This thread is for those that would like to discuss investing in the Iraqi Dinar though Al-Warkaa bank.
Please feel free to ask any questions concerning
*Opening an account with Al-Warkaa
*Buying Iraqi T-bills and CD's
*Trading on the ISX
(If you would like to discuss buying paper dinars and stuffing them in a shoe box under your bed, please refer to this thread-----> http://talkgold.com/forum/r28719-.html )
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Last edited by GoldenNegress : 01-08-2006 at 06:13 AM.
I still dont think its a good investment, no matter what way you look at it. Iraq is collapsing towards civil war. Its not a good place to invest, unless you are getting no bid contracts from Bush.
__________________
*As is true of all witch-hunting groups, the greatest sin was not so much the specific transgressions of the member, but any refusal to sanction the heresy-hunting procedure itself. - Rothbard
* Ron Paul for President
On opening an account: This post has step by step instruction on how to open an account at Warka. These are instructions on how to send your request via email. Warka will reply with new account information and instructions on how to fund your account.
You may opt to send these documents via a courier sevice, such as Fedex, if you choose. You may also include a prepaid return envelope or an email address in order for them to send you your new account information and instructions on how to fund your account.
Please understand that it is common for requests to be delayed for many reasons. Iraq frequently experiences problems with power and communication lines. Many have been succesful at opening accounts in a matter of days, while others have experience delays exteded over weeks. It is recommended that you not repeatedly resubmit your information. Contact information is available on this thread if you feel the need to call them.
To open an account at Warka Bank you need:
1) Copy of Passport or Drivers License
2) A letter, as follows, authorizing Warka Bank to exchange USD to IQD on your behalf
I (insert your name) authorize Al-Warka Investment Bank to draw from my Dollar account ( current or saving ) in the above Bank and exchange the Dollar into Iraqi Dinar according to price fixed by the Central Bank of Iraq at that day , and then deposit it in my Iraqi Dinar account at the said bank
(Your Name)
(Your Address)
(Your Signature)
Here's how I sent the above to Warka Bank.
1) Scanned my Drivers Licence and saved as a jpg
2) Typed the above letter, printed it, signed it, scanned and saved as a jpg
3) Created and sent an email to: c.accounts@warkainvestmentbank.com
you may check bank's new website for new account contact person. http://www.warkainvestmentbank.com/contact_us.htm
Insert File - Drivers License jpg
Insert File - Autorization Letter jpg
Body of email contained the following:
Dear XXXXXX (Account Representative's name),
Please open a USD and IQD Savings Account with Warka Bank on my behalf. Attached are my Drivers License and Authorization Letter.
Thank You,
Note: There are many alternate methods for creating, scanning, and attaching documents to an email. The most popular are jpg and pdf.
If you follow the above you will not have any problems opening an account. Be patient as Warka Bank is swamped with requests. It took 4 calendar days for my account to be opened.
Current Account - no interest is applied to account
Savings Account - interest is applied
Both accounts can be used to purchase Iraqi Stocks when opened to foreign investors.
Foreigners are not permitted to invest in the ISX until permission is granted by the Iraqi Securities Commission (ISC). Until then, Warka will receive your request and keep it on hold until foreigners can invest.
This is a template that you can use to place an order at Warka via email. It must be printed, signed, and scanned. You can send via Fedex or DHL, if you prefer.
You can change your order at anytime by simply sending them your new request to replace you old request. It is recommended you request a conformation via email that your changes were received.
Example ATTENTION : Date
Miss R
IRD
Al - Warka Bank
I, [insert name] ____________________ Authorize Warka Bank to withdraw funds from my current Iraq Dinar Account #
For stock purchases of listed companies the same day That Foreign investors are permitted to purchase stocks on the ISX .
Stocks I wish to purchase when available for trade to the Foreign Public.
Each company listed below I want to buy 50,000 dinars worth of stock in each company.
1. stock # 10032 Kerbala Industries = 50,000 dinars
2. stock # 10028 Iraqi Petrochemicals = 50,000. dinars
3. stock # 31003 Ishtar Hotel = 50,000 dinars
4. stock # 31011 Baghdad for transports = 50,000 dinars
5. stock # 11008 Alkindi for Inoculations = 50,000
6. stock # 11017 Modern Paints = 50,000 dinars
7. stock # 11005 Chemical Products = 50,000 dinars
8. stock # 10020 North Soft drinks =50,000 dinars
9. stock # 11001 Baghdad soda = 50,000 dinars
10 . stock # 11025 Clothe Finished Products = 50,000 dinars
11. stock # 11004 Light Products = 50,000 dinars
12 stock # 10015 Almansoor for Medicine = 50,000 dinars
Total invested in dinars = 600,000 dinars
Each of the following companies listed below I want to purchase 75,000 dinars worth of stock for each company listed below .
1. stock # 40021 Alwarka Bank = 75,000 dinars
2. stock # 40002 Baghdad Bank = 75,000 dinars
3. stock # 20012 Certified Seeds = 75,000 dinars
4. stock # 31009 Baghdad Hotel = 75,000 dinars
5. stock # 31020 Transport Oil Products and ??? = 75,000 dinars
Total invested in dinars = 375,000 dinars
* Grand total of invested dinars = 975,000 dinars *
The balance of dinars please allow 2,000 dinars in the current account and the remaining dinars into the Savings Account #.
Thank you Miss R for your time and attention to the customer needs. Please send return statement with all the current balances for each account . If there are any problems or questions please contact me ASAP and I'll respond ASAP. Thank you again and I will be adding my wife onto the account after the exchange is open to foreigners .
Best regards,
Mr. [insert name]
once the account is open
you can transfer your funds to our bank through one of our
corresponding banks:
Housing Bank for Trade and Finance
Swift Code: HBHOJOAX
P.O Box 7693
Amman 11118 Jordan
Our A/C No. in US Dollars../ 0019583140201
Dresdner Bank AG
Swift Code: DRESDEFF
Jurgen – Ponto – Platz1
D- 60301 Frankfurt/ Main
Federal Republic of Germany
Our A/C No. in US Dollars../ 08-005-734-00-400
Commerz Bank
Swift Code: COBADEFF
6021 Frankfurt a m main, Germany
Our A/C No. in US Dollars../ 400875402000
***most people use the Housing Bank in Jordan. I heard (don't know for sure so don't quote me on this) that your deposits are insured through them. I'll find out if this is true soon****
-------------------------------------------------------------------------- CD's CD's CD's!!!!!
Why invest in the dinar through an Iraqi bank account?
My theory is that when the dinar pegs there will be another currency recall.
In order to gain from the peg, you dinars need to be in Iraqi.
Also by having an account in Iraq, if you decide that you no longer want to invest in the dinar, you can easily transfer your dinar back in to dollars and cash out.
According to my friend, there will be no currency re-issue. Plus there are already banks in america that will exchange the paper dinar. There have also been rumors that according to international law banks arent responsible for paying out the appreciation on currency, that they are only responsible for your original deposit. So the most obvious way to profit off this investment would be to invest in paper dinars. If you havent already i suggest you read my previous post on the other dinar thread.
According to my friend, there will be no currency re-issue.
No one knows this for sure. Everything that is *heard* is all speculation.
No official announcement has been made. IF there is a currency recall, those that have their dinars in Iraq will be able to profit
Quote:
Originally Posted by einvestor
Plus there are already banks in america that will exchange the paper dinar.
Please tell us the names and location of these banks.
I haven't read anything official from any financial institution.
Quote:
Originally Posted by einvestor
There have also been rumors that according to international law banks arent responsible for paying out the appreciation on currency, that they are only responsible for your original deposit.
Read what you just wrote.
Quote:
Originally Posted by einvestor
So the most obvious way to profit off this investment would be to invest in paper dinars. If you havent already i suggest you read my previous post on the other dinar thread.
Depositing money in an IQD account is investing in paper dinars.
The only difference is that they are in the bank and not in a shoebox.
And in the event that you want to bail and get your money back, all you have to do is authorize a withdrawal and you money will be wired instantly (well....not instantly, usually takes between 4-14 days) to your bank account.
If you have 10million dinars in a shoe box, you would have to find somebody else to sell them too, at a depreciated value.
__________________
Last edited by GoldenNegress : 01-09-2006 at 01:35 AM.
Like I said in the original post, according to international banking laws banks are not required to pay out appreciation on currency. So if you deposit $700 to buy 1 million dinars, and the dinar re-values then the bank only has to give you back the $700 and not the new value. So account holders will not profit from the dinar. For the list of banks pm me.
Here is a little reading material if you still think warka will pay out
TITLE 12 > CHAPTER 3 > SUBCHAPTER XII > § 411. Issuance to reserve banks; nature of obligation; redemption
Federal reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are authorized. The said notes shall be obligations of the United States and shall be receivable by all national and member banks and Federal reserve banks and for all taxes, customs, and other public dues. They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank.
TITLE 18 > PART I > CHAPTER 1 > § 8. Obligation or other security of the United States defined
The term “obligation or other security of the United States” includes all bonds, certificates of indebtedness, national bank currency, Federal Reserve notes, Federal Reserve bank notes, coupons, United States notes, Treasury notes, gold certificates, silver certificates, fractional notes, certificates of deposit, bills, checks, or drafts for money, drawn by or upon authorized officers of the United States, stamps and other representatives of value, of whatever denomination, issued under any Act of Congress, and canceled United States stamps.
Now that is it recognized that what is commonly accepted as U.S. dollars are in fact Federal Reserve Notes measured/denominated in dollars, and per the U.S. Code, Federal Reserve Notes are actually debt obligations, also known as promissory motes, a question now arises: What is a promissory note?
Promissory note - means an instrument that evidences a promise to pay a monetary obligation, does not evidence an order to pay, and does not contain an ackowledgement by the bank that the bank has received for deposit a sum of money of funds. [UCC 9-102(a)(65)] A note; a kind of negotiable instrument wherein the maker agrees (PROMISES) to pay a sum certain at a definite time [Barron's 3rd].
"...What they [banks] do when they make loans is to accept PROMISSORY NOTES in exchange for credits to the borrowers' transaction accounts...." ["Modern Money Mechanics," page 6, Federal Reserve Bank of Chicago, 1992.]
Why Banks are NOT Required to pay in a particular coin or currency:
U.C.C. - ARTICLE 1- GENERAL PROVISIONS
..PART 1. SHORT TITLE, CONSTRUCTION, APPLICATION AND SUBJECT MATTER OF THE ACT
§ 1-103. Supplementary General Principles of Law Applicable.
Unless displaced by the particular provisions of this Act, the principles of law and equity, including the law merchant and the law relative to capacity to contract, principal and agent, estoppel, fraud, misrepresentation, duress, coercion, mistake, Bankruptcy, or other validating or invalidating cause shall supplement its provisions.
U.C.C. - ARTICLE 1- GENERAL PROVISIONS
..PART 1. SHORT TITLE, CONSTRUCTION, APPLICATION AND SUBJECT MATTER OF THE ACT
§ 1-104. Construction Against Implicit Repeal.
This Act being a general act intended as a unified coverage of its subject matter, no part of it shall be deemed to be impliedly repealed by subsequent legislation if such construction can reasonably be avoided.
U.C.C. - ARTICLE 1- GENERAL PROVISIONS
..PART 2
§ 1-201. General Definitions.
(4) "Bank" means any person engaged in the business of Banking.
(28) "Organization" includes a corporation, government or governmental subdivision or agency, business trust, estate, trust, partnership or association, two or more persons having a joint or common interest, or any other legal or commercial entity.
(30) "Person" includes an individual or an organization (See Section 1-102).
U.C.C. - ARTICLE 3 - NEGOTIABLE INSTRUMENTS
..PART 1. GENERAL PROVISIONS AND DEFINITIONS
§ 3-103. DEFINITIONS.
(a) In this Article:
(1) "Acceptor" means a drawee who has accepted a draft.
(2) "Drawee" means a person ordered in a draft to make payment.
(3) "Drawer" means a person who signs or is identified in a draft as a person ordering payment.
(4) "Good faith" means honesty in fact and the observance of reasonable commercial standards of fair dealing.
(5) "Maker" means a person who signs or is identified in a note as a person undertaking to pay.
(6) "Order" means a written instruction to pay money signed by the person giving the instruction. The instruction may be addressed to any person, including the person giving the instruction, or to one or more persons jointly or in the alternative but not in succession. An authorization to pay is not an order unless the person authorized to pay is also instructed to pay.
(7) "Ordinary care" in the case of a person engaged in business means observance of reasonable commercial standards, prevailing in the area in which the person is located, with respect to the business in which the person is engaged. In the case of a bank that takes an instrument for processing for collection or payment by automated means, reasonable commercial standards do not require the bank to examine the instrument if the failure to examine does not violate the bank's prescribed procedures and the bank's procedures do not vary unreasonably from general banking usage not disapproved by this Article or Article 4.
(8) "Party" means a party to an instrument. (9) "Promise" means a written undertaking to pay money signed by the person undertaking to pay. An acknowledgment of an obligation by the obligor is not a promise unless the obligor also undertakes to pay the obligation. (10) "Prove" with respect to a fact means to meet the burden of establishing the fact (Section 1-201(8) ).
(11) "Remitter" means a person who purchases an instrument from its issuer if the instrument is payable to an identified person other than the purchaser.
Here is a little reading material if you still think warka will pay out
TITLE 12 > CHAPTER 3 > SUBCHAPTER XII > § 411. Issuance to reserve banks; nature of obligation; redemption
Federal reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are authorized. The said notes shall be obligations of the United States and shall be receivable by all national and member banks and Federal reserve banks and for all taxes, customs, and other public dues. They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank.
TITLE 18 > PART I > CHAPTER 1 > § 8. Obligation or other security of the United States defined
The term “obligation or other security of the United States” includes all bonds, certificates of indebtedness, national bank currency, Federal Reserve notes, Federal Reserve bank notes, coupons, United States notes, Treasury notes, gold certificates, silver certificates, fractional notes, certificates of deposit, bills, checks, or drafts for money, drawn by or upon authorized officers of the United States, stamps and other representatives of value, of whatever denomination, issued under any Act of Congress, and canceled United States stamps.
Now that is it recognized that what is commonly accepted as U.S. dollars are in fact Federal Reserve Notes measured/denominated in dollars, and per the U.S. Code, Federal Reserve Notes are actually debt obligations, also known as promissory motes, a question now arises: What is a promissory note?
Promissory note - means an instrument that evidences a promise to pay a monetary obligation, does not evidence an order to pay, and does not contain an ackowledgement by the bank that the bank has received for deposit a sum of money of funds. [UCC 9-102(a)(65)] A note; a kind of negotiable instrument wherein the maker agrees (PROMISES) to pay a sum certain at a definite time [Barron's 3rd].
"...What they [banks] do when they make loans is to accept PROMISSORY NOTES in exchange for credits to the borrowers' transaction accounts...." ["Modern Money Mechanics," page 6, Federal Reserve Bank of Chicago, 1992.]
Why Banks are NOT Required to pay in a particular coin or currency:
U.C.C. - ARTICLE 1- GENERAL PROVISIONS
..PART 1. SHORT TITLE, CONSTRUCTION, APPLICATION AND SUBJECT MATTER OF THE ACT
§ 1-103. Supplementary General Principles of Law Applicable.
Unless displaced by the particular provisions of this Act, the principles of law and equity, including the law merchant and the law relative to capacity to contract, principal and agent, estoppel, fraud, misrepresentation, duress, coercion, mistake, Bankruptcy, or other validating or invalidating cause shall supplement its provisions.
U.C.C. - ARTICLE 1- GENERAL PROVISIONS
..PART 1. SHORT TITLE, CONSTRUCTION, APPLICATION AND SUBJECT MATTER OF THE ACT
§ 1-104. Construction Against Implicit Repeal.
This Act being a general act intended as a unified coverage of its subject matter, no part of it shall be deemed to be impliedly repealed by subsequent legislation if such construction can reasonably be avoided.
U.C.C. - ARTICLE 1- GENERAL PROVISIONS
..PART 2
§ 1-201. General Definitions.
(4) "Bank" means any person engaged in the business of Banking.
(28) "Organization" includes a corporation, government or governmental subdivision or agency, business trust, estate, trust, partnership or association, two or more persons having a joint or common interest, or any other legal or commercial entity.
(30) "Person" includes an individual or an organization (See Section 1-102).
U.C.C. - ARTICLE 3 - NEGOTIABLE INSTRUMENTS
..PART 1. GENERAL PROVISIONS AND DEFINITIONS
§ 3-103. DEFINITIONS.
(a) In this Article:
(1) "Acceptor" means a drawee who has accepted a draft.
(2) "Drawee" means a person ordered in a draft to make payment.
(3) "Drawer" means a person who signs or is identified in a draft as a person ordering payment.
(4) "Good faith" means honesty in fact and the observance of reasonable commercial standards of fair dealing.
(5) "Maker" means a person who signs or is identified in a note as a person undertaking to pay.
(6) "Order" means a written instruction to pay money signed by the person giving the instruction. The instruction may be addressed to any person, including the person giving the instruction, or to one or more persons jointly or in the alternative but not in succession. An authorization to pay is not an order unless the person authorized to pay is also instructed to pay.
(7) "Ordinary care" in the case of a person engaged in business means observance of reasonable commercial standards, prevailing in the area in which the person is located, with respect to the business in which the person is engaged. In the case of a bank that takes an instrument for processing for collection or payment by automated means, reasonable commercial standards do not require the bank to examine the instrument if the failure to examine does not violate the bank's prescribed procedures and the bank's procedures do not vary unreasonably from general banking usage not disapproved by this Article or Article 4.
(8) "Party" means a party to an instrument. (9) "Promise" means a written undertaking to pay money signed by the person undertaking to pay. An acknowledgment of an obligation by the obligor is not a promise unless the obligor also undertakes to pay the obligation. (10) "Prove" with respect to a fact means to meet the burden of establishing the fact (Section 1-201(8) ).
(11) "Remitter" means a person who purchases an instrument from its issuer if the instrument is payable to an identified person other than the purchaser.
As you can see by now, Warka account holders do not stand a Chance in this deadly game of Absolute Certainty.
So exactly what are you saying? I am slow ( I apologize ) . Are you saying that no matter what you invest and when you invest they will only give you what you put in back not the appreciation of the currency? I thought If I went to Mexico bought peso's and went to change them later if the value has gone up I can get more than what I put in?
Isn't it the same concept? DOn't they have to pay out what it is worth?
Iraqi Dinar: Investing though Al-Warkaa bank.
Re: Iraqi Dinar: Investing though Al-Warkaa bank.
Re: Iraqi Dinar: Investing though Al-Warkaa bank.
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