I AM NOT A RUMOR PERSON, BUT I THINK THIS HAS SOME MERIT! RE; BANK OF AMERICA!!!

Ok Friends, Here ya go...
I listen to Tony Breitlings audios regularly, as I like his logical train of thought,
So, I learned that asking the right questions will get you the right answers....
and that regularly he states that when he cashes in, he's just going to go to BofA,
and that regularly everyone says it so much cheaper to go to ALI or other places,
that only charge a FLAT RATE for the exchange(Ali says $150 per Million IQD),
instead of going directly to a local bank of my choice... everyone has heard this...

Well Now here is my story...
I have avoided getting involved in Rumors or BANK STORIES, on purpose,
cause I hold my cards close to the chest in games like this...
So today the Bank of America is open from 9am to 2pm on Saturdays,
and I go in to cash a check, and use my debt card to avoid monthly account charges!

So my friend is the Bank Manager in this branch, not a teller, not a greeter, THE MANAGER...
and I'm thinking to myself, How can i get some good currency Info(Reliable Info), and not tip my hand to them,
so i start the conversation asking about random currency exchange questions and policies,
knowing that I do not want to explicitly ask about the IQD, i ask about currency exchanges in general...
Questions like these...
"What does the bank charge for a percentage on currency exchanges?", "How do they get rate updates?",
"Who designates the rate of exchange?" and "How does the exchange occur...CASH?...ACCOUNT DEPOSIT?, HOW?"

So here is what she answered me to the questions I asked...

"What does the bank charge for a percentage on currency exchanges?"
"She Said: that the bank does not charge a percentage to exchange currency, it is an even exchange for the rate!"

"How do they get the rate or updates on the rate?"
"She Said: Every Morning they get an update from the TREASURY!"

"Who designates the rate of exchange?"
"She Said the FED is the one that designates the RATE and it is updated daily, every morning!"

"How does the exchange occur...CASH?...ACCOUNT DEPOSIT?...DAYS WAITING TO BE AUTHENTICATED... HOW?"
"She Said: The exchange is made at the teller window, They have a big book listing all acceptible currencies,
and unless it is done by a drop deposit transaction in the drop box, or by a private banker,
which then the transaction is done privately in a confidentially stall, for the customers benefit,
and that usually for larger transactions an appointment would be nice to schedule ahead of time,
but the appointment is not needed if the customer would like to wait for their turn, in the banks waiting area!"

SO, being myself, an inquiring mind... I went on to ask more questions,
I still did not mention the IQD, as I did not want her to clam up and feel uncomfortable ..

So I asked:
"How does the bank make money on the transaction if they make no percentage on the transaction?"
"She told me that the rate comes directly from the FED and they payout that specified rate, but that the rate they pay,
does not mean that, the rate paid to customers is the same rate the FED pays the BANK for redemption of the currency!"

We also talked about the spread between the BUY and SELL Prices, and "How to BUY CURRENCY the buyer pays the SELL RATE,
and to SELL CURRENCY the seller pays the BUY RATE, and How confusing this process was to the average customer...


SO,
Seeing my chance to clarify this further I made an analogy to her...
I said:
"So it is kinda like Pop Bottles, the deposit rate that i receive from the bottle,
is like the FED rate that banks pay directly to their customers for the transaction,
and as such, the store who redeems the Pop Bottles is not doing this for free,
they have employee labor involved and temporary storage, as well as liability while in storage,
and so, the Distributor or Bottler whom buys the Pop Bottles back from the store,
Provides them a greater rate than the pay-out transaction rate, that the customer receives from the store!"
She Said: YES, Exactly, that she had never thought of it like that, as she never considered the comparison,
but that this analogy I provided her was an excellent example of the process, that the BANK experiences!"

SO, the moral of the story is:
That the FED can set whatever rate they want to redeem foreign currency, and that the IMF sets guidelines to the rate,
but that does not mean that the FED has to offer that rate, they could offer more or less, just like currency traders do,
and just because standardized rates are stated by the FOREX or IMF or CENTRAL BANK, the FED can specify any rate it wants,
and if you do not like the rate of exchange, you can exchange the currency to another exchange source, on the open market!

Understandably, like any other thing in life, the value of anything is what it is worth to whom wants it...
and the fact is, that BANKS can not exchange your money and then take it to a foreign country to trade it in,
THEY MUST use the FED as the Middle Man for the transaction to get their money back, Simple as that...
and the bank does make a profit on the transaction, outside of the stated rate of exchange when they redeem it to the FED...

PLEASE UNDERSTAND, this is only BANK of AMERICA practices, or so I was directly told by the BANK MANAGER,
other banks could and probably do have other practices internally, and other policies specific to that bank!

BUT when the time comes,
"Do Not Be Afraid to go to your bank and ask what the percentage is on the foreign currency transaction?"

Excellent Info. :bball:

Interesting! I appreciate you sharing this. Very informative, Thank you.

Nice job but a lot of effort just to confirm the bank charges a spread! :shock:

IF a bank rate is the same as CBI's, with NO spread or fee of ANY kind... fine and dandy...

IF however the rate is lower, than going to Ty at $150.00 per transaction, (Ali states that he will charge $150.00 per million) would be a better deal.

Moral of story, you ask???

KNOW your options, and use them as leverage as to what you want.

All dinar (in my opinion) cashed in at banks in the US will end up at the Fed. There they will be used as "oil credits" also the Fed just like banks every night will have a open market of exchanges world wide to take advantage of floats, That means that the sale form day to day it may be 1 cent but with billions exchanged 1 cent could be significant increases or losses. This secenario will not occur for the banks in the case of the dinar. But banks do "sell" there assets every night on the open markets and buy back before opening time every morning. This is one way the banks make money I hope this is clear if not please ask...rick152

Thank you rick152... This goes along with my findings on this link yesterday point #16 ... And all other research shows fed traded currency with Iraq way back when and they are holding the trillions of dinar NOT the us treasury which would make that senator letter posted correct in that aspect and then his Iraq statements fall under "his declarative opinion" ( all my speculative intake on it) ... This ALL centers around the federal reserve and it's agenda and the us treasury will remain hinged to the hip because of the ties of control within their relationship of debtnesses/ treasury bills etc ( all my speculative opinion) ... The fed holds the purse strings to all of this .. Oil oil oil ...the more you control the more power ... The more power ... The more ultimate control of the powers that be

http://investorshub.advfn.com/boards/board.aspx?board_id=12982#

Here's that link I was talking about above in my last reply post

AS az-tex said,

we have options at cash in time, if the banks/feds don't get right, we can walk down the street and cashin with a dealer.

But the bank can offer more or less than the fed rate, they either make up the difference, or make the difference. But they may want to make you an offer you can't refuse, to tie up your money with them.

JMHO
Now is good
Rantings from north of 65 this week