TNT Wednesday


TONY – Good morning, TNT. It’s Wednesday, February 25, 2015. We shouldn’t be here. I never expected to be here on this call today. I don’t know if DC will call in or not. If he does we’ll bring him in. If not, we’ll get this call done real quick. Let me give you the quick facts without the details up front. Fact of the matter is we’re not at the bank.

T – Yesterday you saw the budget was fully-publicized. We got the same info and has been and we’ve been telling you that for 2 weeks. We had a guy who actually walked over – physically looked at it – and said “just reviewed the budget that was just published today, but not publicized for the public. There were 38 subsections not listed, and that list is down to 17 subsections that are not there for the public to see. HCL is not listed (our guys has a copy of that). The budget is NOT complete until the HCL is published. It also names the Tariff Law but did not say when it takes effect. They previously said they want it to take affect on 3/1 15. They are gradually putting it out for public consumption, between now and Sunday. It will release as an RI within 24 hours after completed.”

T – They are telling them on their TV this will be completed THIS WEEK. Have they said this before? Yes. But all we can do is tell you what they’re saying. They also said when banks reopen the rates would be changed. There are NO banks open in Baghdad today but are scheduled to open tomorrow. All we can do it go by the moment and tell you the info that’s being put out. Our banks here brought their people in and put them on notice. Gov’t people did the same. It could happen at any moment.

T – Iraq had their meetings yesterday and they went great. Everybody agreed on everything. Iraq was supposed to get their payment today (HCL implemented). So we wait. In Iraq right now they can only take out $3,000 (down from $10,000) if they’re leaving the country. No USD being used in-country. They are actually buying stuff primarily with dinar and getting change back in dinar. They are de-dollarizing the country. There is a timeframe for them to complete the de-dollarization – 10 days. That timeframe ends Friday morning, if that’s the case.

T – People are using the Tariff Laws as an excuse to prolong this. They should have been in affect 1/2014. The budget isn’t required for the RI and none of the new banking laws are required for it either. When is the perfect time? Could be right now. Could be Friday morning in the mosques. Could be to coincide with March 1 (Sunday) when the new Tariff and Banking Laws go into effect. Rates are back on the bank screens. Certain currencies are showing up at the rates we thought they’d be. Nobody is depressed (except us).

T – I heard Iraqis are tired of this dragging out. They are tired of “imminent.” Okay, that is the update, to the minute.


C – I am so confused about the Zim and what I read. Yesterday an article gave rates, I’ve listened to you say about the 6 zeros and rates between .05 to .18. Even DC was surprised on Monday about some of the rates (he said 4Xs what we thought). I’m not even sure what symbol to use. Can you help me with that? T – You’re not the only one confused, excited, etc. Let me just say this: I can answer your question because we dug into yesterday, called banks. But if I answer these questions you will not be able to afford the Zim 30 minutes from now. It will quadruple in price. Are you sure you want me to answer it? C – Absolutely.

T – Okay, there are 4 codes: ZWL, ZWR, etc. There are 3 different rates under the 4 different codes. In the history of Zimbabwe, they’ve put out different currencies. Because they know some have each one of those currencies, they set a different rate for each one to exchange when the time comes. Do the math yourself (35K/1T note). In August or September last year they put out a publication they would revalue in January. That was supposed to be 1/2014 but they were not ready. We called several banks in other countries and they confirmed it was on the bank screens. I actually heard about somebody getting paid out yesterday. The banks here are not pushing it out front because they don’t know what to do with it. Could that change? Yes. We’ll see what happens.

C – If we go to the bank to exchange, what code do WE use? T – I gave you the four. Not that they don’t want your business, but we were told if you give the wrong info they will not process you. The 2008 that most of us have will be under ZWD and ZWN.
[18:31:24] gileads place: C – It seems like this is slipping away. Is there more pressure from other countries? Where is the accountability to get this done? T – I don’t know if they’re excuses but there are reasons they are doing what they are doing. There must be something else behind the scenes happening which is why no other countries are getting upset. On Monday the called the whole Parliament back together and the meeting went fine. Could be the de-dollarization period. Could be making sure the protections were out there. Could be the money is in the banks and training are complete. But right now they are telling them it will be sooner rather than later and by Sunday. The latest thing over the weekend they told their people when the banks reopen they’ll have revalued currency. Well all the banks are closed except for 3 in the Kurdistan region. Auctions have stopped. If I thought it would be an extended period of time i would be upset as well.

C – You say it was supposed to go. How do you know? T – Because somebody tells me. Somebody from different sources confirms. Did I get a call today? Yes. If I tell you that will it happen? No. I gave you some timeframes. Banks were scheduled for this morning at 7AM. They thought they’d be doing something this morning because that’s what everybody was hearing. Could it still happen? Yes, but that’s not the timeframe I was given – it’s a bit longer than that. I do know certain people have said they need it done between now and then. They were told “yes, but we’ll pick the time.”

T – Also, DC did tell me yesterday we’re back to one 15-minute post-RV call.

C – We know you talked about 1st mouse, 2nd mouse, 3rd mouse. We want the cheese factory. So should we just exchange a small amount and hang onto the rest while the rate goes up? T – I am not a financial advisor. One option is to use the exchanger/dealer to lock in the rate when it goes up. Otherwise, I would put it into a MCA with my gank and give the WM the responsibility to let me know when it changes in a timely manner.

T – I messed that up. It’s supposed to be ZWN and ZWR. C – Do you know the rates for those two? T – I do but if I give them no one could afford them.

C – Should we ask to see rates for both? T – Yes, ask to see both.

C – Should we ask to see rates for both? T – Yes, ask to see both.

T – Okay, here’s the thing. We don’t know how this will shake out, i.e., 800#s, calls, etc. I do know at least 2 banks have told their people they will be in competition with other banks and they would look at their rates to be sure they are competing with the others. Now they’re telling you to call the 800# of the bank of your choice since they’re all in true competition. This is what they’re telling their banking people we’re going to do. That doesn’t make any sense because they want to get us all thru in 72 hours. But now they’re expecting me to call all the banks and make appointments so I can compare rates? If it truly comes out like that, this is your one opportunity to get it right. If they’re offering a percentage point more, there could also be more perks and incentives as well.
[18:49:24] gileads place: T – I don’t have the bank package now. I’m just hearing what I’m told. They could change it all.

C – You said to look at both screens for the ZWN and ZWR? T – ZWL (2009) – I don’t think we’re looking for that one. Why don’t you call an exchanger at an airport, give them both codes and get the rates, then call the bank and compare. Or ask for the rate when you call each bank. If they tell you you have to make an appointment before they give you a rate because they change so often, ask them for the current rate before you set up an appointment.

C – There has been talk of the USD losing 6% of its value. What are your thoughts on that?

T – Regardless of what you think about POTUS, our Admin has protected our currency. The USD will lose some of its value as some will doing trading between each other without the uSD and this will cause a decrease in the USD. If you have foreign currencies and the USD goes down, you can then buy the dollar and make money in the process. Real estate is always a good investment. I will never say hard assets are wrong.

C – True or false: until Maliki is out of the country or in the ground this is never going to happen. T – FALSE! They have an all-inclusive GOI and they have told their people there will be an RV this week. Parliament did come back as a whole this week so we are moving on. Abadi and Maliki had a meeting and Parliament met. I can’t tell you the future but I can tell you what’s going on at this minute. The situation is under control and they have once again picked a time to do this. Sunnis are in the Parliament and they agreed. They publicized the budget yesterday but left out critical parts until it happens.

C – Did the Sunnis make the Parliament meeting? I read an article written on Monday that said the Sunnis would be attending Parliament “next Tuesday.” T – That’s how they say “the next Tuesday coming up” or simply “tomorrow.”

C – After it RIs will we be waiting a long time for it to hit here before we go to the bank or you get the bank package? T – I wish I had a good answer but I don’t. I only know there is a package. I don’t know what it consists of. They may give us 4 different numbers. It’s confusing to us. But they won’t give us the info before it’s time for legal reasons. It may be just “hey, it’s live, go to this site” and we’ll see you at one of our events. I don’t think the US will take their time in releasing it to us. Once it goes international it’s done. People will be exchanging at airports. One guys in Dubai exchanged at the airport yesterday and they wired the money to his bank.
C – Anything new on taxes? T – No.
C – DC had said you would be able to post all the exchange locations in the various states. Is that still possible? T – No, too many variables. I don’t ever see us doing that.

T – Just in from Iraq: “nothing new in Iraq on the budget, still saying everything is done, but nothing new on the timing.” There it is – fresh from Iraq.
C – Regarding all these currencies for sale on Ebay, what are the pros and cons of purchasing thru there versus Sterling? T – It’s what you feel comfortable with. I purchased my dinar and dong thru Sterling and my Zim thru Ebay. I can’t verify the legitimacy of them all.
C – Will banks really care where it comes from as long as it’s authentic? T – No, as long as you have your receipts. Just like if you were on vacation and want to exchange when you got home. Keep your receipts.

C – Will the 1K dinar note be deleted or will it be available post-RV? T – It will still be good. They do plan on using their 500 and 1,000’s to purchase TVs, cars, etc. You won’t see them much but they will be good.

C – I’m hearing some things from other sources, specifially bond traders who have been put on 24-hour watch. I know that’s a separate investment but what do you think about that? T – We’ve been hearing about the bonds being processed over the weekend in anticipation of this happening on Monday. We heard SKRs were paid out over the weekend in anticipation of wiring out funds Monday night. Everybody is being told to be ready, so here we are!

T – The key thing is everytime we hear it, it’s not weeks or months, but rather within days, sometime this week, all the way to “get ready to go to the bank and here’s what you’re supposed to do when you get there.” Also, Ray just told me most Travelex in airports are past security, so call before you go to the airport if you’re not traveling.

C – What is your impression that the US banking system should be Basil 3 compliant on Tuesday morning, as well as that Iraq is supposed to implement FACTA? Are those factors? T – I believe they are non-factors. From what we are hearing those are not part of the discussions. But could it be? I don’t know.

C – What I’m hearing is they are waiting until the USD is asset-backed to process. T – Sure they want UST notes not FRN. But those are reserve notes like a mortgage note, country-to-country payments, etc. Not paper notes you use for currency.

C – Are there stil contract rates available? T – My understanding is there is still some available or put aside for the general public. I don’t know how much. You can only exchange up to $25M at the contract rate. They lowered that rate to accommodate more people. Not everyone will want the contract rate, though, because of the NDA and restictions. Hopefully the last 5 years have given you enough knowledge. A little bit of knowledge is a dangerous thing.

RECAP: T – I’ve been here an hour & half by myself. Everything is great. We are in a great position. They are telling them the budget is fully-published, even tho they left out 17 items which probably won’t be made public until this RI takes place so they don’t give too much head’s up. Banks have notified their people again and put them on alert. In Iraq they’re telling their people to hold on, it’s about to happen this week. We’ve heard this before but they’re still pushing it. Inside people we talk to are still looking for this between now and Sunday. That’s what everybody is pushing towards. We’re looking very, very good in the next 72 hours. Again, everything we know is done. They’re not putting those other things in the budget until the RI. Payments are supposed to go to Kurdistan today. They are de-dollarizing. Auctions have been stopped since last Tuesday. They’ve changed banking procedures, which is why the CBI isn’t selling. All of these should tell you we are just that close. If anything changes we’ll tweet. I’m NOT planning on being here Friday. END OF CALL.

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