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Showing results for tags 'A KATIERONI KILT LIFTER !'.
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CNN. Broadcasting In Closed Captioning - Also Available With Mimes ! 12-1-2015 Newshound Guru Enorrste ...the CBI plan is two-fold: first to reduce the paper count from 4 billion notes to 1 billion notes: and second to reduce the total money supply from 40 trillion dinars to 40 billion dinars. The introduction of the larger 50k and 100k notes in itself only deals with the first objective, reducing the paper count. However, this alone would not reduce the paper from 4 billion pieces to 1 billion. At most it might reduce them from 4 billion to 2 billion, and probably not even that much since there are also the 1000, 5,000, and 10000 dinar notes in circulation. Therefore, in addition to the even exchange (two 25k notes for one 50k note, for instance), the CBI will also be reducing the circulation even farther by removing 25k notes directly from the market. 12-1-2015 Newshound Guru Enorrste This will reduce the total value of the money supply from 40 trillion dinars to 40 billion dinars over time. In the process of reducing the value of the money supply the value of an individual dinar rises. It is this rise that will increase demand for dinars as opposed to dollars. The savy Iraqi will see that, over time, he gets "more bang for his dinar" than he does for his buck. It is through this second method that the CBI will raise the value of the dinar. The introduction of the 50k note in and of itself has no affect on the value of the dinar... It is only the second action, a further reduction in paper and value of the total money supply, that will raise the value of the dinar and through that process reduce the demand for dollars. As the demand for dollars is reduced the reserves of Iraq are made more secure, which will also help support the rising value of the dinar. 12-2-2015 Newshound Guru Kaperoni "new exchange rate from CBI" [Is this how they are working toward getting within the 2% spread?] Since 1182 + commission is the new official rate, 1214 market rate is at or about 2%. 12-2-2015 Newshound Guru Kaperoni Article quote: "He stressed that the central bank «being reviewed in accordance with international standards." Which means they are working with the CBI to get them into compliance (Article VIII). It does not get really any clearer. There is no reason not to believe that over the next few months that the CBI will achieve compliance. The IMF and the world's best financial people will help the CBI. So despite what we all might think of Allaq,getting the banking system open and the dinar in Article VIII is now a priority. I think we all can agree, for the first time in a long time, Iraq has a clear goal for monetary policy. We just have to wait and watch. For someone like me who has been in this and watched lots of ups and downs, this is rather exciting.
