Wells Fargo "steer clear of Iraq Dinar-Fox News

by PrudenceArt Wed Feb 22, 2012 6:20 pm

http://www.foxbusiness.com/markets/2012/02/22/iraqs-dinar-still-stuck-in-wild-west-currencies/

While most investors realize Iraq is still a dangerous place to travel to, they may not fully grasp the financial risks tied to trading in the nation’s currency, the dinar.

Worried about the dinar’s illiquidity, the threat of currency fraud and still-unstable situation in Iraq, Wells Fargo (WFC: 30.59, -0.37, -1.20%) issued a warning this week urging investors to steer clear of the currency.

“Considering that Iraq remains a dangerous place with an uncertain future, we strongly advise investors against taking the risk of buying Iraqi dinar as an investment,” Paul Christopher, chief international investment strategist at Wells Fargo Advisors, wrote in a note in response to investor curiosity about the currency.

Introduced as Iraq’s new currency in 2004 after the fall of Saddam Hussein’s regime, the dinar, which recently traded at about 1,165 dinar per U.S. dollar, is still only available in paper form because most U.S. banks decline to deal it.

That means the dinar is still very much a part of the Wild West of the currency world, an area most investors should probably avoid funneling money to.

Yet investors are clearly curious about the dinar, largely because of yet-to-be-realized hopes that the Iraqi Central Bank will devalue the currency by resetting its exchange rate at a more favorable value. They point to similar economic rebounds and currency revaluations in West Germany after World War II and in Kuwait after Saddam’s 1991 invasion.

Yet Christopher spells out four main risks to buying into the dinar now: the threat of future violence in Iraq, illiquidity, risk of fraud and historical precedent.

While Iraq has clearly made great political strides in recent years, the political unity between Iraq's three competing ethnic groups remains extremely fragile. Plus, foreign influence, especially from that of Iran, threatens to further inflame political tensions.

“Iraq’s post-war experience shows much stronger ethnic divisions than was the case in Germany or Kuwait, prior to their currency revaluation,” Christopher wrote. “While the economy grapples with violence, the prospect of a currency revaluation seems remote.”

But even if the political and violence situations didn’t cast a pall over the dinar, the illiquid nature of the currency makes investment impractical.

Because few of the world’s banks outside the Middle East work with Iraqi banks, most investors are forced to buy actual physical dinar banknotes (rather than the electronic form of the currency like a euro investor would). Dealers in banknotes charge customers for the cost of shipping, handling and buying/selling the dinar in a wholesale market, Christopher said.

“The costs for buying or selling the dinar may absorb most or even all of an investor’s return,” Christopher said.

Without any banks to work with, investors in the Iraqi dinar are often forced to work with Internet trading companies and potentially shady dinar dealers that aren’t closely regulated by the U.S. government. That leaves investors open to the risk of fraud.

Christopher pointed to the fact that the Iraqi dinar trade ranked No. 6 on the Utah Department of Commerce’s list of top 10 frauds of 2006.

“We suggest many [currency] recommendations that we believe have much less liquidity, fraud and principal risk,” Christopher said.

by billcon Wed Feb 22, 2012 6:41 pm

Most investors are aware that an investment is always speculative = with no guarantees -- - This article and opinion will possibly shake the resolve of many

who are feeling quite shaky on this investment -- Especially considering it is coming from within the Well Fargo Investment area - while many if not all of our

"Intel" providers are stating WF is one of the Big 3 who are setting up the procedures for the RV Cash-in --- Certainly food for thought ---

My take is as always this is a risky speculation which may or may not pan out favorably -- at lease I feel there will be some value at the end (whenever that might be).

Can't help feeling bad for those who are haning on every bit of obvious false "Intel" claiming pie in the sky RV amounts coming at any moment -- in my opinion their

is not one of these Gurus who really have a true fix on what/when/if this will come about -- - The top of the OOM page says it all -- If it's not on the CBI website it hasn't

happened - I like most or all of the Dinar investors hope that a favorable RV takes place -- but take all the so-call intel with a grain of sale and a grin - knowing that none

has been right up to now - so don't see any reason to believe what they say at anytime -- Enjoy the read - hopefully chuckle at the outrageousness of the statements -

and go on with our lives - when and if it happens there will be no secret -- IMO - it will be on every TV/Radio station and we will all know at the same time. Hopefully

an enjoyable experience..

Wells Fargo "steer clear of Iraq Dinar-Fox News 1839924927

Wells Fargo "steer clear of Iraq Dinar-Fox News 1839924927

by Guest Wed Feb 22, 2012 6:48 pm

WELLS FARGO really put this out today...VERY INTERESTING :shock:

by peabody12 Wed Feb 22, 2012 6:56 pm

It does not make sense. Hillary says invest in Iraq because it is going to be bigger than China in growth and so the Iraqi Dinar has to RV to go along with the growth. This WFB talking head is way confused or Hillary is. scratch

https://www.youtube.com/watch?v=N6F6dePPUzI

by **abby ann** Wed Feb 22, 2012 6:59 pm

YES I LOVE IT!!!!!!THEY DON'T WANT THERE PEOPLE TO GET RICH!!SO THEY WANT TO HAVE TO WORK!!!!!

by Guest Wed Feb 22, 2012 7:01 pm

I actually told someone today what hillary clinton said when i was trying to make a point about iraq.

This piece with the statements is odd!

by Guest Wed Feb 22, 2012 7:02 pm

abby ann wrote:YES I LOVE IT!!!!!!THEY DON'T WANT THERE PEOPLE TO GET RICH!!SO THEY WANT TO HAVE TO WORK!!!!!

Lol, you really think that is why...

by peabody12 Wed Feb 22, 2012 7:03 pm

I agree, it is off-the-wall odd.

by **Kevind53** Wed Feb 22, 2012 7:12 pm

Interesting, but nothing new really ... and good points billcon. Keep in mind this is coming from the same people who were managing all the retirement funds, IRAs, 401Ks etc. when they lost 60% in 2008.

by edlou Wed Feb 22, 2012 7:14 pm

NOT TO WORRY...

KEEP THE FAITH..

by **Terbo56** Wed Feb 22, 2012 7:16 pm

More misinformation,more smoke,misdirection- They will lose out big time when this RV's -Maybe they don't want to lose their employees, IF they are invested-

by Guest Wed Feb 22, 2012 7:17 pm

edlou wrote:NOT TO WORRY...

KEEP THE FAITH..

Nothing scares me away from the DINAR INVESTMENT...unless they said there was a flesh eating decease attached to each dinar bill, I am keeping mine.

by DevaronDLH Wed Feb 22, 2012 7:20 pm

If WFB actually said all this nonsense you can bet once the RV happens they will quickly change their tune and be nice nice... I suspect if they did say such a thing it is aimed at their employees who will quit the moment the RV happens... would'ent you?
Its just more mis-information...

Wells Fargo "steer clear of Iraq Dinar-Fox News 3079029344

Wells Fargo "steer clear of Iraq Dinar-Fox News 3079029344

by ou812 Wed Feb 22, 2012 7:20 pm

edlou wrote:NOT TO WORRY...

KEEP THE FAITH..

Its not about faith.

by Guest Wed Feb 22, 2012 7:27 pm

DevaronDLH wrote:If WFB actually said all this nonsense you can bet once the RV happens they will quickly change their tune and be nice nice... I suspect if they did say such a thing it is aimed at their employees who will quit the moment the RV happens... would'ent you?
Its just more mis-information...

This does smell of MIS-INFORMATION...are we that close to this....

by **Terbo56** Wed Feb 22, 2012 7:30 pm

ou812- You must remember, that people have their opinions, just like yourself-Treat people the way you want to be treated-And, by the way,you may want to be careful how your view comes across to those of us that 'Do' have faith,and if you do not , then you probably should not be here-

by ntvtexan Wed Feb 22, 2012 7:32 pm

Sorry Punisher...but I read the whole article, and at the end after the ads it specifically stated:

"Since there is a flesh eating disease attached to each Dinar bill, OOM'er Punisher should IMMEDIATELY redistribute his holdings to all other OOM'ers."

Sorry for the bad news Punisher...but, when will those be going out???

lol!

by Guest Wed Feb 22, 2012 7:35 pm

ntvtexan wrote:Sorry Punisher...but I read the whole article, and at the end after the ads it specifically stated:

"Since there is a flesh eating disease attached to each Dinar bill, OOM'er Punisher should IMMEDIATELY redistribute his holdings to all other OOM'ers."

Sorry for the bad news Punisher...but, when will those be going out???

I will punish you for such a bad joke lmao

by Guest Wed Feb 22, 2012 7:44 pm

Being hungrey will instill negativity and disbelief in a government such as Iraq and its People, along with that comes hostility and war. This article is smoke designed to shake the speculators here and elsewhere. The same will happen in Iraq on the oppisite side of that specturm when the time comes to move from the USD and back to the Dinar in their country. AJ

by **Jayzze** Wed Feb 22, 2012 7:51 pm

first of all when you first bought the dinar you should have realized that this would be a risk. the fact that iraq is so rich in oil and minerals makes this a good long term investment. the good part of this investment is iraq has to have a tradable currency to make money on there oil . once this happens we will have our money. remember we are dealing with mid east mind set but also remember they are cunning and are traders they will not continue to lose money by being in chapter 7 much longer. when you read about these big numbers 5 67 or more you are in the twlight zone expect somethig realistic between 1 and 1.50 then it will climb to mid 3s eventuatly. when this happens you can always deal with another bank they all will make deals they all will make deals

by weralldoingtime Wed Feb 22, 2012 7:54 pm

I will never do affraid

business with Wells Fargo~~because of this article they put out there~~ :bball:

by **Terbo56** Wed Feb 22, 2012 7:56 pm

ou812- If you have no faith in yourself, the dinar or others, then you probably should'nt be here-Let's try to be just a bit more positive,shall we?

by 1alaskan Wed Feb 22, 2012 7:56 pm

Well,

It was a better statement that Wells has had their tellers say, Normal company line is, "the IQD is a scam", so to me it sounds as tho Wells is softening their stance.

by Guest Wed Feb 22, 2012 7:57 pm

.......and after Iraq gets back to 4 million barrels per day or more! AJ

jayzze wrote:first of all when you first bought the dinar you should have realized that this would be a risk. the fact that iraq is so rich in oil and minerals makes this a good long term investment. the good part of this investment is iraq has to have a tradable currency to make money on there oil . once this happens we will have our money. remember we are dealing with mid east mind set but also remember they are cunning and are traders they will not continue to lose money by being in chapter 7 much longer. when you read about these big numbers 5 67 or more you are in the twlight zone expect somethig realistic between 1 and 1.50 then it will climb to mid 3s eventuatly. when this happens you can always deal with another bank they all will make deals they all will make deals

by zerhourwriter Wed Feb 22, 2012 8:14 pm

I love it!!! And from Fox news too... EVEN BETTER!!

This is great news to me.

If they wanted to be accurate they would have told the people that they could get dinar from local US BANKS instead of online currency traders. If they wanted to be accurate they would have mentioned that Warka provides an avenue for electronic dinar if "liquidity" is an issue.

LOL

Two mainstream articles in one week!!!

LIFE-IS-GOOD

:cheers:

by Guest Wed Feb 22, 2012 8:37 pm

zerhourwriter wrote:I love it!!! And from Fox news too... EVEN BETTER!!

This is great news to me.

If they wanted to be accurate they would have told the people that they could get dinar from local US BANKS instead of online currency traders. If they wanted to be accurate they would have mentioned that Warka provides an avenue for electronic dinar if "liquidity" is an issue.

LOL

Two mainstream articles in one week!!!

LIFE-IS-GOOD

:cheers:

We are getting close...

:happyjoy: party time

by Squishy Wed Feb 22, 2012 8:38 pm

Looks to me like Iraq is running out of the 000 currency LOL. Why push for it to get sold, when you're ready to bring it all in? hahaha

Seriously, I wouldn't want my name tied to a silly article like that one. If any investor really looked into Iraq, they'd do what we've been doing, buying dinar. Its obvious that this guy has no clue what he's talking about AND it just shows me how close we really are when banks start this crap. One more thing, all of the discouraging articles that have come out of banks, I wont feel bad for them when they find out people went to other banks that were kind to us investors. I dont know of any investor personally that will use one of the big banks. They blew it for themselves IMO by scaring the investors.

by revenuerog Wed Feb 22, 2012 8:39 pm

jayzze wrote:first of all when you first bought the dinar you should have realized that this would be a risk. the fact that iraq is so rich in oil and minerals makes this a good long term investment. the good part of this investment is iraq has to have a tradable currency to make money on there oil . once this happens we will have our money. remember we are dealing with mid east mind set but also remember they are cunning and are traders they will not continue to lose money by being in chapter 7 much longer. when you read about these big numbers 5 67 or more you are in the twlight zone expect somethig realistic between 1 and 1.50 then it will climb to mid 3s eventuatly. when this happens you can always deal with another bank they all will make deals they all will make deals

Good post...I agree with ya..and THANK YOU SO MUCH for the periods !!!! MUCH easier to read !! :cheers:

by landcareunlimited Wed Feb 22, 2012 9:05 pm

I guarantee you EVERY person on OOM knows more about the Dinar than ANY Wells Fargo employee...hands down.

by **Terbo56** Wed Feb 22, 2012 9:24 pm

LCU- You got that str8, and then some- Wells Fargo "steer clear of Iraq Dinar-Fox News 1499845164

:cheers:

by 1alaskan Wed Feb 22, 2012 9:26 pm

landcareunlimited wrote:I guarantee you EVERY person on OOM knows more about the Dinar than ANY Wells Fargo employee...hands down.

I have always thought that. Unless, said bank employee just happens to own IQD

by **PALMER01** Wed Feb 22, 2012 9:27 pm

Hey, Terbo, that would be SRT8, and then some. Wells Fargo "steer clear of Iraq Dinar-Fox News 974290055

by **Terbo56** Wed Feb 22, 2012 9:32 pm

I stand corrected-But never forgot- I'm also a Chrysler finatic- That's just about all I've ever owned, and NO complaints from me!! Wells Fargo "steer clear of Iraq Dinar-Fox News 3079029344

Wells Fargo "steer clear of Iraq Dinar-Fox News 949729897

by 1alaskan Wed Feb 22, 2012 9:42 pm

One thing about PALMER1, he only favors POWER, doesn't seem to care what under the hood as long as it goes fast,

Just guessing fom his avatars.

by **Terbo56** Wed Feb 22, 2012 9:45 pm

It's gotta be a Mopar, or nuthin'-Don't need a NOS bottle, all ba!!s and throttle!! affraid

by zerhourwriter Wed Feb 22, 2012 9:46 pm

PALMER01 wrote:Hey, Terbo, that would be SRT8, and then some.

It's closer to SRT10 for me. Smile

by **PALMER01** Wed Feb 22, 2012 9:48 pm

You got that right. Power is everything, but I have no power.

by **Terbo56** Wed Feb 22, 2012 9:52 pm

Palmer01- Well, then, why not a K.Black Hemi? You can squeeze out 1575 H.P.without even tryin'-!! affraid

Wells Fargo "steer clear of Iraq Dinar-Fox News 203646764

by **PALMER01** Wed Feb 22, 2012 9:56 pm

Let's try that on an oval dirt track, like AJ. Wonder if I could get around once before I crashed. affraid

by Sooner Patriot Wed Feb 22, 2012 9:59 pm

Blue Smoke!!!! It came out just before the Kuwaiti RV! China ran a full page ad the day before their RV. This is Wells Fargo and George Soros' form of Blue Smoke, and part of the scare tactics to keep those late comers who have heard these past few days that it's getting close from buying in or more importantly, their own bank employees from buying in. I'm putting zero credence into this crap. NEXT!!!!!!!!

by Guest Wed Feb 22, 2012 10:05 pm

Sooner Patriot wrote:Blue Smoke!!!! It came out just before the Kuwaiti RV! China ran a full page ad the day before their RV. This is Wells Fargo and George Soros' form of Blue Smoke, and part of the scare tactics to keep those late comers who have heard these past few days that it's getting close from buying in or more importantly, their own bank employees from buying in. I'm putting zero credence into this crap. NEXT!!!!!!!!

This just shows we are close i believe.

by **Terbo56** Wed Feb 22, 2012 10:12 pm

Palmer01- Sure you can- If you're going hard enough left, you'll be steering right- Wells Fargo "steer clear of Iraq Dinar-Fox News 4017580043

-Just give'r a big drink, steer, and hang on!!

by therealbutterfly Wed Feb 22, 2012 10:46 pm

Sooner Patriot wrote:Blue Smoke!!!! It came out just before the Kuwaiti RV! China ran a full page ad the day before their RV. This is Wells Fargo and George Soros' form of Blue Smoke, and part of the scare tactics to keep those late comers who have heard these past few days that it's getting close from buying in or more importantly, their own bank employees from buying in. I'm putting zero credence into this crap. NEXT!!!!!!!!

Kuwait didnt rv nor have I seen any proof of any ad from China. Thats all guru retread.....

by CaptnJerry Wed Feb 22, 2012 10:55 pm

therealbutterfly wrote:Kuwait didnt rv nor have I seen any proof of any ad from China. Thats all guru retread.....

TRB, I feel your pain... Wells Fargo "steer clear of Iraq Dinar-Fox News Bang

CJ

by elvishd1 Wed Feb 22, 2012 11:51 pm

WONDERFULL https://www.youtube.com/watch?v=MUfgAbFY4CA

by gp cobb Thu Feb 23, 2012 12:20 am

.....One Jerk working at WF does not make a whole.............
I don't even believe he is speaking on behalf of WF, making a splash on his own, JMO kids.......
.............. my WF man does not agree, nuff said?????????????

by Guest Thu Feb 23, 2012 12:26 am

Oh, darn he beat me to it! and to think we actually have jerks out there, when they say test the spirits i guess i missed that class on this one. I wonder how WF feels about that now? AJ

gp cobb wrote:.....One Jerk working at WF does not make a whole.............
I don't even believe he is speaking on behalf of WF, making a splash on his own, JMO kids.......
.............. my WF man does not agree, nuff said?????????????

by edlou Thu Feb 23, 2012 12:29 am

ou812...GOTTA HAVE FAITH...just in life in general..

Terbo56..thanks for understanding..

KEEP THE FAITH....

by 1alaskan Thu Feb 23, 2012 12:30 am

Like I said, at least he did not say it was a scam, the Wells company line.

by Guest Thu Feb 23, 2012 12:35 am

Its funny how disinformation and propaganda works!

1alaskan wrote:Like I said, at least he did not say it was a scam, the Wells company line.