Tlar - If There Is A 50, There Must Be A 1, 5, 10, 20, And 100 IMO. We Know The Coins, Fils, Are At The Banks !

[DinarThug]

CNN. Broadcasting A Long Chat - Tlar's Comments Are In Part 2 Which I Will Post Shortly To Try And Break It Up A Bit !

 

 

 

 

Brule     Credit for this article goes to Brian

Central Bank announces the withdrawal of 50 dinars a class of trading

Thursday February 26, 2015 14:35     said the Iraqi Central Bank, on Thursday, for the withdrawal of currency 50 dinars category of trading, indicating that the replacement will continue for two months. 

The bank said in a statement received " Alsumaria News ", a copy of it, he was" given to stop the public from trading paper Cash category 50 dinars, he decided to withdraw this banknote trading based authorized to article 36 of the powers of the Bank Act No. 56 of 2004 ". 

The bank added that "the banks and their branches will start replacing these banknotes presented to it and without fee or commission," noting that "banks will deposited with the bank and its branches for the purpose of being the equivalent value in the accounts we have. "
~~~

 

 The Bank noted that "the term that will replace these banknotes will begin on the first of March to 30 of April next," stressing that "the end of the period of replacement will be banknote void and have no discharge power will not be accepted in Iraq."

 It is noteworthy that the bank CBI issued after 2003 and banknotes from the category of 50 dinars, but he is not traded due to the high prices of the products offered in the market.   

LINK

mike      Huh, why would they get rid of the 50 note?

rissas dad     Sorry Brule, think we were posting this at the same time.  Moderator please?

Brule     Yota pointed out that the CBI press release was dated yesterday, and released today.

http://www.cbi.iq/documents/press%20for%2025-2-2015.pdf

Yota also pulled Article 36:

Article 36 Redemption of currency

1. The CBI may decide to redeem banknotes or coins by issuing, free of charge, other banknotes or coins in equivalent amounts.

A decision to redeem banknotes or coins shall be issued in the form of a regulation of the CBI specifying the period during which the exchange shall take place and the locations and times at which withdrawn banknotes or coins shall be presented for redemption.

 2. At the end of the exchange period, or at any other time specified by the CBI, redeemed banknotes and coins shall be demonetized and cease to be legal tender.

3. The CBI shall notify the public, by publication in the Official Publication, of the banknotes and coins that are legal tender.

Brule    No harm, no foul, RD!

Greg      So I guess we need to sell our 50 dinar notes to dealers????

Mally       Unless there is more info to come its hard for me to reconcile this article with currency reform adding value in the near future.  It sounds to me like the 50 dinar note has such little value its just not practical to have so they are doing away with it.  Why now after 12 years? 

Adadude     They're basically stating that the 50 dinar note is not used enough to be relevent due to it's small purchasing power.  Remeber that 1166IQD = 1USD.  Converting that means that 50IQD = .04USD...

Brian   Adadude,  Agreed..... But...... Why now?  I think anything imminent is just not realistic and who is to say they don't do this with larger denoms?  Wonder how this effects Tlars thinking?  Anybody hear from LoJack?

rissas dad   This all depends on what they get in return for the 50s.  This statement "

"banks will deposited with the bank and its branches for the purpose of being the equivalent value in the accounts we have. "   

indicates that they will take the 50s in on deposit for an equivalent value, but of what?  Larger notes or smaller denominations.

 This is either really really good and a change is very soon or we have been duped and they will bring in the notes starting with the 50s and void them out until our currency (outside of Iraq) is worthless.  Boy oh boy this opened up a can of worms this morning.

 The troubling part is the eternal optimists will spin it one way and the negatives the other.  We'll know in a short time what this means.  Keep your fingers crossed folks.

Dinarblowyourhorn        Does it say that the notes will be collected and deposited in an account at your local back in the equivalent amount...?

Saying that they will not just give you equivalent value of currency, but they will credit your account with that amount. Maybe a good way to get everyone to open an account since everyone has a 50 dinar note laying around.

Mally    rissas dad,  Unless there is more info to come they are telling us the reason is CBI issued after 2003 and banknotes from the category of 50 dinars, but he is not traded due to the high prices of the products offered in the market.  In other words we dont need a denom worth a fraction of a penny.

 I wish I could find a way to see how this could be positive but Im struggling to.  Guess its good the cbi is active doing new things but man this one is upsetting imo.

Brule    I see this as a plan to get Iraqis into the banks.  They don't trust the banks, so why not start an account with the lowest denomination, and then see the benefits.  "Replaced" and not eliminated. 

I am recalling the recent statements regarding Wells Fargo collecting and holding one billion dinar from Dinarians. If we were to be duped, WF and many other institutions, including the UST, are going to be a little irritated. 

Considering dinars are to be used as reserve currency in many countries, does anybody think the CBI will not revalue and screw us?  Especially in the middle of a war where they are depending on us.  Iraq is to receive small arms from the US next week to fight ISIS. 

This is Iraq, but being duped isn't adding up to me.  And then again, I might be the eternal optimist.

Bingo      When I go to that website to read the article there are 2 active links:

1 - Central Bank allows companies to participate remittance currency auction

2 -   High central bank sales on Sunday to $ 140 million

However when you click on them it takes you to news dated 2014. And these links are in the middle of the article.  Could this be an old rehashed article?

rissas dad      Brule I hear you, but everything that keeps us optimistic is all "grey area" information.  All of it.  Its impossible to believe 100% in Tlar's WF information no matter how much I want to, or that the treasury has dinar, etc.

 Yes they have stated they want the dinar to be a hard currency held by countries but that could mean much later down the road after what they are doing now to these 50s.  Bingo,  Article I'm looking at is dated today.

Bingo    Yes, the article about the 50 dinar note is dated today, but embedded in that article (not the text posted here but the website's URL itself) has those other links in the article which takes you to news dated 2014. Just seemed maybe odd. IDK.

Brule      The auctions stopped, which drove the Iraqis into the banks for cash.  Here is another reason for the Iraqis to get into the banks, and I would think these actions are leading the Iraqis to a cashless society, and there are the results of bank deposits value at the time of an RV. 

BigJohn      It appears that this supports the theory that amounts deposited into a bank account will not see the RV appreciation that a physical dinar note will see. IMO

hi-five     I went to the news link and this was the article that came up.

Iraqi Central Bank adopts new transfer and money exchange system

February 25, 2015 11:22    A well-informed source said on Wednesday that the Iraqi Central Bank started adopting a new money transfer and money exchange system; while pointing out that the bank has denied that it stopped selling Dollars.

“The Central Bank has adopted a new system when it comes to money transferring and money exchange”, said the source to Alsumaria.

This same source who wished to remain anonymous added that “the bank denied that Dollar exchange transactions have ceased”.

Iraqi Central Bank was established as an independent entity by virtue of the law ratified in March 2004. It is responsible for maintaining stable prices and implementing monetary policies including exchange rates policies, managing foreign reserves, issuing and managing currency in addition to organizing the banking sector to promote an independent and competitive financial system.

Companies : Alsumaria

http://www.alsumaria.tv/news/125987/iraqi-central-bank-adopts-new-transfer-and-money-e/en

G-Lin     I just talked to Sterling Currency Group and ask about this art. He said no matter what Iraq does in country regarding the notes, that they would still be treated the same here in the US.

I said ok let me ask you a question, say we have an rv May 1st after Iraq stops honoring the 50 dinar note on Apr. 30th, what happens. He said it would still be honored at the rate it adjust to here in US.

 I said so you are sure we don't need to panic and he said no maam no need to panic. Others might want to call some dealers, but that is all I got. Oh BTW they don't sell 50's.  And GM..

High-five    I also wondered about that, BigJohn.   What I can't get my head around is why the 50 dinar note?   Could this be talking about turning in the counterfeitable notes?

BigJohn     Could it be that the $50 dinar note has the highest number (quantity) in circulation and it provides a tool to drive people to the banks? Possibly.

 Remember, their goal is to get Itaqis into the banks. The April 30th deadline speaks volumes and I'm not smoking anything. With all that has transpired in just the past 60 days, I cannot help but believe this is good news. JMO

Rissas dad    Other than if this is a first-step move than the smallest note would be a good choice to begin with.  Not sure I've ever heard of bogus 50s being out there.  They arent worth it to counterfeit, so much so that when the CBI reprinted notes with added security features these werent done.

KJWayne    They arent worth it to counterfeit, so much so that when the CBI reprinted notes with added security features these werent done.

Exactly why they want the 50's back in their control, to take the bills off the street . So when they "RV" that the 50's WON'T be out there with any value to them. My mind is going all over the place with this money thought!

Mally      I appreciate you taking the time to do that G-lin and taking the time to share it here.  I dont trust that info though, jmo.  If the 50 is no longer legal tender in Iraq it wont be anywhere else either. 

Why would a dealer pay you for something they cant turn around and trade in at a bank?  I believe it will take a little bit for the dealers to digest the info just as it is taking us.  JMO, dont mean to be overly negative and I really appreciate all the opinions.

Rissas dad   Thank you G-Lin for making that call, really appreciate that.

"the end of the period of replacement will be banknote void and have no discharge power will not be accepted in Iraq."

Combine this with what you were told G-Lin, is this the same as what happened here in the US with the $1000 bill?  The US didnt want those out in public but they still have value if you owned one, right?  Maybe this is why sterling told you the notes are still valid.  Hope so.

G-lin  Brule,  Hey lady. GM. Well I sure cannot guarantee how lawful my conversation was, but I'm just repeating what I was told. Maybe rv before April 30 and no worries

Hi-five    So there are two main thought trails so far:

1)     The 50 dinar notes are being called in because the value is so low that they are no longer needed.  (Meaning no RV in forseeable future.)

2)     The 50 dinar notes, which do not have security features, are being called in as a means to get Iraqis to use the banking system.  Imagine an Iraqi coming in for the first time and opening a bank account, handing over his three 50 dinar notes, and proudly walking out with .14 cents in the bank.   I assume this would be in preparation for an increase in value.

Rissas dad    When G-Lin posted what she was told, I felt EXACTLY the same way.  I dont trust any dinar dealer info and I've bought from them many times without any issues. 

Its in their best interest to calm us.  At first I thought the same, how can they honor a note outside of that country when that country voids the value of that note? 

The only way it makes any sense is if its like the thousand dollar bill here (see my post above please).  They are telling the Iraqis to come into the banks and open an account if you want any value for these 50s.  Giving a deadline and a rather short one hints at something soon, hopefully something good.  Either way 60 days and it should be clearer.

KJWayne     Another thought, What better way to get Iraqs into the bank than to tell them the 50 will no longer be any good after April and then RV on the 1st of March. Now those 50's have value and the Iraqs will flock in the banks to replace those 50's with what will replace them !

Mally     G-lin,   Ya could be.  Good thought but in that instance didnt we just stop printing the 1000 dollar bill?  If we gave a specific call in period for it and said it was not legal tender after the date I would think the 1000 dollar bill would be worthless then after that date which isnt the case.  Who knows.  We should know a lot more next week.

G-Lin     Hey mally GM. And yes I share your reservations. This art. is a conundrum.  When dealing in money, I trust no one. I did find it interesting that they no longer sell the 50. Yikes. :roll: Maybe a few others could check with different dealers and we could compare notes. Also would like to get Shredd's opinion. I would think a sharp honest banker that speaks dinar could give some insite.

Oldwazhisname      Well, I'm a banker and I am as perplexed and concerned as any of you are.  Some events that we see unfolding these last weeks kinda maybe indicate something positive is about to happen. 

But the elimination of the smallest denomination in their currency at a time when we think something is about to happen speaks volumes. 

Several possible explanations have already been thrown out here (getting currency off the street, etc) and none of them so far offer a satisfactory explanation of this step. 

This is a little like when Sabbibi was prsecuted and fled, some tried to put a positive spin on it, but in hindsight it was a clear marker for those who could interpret it that nothing was going to hapeen with currency reform for a long time.

 This kinda slams the lid down quick and is catching alot of emotional fingers that were reaching into that pot, IMO.

Kimberley     OWHN,...   As a banker,  would your bank take in a note that was no longer accepted Iraq ???    Would it make any difference if it's face value,  were say $50.....?

hi-five    This was posted by Markinsa at DV:

At the end of 2013, there was 9 Billion 50 Dinar notes Issued. Only 800 Million was on deposit at 3 Banks. It could be to bring those notes back in for deposit, or allow them to be written off.

Read more: http://dinarvets.com/forums/index.php?/topic/197941-50-dinar-note-removed-from-circulation/#ixzz3SrozCJO8

If value is to be added soon, that is a lot of 50 dinar notes, with no security features, out on the street.

Kimberley     G-Lin,...this article has now been removed from their rolling topics..........no comments.......no explaination.........

Brule    G-Lin,   It was your effort that I applaud.  I am not too sure Sterling would have an answer at this point.  We don't.

T Jefferson   Thanks for your opinion from your professional chair, Oldwazhisname. Grounds to keep my sanity and stay away from cliffs!    I guess it's back to work for me.:|

Oilwizard     Could it be related to money laundering and counterfeiting?  They know how many 25K notes are out there. They have replaced most of the 10K notes with enhanced security features. What if Iran was aware of the imminent RV and was counterfeiting the unsuspecting 50 dinar notes and this is a way to combatt corruption?

Rockstar     I really don't believe this is a big issue other than maybe as it says they are just replacing this note for some reason.

Or maybe if they are going to release all new lower Denoms on the street because they are going to RV the currency soon, the new 50 note will be in the lower denoms they have always talked about.

Our notes outside of Iraq will be good no worries and realistically not many people outside of Iraq should have many of the old 2003- 50 denom notes anyway.

Oldwashisname    Kimberley,    As long as the bill in question was still legal tender in the eyes of the US Treasury, we would accept it. I'm trying to think of an example in our own nation's experience that would be equivalent. The $2 bill is rare but still readily accepted. 

The $50 bill was eliminated 50+ years ago but still remains legal tender and would be readily accepted as the US Treasury never rennounced it as legal tender. 

The language used in the press release is its usual ackward translation so hard to say if its saying exactly what the translation seems to say: which is that the bill in question would no longer be legal tender.

 It would be something of a relief to find out that the bill is just no longer going to be circulated in the banking system, but the wording seems to be stronger in than that. I'm sure we will find out more as time goes on.

Of course, if another countries currency was somehow no longer a recognized medium of exchange (say as in the case of when the Saddam notes were replaced), we wouldn't accept them.

 One time I had some Currency left over from an earlier trip of some of the European countries that had adopted the Euro 10 years earlier and I tried to exchange it when I came back.

 I was flat refused in the country of origin. If that were the case there, I would expect that would be the case here.

Rockstar    Thinking about this a little more OWHN, I can see the concerns as the article specifically states it will be "null and void" after April 30th 2015. Who knows what total value this represents in their money supply as it could be just to reduce that..

.then RV the currency and then release all the new lower denoms which I know their is a new 50 note in there! That's the best case scenario of course now on the worst case scenario if they do this with the 50 note and it is completely worthless to us here which that maybe the case,

 what's to stop them from doing the same thing with our 25k, 10k and 5k note right?? We basically financed all their corruption mainly Maliki and we all get screwed in the end and then its oh well...

that would truly suck right? I hoping that's not the case and I don't believe that it is but I would bet it's going through a lot of dinar minds right now!

Oldwazhisname    This latest event really has me thinking....Ok, let me take a stab at this. I admit it’s going to freak everyone out but my goal is not that but really to stimulate everyone to try to think this through and come to some reasonable conclusions (if that is possible given our lack of accurate intel. 

Intel has proven in Dinarland to be a total flop but the common sense, thoughtful process would so far put most people a head of the curve of the rest of the sheeple).

 We know the CBI threw everyone a curve recently (including seemingly the GOI) that it would halt currency auctions. The reaction in the marketplace was swift and predictable: 

the IQD exchange rate to the USD immediately worsened. It also caused a real liquidity crises on the street. 

There is actually some earlier indications that this was already happening as the CBI seems to have taken a number of steps to remove IQD currency from circulation. 

This latest action is just another step in the same direction, to reduce the availability of IQD on the street.

It is obvious that the CBI is taking some aggressive steps now to do something in line with the country’s currency. However, in spite of our dinar-colored glasses outlook, most of these steps have not been favorable to what we think ought to happen. Either, the steps were neutral or negative, IMO.

 To cut to my hypothesis, is it possible that the CBI is driving the value of the IQD down, eliminating the availability of the currency (and therefore the negative effects of this in-country) in preparation for a lop-like currency event? 

We know that countries who experience high inflation can do the lop and the reasons for it are understood and “accepted” in the marketplace. Iraq simply couldn’t make that case given the long term stability of the value of the IQD.

 To me, the events are being clearly manipulated toward some outcome (versus just the natural course of events outside anyone’s control). “What exactly is the CBI doing?”, everyone is wondering. Well, you have to tally up the ledger and make some logical conclusions and they aren’t exactly what we expect.

 Let me put it this way, the fans of a local pro baseball team can think that they are in the hunt for a pennant this year (no matter what, they have a rabid support for their team), 

but when you see management trade their ace pitcher in late-August, the discerning fan knows the outcome before the final month and half are played. We might not be in “August” yet but it’s got to be at least mid-July, with this latest actions by the CBI.

Mally     Thanks for your thoughts OWHN.  Not to split hairs but in my reading about currency redenominations (lops).  I am under the impression that the ideal time for countries to do this is when they have experienced hyper inflation but no longer are.  

They need to rein in the inflation and if possible stop it all together and then they are allowed to lop.  If the problems that led to the inflation still exist a lop will not fix anything.  

That is why from a traditional perspective imo Iraq was always a prime candidate for the lop.  

They had hyperinflation from a dictator and war but had it under control almost immediatly from the new system put in place in 2003.  

The fact that several years later they still hadnt done it led me to believe there was a plan to increase the value through other means.  Ive always said we are all buying on the rumor because traditionally things like this have never happened.  Im pretty lost as to what they are doing at the moment, still hoping for the best March 1st.

Rockstar   Great thoughts OWHN but I think it's more of reducing the money supply and or just replacing because the lack of security features on the bill. 

Which I would HOPE they would RV before putting out the new 50 note that is basically worthless at today's value! It would have to cost them way more money to actually print up these new notes than the bill is actually worth, WHY would you do that unless you were going to add greater value to the note! 

I also think this is huge for no other reason as you have said OWHN is they are actually in process of finally doing something with the currency right!!! Either way I don't care as long as they are finally making a move which they absolutely are now!!! 

Mally     Maybe they will rv on March 1st.  Put out a new 1,5, 10, 20, 50 and fils.  Allow two months to get rid of the old 50 since it is now redundant and not as secure as the new one and allow two years for the bigger bills.  Has anyone seen my dinar goggles?  Oh, never mind, Im wearing them.

Oldwazhisname     Here is a wild thought: does anyone see the CBI's actions as counter to what the GOI is doing/saying? Could the CBI be doing its part to bring pressure on the GOI to get the economic laws on the books that is needed to move the country forward? This is not the traditional role of a Central Bank to try to effect political change but could the tail wag the dog in this case?

Mally    OWHN,    Seems totally plausible to me.  Maybe outside forces have more sway with the somewhat autonomous cbi and are trying to get the goi to get in line by asking the cbi to do xyz.  Its as good as any theory imo

Oldwashisname    Mally, It doesn't even have to be outside forces. It could be "the good guys" in the new PMs office (remember Saleh is Abahdi's consultant) allowing the CBI to bring pressure to bear so movement takes place (the old law of physics).

Schiz     Oh man, I don't know what to think about this, I can spin it in my head both ways, good and bad.

I knew they were going to screw over the citizens before they added value, i predicted they would be asked to change their notes for the new ones but I was talking after a rate change.

Is it possible for iraq to remove all of the current notes obviously leaving the most used classes till the very last and then bam, they rv and force those folks to swap them out but being aneutral event to them, ie straight swap.  I'm really confused by this. Don't know what to think 

My first thought was a bad one, they are going to do this to all thes notes and replace them over a period of time. make the 2003 invalid then BAM, rv the currency.............but, people could still buy the new notes unless they dont allow it to be sold outside of iraq.

We could get screwed over here bad ways or we could get screwed over but still be able to get in.

As you can tell my thoughts are all over the place with this one. Iread the article a few times trying to pick up on key words and points but came up with nothing but confusion in my head.

Gotta be honest, ive always had an after thought that iraq could screw everyone over including us.

This could be very very bad or the best thing in the world for us, im still betting on the best but am mighty confused right now. Perfect way to have a speculator just before a rate change, what better way to make me cash in my dinars right now, today!

Sorry for the messy post, it's kinda what my head is after reading this art

[DinarThug]

PART 2

 

 

RDiddy   Schiz,  I've spent a lot of time trying to understand the in-country process when the RV button is hit, and IMHO I can't imagine that the average Iraqi is going to see the same increase as dinar holders outside Iraq. 

Maybe I'm looking at it wrong, but it seems to me that their biggest benefit in the RV is by having increased purchasing power for imported goods. 

Let's say they remove the 000s and the IQD suddenly RVs at 1 dollar to 1 dinar.  It could be more, the rate of exchange doesn't matter to an Iraqi in-country. 

They take their beat up bills to the bank and instead of having 500,000 dinar, they now have 500.

 But at the same time, the GOI/CBI announces that the new lower denoms purchase the same amount as the 000s. 
~~~

 

 RDiddy Continues:   Instead of paying 1000 dinar for a loaf of bread, they can now use their new 1 dinar coin and get the same goods that they used to spend 1000 on.  No difference in value for them, but they have a simpler transaction.

But when they go to purchase a new air conditioner, tires, TV, whatever it is - they suddenly have much better quality at a lower price, because the goods are shiny new imports, and the difference in the new currency rates buys so much more. 

That's where their quality of life will dramatically improve.  So no, they aren't suddenly wealthy and dancing in the streets (how long have we heard that BS), but they do have reason to be very happy.

Following my simple view of the RV, it seems that taking the 50s off the street could be a great precursor to the RV.  It gets everyone in the banks, increases their digital deposits and takes tattered and potentially phony bills out of circulation.    -mrs d

Aloha Alex     Pretty sure Breitling's in-box is slammed with screaming fans about now. I remember he was promoting the idea of owning small non 3 zero denoms way back when. Maybe someone here who knows him well can find out.

My only thought is that we all know for sure there has been a plan in place for Iraq. So, if this is part of that plan then we have nothing to worry about.

If it wasn't, then I'll be using my Depends for reasons unexpected! What is clear is what Rocko has been saying forever, they're doing stuff we will never know about untill bam. Intel & arts are rendered useless.

DreamWeaver    Oldwazhisname, years ago I was told that US Treasury honors notes no longer circulating, such as 1,000 or 10,000.   To your knowledge, Is this true?  If I were to find a few 10,000 USD bills in the attic, would they be honored?

What if, post RV, the highest paper denomination will be the 50 dinar note because their value will be equivalent to $50 - $150 USD?  Our highest denom is 100 USD so it may be possible for highest Iraq dinar to be 50.

Could they be trying to pull in all current 50s in prep for RV as it is really the only cross-over denomination--which is a concern as current 50 dinar notes in circulation have no security features and post RV could create a counterfeiting nightmare.

Looking at this from perspective of CBI -- not as someone holding 50 dinar notes that need to be exchanged -- it makes perfect sense that they would want to pull the 50 dinar notes now as well as make them worthless--that way no worries about  counterfeited bills.  All other lower denoms to be introduced have security features.  

If I were working for CBI and I planned shortly to RV the currency, this type of move makes perfect sense. 

I'm not so worried about our US Treasury not accepting 50 dinar notes because these notes aren't going to be circulating in Iraq and will be converted to electronic dinar and destroyed.

Over the past couple of years, I've often wondered what Iraq was going to do about all those old, counterfeitable 50s and 100s prior to release of new 50s and 100s. 

Or what would happen to them post RV.  This sure looks like it could be their solution.

I'm not going to panic.  Way I look at it--no one foresaw latest CBI move so I figure we are absolutely clueless as far as what CBI is doing at this point in their blueprint--

probably because of new law capping currency auctions.  Maybe CBI has to do a radical modifcation to still accomplish their goal.  We'll see.  ~ DW

Schiz    Could this be why they llowed you us folks to buy dinar? to fund iraq all this time, to keep them going? and then bam, replace the currency and then rv?   Thats the bad stuff going on in my head right now haha.   rdiddy, i have always believed the same, that the iraqi people will not benefit from a rate change.

Schiz      Now the positive stuff going on in my head.................this is part of the plan to dollarize Iraq further, removing dinar like we expect before the bam moment.

I'm sorry but they aint gunna just let the iraqi people get rich from this event.

Sounds like they will give them a digital value for those 50 notes or even possibly the coins we know they have as it's on the cbi website.....or possibly even give them the dollar value? (thats what i think is gunna go down)

The iraqi government and the cbi are just about to royally screw over their citizens like i knew they would.

Hi-five    "the term that will replace these banknotes will begin on the first of March to 30 of April next,"

This line makes me think they will not start exchanging until March 1st.   Maybe between now and Sunday, there will be a rate change.   If that happens, then this article makes more sense.    I'm shooting in the dark!!  BAM

DreamWeaver   Also, they have all those new Delarue machines and people that have been trained to spot counterfeits.  Seems like all part of the plan, doesn't it?

Rockstar   Very well thought out and said DW and this was my thoughts as well, you just explained it better thanks! The big takeaway for me here is they are finally actually doing something with the currency whether it be good or bad!!! Either way we should know exactly what's going on soon..lol

But agreed since the old 50 note can be easily counterfeitable say post RV and if per chance they RV at $3 plus than that old 50 note would definitely be worth counterfeiting since it's now worth $150+ US dollars, so it makes perfect sense to do this now!!!

Rockstar    Rdiddy I think you are exactly correct in your analysis, inside Iraq they will only benefit from increased purchasing power, well said also.

hi-five     And Schiz - - What's going on in my head is------------Why, (if the value of the 50 dinar is only .04 cents approx),  would the banks bother opening up bank accounts if there was NOT going to be a significate increase in the dinar value coming?     Even if someone had five hundred 50 dinar notes, that would leave about $20.00 in the newly opened bank account.    

It also could be that the revenue sharing is going into effect and the GOI wants all Iraqis to open a bank account so their percentage of the revenue can be deposited into their account. 

But here is what I hope is going on - - - - The CBI is getting them off the street starting 3/1/15, and there will be a new and improved exchange rate.

Rockstar    Schiz,  I agree with your assessment Schiz, you are correct the average Iraqi will not become a millionaire overnight!

As Tlar has tried to explain in the past which took me a very long time to wrap around my head is only the dinar in hand will be worth more which is rare since they mainly use the dollar and in your scenario they do an even one to one exchange which would screw them even more which is the same as what already in a bank account there.

Anyway, even though everyone outside of Iraq will view this as them screwing their citizens even more, I believe the average Iraqi citizen will not view it this way!

The reason is let's say for example they do RV at a rate of $3+, the Iraqi citizen is going to saying hurray we have one of the strongest currencies in the world and yes their purchasing power just greatly increased don't forget!!!

They get a huge benefit of much much greater buying power now post RV that they never had before IMO.     hi-five I really love your thoughts also, keep them coming and let's hope they are correct!

Oldwazhisname    DW, Yes, we still honor the 1,000 and 10,000 USD because they are still technically legal tender. (The truth is though, the 10,000, 1,000 and 500 are worth much more as collectors items than as currency, so no one ever lets them go into a bank.

I once saw a $500 bill come in 35 years ago and the Head Teller snapped it up almost before the customer was out the door!).

 But I just read the translator version on Kaps site and it clearly said that the 50 IQD would no longer be considered legal tender after the turn in date, so unless something changes, I wold think about ridding myself of 50 IQD notes by then or risk them becoming worthless.

That brings me to two related thoughts. Unless the Dinar dealers feel some sort of obligation to honor what they sold after the April date for public relations purposes, the fact that Dinar dealers won't cash in those dinars after they sold them tells me that they don't trust the "Plan" to go as speculated in Dinarland.

 The other thought is that we ought to get a definitive answer to whether the 50 IQD bill was what had previously been announced in the "3 languages" reprint announcement a few years ago. I'm thinking that if it wasn't, this speaks volumes to that part of the "Plan".

G-Lin    This announcement was made on the CBI site under news and announcements on the Arabic side:

  ( press release ) due to stop the public from trading cash paper category ( 50 ) dinars

25/02/2015       http://www.cbi.iq/index.php?pid=NewsAnnoucements〈=ar

Now if you click on the announcement you get an Arabic translation that is lenghtier. Maybe if we could get that translated it would have a better translation, I cannot translate it. Sorry.

http://www.cbi.iq/documents/press%20for%2025-2-2015.pdf

G-Lin      Thanks Kap

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To cook ,, 02vqdtorteurmiotim EF

AA Aaashl withdraw cash from paper Fannah (a WA dinars from circulation. P

Haas expenses and branches replace banknotes Anakzma it without

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Yassin to prepare for the end of the replacement contribute banknote void and has no legal tender power     Will not be accepted in the Republic of Iraq.

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Preacher Man   Central Bank should also announce , the new 100.00 and 25.00 dollar COIN,that's not in circulation. We be close. .

Tlar    "Thursday February 26, 2015 14:35    said the Iraqi Central Bank, on Thursday, for the withdrawal of currency 50 dinars category of trading, indicating that the replacement will continue for two months.

The bank said in a statement received " Alsumaria News ", a copy of it, he was" given to stop the public from trading paper Cash category 50 dinars, he decided to withdraw this banknote trading based authorized to article 36 of the powers of the Bank Act No. 56 of 2004 ".

The bank added that "the banks and their branches will start replacing these banknotes presented to it and without fee or commission," noting that "banks will deposited with the bank and its branches for the purpose of being the equivalent value in the accounts we have. "

Tlar:    The question here should be where did they get the new 50 to replace the counterfeitable 50.  Replacement means replacement not just deposit. 

First off because just  bill is counterfeitable does not mean it is being counterfeited.

 At the present value a 50=A little more than 4 cents.  The only bills worth counterfeiting were the bills we saw being counterfeited, the 5000, 10,000 and 25,000. 

The 250, 500, 1000 were never counterfeited because the value is all less than a dollar. 

They reprinted the entire series though including the 250 - the 25,000 an have been replacing them since January 2014. 

This told us that they worried about a 250 note worth only 21 cents at some point being counterfeited.  We surmised because the coming exchange rate change that this was to protect the currency. 

At 1 to 1 a 250 dinar notes becomes 250 dollars certainly worth counterfeiting.   The only bill they did not reprint in the of the bills in circulation, is the 50. 

I am guessing that the CBI saw this as a vulnerability so they made another strategic decision  the decision to release the new 50 and quickly swap them out to. 

The 50 is part of the new smalls, the 1, 5, 10, 25, "50" and 100, and that we now have definitive proof that they have been printed.  It is an expensive note to produce because it too most likely will have all the new security features, or why bother.

Around the world counterfeiters will counterfeit bills that have value as low as 10 dollars. 

The 20 dollar bill is also a big favorite along with the 100, so it is not hard to imagine that if they give value to the 50 and don't replace it before hand to make it uncounterfeitable, it will be counterfeited. 

Remember Iran is an expert counterfeiter and has been counterfeiting bills as low as the 5000, which has a program exchange rate rate of $4.28 USD. 

It would be a no brainer for them to start counterfeiting the current 50 because it is easy to do and the value of the 50 after RV 1 to 1 would exceed the present value of the 5000 by 13 times.. 

Once the current 50 has a reality value, Iran would definitely counterfeit it and we can assume Iran has known what the plan is since its inception . 

Iran already has its distribution system in place along with the plates and more than likely the first counterfeits would be delivered in a few days.

There aren't many 50's being used in Iraq because of their low value.  The article indicates their desire to discontinue use of the 50 but it references in the first 2 paragraphs that replacements are available.

 I find that interesting and the point I am trying to make is the only time they ever mentioned printing the 50 to my knowledge was in with the new smalls.  So I surmise the 50 will be the very first release of the new small even before they raise the rate. tlar

Skylimit    Hi PM, is there any evidence that the smalls are even in the banks at this time though not in circulation?

Oldwazhisname   Tlar, I understand what you are saying but you are putting a lot of emphasis on the word "replacement" which seems in your take to mean that there is going to ultimately be another 50 IQD bill that will be introduced.

The language of the admittedly awkward translations would appear to say that the 50 IQD will not be legal tender after April 30th. Why would they single out the 50 IQD for a different process than what they already did with the reprinting of the 25,000, 5,000, 1,000 etc bills.?

This denotes a separate treatment and I'm saying it sure appears to be denomination that won't come back. I had earlier asked if the 50 was slated in their earlier announcement of what denominations they intended to reprint in an updated version.

You seem to confirm that was their plan. If it was, and if they aren't going to reprint 50s now, that would be something of a deviation of their previous plan. Not trying to be difficult here, just trying to make it all add up and right now it doesn't.

Oldwazhisname    In thinking about it, one of the possible explanations of different treatment of the 50 IQD and the now reprinted 250 and up IQD bills, is that the larger denominations actually have some purpose in the Iraq economy.

It might be easiest to merely completely eliminate what little 50's there are and come out with the replacement version when they announce the roll out of all of the other smaller denoms.

 I guess it could be that simple. Seems like going to a lot of trouble if there is a short window to it happening anyway.

RXXXX   OWHN, in the thread on this at DA, we have a picture of what looks to be the replacement 50s. I can't post it because my phone won't let me embed a picture, but you should be able to find it. It's on page 3.

Oldwazhisname    I saw it. That could be the case and if it is, it would make Tlars take on this pretty much right on. We'll have to see. One thing is for sure, this drama has more twists than a Swedish movie murder plot.

Oldwazhisname      Here's the old version: 

 

Here's the "new" version that Rxxxx is talking about:
 

 

Oldwazhisname     We need someone to confirm that this isn't like Kuwait's version of their 50 IQD bill.

Mally     According to google images its a libyan dinar 50.

RXXXX     Oh, thanks, Mally. Sorry about that, folks. No idea why they out Libyan money in an article about Iraq.

Tlar     OWHN,    I believe what they are saying is if you have a fifty, replace it or deposite it because after 60 days it will not have any value or legal tender in Iraq. 

If right, I think they are on a rush it up program and are telling their citizens do it within the 60 day window.  To me this is good news because the new 50 is likely one of the new smalls and if so it verifies for the first time in writing since early 2012, the smalls are printed.

 I don't know how this might effect a change in value as to whether it would slow it down as they wait to replace the 50s or if it makes any difference at all.  IMO they singled it out because it is the only bill still in circulation that has not been replaced.  Tlar

Oldwazhisname   Yeah, I guess this could be "hurry up" option as the reprinted larger denoms have been circulating for a while and those "old" bills may have been mostly turned back in for new bills. That makes some sense.

Mally      I hope youre right tlar.  Its possible this is purposefully misleading but I dont think its saying anything about replacing the 50s with other 50s.  It says it is cancelling the class of 50 dinars which is quite the opposite of replacing.

 Im hoping they are replacing the value of the 50 with smaller notes too based on everything else going on I just dont understand why they would come out and announce this part in advance if thats the case.  Seems to me like putting the cart before the horse.

 Why not just tell us march 1st that the dinar is now worth more and what the plan is for the current notes in circulation.  We should know next week.  At least its exciting these days eh. Thanks all.

Diane     I don't know how to change the color in Tlar's post, so here is the sentence that I'd like clarified: we now have definitive proof that they have been printed.

Do we really?  I've asked this question before, but have yet to see anything in print that proves the LD's have been printed or sent anywhere.  If this, then that, doesn't give any proof.. it's still speculation.

Not trying to disprove anyone's theory.. just keeping my feet on the ground.  I'd love to see the proof of the new LD's.

Kimberley    Here's my new thought.....They are discontinuing the 50's  because they can't be used in an ATM......   We don't have them in our ATM's    .........any thoughts  ?? 

Kimberley    Hey Tlar.........Kap is saying on DA,   that you paid off a gentlemans wager you had with him.. in 50 dinar notes..   If  thats true,..how exonrerated  do you feel now ...??   ..I think it's funy as ***** 

 "He who laughs last,  laughs best"

Oldwazhisname     What are you saying Kimberly? That sounds like a jerk-faced comment. No one here ought to be looking to get their kicks out of the differences that knowledgable people might find themselves in this investment. So far no one has been right in the sense of what we all want.

Tlar    Diane, think with me for a minute.  The last printing of any dinars was done in 2013.  It consisted of replacement notes, 250, 500, 1000, 5000, 10000.  We know this because they told us in an article.  

There has been no follow up articles stating that any more printings have taken place yet we see them hurried trying to replace the 50.  

Articles from 2012 talked about the printing of new denominations, the 1, 5, 10, 20, 50, 100 and fils, all with the new designs and new security features.  

Shortly after articles came out stating the CBI had let 2 contracts, the first for the bills in England, the second for coins in Germany.  No other articles have surfaced stating that this printing was actually done causing a lot of speculation.  

Now this article comes and low and behold, there is a new 50 that they intend to replace the existing 50 with.  Where did it come from?  

My contention is the new dinar smalls were printed in 2012 and that's where this bill is coming from.  Otherwise I believe we would have seen some kind of article eluding to the fact that they were printing the new 50 recently.  

If there is a 50, there must be a 1, 5, 10, 20, and 100 IMO.  We know the coins, fils, are at the banks.  

If the 50's are at the banks to replace the existing 50, it is more than possible that the other notes are there two.  Admittedly I’m speculating but it makes sense to me that they would have sent all to the banks if we are close.  Tlar

Tlar   Kimberly,     In 2010 I was sure that we were going to see an RV by October.  Kap took that bet and I lost 10,000 dinars.  We were both on Dinar Vets at the time. 

 I thought you could count on Shabibi and with the banner on Forex along with the ISX saying they would be an international stock exchange by October, I felt it was a shoe in.  

I had no idea at the time that Maliki was vehemently against it and the problems between he and Shabibi had not really shown themselves yet.  I was wrong and I sent him a 10,000 dinar note, not 50's.  

He has the jist of the bet  but a faulty memory as to how I paid.  When he mentioned it did he do it in a friendly context or was it a slap to me?  tlar

Kimberley     I felt he was mentioning it,,...rather tongue in cheek...    and just laughingly,  that you had actually gotten the last laugh...Was not a slap at you.....

Nor did I mean it to be offensive to anyone else......or a jerk-faced comment,   OWHN......I was not making fun of anyone or the situation.......Kap was the one that brought it up,  and he was making light of it.......and I passed it on.....Go on DA and read it for yourself......

hi-five   Some think they are retiring the 50 dinar note, and some think they will issue new 50 dinar notes.  I think the article is a bit confusing on this, so I don't know.  

But, IF they are retiring the 50 dinar note and requiring the holder to open a bank account where they will be credited with the value (assuming a post RV value)  

in their account, wouldn't this be a good way to fund the bank's reserves ----- and then according to the fractional banking policy, the bank can loan out up to 9 times the value of the reserve.    

Kimberley  But I still think they are deleting the 50 dinar as a catagory.    Because they want to go digital and they want people to use the ATMs........And they will not be putting the 50's in the ATM's

We don't have 50 dollars bills in our ATM's..........jm thoughts.

Brule     TLAR, here is Kap's comment regarding the 50s and you:

"I have exactly 20 of them (worth about $1)..that I won some years ago from of all people..Tlar. lmbo"

Diane   Tlar, Appreciate your response, Tlar, but your last sentence states that you are speculating... as is anyone with an opinion of where we are & could be 'soon'. 

 I don't read the article as replacing the 50's with new 50's.  To me, it says the 50's will be eliminated from circulation & an equivalent value will be given to those who have them.  

As you & everyone else says, they are pretty much worthless & not used for daily business.  

Why would new ones be given out?  They would be as worthless.  Perhaps the value will be put on a qi card??  Even if it's pennies, no one would want to just throw it away or have it taken away.  

I watch my pennies myself....  never toss them away.  So in my speculation, only the larger bills will be used in Iraq for now... can't even guess for how long.

I know it's not what anyone wants to believe.... I don't like it either.  But that's the way I read it.  I hope I'm wrong...

Livefree    MyLadies did a good call today, you can find it on Recaps.  In the meantime, PD is stating DinarCorp will exchange your 50's.

HandOverFist     They can't be replacing the 50 dinar note if, as someone posted, there are 9 billion in circulation (800 million of which are in banks).   

NCtallguy   So if I read right, there were 9 billion 50s printed, most of which probably remained in country. A very low valued note obviously but they're still out there, atleast a large number of them. 

Regardless, they're still notes that need to be removed. (didn't Tlar say it's a note count that matters and not a dinar total?) Notes of very low value but need to be removed just the same yet won't cause an uproar with the citizens. Plus will get them in the banks at the same time. 

Now me being an American,and the Feds decided to remove the nickel from our currency but would give us the equivielent in our bank account I or most wouldn't bat an eye unless I had a LOT of nickels. 

But if I'm an Iraqi living off a fraction of what us US citizens earn, every nickel would count and I would make damn sure my 50s were turned in for an equal amount in my bank account as to not lose that valuable nickel. JMT (just my take) (I've grown to hate JMO or IMO or IMHO I never want to ever see or hear them again when this is over)
 

[freeroy]

DreamWeaver    Oldwazhisname, years ago I was told that US Treasury honors notes no longer circulating, such as 1,000 or 10,000.   To your knowledge, Is this true?  If I were to find a few 10,000 USD bills in the attic, would they be honored?

The us currency is not legal tender above the 500 dollar bill. But the 1000 dollar bill,depending on condition, could be worth up to 15,000 dollars. 

[moose 57]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Here are some pictures of the large bills-$100,000 dollar bill, which is actually a ‘gold certificate’. It was never open to the public. They were made for government use only. Here they are.

Edited February 27, 2015 by moose 57

[keylime]

That's my great great uncle on the 1000...Grover Cleveland

 

GO Grover!!!

[sandfly]

THANKS