What’s UP with the CBI.iq being DOWN?

Happy Wednesday Dinarians,

Well, the CBI has not been posting new exchange rate figures on their website now since Sunday, which is the first Business Day of their week.

What's UP with the CBI.iq being DOWN?

What’s UP with the CBI.iq being DOWN?

Many Hack Gurus in this community may be trying to convince you that the rates are down because the “Whales” and the “Tier 1” people and other “Insiders” are finally cashing in!

It is my humble opinion that is just nonsense!  Why should you believe the Hack Gurus and their rhetoric?  After all, have they ever been correct once?  How many times have they gotten it “wrong” – how many lies have they told you?

Now, lets talk a little common sense please.

Today, I’m actually having difficulty even pulling up their website, half the time the browser times out, saying “This Webpage is not available”, but that may just be a local issue.

If you listened to Straight Talkin’ Mike on The IQD Team’s call last night, you have a better idea of what might be going on.

If you didn’t listen, then go to: 

https://www.freeconferencecallhd.com/playback/?n=IWdZU/jwsBs

Then, skip forward about 16 minutes to when Mike and LJ start talking about this situation with the CBI not showing the rates.

Furthermore, I asked Kaperoni with Dinar Alert what his opinion was about the CBI not showing the rates, the following is an excerpt from his excellent reply to my email:

The market price is the price on the street.  It must be within 2% of the official rate of 1179 (what you can buy dollars for at a Iraqi bank).

If it deviates more than 2% it creates several issues including multiple currency practice meaning that you end up with different exchange rates in different places throughout the country (Iraqi’s would prefer the dollar over the dinar, etc).  That is a no no.  Here is an IMF doc that explains.

http://www.imf.org/external/pubs/ft/sd/index.asp?decision=6790-(81/43)

The bottom line is that when the CBI wants to transition to IMF Article VIII (what we want), they have to write a letter to the IMF stating so.

And the IMF will either say yes.. or they will say no.

If the CBI is not in compliance from the consultations, they will say no.  The reason is because once you exit Article XIV and go to VIII, you cannot go back.  It’s a one way street, one time only move.    Here is a doc on acceptance…

http://www.imf.org/external/np/pp/eng/2006/052606.pdf

My point is until parliament passes the economic laws, and the CBI is in IMF compliance, nothing is happening with the dinar.  Despite the CBI website buy/sell rates missing.  lol

I would like to thank both The IQD Team and also Kap at Dinar Alert for their input to making more sense of what is going on with the CBI’s website.

Now, I know you all want to know my opinion…..  So, here it is….

I have no idea why the http://www.CBI.iq website is down.  I’m just as befuddled as most of you.

My only guess would be that possibly al-Maliki had the CBI’s webmaster either shot, or blown up for being a “terrorist”….  

You know, since Maliki seems to be doing a lot of that lately!!!  Ok, I joke, but hopefully you got a good laugh out of it none the less.  🙂

I hope the opinions and analysis from both Mike and Kap have assisted you in better understanding this.

The best thing to do is be patient and wait it out, and ONLY check the http://www.CBI.iq website for the official rate – don’t listen to this community’s Hack Gurus.

~ Mr. IQD

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7 thoughts on “What’s UP with the CBI.iq being DOWN?

  1. Hey Mr IQD…Instead of bashing everybody, whats your take on this… why dont you for once give your opinion? I don’t think you would or could, I don’t think you really know whats going on with the dinar, just a BS artist. hHHAHAHAHAHA

    Like

    • Hello again,

      Actually if you read through my website, you would see that I give my opinion all the time.

      Do you know that your above comment would have earned you a “BANNED” badge by the Hack Gurus – they would not allow you to post that kind of comment about them, and you would be out on your ear.

      Make it a GREAT day!

      Like

  2. Pingback: Central Bank of Iraq and the exchange rates now showing?

  3. ALL THE HACK INTEL WILL BE POSTING ALL OVER THE PLACE SOON AS THEY DO WHENEVER THERE IS THE SLIGHTEST CHANGE ON THE CBI.

    CURRENCY CODE SELL BUY
    US dollar USD 1166.000 1164.000
    Euro EUR 1577.132 1576.343
    British pound GBP 1914.222 1913.265
    Canadian dollar CAD —– —– (
    Swiss franc CHF —– —– (
    Swedish krona SEK —– —– ( All hacks will be posing soon, This is a sign it’s about
    Norwegian krone NOK —– —– ( to pop.
    Danish krone DKK —– —– (
    Japanese yen JPY 11.163 11.158
    Special
    Drawing Rights SDR 1783.584 1782.692
    Indicative rates – 22.01.2014

    Like

  4. This is not mine just happened by it, wonder what Mr IDQ community think about what this guy is
    saying or advising.

    [removed] says:
    December [removed] at 5:54 am

    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 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 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 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 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 in Iraq in order to accept physical notes for a deposit.

    One such bank is the [removed] for Investment and Finance with 120 branches and 350 ATM machines scattered throughout Iraq. [removed]

    [removed] IQD Account
    Once you have opened an account at [removed] ~ 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 [removed] 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, [removed] 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 redenominations 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.
    This equality of value in terms of USD before and after the redenomination is something that the CBI has emphasized time and time again. They could not afford to lie time and time again to their own people ~ especially about the money ~ without severe consequences in confidence for the currency.
    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 [removed] 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 [removed] 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 to receive a personal trading account number but may well be worth the effort for future wealth.
    The next ‘Microsoft’ type company could emerge from the ashes of the current Iraqi economy.

    [removed]

    Like

    • Hi Paul,

      I think the original author has taken his/her own opinion and interjected some facts with a bunch of inaccuracies and flat-out lies! Which is why I “[removed]” web links, bank names, and other content so that my readers might not be tempted to follow this person.

      However, that said Paul, thanks for sharing.

      ~ Mr. IQD

      Like

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