Thoughts From Ariel :  The Dinar is a Tier 2 Asset

Ariel :  The Dinar is a Tier 2 Asset

Sunday, 25 February 2024

What I am about to upload needs to be read carefully. Because it goes back to a lot of what I explained to you all. One thing you need to understand is that you hold what banks need during the transition period.

And that is a Tier 2 asset called the Iraqi Dinar. The article will explain this to you on a formal basis.

By having a strong Tier 2 capital base, banks can weather financial storms more easily and maintain their ability to lend money and support the economy. That’s where you come in. Your IQD is going to play a pivotal role once it is reinstated on the Forex Market

Iraq will officially connect to corresponding foreign banks on March 1st to improve external balances.

After that will be the next big step and that’s becoming Article 8 Compliant and reinstating the IQD on global trade markets. After you read the article you will understand why banks had the meeting on February 20th for Tier 2 assets.

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Passing Through

Mckinle00935017:  So it’s a “win-win” for us and the banks when we exchange after the revaluation? 

Ariel   Absolutely. You will be their lifeline. So they will treat you like royalty. No games will be played.

https://dinarchronicles.com/2024/02/25/ariel-prolotario1-the-dinar-is-a-tier-2-asset/

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Ariel :  The Purpose of Tier 2 Reserves

Sunday, 25 February 2024

Making It Plain: Purpose of Tier 2 Reserves

• Tier 1 Capital: This is the thick, strong inner wall, made of things like shareholder equity and retained earnings. It’s the first line of defense against financial trouble.

• Tier 2 Capital: This is the second wall, not as strong as the first but still valuable. It’s made of things like undisclosed reserves, subordinated debt, and hybrid capital instruments.

 Tier 2- A revaluation asset. Which is what the IQD and other foreign currency is considered. Banks are holding meetings to help set up this safety net against the coming currency revaluation that will phase out the fiat currency (USD) by converting your IQD into the US Treasury Bills that the banks will use as reserves.

So you will basically create a financial blanket against the coming Black Swan event when banks will have to weather this storm. So if you happen to have 10-50 million in IQD you just bolstered the reserves of the bank that will do your exchange.

The purpose of Tier 2 reserves, like other elements of Tier 2 capital, is to provide an additional buffer to protect the bank from losses. It acts as a cushion before the bank has to tap into its core capital and potentially affect its ability to lend money.

Here’s a breakdown of some key benefits of Tier 2 reserves:

• Absorb losses: If the bank faces bad loans or other financial difficulties, Tier 2 reserves can be used to absorb those losses before they reach the bank’s core capital. This helps to protect depositors and other creditors.

• Maintain financial stability: By having a strong Tier 2 capital base, banks can weather financial storms more easily and maintain their ability to lend money and support the economy.

Do you understand your role now? You will be the lifeline of banks going forward. They know this. Which is why they are preparing to serve your best financial interest once the IQD is trading globally on the Forex Market.

https://dinarchronicles.com/2024/02/25/ariel-prolotario1-the-purpose-of-tier-2-reserves/

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