CBI Expects 9% Growth, Reserves of $105-$110bn

[keepmwlknfny]

Keep ; From the recent articles, I believe the CBI is authorizing the sales of the dollar through the private banks for the very purpose of reducing the circulation of physical Dinars on the street. The worn and torn notes in circulation are telling us from the past year that the CBI is NOT circulating enough new notes. All we can do is deduce that indeed the CBI is reducing the money supply....IMO

How can you deduce they are reducing the money supply if there is nothing pointing to that being the case? And when they are repeatedly saying their plan to reduce the money supply is being postponed??

Just because they are selling USD? There is not enough evidence to even suggest that is what the purpose is.....just a lot against it Im afraid....

[sandyf]

So by reading this, you think that they are gonna only RD the currency in the country??

That they will only lop the currency held by the citizens, and that they will make us speculators the only ones to profit??

That just cannot happen in the way suggested.

A redenomination means the issue of a new currency which would be IQ plus a new letter ie. IQx. The IQD would retain the current value and the IQx would have the new value at some established ratio, ie. 1000 to 1. Iraqis would pay for goods in IQx or IQD.

An RD would reduce the amount of the money supply but not the value. If it was 72 billion dollar before, it would be 72 billion dollar after.

[mac06gt]

If they really think they still have 30 trillion and are not lowering M2, (breitling quote )

" if you do not believe they are lowering the money supply then why are you in this investment?"

[keepmwlknfny]

That just cannot happen in the way suggested.

A redenomination means the issue of a new currency which would be IQ plus a new letter ie. IQx. The IQD would retain the current value and the IQx would have the new value at some established ratio, ie. 1000 to 1. Iraqis would pay for goods in IQx or IQD.

An RD would reduce the amount of the money supply but not the value. If it was 72 billion dollar before, it would be 72 billion dollar after.

Oh I know....well aware of RD....just trying to make a point with Zul....not sure he understands them.....

If they really think they still have 30 trillion and are not lowering M2, (breitling quote )

" if you do not believe they are lowering the money supply then why are you in this investment?"

Same reason everyone else is.....to make money.....

Some just choose to ignore whats in front of their faces (breitling) And instead, basically shuns you like the dunce in the corner, telling you to leave if you choose facts over hope and wishful thinking.....

There is no evidence they are reducing the money supply......YET.....thats what we are waiting for....and for them to do it without deleting the zeros/lopping/RD whatever you wish to call it....

When we see those numbers start to go down, then we can get excited.....OR for the reserves to increase dramatically and the money supply stay stagnant.....

[zul]

Ok, so they are doing it now??

How are they accomplishing this??

And how come they couldnt reduce the money supply across the board?? It seems like you basically are saying that they are only reducing the money supply by RD inside the country.....

And if this plan hasnt been approved or put in motion, they how could they be reducing it already??

The article said they are reducing their money supply in the domestic market. I read that to mean...they are reducing their money supply from their local market, physically. That's how you add value to the currency. There are many ways they can do this. Currency auctions is just one of them.

RD is totally a different process ~ it is a re-structuring of their currency.

Why mix the two..?

Oh I know....well aware of RD....just trying to make a point with Zul....not sure he understands them.....

I understand LOP perfectly

If they are talking about LOP, the reduction would be across the board. Not just "domestic market"

But in many articles, they keep saying "reduce money supply from domestic market.

[keepmwlknfny]

The article said they are reducing their money supply in the domestic market. I read that to mean...they are reducing their money supply from their local market, physically. That's how you add value to the currency. There are many ways they can do this. Currency auctions is just one of them.

RD is totally a different process ~ it is a re-structuring of their currency.

Why mix the two..?

Reducing the money supply by deleting three zeros/RD......

Thats what the article is about.....that is their plan according to the CBI to reduce the money supply.....if they do this, it does not matter where the currency is....

If the auctions were reducing the money supply, then they wouldnt need this plan. It would be a complete waste of time because the auctions are "removing mass amounts daily" right?? Why would they spend hundreds of millions to change and print new currency, have the GOI include and vote on this and to add into the budget, just to reduce the money supply from trillions to billions if they are removing massive amounts daily and for a profit?? If the auctions were removing currency, after 9 years they wouldnt have anything left.....

Doesnt make any sense does it??

[respectron]

Anyone have any Excedrin

[keepmwlknfny]

I understand LOP perfectly

If they are talking about LOP, the reduction would be across the board. Not just "domestic market"

But in many articles, they keep saying "reduce money supply from domestic market.

Apparently not because thats what this plan has been about since the first time they mentioned it......

And if you understood it, then you would realize that you cant just lop a currency in country.....thats not gonna happen....

Again, since the majority of all the currency is in Iraq, why would they need to specifically tell you, someone outside the country reading Iraqs local news, that they are gonna lop the dinar whether its inside or outside its borders?

That would be like the your local paper having a story about how your dollar is gonna lose value, and them needing to specifically state that people also holding the dollar in Egypt will also see the value of their dollar drop If it happens here, then anywhere else that the dollar is being used will be affected....it doesnt need to be stated...it should and is understood....

Edited January 12, 2013 by keepmwlknfny

[zul]

Reducing the money supply by deleting three zeros/RD......

Thats what the article is about.....that is their plan according to the CBI to reduce the money supply.....if they do this, it does not matter where the currency is....

If the auctions were reducing the money supply, then they wouldnt need this plan. It would be a complete waste of time because the auctions are "removing mass amounts daily" right?? Why would they spend hundreds of millions to change and print new currency, have the GOI include and vote on this and to add into the budget, just to reduce the money supply from trillions to billions if they are removing massive amounts daily and for a profit?? If the auctions were removing currency, after 9 years they wouldnt have anything left.....

Doesnt make any sense does it??

Keep, we are looking at diff plan on how they are reducing their money supply. Like i said earlier, changing the word Trillions to Billions (by lopping) is cosmetic, they are not reducing anything. The number of notes would still be the same.

The article is subject to interpretation.

Whichever path they take, they still need to restructure their currency with lower denominations and that would involves hundred of millions dollars in printing new currency.

Apparently not because thats what this plan has been about since the first time they mentioned it......

And if you understood it, then you would realize that you cant just lop a currency in country.....thats not gonna happen....

Again, since the majority of all the currency is in Iraq, why would they need to specifically tell you, someone outside the country reading Iraqs local news, that they are gonna lop the dinar whether its inside or outside its borders?

That would be like the your local paper having a story about how your dollar is gonna lose value, and them needing to specifically state that people also holding the dollar in Egypt will also see the value of their dollar drop If it happens here, then anywhere else that the dollar is being used will be affected....it doesnt need to be stated...it should and is understood....

LOP a currency in country..?? :lol: YOu are funny sometimes. Craziest idea..

[keepmwlknfny]

Keep, we are looking at diff plan on how they are reducing their money supply. Like i said earlier, changing the word Trillions to Billions (by lopping) is cosmetic, they are not reducing anything. The number of notes would still be the same.

The article is subject to interpretation.

Whichever path they take, they still need to restructure their currency with lower denominations and that would involves hundred of millions dollars in printing new currency.

LOP a currency in country..?? YOu are funny sometimes. Craziest idea..

No this is the same plan we are both reading.....I guess your not understanding it cause you arent even aware that the money supply is not how many single notes are out there. They are reducing the amount of dinar.....the amount of dinar is excessive....not the amount of paper notes.....

If you know and understand redenominations, there really isnt much room for a different interpretation. It is unfortunately is what it is......their plan of reducing the money supply is by RD, which is being postponed.....if they were removing dinar from auctions, there would be no need for this "5/6 year plan".....all the dinar would have been removed already.....

You are the one basically saying they can only reduce the money supply in the "domestic market"......which by that your saying they can/will just lop the currency thats inside the country, and not any of the dinar outside the country....

[UntilThatGloriousDay]

IMO if cbi was not reducing money supply then they wouldv switched worn out notes for fresh ones.. But since they have excessive m1 they are just hogging all the dinars or watever they can get their hands on. i believe they are trying to reduce the30 trillion" in circulation to a lower amount because honestly why would they need so much especially since they have some of the worlds most advanced banking systems.. More M2 and less m1 imo.. And As od now the dinars in circulation have decreased but cbi iznt saying anything yet. Once they fi ish reducing the money supply to their desired calcuted amount then we may see an rv.. Either That Or they can keep collecting reserves for another ten years... :rolleyes:

[zul]

No this is the same plan we are both reading.....I guess your not understanding it cause you arent even aware that the money supply is not how many single notes are out there. They are reducing the amount of dinar.....the amount of dinar is excessive....not the amount of paper notes.....

If you know and understand redenominations, there really isnt much room for a different interpretation. It is unfortunately is what it is......their plan of reducing the money supply is by RD, which is being postponed.....if they were removing dinar from auctions, there would be no need for this "5/6 year plan".....all the dinar would have been removed already.....

You are the one basically saying they can only reduce the money supply in the "domestic market"......which by that your saying they can/will just lop the currency thats inside the country, and not any of the dinar outside the country....

Hmmm......do i want to believe you or Saleh..?

This is what Saleh said....." Saleh indicated that "the deletion of three zeros from the Iraqi dinar would shorten the number of banknotes of four billion and paper, which is equal to 30 trillion dinars exist in the Iraqi market to one billion and 800 million paper only," asserting that "the currency exchange will not affect the per capita income or over its wealth or its contractual obligations."

And i repeat, LOP does not shortened the number of banknotes.

U can google them if you want.

btw..wasn't me who neg u.

[zul]

So what I'm saying is, they are reducing their money supply (as in dinar), physically, and that would automatically reduce the number of banknotes as well.

[respectron]

I took care of Keeps negs as he does what he does best and that is voice is understanding of whats going on or whats being stated as you are zul..., good to see you two go back and forth mostly respectably

[yota691]

..but you have to understand that they might not even be worried about currency outside the country (simply because sometimes a country will not allow any currency outside its borders to be exchanged during a RD)

That make a bunch of sense with a Currency that has Arabic, Kurd and the English language on it...

[fib1618]

WOW! You just change the word Trillions to Billions, and the money supply is automatically reduced. Without reducing anything physical.

It's obvious by reading all your posts in this thread that you don't fully understand how a re-denomination works.

I'm not going to argue with you.

[Doctor Smith]

Hmmm......do i want to believe you or Saleh..?

Read more: http://dinarvets.com/forums/index.php?/topic/138623-iraq-cenbank-sees-2013-growth-at-9-pct-reserves-at-105-110-bln/page__st__20#ixzz2HlJ06hSu

I for one believe no one. Wasn't it the CBI that stated they increased the value of the Dinar 3.4% when it changed from 1170 To 1165? When I see it I will believe it. Taking any of the articles as fact is a waste of time.

[zul]

It's obvious by reading all your posts in this thread that you don't fully understand how a re-denomination works.

I'm not going to argue with you.

There’s nothing too complicated to understand about lopping.

Zambia, one of the poorest countries in the world, did it in 1 year. They announced in Jan.2012, and implement them in Jan.2013. No hassle, no waiting for the right time, no waiting for right political climate. They just did, as soon as their inflation is under control.

Iraq started working on this since 2005 (could be earlier)/ On August 4th, 2011, the Iraqi Central Bank announced the completion of their plan to remove three zeros from the dinar, replacing current banknotes with new ones.

2013 we are still waiting........

[keepmwlknfny]

Hmmm......do i want to believe you or Saleh..?

This is what Saleh said....." Saleh indicated that "the deletion of three zeros from the Iraqi dinar would shorten the number of banknotes of four billion and paper, which is equal to 30 trillion dinars exist in the Iraqi market to one billion and 800 million paper only," asserting that "the currency exchange will not affect the per capita income or over its wealth or its contractual obligations."

And i repeat, LOP does not shortened the number of banknotes.

U can google them if you want. :D/>

btw..wasn't me who neg u.

They are most likely taking into account that there will be a lot of bills exchanged for fils or coins as they have stated that there will be coins/fils made. So there will be some reduction of actual notes as well. But you still havent answered me as to why if the auctiona were removing currency, then this redenomination plan would be uneccessary....there would be no talk of reducimg the trillions to billions on this plan because the auctions would have effectively removed practically all the.dinar from the streets of Iraq......even so, the banks are the main participants in these auctions buying mass quantities of USD so how would that be taking dinar out of the pockets of Muhammad with his dinar stashed under his mattress??? And if the deleting the zeros plan is their plan of reducing the money supply from trillions to billions and it keeps getting postponed, then how can you say that they are presently removing currency from circulation?

It's obvious by reading all your posts in this thread that you don't fully understand how a re-denomination works.

I'm not going to argue with you.

Ive been trying for quite sometime to get some points across to him but he is too stubborn to go outside of dinar land and learn about them and what they do......the CBI has been screaming redenomination for quite sometime but the gurus have effectively confused and misimformed people so bad, this has now turned into somethimg that we want to happen......but im pretty sure our objective here is to make money.....i could be wrong about that....

[unirod]

No this is the same plan we are both reading.....I guess your not understanding it cause you arent even aware that the money supply is not how many single notes are out there. They are reducing the amount of dinar.....the amount of dinar is excessive....not the amount of paper notes.....

If you know and understand redenominations, there really isnt much room for a different interpretation. It is unfortunately is what it is......their plan of reducing the money supply is by RD, which is being postponed.....if they were removing dinar from auctions, there would be no need for this "5/6 year plan".....all the dinar would have been removed already.....

You are the one basically saying they can only reduce the money supply in the "domestic market"......which by that your saying they can/will just lop the currency thats inside the country, and not any of the dinar outside the country....

Sorry Keep,

I disagree with your assumption that there is not excessive paper notes. It has been reported consistantly that 80% of ALL transactions are conducted in Iraq using currency notes. It has also been reported that 30% of transactions are conducted in USD currency notes. The culture in Iraq is a currency culture. The CBI is trying to change this by not circulating new Dinar on the streets. Face the facts seeing is believing, torn wore out Dinar on the streets for the last year is evidence enough for me!

[keepmwlknfny]

Sorry Keep,

I disagree with your assumption that there is not excessive paper notes. It has been reported consistantly that 80% of ALL transactions are conducted in Iraq using currency notes. It has also been reported that 30% of transactions are conducted in USD currency notes. The culture in Iraq is a currency culture. The CBI is trying to change this by not circulating new Dinar on the streets. Face the facts seeing is believing, torn wore out Dinar on the streets for the last year is evidence enough for me!

I didnt say there was not an excessive amount of paper notes.....cause there is but its cause they are a cash based society.....with only about 9 percent of the population holding bank accounts there is a reason why.....they still dont trust banks.....which would also explain why there are so many worn notes circulating....not to mention that because of the environment they live in, their bills more then likely have a shorter life span as well....i dont think you can assume just cause there is a lot of worn notes that the CBI is not printing more dinar and that there is a shortage of any kind because they are currently removing dinar from circulation.....there are not nearly enough facts to support that theory....

[abby01]

I am happy to help them reduce their money supply! I have a few dinar they can have right away!! Of course, I would like a nice little trade for USD! :rolleyes:/>

Then they can shred it

Edited January 12, 2013 by abby01

[unirod]

No this is the same plan we are both reading.....I guess your not understanding it cause you arent even aware that the money supply is not how many single notes are out there. They are reducing the amount of dinar.....the amount of dinar is excessive....not the amount of paper notes.....

If you know and understand redenominations, there really isnt much room for a different interpretation. It is unfortunately is what it is......their plan of reducing the money supply is by RD, which is being postponed.....if they were removing dinar from auctions, there would be no need for this "5/6 year plan".....all the dinar would have been removed already.....

You are the one basically saying they can only reduce the money supply in the "domestic market"......which by that your saying they can/will just lop the currency thats inside the country, and not any of the dinar outside the country....

Sorry Keep but in this post you would lead us to believe that the amount of paper notes is not excessive. I'm just reading what you posted so please don't try to infer that I don't understand what your saying. 80% of the money supply is on the street9fact), so again if we deduce that 80% of all transactions in Iraq are using currency, then there is TOO MUCH CURRENCY being used on the street of Iraq. There still must be TOO MANY 3 ZERO notes etc. in circulation. If the CBI does not freshen up the note supply on the street( and it appears their not) then the citizens are forced to patronize the Banks for USD. Reason would dictate that indeed the reduction of the money supply is going on right now...IMO

[keepmwlknfny]

Sorry Keep but in this post you would lead us to believe that the amount of paper notes is not excessive. I'm just reading what you posted so please don't try to infer that I don't understand what your saying. 80% of the money supply is on the street9fact), so again if we deduce that 80% of all transactions in Iraq are using currency, then there is TOO MUCH CURRENCY being used on the street of Iraq. There still must be TOO MANY 3 ZERO notes etc. in circulation. If the CBI does not freshen up the note supply on the street( and it appears their not) then the citizens are forced to patronize the Banks for USD. Reason would dictate that indeed the reduction of the money supply is going on right now...IMO

Thats far from the case....Ive actually stated numerous times the amount in circulation needs to be reduced which bringing out a new currency with fils and coins would also help reduce the amount of banknotes period....reducing the money supply period will help the value of the dinar....I could honestly care less about the number of physical notes....thats not what is holding up the value of the dinar....its the money supply itself....

Its gonna be years before they even start moving towards a "plastic" based society as we have here in the states.....so they will for YEARS have a large amount of physical notes....

The money supply and the number of notes is excessive and inflated...which is why they wanna RD.....but that of course is not the direction we want them to take....

[keepmwlknfny]

But for a cash based society what do you expect??? There is gonna be a lot of physical notes.....and until they can build trust in its citizens to deposit all their physical notes, it will probly stay that way.....

And again, the number of bank notes is not the major issue with what we are looking to happen.....