination/revaluation.

Perspective: The CBI (still under IMF supervision) has always publicly emphasized through different spokesman that one of its most important financial goals is to reduce Iraq’s Total Money Supply ~ close to 90 Trillion Dinar ~ from trillions down to 90 Billion Dinar. Three zeros less.

By doing so, the CBI board of directors can then decide to increase the value of the IQD against the USD using its current USD Reserve ~ close to 90 Billion USD ~ to help determine a new revalued exchange rate for the IQD vs the USD (possibly even a rate of one to one against the new currency).

This is the first time in decades of Iraqi history that the official currency has had this many zeros on it and nobody likes it; especially since it was Bremer and company that added the zeros after Saddam and sons absconded with all the USD and wreaked the Iraqi Central Bank’s USD Foreign Reserve balance.

Opinion: Most Iraqis would prefer the IQD currency to be closer in denomination to the available USD denominations now in circulation and at the same time they’d like to have the IQD have close to the purchasing power of the USD. This is a matter of national/ethnic pride more than anything else. 

Opinion: Right now, with that ratio of IQD Money Supply (90 Trillion) to its USD Currency Reserve (90 Billion), the CBI could easily increase the official value of the IQD against the USD from 1166:1 up to 1000:1; but instead has chosen to (successfully) fight in-country inflation and promote de-dollarization instead.

Perspective: Perhaps there are some currency speculators who are holding physical IQD banknotes, but who don’t really understand that both the IQD and the USD are fiat currencies and that the Ratio of the amount of IQD in the Iraqi Money Supply verses the amount of USD being held in the Iraqi/CBI vaults in Reserve is actually what is used to help determine the exchange rate between the IQD and the USD.

The Ratio doesn’t necessarily “establish” the official rate of exchange, but it is certainly instrumental in determining what rate of exchange both countries and the rest of the world might find acceptable.

As evidence that this is exactly the way currency exchange rates work a person need look no further than Iraq itself at the time these De la Rue notes were first issued.

In 2003 Coalition Forces invaded Iraq and Saddam left town. On the way out of his Baghdad Compound (now part of the Green Zone) Saddam ordered his sons to rob the old Iraqi Central Bank on their own way out of town. Saddam also took his entire stash of USD cash with him when he left.

Because the Hussein boys successfully committed the largest bank heist in recorded human history, (US$920 Million), the old Iraqi Central Bank lost its counterbalance in USD foreign currency reserves ~ compared to the IQD currency it had in circulation ~ and went immediately bankrupt, insolvent and un-savable and the foreign exchange rate jumped from 1:1957 to 1:3500 / USD to IQD.

In 2004, Bremer and crew brought the exchange rate back up to around 1:1460 with literally plane loads of newly printed USD and IQD banknotes being put into circulation.

The CBI, chartered in 2004, took over the management of the IQD from there.

That same Ratio is what helps determine currency exchange rates between Central Banks for virtually all fiat currencies all over the world and currency traders use very small up or down changes between one currency exchange and another to make a profit.

The IQD to USD exchange rate has been pegged at 1166 to 1 for the last 4 years and before that since 2004, under the guidance of the newly charted CBI, has always steadily increased in value against the USD.

Opinion: These last 4 years represent an admirable control of inflation by a fairly new central bank ~ the CBI is only a decade old now.

Opinion: The actual Ratio of Iraqi IQD Money Supply versus the CBI held USD Currency Reserves no longer applies in Iraq because Iraq is special and has a different set of rules going on due to its hidden wealth in oil, gold and dates, etc.

Opinion: Because Iraq is now a truly sovereign country, and out from under UN Chapter 7 sanctions, the CBI can set the exchange rate between the IQD and the USD to whatever it wants it to be; without permission or approval of the IMF, the World Bank, the Fed, the Bank of International Settlements or the Bank of England. The fact that Iraq is one of the founding member countries of the IMF doesn’t matter; the CBI can still just do whatever it wants to with its own currency.

Opinion: Because Iraq is so special out of all the countries in the world, the CBI will not have to follow the very same international currency and finance laws that govern all the rest of the countries associated with the IMF; even though Iraq through the CBI (which is still under IMF supervision), has been doing just that ~ right up to current day.

Opinion: The CBI wants to get the high denomination notes out of circulation to reduce the total IQD money supply.

The CBI can delete the zero's from the existing currency banknotes by issuing new currency with fewer zero’s on them (for exchange purposes only and at no profit or loss for either party in the exchange) and at the same time raise the value of both sets of IQD Currency against the USD; and therefore, both foreign speculators and Iraqis can still profit from such a scenario.
Opinion vs Perspective Intention On The IQD Part 2


My Two Cents from a Perspective of: Opinion vs Published Intention on the IQD  Part 2

 The probable scenario for the upcoming redenomination/revalue will be that the existing high denomination De La Rue IQD banknotes will have their value raised; plus at the same time new IQD currency of smaller denomination notes will be put into circulation and with the same new RV exchange rate that the higher denomination notes are given.

 People will continue to trade in their De La Rue high denomination notes for USD cash and eventually, only the 25,000 notes will be pulled from circulation while all the rest of the existing higher denomination De La Rue notes from IQD10000 on down will be left in circulation to co-exist indefinitely with the newer lower denomination notes which will be in denominations all the way down to IQD 1.
Perspective: According to Iraqi mainstream media, when the new currency becomes available, Iraqi citizens will have little choice but to go to their local banks or currency traders to trade in their high denomination De La Rue banknotes for the new CBI-issued lower denomination banknotes.

A financially aware Iraqi citizen (make that most of the population) will undoubtedly ask for USD at their local bank or exchange, since that is all that has been available for trade right up until……yesterday?

That Iraqi citizen will then undoubtedly be told that he would first have to trade his high denomination Bremer era, soon to be extinct, De La Rue notes for the brand new currency at a direct ratio of 1000 old to 1 new. He will be told that those new lower denomination IQD notes can be had either in cash right there on the spot or from an ATM machine via debit/credit card later ~ as they are needed.

If that particular local Iraqi bank has the USD available, that particular Iraqi citizen might get to have the option of trading his newly acquired lower denomination IQD for USD at the newly announced exchange rate.

If that’s how it goes, and the announced rate is say $0.50 or 50 cents on the dollar ~ affecting both IQD currencies simultaneously ~ then all the Iraqi citizens trying to trade in cash banknotes (in a mostly cash society) are going to be told that they must first turn in their IQD10000 notes (supposedly worth US$5,000 to foreign speculators) for a new IQD10 note worth only US$5. Certainly no profit there.

That might tend to make a person mad if he was stuck in Iraq with no other choice; and especially in light of a definite, selective, lack of profit for Iraqis themselves, in a deal that seems to favor only foreign currency speculators holding high denomination De La Rue IQD banknotes outside of Iraq.

Will foreign speculators have to go through the same drill as an Iraqi (trading from old notes, to new notes, to USD) in order to get paid? If so, where is the profit in that?

Opinion: The exchange of the old currency for the new has nothing to do with value.

During an exchange period lasting anywhere from 90 days up to two years where nobody in Iraq loses anything by just exchanging the notes, foreign investors will also be able to exchange old currency for new and then watch the value of the new notes climb against the USD (within the time limit of whatever exchange period actualizes) until such time as they will be able to cash in the new lower denomination notes for USD at no loss.

Perspective: 90 days was the time given for the last Iraqi IQD redenomination exchange period when Bremer and his boys added the zeros to the currency and this transition period was necessarily short because of the war.

According to the published CBI plan for the project, a “peacetime” redenomination scenario will be scheduled with a minimum of 2 years allowed to exchange high denomination notes for the new lower denomination notes

Most foreign investors holding IQD cash paid close to US$1000 per IQD Million (including shipping) at a time when bank prices were near US$855 per IQD Million. There will also be an additional fee to exchange old IQD for new IQD, plus the additional fee to finally exchange new IQD for USD.

Even if those last two exchanges (from old to new and then new to USD) were made for free with absolutely no dealer/bank fees involved, there’s still the $1000 (cost) - $855 (sell) = $145 (loss) per IQD Million to make up for in the cash-in exchange rate (within the exchange period time limit) before most foreign cash speculators can expect to cash out with no net loss.

In order for that to happen the new IQD lower denomination notes would have to rise in value against the USD from the initial outing of (US$0.85 per IQD 1) up to (US$1 per IQD 1) within the 2 years’ time allowed for the exchange.

This at a time when the exchange rate has been steady at 1:1166 for the past 4 years. At a time when oil prices are plunging to 5 year lows, causing the GOI Budget to be too skinny to pay Kuwait the last US$4 Billion Iraq still owes in reparations for the 1990 invasion. Instead, that final payment has been put off until 2016.

Meanwhile, Iraq and Kuwait are strengthening diplomatic ties and not just because they share a shipping port on the north end of the Gulf and a lake of oil under the sand.

This repayment of reparations is still being monitored by the Security Council at the UN.

Opinion: Before issuing the new lower denomination IQD banknotes which will then be exchanged for the existing De La Rue notes now in circulation, the GOI will have to educate its own citizens and the rest of the world about its proposed project plan via mass media; and that education period may cause a short delay between the time the new currency is released (with its increased value against the USD) and the time when foreign speculators might actually cash in the De La Rue notes they are holding for these new IQD notes and then eventually for USD.

Opinion: During this delay the CBI may temporarily halt daily auctions, which could mean no USD will be allowed out of the CBI during that time. It could also mean that during that time no banks outside of Iraq will be buying IQD with USD ~ since they can’t expect to turn any IQD notes purchased into the CBI to exchange for USD.

Opinion: Once the auctions resume, the IQD should be back on the foreign exchange platforms, and foreign speculators (unlike Iraqi citizens) will get to cash out their De La Rue high denomination notes at the same exchange rate (US$0.85 per IQD 1) that will be applied to the new lower denomination notes inside Iraq; but without having to first go through that pesky ole routine of exchanging old IQD notes for the new IQD notes.

Get ready to be rich all you foreign IQD currency speculators!!

Opinion: The CBI will issue new fiat IQD currency with lower denominations on their face to exchange and coexist with the currently circulating high denomination fiat IQD currency and then the CBI will RV all circulating banknotes, both high and low denominations, as a managed float at anywhere from (US$0.10 per IQD 1) to (US$1 to IQD1) and then the demand for oil will drive its value against the USD up from there.

Perspective: The very public statements to the press about the future of the IQD by Iraqi Finance Ministers, CBI Directors and Iraqi Finance Committee spokesmen as well as the published statements from the same sources have all been put out there with the same coordinated message; which is, that the CBI wants to reduce the size of the Iraqi total money supply, eliminate the zeros on the face of its currency, raise the value of the IQD against the USD, reduce Iraqi inflation and de-dollarize Iraq.

The last prediction issued by the CBI Board of Directors spokesman in the fall of 2014 was that the project to eliminate the zeros could not begin until at least 2016 due to the tightened GOI budget and the continued lack of stability in the country. When the stability of the country allows it, the project to eliminate the zeros on the nominal face of Iraqi currency will proceed.

The project will proceed with the continued education of the Iraqi public by mass media and local bankers and currency exchanges to prepare for the issuance of new currency that has been upgraded with 3 languages on the notes, with three zeros less than the currently circulating Bremer era De La Rue notes and with improved security features to prevent counterfeiting. This new currency will also have proportionally more value against the USD than the existing currency.

These new lower denomination notes will be traded directly for the currently issued notes at a ratio of 1:1000; and at no cost to either party involved in the exchange.

Each note in the 1:1000 exchange will be of equal value as expressed in USD.

For example: The currently circulating IQD10000 note, at the current exchange rate of is 1 USD to 1166 IQD is worth $8.58.

A newly issued IQD10 note will be able to trade for either a circulating IQD10000 note or for US$8.58, because it will have had its value against the USD proportionally raised so that it too is worth US$8.58.

That would mean that the new currency will have an exchange rate against the USD of US$1.00 per IQD 1.166 while the existing currency would continue at the current rate of 1:1166.

This coexistence of the currencies is projected to last for a 2 year period or until the CBI is sufficiently satisfied that the Iraqi Total Money Supply, through the systematic removal and destruction of the large denomination banknotes, has been reduced enough for the CBI to feel confident enough to continue to raise the value of the IQD up towards 1:1 and thereby have a chance at the de-dollarization of Iraq.

Opinion: By the time any on par (1USD:1IQD) exchange rate happens, the Bremer era, De La Rue IQD banknotes will be out of circulation and will no longer be honored or redeemed.

Opinion: The CBI will most likely not delete the zeros from their currently circulating high denomination banknotes and any publications about that scenario coming out of Iraq should just be ignored ~ they are meant to fool you into selling your dinar too soon.

Instead, the CBI will most likely raise the value on all notes including the simultaneously introduced new lower denominations notes.

Opinion: There are USD millionaires who have purchased US$ Millions worth of IQD and are now holding IQD Billions and they should know what they are doing, since they are already USD millionaires.

If millionaires who can afford to speculate with US$ Millions think that there is a chance to make a profit speculating on the IQD, then it should be all right for the less well-heeled speculator, shouldn’t it? After all, these millionaires didn’t make their millions by being stupid about money, did they?

Opinion: Even if there is a huge rush to cash in and trade IQD’s for USD’s by both Iraqis and (millionaire) foreign currency speculators at the very first re-valued exchange rate published, the IQD will still continue to rise in value against the USD; even at the same time the CBI is depleting its USD Cash Reserves to pay out for the in-coming De La Rue notes.

Only people in the know, such as millionaire currency speculators, understand why this is possible in Iraq, but nowhere else in the world.

Opinion: People in the know such as Accredited Investors and Professional Financial Advisors understand about protecting their assets; so it pays to be prepared for an overnight windfall of wealth by following their example or the example of millionaires when preparing for a sudden windfall of wealth.  

Perspective: Even prudent (non-millionaire) people have been known to run out of funds diligently earmarked for the maintenance of offshore corporations, bank accounts, trusts, etc. which were set up, kept open and prepared to receive and deal with a sudden windfall of wealth; and that happened while they are waiting on that very same windfall of wealth.

All qualified and certified financial advisors and professional investors are not necessarily sufficiently schooled in the international rules governing currencies; despite having passed extensive testing to be qualified and licensed equity traders.

Both the IQD and the USD are fiat currencies backed by absolutely nothing more than their own Central Bank’s declaration of worth; neither one is backed by oil, or gold, or silver.

In fact the accepted value of the USD and therefore the IQD (which is pegged to the USD) is only ‘reflected’ in the spot prices of either silver or gold.

Those spot prices are kind of benchmarks to help estimate the purchasing power of the USD (and the IQD) at any given time.

The Fed declares what its notes (promises to pay) are worth and the CBI gets to decide what its own notes (promises to pay) are worth relative to the petrol-dollar, aka the USD.

Iraq is still the nominal head of the 22 member Arab League of Nations and so anything financial coming out of Baghdad ~ good and bad ~ will be affecting the entire region.

Besides Iraq, these countries all call their own fiat currencies, the Dinar: Kuwait, Bahrain, Jordan, Libya, Tunisia, Algeria and Serbia.

Besides the Iraqi IQD, both the Bahrain Dinar and the Jordan Dinar are pegged to the USD and Iraq is increasing its diplomatic relationships with Kuwait, again.

With these relationships already established and on-going it appears that any major RV of the IQD against the USD might also immediately and directly affect the Kuwaiti Dinar, the Jordanian Dinar and the Bahraini Dinar all of whose central banks are CBI’s immediate neighbors in the region.

To be neighborly, the CBI might feel the need to inform those other central banks (and trading partners) that their own currencies were about to be affected by the CBI’s plan to redenominate/revalue the IQD against the USD.

Opinion: It’s probably not possible to keep such an IQD RD/RV event a secret given all the trading partners having to be in on the action.

This information was posted by Adam Montanna on the web link following...

November 1, 2009

One of the topics that I get the MOST feedback on is how many people think this investment is a scam. Listen up, readers – I’m going to set the record straight once and for all about this Dinar Currency Scam.

a3-iraqi-dinarFirst you need to know about the Dinar Currency and what the hype is about. The Iraqi Dinar Currency that is used today in Iraq is arguably the most sophisticated currencies in the world. The technology that makes it almost impossible to effectively produce usable counterfeit dinar currency is amazing. When checking your Dinar Currency to spot fakes, you can check for:

  1. 1. Metallic Ink
  2. 2. Embedded security Thread
  3. 3. Horse Head Watermark
  4. 4. Color Changing Symbol
  5. 5. Ultraviolet Feature that glows the Denomination Value (Currency amount)

dinar security

Now you know what to look for in your Dinar Currency, so what about the investment itself? Is investing in the dinar currency a scam?

Well, that’s a tricky question. First – look at the source of your information. If your intel is suggesting that you will be made rich overnight, tonight, guaranteed – you’re a victim of hype and you’re probably going to be disappointed. The simplest concept you need to understand when talking about the Dinar Currency is that nobody is going to be able to tell you exactly when it will revalue.

But does that mean the Iraqi Dinar Currency hype is  a scam? Absolutely not!!!

Here are a couple of very real facts. Iraq has a majority of the world’s natural reserves and crude oil, putting it on the same level as Saudi Arabia and Kuwait. If you know anything at all about Saudi Arabia and Kuwait, you should know that their currency is very valuable and their natural resources are the reason. So, why isn’t Iraq as rich as Saudi Arabia and Kuwait? That answer is simple – they only recently established a stable government, elections are now being held successfully, and the march towards financial recovery is progressing steadily. Crime and terrorism is lower and lower all the time! And just as importantly – the Iraqi people are unjustly impoverished as a result of the recent chaos, and they cannot remain in that situation for much longer – not when they control a major amount of the world’s “black gold”.

The question, then, is “When will the Dinar Currency of Iraq Revalue?”

My guess is soon… very soon. This investment is not a scam, but you must be prepared to wait for things to happen. It may revalue, or reinstate, to a previous level which would make many of us rich overnight… or it might grow slowly, over time, giving a nice return on an investment that many of us were smart enough to make. One thing I do know, for a fact… the Iraqi Dinar will not stay at 1170 forever.

Feel free to post specific questions in the comments section, and best wishes to us all. Feel free to subscribe to the newsletter if you’d like occasional Dinar Currency and news announcements sent to you.

-Adam Montana