Normally something doesn’t get me so wound up to have to post twice in a day, but today is an exception…
Everyone is wound up about the WTO meeting today. They have to change the rate because they are ascending into the WTO today. No and No. First, the only thing we get from the WTO ascension, when it happens, is the removal of sanctions from the IQD. They cannot trade internationally without an unrestricted currency. Go to your local bank and try to exchange your dinar or dong. You’ll get something like this:
JP Morgan Chase (JPMC) does not buy, sell, or exchange Iraqi dinar (IQD) banknotes and currently has no plans to offer this service in the future. You may have read or have heard that Chase Bank buys, sells or exchanges this currency, this information is incorrect.
Bank of America, N.A. does not buy or sell Iraqi dinar banknotes or Vietnamese dong banknotes, and currently has no plans to offer this service in the future.
Exotic currencies are those that are thinly traded in the forex market. These currencies aren’t widely used in the global markets. Some examples of exotic currencies include the Turkish new lira (TRY), the Iraqi dinar (IQD), and the Thai baht (THB).
For Iraq to join the WTO, these restrictions would be removed and you could freely go to any bank that handles foreign exchange and change your currency into USD. This is the kind of news we hope to hear as continued talks with the WTO hope to allow Iraq into the organization. Today’s meeting was the third meeting in regards to ascension since their initial working meeting in 2008. They haven’t been exactly in a huge rush to do this. And no, the WTO offers no insight into them increasing their currency since that is not the WTO’s purpose.
So I would expect by this weekend the gurus will find another “event” they can begin to point to as the landmark opportunity for the revaluation or reinstatement of the currency. More trends, point you to a topic, pump the information coming in surrounding the event, and then suddenly switch to something else far more important for the conversations. Notice how each guru has information that validates the other’s? As I’ve referred to in the past, circle intel. I’m sure there will be some holdup with Iraq’s banks, or the Treasury department’s handling of sanctions, or maybe new elections and a leadership change. There’ll be something, guarantee it, and why? It’s not because it matters, it’ll be because they need something else to talk about to keep you coming to those pages or listening to those podcasts. Revenue streams! If you aren’t tuning it, they aren’t making money. There will be more news coming, but it won’t be because some guru had the facts on it.
BWM