Tlar - I Feel Comfortable That The Smalls Are Printed !

[DinarThug]

CNN. Broadcasting A Couple Of Article Discussions From Tlar That I Pieced Together From Recaps !

 

So No B-otching About The Length - Especially From That Wordy SandFly Character !

 

               

 

 

 

 Expert calls for the deletion of zeros from the current currency instead of printing new currency

    Iraq / future - The head of the Economic Studies at the University of Kufa, an economist Raad Twigg, the central bank to take comprehensive measures to replace the currency and delete the three zeroes and determine the exchange rate of new Iraqi currency, instead of putting up a new currency confuse the deal in the local market.   (Full Article & Link Below)

    TLAR  Comments ~  Post From Dinar Updates

    The argument with the CBI is that they appear to be following Shabibi's plan to a tee. Shabibi had envisioned leaving the 1000, 500 and 250 in circulation until they were unusable. 
~~~

 

Tlar Continues:  There was no plan to re-print these notes because Shabibi thought that because of value the people would end up turning most into the banks as new accounts or just needing change. 

Shabibi only planned to print a series of smalls from 1 to 100 both coins and paper. He also envisioned printing the fils. The economist above has a valid point to make. 

He assumes that there is no reason to print the 250, 500 or 1000 if they just delete the zeros and collect them at the same time they collect the rest of the 5000, 10,000 and 25,000 notes that are still out there. 

I agree with him but it is obvious that the bank feels the need to close the gap and that too is a valid argument. I feel comfortable that the smalls are printed but they did not print these larger notes, the 250-1000. 

The bank appears to be staying the course and these notes at least for a while will join the smalls in circulation.

    The US also had printed the $500, $1000, $5,000, the $10,000, the $50,000 and the $100,000 notes. These notes are legal tender in the US but only the $500, $1,000, $5000, and $10,000 notes ever actually circulated. 

Most have been destroyed as they came into banks but there are still many in coin collections around the US. You can buy anything with them if you own one because they are legal tender. 

You would be unwise to do so though as the value to coin collectors is many times their face value. The $50,000 and the $100,000 never circulated and were primarily used for international trade before the advent of the computer.

    Iraq does not need physical money for international trade and neither does any other country. This is why I called BS on the article explaining they were thinking of printing the 5000, 10,000 and 25,000 notes along with a 100,000 note. 

I believe this was the snow to cover them when they released the smalls and the newly printed 250, 500, and 1,000 notes. An excuse so to speak. 

Today international transactions are done on swift machines and other bank tools and are mainly electronic transfers, negating any reason for any country to print such large denominations. Iraq has spent millions and millions connecting to the world banking system. TLAR 

Full Article:

    Expert calls for the deletion of zeros from the current currency instead of printing new currency

    Iraq / future - The head of the Economic Studies at the University of Kufa, an economist Raad Twigg, the central bank to take comprehensive measures to replace the currency and delete the three zeroes and determine the exchange rate of new Iraqi currency, instead of putting up a new currency confuse the deal in the local market.   (Full Article & Link Below)

    Twigg said, that "put the Iraqi Central Bank to cash currency with new specifications without pulling equivalent represents an expansion in the money supply in the local market, and thus reflect negatively in the creation of large inflationary effects."

    He confirmed that the addition of new cash currency with the old currency would be a duplication of currency exchange market has created an unbalanced cash and Aald blurry in daily trading of the currency. "

    He continued, "The deletion of zeros from the currency will reduce the current rate of inflation and reduce the large cash trading currencies in the domestic market also reduces the incidence of theft and forgery of currency cash."

    The Central Bank of Iraq announced, for re-printing banknotes with pictures of the Iraqi new.

    The bank said in a press statement, said that the re-print the new series of banknotes currently in circulation and the Iraqi pictures of new protected more, using a good quality of printing paper, with the addition of some signs of security. "

    He pointed out that the current banknotes will continue to be traded with

    ARTICLE LINK

 

Parliament’s (time): Central plans to change the current currency 

BAGHDAD – Shaima Adel - Confirmed the parliamentary Finance Committee approved the proposal of the Central Bank in order to reprint a new series of banknotes and change the images, while the central bank began to re-print the banknotes in Iraq…

…He added that the (current notes will continue trading with the new will not be pulling them now or in the future…   (Article Link at end of Commentary)

TLAR Commentary ~ From Dinar Updates

The CBI under Shabibi decided early on at the end of 2010 that they were going to re-print the small denominations, fils through the 100 dinar denominations.

In 2006 at a strategic meeting the CBI had let it slip that they had actually printed 14 different notes on the original printing in 2003 but they had only released 7 of them. 
~~~

 

TLAR Continues:  They had decided to reprint the smalls based on the fact that the original notes were printed like the same ones in circulation and were two easy to counterfeit. 

Also they had promised the Kurds that their language would also be added to the notes making the new smalls have three languages represented on them instead of just Arabic and English as was done on the original printing in 2003.

The CBI under Shabibi had envisioned pulling as many of the 5000, 10,000 and 25,000 notes as possible before they actually deleted the zeros, so in April of 2012 an intense program began with the CBI keeping every big 3 zero note that came into the bank and only releasing the 250, 500 and 1000 dinar notes back as they came in. 

Shabibi also had no intentions of re-printing the 250, 500 and 1000 notes, deciding that these notes would be the crossover notes into the new smalls. 

In other words these would be the notes still circulating at the time they deleted the zeros and these notes would be allowed continue to circulate until eventually all of them would be traded into the bank for new smalls. 

It was a good plan to transition from the large notes to the small denominations and the CBI is still following it today, removing the big 3 zero notes and releasing only the 250, 500 and 1000 from banks.

In 2012 for many reasons the rate of the dinar drifted down. Because of counterfeits in the market, the condition of real bills and pressure buying of USD over market by hard currency starved Iran and Syria, the rate of the dinar actually went down on the street. 

The official program rate was still 1166 but on the streets the dinar was bringing as much as 10% less. This was mainly caused by Iran who was willing to pay anything it had to over the program rate to purchase USD to stay afloat. Their own currency had collapsed with the sanctions. 

Many of the dollars Iran bought out of Iraq were bought with bogus counterfeit dinars and this was a major concern to the CBI and citizens alike.

Iran is a sophisticated state sponsored counterfeiter. For years they printed the US $100 dollar bill earning the title “super bill” due to the fact it would pass most all bank detectors as real. 

The US has spent billions of dollars and redesigned and re-printed our bills many times to finally make our currency too complicated for Iran to effectively print our money anymore.

 In 2010 the US let Iraq know that Iran had begun counterfeiting the currency and that Iran was setting up networks of phoney companies and organizations to pass counterfeit dinars throughout Iraq. 

The sole purpose of these Iranian entities was to sell dinars, real and counterfeit, for US hard currency. Maliki’s government did nothing to stop it choosing to turn a blind eye to it. That is another subject for discussion.

So why am I telling you this? The CBI has made a strategic decision to re-print the 250, 500 and 1000 dinar notes before they actually delete the zeros giving them value. 

They too will have all the new features making it almost impossible to counterfeit including a raised portion of the bill that will allow the blind to feel the denonination of the bill. 

One of the complaints alot of government MP’s have had which has stalled this project is “mafias (Iran) were prepairing to rig the currency.”

What the CBI fears is that when they delete the zeros using the 250, 500 and 1000 notes as the crossover notes to the new uncounterfeitable smalls, Iran will immediately start printing the old notes and they will flood the market with these counterfeits buying USD at a higher rate. 

So the CBI has decided to reprint these notes while they have no value and either release them at the same time as the smalls or a little before they release the new smalls. 

Iran has been counterfeiting the large 3 zeros notes exclusively (5000, 10,000 and 25,000 notes) because of value. The lower notes the 250, 500 and 1000 up until now have values less than a dollar so they haven’t been worth Iran’s time or money to counterfeit. 

When they delete the zeros this value will astronomically go up and Iran is ready to counterfeit them. Because of the sophistication of Iran’s distribution system, within a week Iran will be selling these new couterfeits into Iraq. So the decision to re-print these bills is a prudent one IMO.

There are many economists in Iraq that feel this is an unnecessary expense and suggest that the CBI just delete the zeros and collect these notes along with the rest of the large three zero notes at the same time. 

This argument also has merit but for reasons unknown to us the CBI has decided to re-print these notes choosing to follow Shabibi’s original plan which called for them to be left in circulation to die of natural causes. 

The good thing is every article says that all dinar currency of any denomination put out will be good forever. Some of the articles indicate this printing is being done now. Some indicate it is already done and ready to go. We are close.

Parliament’s (time): Central plans to change the current currency   LINK

 

[respectron]

Wow that was Loooong.., just kidding, just kidding I enjoyed it, really I did! lol.                 

 

Thanks for the post as always Thugs

[SnowGlobe7]

ok i admit I read most of it then started scanning at the end......thanks Thugmeister. I appreciate you

[jeepguy]

hahahahaha   sandfly    thuggie

[Rayzur]

Sometimes I find it a bit disconcerting that Gayroos will quote an opinion piece as if it had the same validity as a Government or CBI official announcement..... So that basically, all we're left with is some guys opinion about another guy's opinion... which the first guy offers as if it had some kind of predictive value in terms of future events.....    

 

And then people read this stuff and get all confused and blame it on Iraq for being so squirrely as to how Iraq is fiscally proceeding/  operating.... When in fact, the real squirrels are those confusing their opinion of an opinion  with the reality of what is happening per the government or CBI...... And yet they continue to  blather about half cocked, making stupid "official" pronouncements of opinion pieces...... No wonder it feels like such a roller coaster ride... There's a bunch of Bozos, opening up new theme parks every week..

 

And thanks Thuggie for the update.... I just love this stuff... people could not make up just how stupid these guys can be... .

Edited April 16, 2014 by Rayzur

[AmericaInc]

ok i admit I read most of it then started scanning at the end......thanks Thugmeister. I appreciate you

toward the end it was a very good read - one of the best explained opinions on the dinar yet, that I have read.

I have never seen the counterfeiting problem mentioning in so many articles so well explained.

Sometimes I find it a bit disconcerting that Gayroos will quote an opinion piece as if it had the same validity as a Government or CBI official announcement..... So that basically, all we're left with is some guys opinion about another guy's opinion... which the first guy offers as if it had some kind of predictive value in terms of future events.....    

 

And then people read this stuff and get all confused and blame it on Iraq for being so squirrely as to how Iraq is fiscally proceeding/  operating.... When in fact, the real squirrels are those confusing their opinion of an opinion  with the reality of what is happening per the government or CBI...... And yet they continue to  blather about half cocked, making stupid "official" pronouncements of opinion pieces...... No wonder it feels like such a roller coaster ride... There's a bunch of Bozos, opening up new theme parks every week..

 

And thanks Thuggie for the update.... I just love this stuff... people could not make up just how stupid these guys can be... .

problem is there's often no validity to a government or CBI response either...it's all speculation....LOL

[RONIN II]

Thanks Thugster

[calkid11]

Thank you Thugster, good post

[dinar_millions]

Very important step..very happy