make of it what u want,,???

[omg]

Posted Today, 07:07 AM

I need to clarify this to help eliminate all of the concerns. This was the goal for quite awhile (2006). This was being studied in the past but never put into place.

Take a look at this Reconstruction Funding Sources and Uses Guide. <-- Rebuilding a country is complicated.

About SIGIR

The Office of the Special Inspector General for Iraq Reconstruction (SIGIR) is the successor to the Coalition Provisional Authority Office of Inspector General (CPA-IG). SIGIR was created in October 2004 by a congressional amendment to Public Law 108-106 (55KB PDF), triggered by the June 28, 2004, dissolution of the CPA.

Ministry of Finance and the CBI: “The Ministry of Finance together with the Central Bank are studying a proposal to raise the value of the Iraqi dinar in order to return it to previous levels where one Iraqi dinar was valued at 3.33 US dollars.” Further elaboration on the plan that was being worked on was also given in the same article: “A statement by B.J. AL Zubaidi, the Minister of Finance, in which he said that he had suggested to the Chairman of the Central Bank, Dr. Sinan AL Shibibi, that three zeros be taken from the Iraqi Dinar in order to raise its value so that one Dinar be equal to a Dollar.”

Another key part is that this month that the International Monetary Fund (IMF) has renewed its call for Iraq to clear its outstanding debts. This is a huge sign and indicator of the movement of the IQD value.

Here is a quote:

“The CBI believes that the Iraq’s economic development is held back by they country’s debts,” Mr. Saleh said.

Do you recall on our conference all the other day the mention of the Paris Convention? Reported in the AKnews the following was stated:

The CBI announced that it cleared 90% of its internal debts with traders and private companies, according to the Paris Convention, through which Iraq fulfilled its obligations to the entire private sector, freeing the country from a significant part of the restrictions placed upon it.

Now this gets even better for all of us. On November 22 this article surfaced:

IMF Dissatisfied with Iraq’s Monetary Policy

The International Monetary Fund (IMF) has cited Iraq’s monetary policy as the reason for turning down an Iraqi request for a loan package to reduce its 2011 budget deficit, an advisor to the Iraqi government said on Sunday. (deficit of $11.99 billion) <--Iraq relies on the OPEC member’s oil revenues to finance about 95 percent of its budget which still needs parliamentary approval. So do you now see the important of all of these oil contracts being sign quickly.

AKnews reports that despite the IMF’s rejection, talks between Iraq and the fund continue.

“The IMF… is not satisfied with the current Iraqi financial policy and has urged the government to make extensive changes”, said Abd Hussein al-Jaberi, a member of the board of advisors to the Council of Ministers.

The IMF has reportedly called for:

◦changes at the level of the spending;

◦reduction of inflation;

◦a plan to encourage the private sector; and,

◦a plan to address employment levels in governmental departments.

The Iraqi Finance Ministry called on the Ministry of Industry and Minerals to work on transforming its subsidiaries into self-financing companies in order to cover the expenses of its employees.

The Ministry of Planning and Development has said there is a huge workforce in governmental departments.

“Iraq has promised the IMF to address the monetary issues”, said al-Jaberi, “but talks are still underway between the two sides to come up with solutions”.

The Iraqi Finance Ministry announced last month the finalization of Iraq’s 2011 draft budget, the majority of which has been devoted to investment. The 2011 budget amounts to US$86.4 billion, up from around US$72 billion last year.

Ok, so you want more proof .....

Lets talk about the Ministry of Planning (MOF). MOF Amended Exchange Rate Document

1. It is necessary to put central controls to amend the official exchange rate * to reflect the shadow price of the foreign currency, and that is considered one of the necessary requirements to implement the net discounted present value standard and the internal return rate on investment in the economic calculation stated in the instructions, paragraph nine.

(* What is meant by exchange rate: the number of units of foreign currency, expressed in dollar per one dinar.)

2. Justifications for exchange-rate adjustment: there are a number of important and powerful arguments which support the view that the official exchange rate reduces the real value of foreign currency for purposes of calculating the economic national profitability for investment projects and hence for the purposes of investment planning. It is demonstrated in this context to call for assessing the dinar for less than (3.208) dollar (official exchange rate) when assessing project outputs and inputs of traded goods of exports, substitute imports and imports... etc.

3. Estimate the amended exchange rate of the Iraqi dinar to be used in technical and economical feasibility studies and for (1.134) dollar per dinar. This price should be approved for 3 years until re-appreciation by the competent authorities. (Recommended by the UN regarding Chapter 7 guidelines)

I have just connected so many dots for by hard facts that I hope you can now take a deep breath and just let this play out.

Iraq Planning Currency Redenomination

Iraqi dinars are stacked at a teller's window in a Najaf bank.

Iraqi dinars are stacked at a teller's window in a Najaf bank.

February 06, 2010

BAGHDAD -- The Iraqi Central Bank is planning to redenominate the national currency in an effort to ease transactions and allow people to carry less paper money, RFE/RL's Radio Free Iraq (RFI) reports.

Mudhhir Muhammad Salih, a member of a Central Bank advisory panel, told RFI that a plan has been made to remove three zeros from the currency and phase out the current banknotes late this year.

Salih said by the end of 2010 the new banknotes will be fully introduced while the old banknotes will be gradually removed from circulation. He did not specify when the new notes would be issued.

Both will be legal tender in Iraq until the old notes are completely withdrawn.

Iraqi officials have had a long-running plan to redenominate the Iraqi dinar. In 2006, the Finance Ministry recommended to the Central Bank that it carry out such a plan.

Salih pointed out that banks are having a hard time accepting cash savings and deposits, but by dropping the zeros it will make it easier for both the banks to deal with their customers and for the general public to carry money. He said some 80 percent of Iraq's money supply is cash in circulation.

Salih added that in 1990 the value of banknotes in circulation was about 25 billion Iraqi dinars but is currently some 25 trillion dinars.

Economic analyst Hilal al-Tahhan told RFI that the bank's move is overdue. He said he expects the currency change to go smoothly because of the decision to allow both the old and new banknotes to coexist, leading to less turbulence in the economy.

The current exchange rate is 1,167 Iraqi dinars to the U.S. dollar.

[waveone]

What I take from this in hard terms as stated is this:

An elevated currency-at $3.20 automatically diminishes buying power of participating nations. Therefore the more feasible rate would be @$ .88USD.

The last article which is a re post is simply the opinion of an advisor, not the official, updated position of the GOI.

Edited November 30, 2010 by waveone

[DesertPete]

Good stuff...Thanks!

[omg]

IF YOU NOTICE THE DATE ON THE SECOND ARTICLE IS FEB 6, 2010 THIS SHOWS YOU THAT THIS WAS THEIR PLAN ALL ALONG

DUE TO THE STATEMENT BELOW

Salih said by the end of 2010 the new banknotes will be fully introduced while the old banknotes will be gradually removed from circulation. He did not specify when the new notes would be issued.

Both will be legal tender in Iraq until the old notes are completely withdrawn.

[Heli Pilot]

Great summary!

[cash1324]

Good Post

[waveone]

IF YOU NOTICE THE DATE ON THE SECOND ARTICLE IS FEB 6, 2010 THIS SHOWS YOU THAT THIS WAS THEIR PLAN ALL ALONG

DUE TO THE STATEMENT BELOW

Salih said by the end of 2010 the new banknotes will be fully introduced while the old banknotes will be gradually removed from circulation. He did not specify when the new notes would be issued.

Both will be legal tender in Iraq until the old notes are completely withdrawn.

So then what the articles intimate is that there is essentially going to be a LOP?

I'm a bit confused if that is the case b/c the recent articles would seem to indicate the RV being a greater re valuation of the currency as opposed to the lop ing of three 0's as Salih's comments appear to convey.

Please expound

[hammer911]

Thank you for breaking all of that down OMG!!! Very well put... Although that is how I have had it in my head I could have never explained it that well.... Thanks again!!!GO RV!!!~~~

[duscajun]

So then what the articles intimate is that there is essentially going to be a LOP?

I'm a bit confused if that is the case b/c the recent articles would seem to indicate the RV being a greater re valuation of the currency as opposed to the lop ing of three 0's as Salih's comments appear to convey.

Please expound

Both currencies will coexist with different values. That is the key. Shabibi has states that both currencies will exist with different values until all the currency with 3 000's are retrieved. Shabibi has also made it clear that most of the currency has been retrieved and he has kept inflation extremely low so there would be no reason for a lop. This has been a well crafted plan and he takes pride in all that he has accomplished. I dont see a lop coming at all. IMO

IF YOU NOTICE THE DATE ON THE SECOND ARTICLE IS FEB 6, 2010 THIS SHOWS YOU THAT THIS WAS THEIR PLAN ALL ALONG

DUE TO THE STATEMENT BELOW

Salih said by the end of 2010 the new banknotes will be fully introduced while the old banknotes will be gradually removed from circulation. He did not specify when the new notes would be issued.

Both will be legal tender in Iraq until the old notes are completely withdrawn.

Excellent find omg!!!!! Good work!!!

[VIZIOIRAQI]

WELL DONE THANKS FOR THE HARD WORK

[Les Klingel]

How about citing the source? This is called plagiarism!

Source: http://bit.ly/i9s38N

[Bulls 2011]

Great post OMG!!!! Very well put:)

[hopefullbk]

Great info. I have to agree, next time please cite the source.

Thanks for the post.

[Floridian]

Sorry, but I didn't understand any of this "connecting of the dots". Could somebody please give me the short version of what this poster thinks is going to happen?

Another poster said that the 2 currencies will exist side by side...............Does this mean that the new currency will be worth more and the other currency (ours) will still be worth 0.000855?

[rwharnden]

Great information!

[hopefullbk]

Sorry, but I didn't understand any of this "connecting of the dots". Could somebody please give me the short version of what this poster thinks is going to happen?

Another poster said that the 2 currencies will exist side by side...............Does this mean that the new currency will be worth more and the other currency (ours) will still be worth 0.000855?

My take is that they will exist side by side, after the value of the dinar has been increased. As the large, 000 notes come in and make it to the banks, whether it be from us or the Iraqi on the street, they will get "captured" and sent into the CBI for collection and as it sounds, destruction. Hence in time the 000 notes will be removed from circulation. So they will exist side by side for a time after the IQD is revalued. When and what they will revalue to is the issue. Some say .86 and others as high as 4. Time will tell I guess.

[duscajun]

My take is that they will exist side by side, after the value of the dinar has been increased. As the large, 000 notes come in and make it to the banks, whether it be from us or the Iraqi on the street, they will get "captured" and sent into the CBI for collection and as it sounds, destruction. Hence in time the 000 notes will be removed from circulation. So they will exist side by side for a time after the IQD is revalued. When and what they will revalue to is the issue. Some say .86 and others as high as 4. Time will tell I guess.

Exactly....thank you for answering that! I had to step away for work! All I was saying about the 2 currencies existing together was that a 25,000 dinar note and a 25 dinar note would not have the same value. They will not take the value off of the currency. To me the article is very positive!

And you are right.....the only thing in question now is the date and rate!

[Floridian]

Thank you Hopefullbk and Duscajun for the explanations. :-)

[rsneed]

This is Steve1's post!!!!! OMG didn't write this/u]

Edited November 30, 2010 by rsneed

[Crookednose23]

Lol steveI gets banned and still his stuff gets here. Awesoms

[hspotman]

Posted Today, 07:07 AM

I need to clarify this to help eliminate all of the concerns. This was the goal for quite awhile (2006). This was being studied in the past but never put into place.

Take a look at this Reconstruction Funding Sources and Uses Guide. <-- Rebuilding a country is complicated.

About SIGIR

The Office of the Special Inspector General for Iraq Reconstruction (SIGIR) is the successor to the Coalition Provisional Authority Office of Inspector General (CPA-IG). SIGIR was created in October 2004 by a congressional amendment to Public Law 108-106 (55KB PDF), triggered by the June 28, 2004, dissolution of the CPA.

Ministry of Finance and the CBI: “The Ministry of Finance together with the Central Bank are studying a proposal to raise the value of the Iraqi dinar in order to return it to previous levels where one Iraqi dinar was valued at 3.33 US dollars.” Further elaboration on the plan that was being worked on was also given in the same article: “A statement by B.J. AL Zubaidi, the Minister of Finance, in which he said that he had suggested to the Chairman of the Central Bank, Dr. Sinan AL Shibibi, that three zeros be taken from the Iraqi Dinar in order to raise its value so that one Dinar be equal to a Dollar.”

Another key part is that this month that the International Monetary Fund (IMF) has renewed its call for Iraq to clear its outstanding debts. This is a huge sign and indicator of the movement of the IQD value.

Here is a quote:

“The CBI believes that the Iraq’s economic development is held back by they country’s debts,” Mr. Saleh said.

Do you recall on our conference all the other day the mention of the Paris Convention? Reported in the AKnews the following was stated:

The CBI announced that it cleared 90% of its internal debts with traders and private companies, according to the Paris Convention, through which Iraq fulfilled its obligations to the entire private sector, freeing the country from a significant part of the restrictions placed upon it.

Now this gets even better for all of us. On November 22 this article surfaced:

IMF Dissatisfied with Iraq’s Monetary Policy

The International Monetary Fund (IMF) has cited Iraq’s monetary policy as the reason for turning down an Iraqi request for a loan package to reduce its 2011 budget deficit, an advisor to the Iraqi government said on Sunday. (deficit of $11.99 billion) <--Iraq relies on the OPEC member’s oil revenues to finance about 95 percent of its budget which still needs parliamentary approval. So do you now see the important of all of these oil contracts being sign quickly.

AKnews reports that despite the IMF’s rejection, talks between Iraq and the fund continue.

“The IMF… is not satisfied with the current Iraqi financial policy and has urged the government to make extensive changes”, said Abd Hussein al-Jaberi, a member of the board of advisors to the Council of Ministers.

The IMF has reportedly called for:

◦changes at the level of the spending;

◦reduction of inflation;

◦a plan to encourage the private sector; and,

◦a plan to address employment levels in governmental departments.

The Iraqi Finance Ministry called on the Ministry of Industry and Minerals to work on transforming its subsidiaries into self-financing companies in order to cover the expenses of its employees.

The Ministry of Planning and Development has said there is a huge workforce in governmental departments.

“Iraq has promised the IMF to address the monetary issues”, said al-Jaberi, “but talks are still underway between the two sides to come up with solutions”.

The Iraqi Finance Ministry announced last month the finalization of Iraq’s 2011 draft budget, the majority of which has been devoted to investment. The 2011 budget amounts to US$86.4 billion, up from around US$72 billion last year.

Ok, so you want more proof .....

Lets talk about the Ministry of Planning (MOF). MOF Amended Exchange Rate Document

1. It is necessary to put central controls to amend the official exchange rate * to reflect the shadow price of the foreign currency, and that is considered one of the necessary requirements to implement the net discounted present value standard and the internal return rate on investment in the economic calculation stated in the instructions, paragraph nine.

(* What is meant by exchange rate: the number of units of foreign currency, expressed in dollar per one dinar.)

2. Justifications for exchange-rate adjustment: there are a number of important and powerful arguments which support the view that the official exchange rate reduces the real value of foreign currency for purposes of calculating the economic national profitability for investment projects and hence for the purposes of investment planning. It is demonstrated in this context to call for assessing the dinar for less than (3.208) dollar (official exchange rate) when assessing project outputs and inputs of traded goods of exports, substitute imports and imports... etc.

3. Estimate the amended exchange rate of the Iraqi dinar to be used in technical and economical feasibility studies and for (1.134) dollar per dinar. This price should be approved for 3 years until re-appreciation by the competent authorities. (Recommended by the UN regarding Chapter 7 guidelines)

I have just connected so many dots for by hard facts that I hope you can now take a deep breath and just let this play out.

Iraq Planning Currency Redenomination

Iraqi dinars are stacked at a teller's window in a Najaf bank.

Iraqi dinars are stacked at a teller's window in a Najaf bank.

February 06, 2010

BAGHDAD -- The Iraqi Central Bank is planning to redenominate the national currency in an effort to ease transactions and allow people to carry less paper money, RFE/RL's Radio Free Iraq (RFI) reports.

Mudhhir Muhammad Salih, a member of a Central Bank advisory panel, told RFI that a plan has been made to remove three zeros from the currency and phase out the current banknotes late this year.

Salih said by the end of 2010 the new banknotes will be fully introduced while the old banknotes will be gradually removed from circulation. He did not specify when the new notes would be issued.

Both will be legal tender in Iraq until the old notes are completely withdrawn.

Iraqi officials have had a long-running plan to redenominate the Iraqi dinar. In 2006, the Finance Ministry recommended to the Central Bank that it carry out such a plan.

Salih pointed out that banks are having a hard time accepting cash savings and deposits, but by dropping the zeros it will make it easier for both the banks to deal with their customers and for the general public to carry money. He said some 80 percent of Iraq's money supply is cash in circulation.

Salih added that in 1990 the value of banknotes in circulation was about 25 billion Iraqi dinars but is currently some 25 trillion dinars.

Economic analyst Hilal al-Tahhan told RFI that the bank's move is overdue. He said he expects the currency change to go smoothly because of the decision to allow both the old and new banknotes to coexist, leading to less turbulence in the economy.

The current exchange rate is 1,167 Iraqi dinars to the U.S. dollar.

Hmm....OMG,what does that stand for.........OMG=Other Man's Goods? Because this isn't yours LMAO. Give credit where credit is due. Put in your post somewhere "WHO" you copy/pasted this from

[Hooter]

Great info. I have to agree, next time please cite the source.

Thanks for the post.

Steve 1

[hspotman]

Excellent find omg!!!!! Good work!!!

yea, excellent find Stev....er,uhhh...OMG? Maybe you can seach for more posts by him to copy/paste? Are you his reincarnation??LMAO :lol:

Edited November 30, 2010 by hspotman

[Blue-Duck]

Here's an article from August of this year that has already been posted and it kind of goes with this subject!

Zeros Will Not be Removed from Iraqi Currency

Posted on 24 August 2010. Tags: forex, iraqi dinar, re-basing

There has been much speculation in recent months that the Iraqi dinar would be re-based, knocking off the

last three zeros.

The lastest news is that Iraq will not in fact remove the zeros from its currency, because it will not resolve inflation and will create opportunities for corruption, reports AKnews, citing a senior source in Iraq’s ministry of finance and economics.

The Iraqi dinar was largely devalued after Iraq’s invasion of Kuwait in 1991 and the imposition of international sanctions on the country.

While before 1991, one Iraqi Dinar was equal to around $3, now $1 is worth roughly 1170 Dinars, according to Iraqi Central Bank’s exchange rates.

Some experts have suggested that removing the zeros will enhance the country’s currency and allow it to better tackle inflation.

“The Central Bank wanted to remove the zeros three years ago, we alleged that it was impossible. They wanted to do it again last year and we rejected the proposal again. The issue is currently brought up once again, but the Ministry of Finance and Economics insists that Zeros will remain,” said Fazil Nabi, the deputy minister of finance and economics.

Nabi said removing the zeros will not reduce the

inflation rates as Iraq’s inflation has been stable and remained low for quite some time.

“Besides, it will create problems for many citizens because it takes time for them to learn to use the new currency,” he said.

Nabi also stated that certain people will be harmed by removing the zeros because their salaries will decrease while it is unlikely that the price of goods in the markets would decrease. It is not clear to IBN how the minister came to this conclusion.

(Source: AKnews)

http://www.iraq-busi...iraqi-currency/

[Floridian]

Wait a minute! If SteveI wrote this post, how long ago did he write it? I ask because on November 25, 2010 he said in a conference call with zzzzzzzzz that this past fall he was asked to re-write his company's multi-million dollar contract form USD to IQD. When they did this, the rate converted to $3.22. He said he was confident in that rate.