BLC Admin Tlm: The 50,000 Dinar Articles Said 50,000 "WORTH", If It's A 50 IQD NOTE Then It Should Be Worth Around $50 !

[DinarThug]

CNN. Broadcasting In A Cheap Gangsta' Zoot Suit From China - Zoot Suit Riot !

 

 

 

BLC Admins Chat 05/05/2015

 [tomsrunners] tlm724 it seems that with the news things aren't going to well, the dollar is being used and with the blacklist thing seems bad, timing doesn't look good

[tlm724] let me put the dollar thing in perspective, the dollar is used in Iraq to pay for imports. The Gov of Iraq pays for all imports using the dollar as do the business men and women in Iraq. 

For example a shop owner (trader) sells mens suits, he imports them from China each month to sell to the gentlemen of Iraq. Each month he has to pay the manufacturer in China so he goes to a CBI outlet to buy dollars to send to China. 

Remember that majority of Iraqi citizens use the dinar in daily transactions, the state workers and the GOI and their staff are paid in dinar !
~~~

 

[tlm724] toms, the threat of blacklist is a very serious issue as I have said BUT it can be addressed quite simply by amending or passing a new anti-money laundering law. Iraq does not want to be perceived as funding terrorism !

Correction is passing the law to meet international standards for corruption as well standards accepted throughout the world for anti-money laundering !

[tlm724] it can be fixed, now with that let me address everyone concerns about timing

[tlm724] timing is everything in this game of currency reform, done at the right time and it is golden, done at the wrong time and the consequences can be devastating to their economy !

[tlm724] the timing is an unknown toms ! still to be determined BUT we can see that the CBI has been making many changes, some good and some not so good but all in all I feel very confident about investment

[tomsrunners] tlm724 You just wander why Iraq let it get to this point knowing what that the result woud be

[tlm724] tomsrunners because they have too many hands in the pot would be my guess, everyone wants a say in how it is done

[tomsrunners] tlm724 thanks for the explanition, hopefully we will continue to see the end result.

[tlm724] and you have to ask did Iraq have a clue how things would go ? Did they know ISIS would invade their country and set them back ?

Did they know that years of currency auctions harmed them to the extent it did ? Did they know that PM Maliki was robbing them blind and stopping all forward progress ? these are all things that must be considered, never lose sight of the big picture !

[tomsrunners] tlm724 Good point Thanks Tim for the insight....Have a Good day..

[tlm724] tomsrunners I think we will know what stage the currency reform is at in a very short time ! They are pumping the news agencies with the news about the 50,000 dinar.

But what many didn't notice about the 50,000 dinar articles is that it said 50,000 "WORTH", if it's a 50 dinar NOTE then it should be worth around 50 bucks give or take, they are calling it a "catagory"

[therealbubbie] now I'll put my 2 cents in ... as far as the local people buying these suits, well they pay in dinar ... and not at 1166 .. at 1303 ... people are getting hosed ... and they don't do anything about it except talk .. this too is an easy fix ... ..

and as far as their timing ... they stop the auction then realized that they made a mistake ... were running out of cash ... . strike one ..don't finish up on the banking or investment law strike 2 .. maybe the black list .. strike ? .. to be continued !

it's just mind blowing were they can make all the excuses of why not to move the dinar .. security ... etc etc .. but yet they passed out the dinar we hold in 04 with a war going on and it didn't take them 6 years to do it ... and they were moving the market price at a pretty good clip back then ... and with a war going on !!

[tlm724] bubbies great point ty !

[tlm724] tomsrunners yqw

[tlm724] lets look at one of todays article about it

Wide acceptance for the issuance of large cash categories

http://www.alsabaah.iq/ArticleShow.aspx?ID=92340

[tlm724] that these trends are not related to monetary policy, but rather to increase the efficiency of the payments system management (cash management policy), where he will be short of money amounts, especially as the large categories account for 90 percent of the money supply in circulation.

[tlm724] not related to monetary policy

[tlm724] but rather to increase the efficiency of the payments system management (cash management policy)

[tlm724] where he will be short of money amounts, especially as the large categories account for 90 percent of the money supply in circulation.

[tlm724] saying it is asking the same monthly amount of the money supply to the market, but in different categories, either small groups or large, and not increase the amount of the original

[tlm724] , as the country is suffering from contraction in liquidity for the currencies of the dinar and the dollar

[tlm724] , as the country is suffering from contraction in liquidity for the currencies of the dinar and the dollar

[tlm724] how do they fix that ??? Introduce the lower denoms is how !

[tlm724] especially as the currency bloc in Iraq less than 40 trillion Danar.otsud beliefs in the community impact of printed denominations in purchasing power and rising commodity and freight rates

[tlm724] but the observers and specialists economists refuted these beliefs that do not impact directly on the citizen in it

[tlm724] imo this is saying that when they introduce these "catagories" it will NOT increase the amount of dinar in the country and with so many different opinions from the economists in Iraq it becomes clouded

[tlm724] improves the efficiency of the payments system is in the interest of the country

[tlm724] as I said yesterday I believe these are going to be 50 dinar NOTES because they are using the word "WORTH" !

[tlm724] Shredd gm, we are talking about this art "Wide acceptance for the issuance of large cash categories"

[shredd] yes, I figured lots of talk about this

[tlm724] this is just my opinion I may be wrong or I may be right ! But according to the quote from the CBI above we will know very soon ! "in Parliament yesterday that the bank in the process of printing new financial category value of 50 000 dinars to enhance the efficiency of the payments system."

[shredd] I'm on the other side of the coin but I hope you are right!

[tlm724] Shredd I understand you postion

[therealbubbie] and imo if they come out with the 50,000 dinar note they have no intention of doing anything with the rate for a long time !!

they will make it stable but thats it .. !

[tlm724] therealbubbie ty !

[tlm724] Shredd any further comment on that one ?

[shredd] from what I've read, the motivation for this move is to reduce the note count

[tlm724] Shredd they need to get in as many as possible !

[shredd] so having a larger note circulated wouldn't achieve that unless the release is controlled via exchanging smaller notes for the bigger which is unlikely so if the CBI does release a 50k into circulation, doing so will not reduce note count, a devastating move from our perspective and would really set back progress as a whole

[shredd] but Iraq is not declining economically they do need to recover from Maliki and have stated emphatically that they are NOT bankrupt we've seen some great progress in the gov't and in banking and investment laws

[tlm724] Shredd let me quote you ! " would really set back progress as a whole" thats my point ! This contradictes the whole program and plan for currency reform !

[shredd] we can tell the table is being set for foreign investment even the latest rating news proves this so, to release a 50k note into circulation with no exchange for smaller process (controlled) seems quite the opposite of what we've been watching in iraq but...........the articles do say 50,000 dinar value

[tlm724] WORTH !

[shredd] to me, the release of a 50 dinar note is a stretch though. 

[tlm724] not to me it's not it's how I see it today !

[shredd] we know the move to the dinar will be gradual and the usage of the middle sized notes will be the need first the 50 dinar note being useful would be later  BUT if the CBI intends to START the gradual process of adding value to the dinar it makes sense they'd want the whole book of legal tender dinar notes finalized

[tlm724] yep

[shredd] I'm all over the place timmy lol  I see both sides but the news, to me, says 50k

[therealbubbie] Shredd so is Iraq ! 

[shredd] but bubbie, that doesn't necessarily mean bad news so long as they don't release into circulation

[shredd] guys, here's my bottom line on this, short and sweet... Iraq has been pushing forward hard for a long time now yes, security is an issue and the stability is an issue due to the auctions and remittances fiascobut Iraq is at the verge of emerging economically they have been preparing for it all this time while security and stability has been challenged

[shredd] the ripple effects of Iraq releasing a 50k note into circulation would tell the world they are not ready to emerge economically to have a representative dinar again, the motivation in all of these articles about this note is what? note count, that tells me the plan for progress is still in place we just need to find out how they will do this

[tlm724] my bottom line is this, we will know any day what the CBI is introducing !

[shredd] yes, soon lol  that's it for me timmy...

[tlm724] ok shredders and bubbies tyvm !

[siberian_shaddow]

Much appreciated Thugs.

[DinarThug]

Here's Kap's Comments On The 50k Note ...

 

 

 

5-6-2015   Newshound Guru Kaperoni   Article quote:  "the issuance of more than the limit established Iraqi groups will lead to the low level of the Iraqi dinar against the dollar and other currencies as well as increased financial and economic inflation in Iraq, which is already suffering a financial and economic crisis stifling."   

Of course, the Iraqis are as confused as we are...and this guy is right...if they were to print (they are not) a 50,000 dinar note and release it, it would increase the money supply, cause the dinar to depreciate in value and the result would be higher inflation.  

Not to mention, it would not solve any issues they have pertaining to advancing the economy and banking system.  As we said many times, this would be outright stupid.    

Since there are so many articles on this topic, we can only assume this is some creative way to notify citizens of some pending change...but we will all have to wait and watch.