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Central Bank has in fact made a decision on the matter


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Central Bank has in fact made a decision on the matter, but its implementation needs time.

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["Dialogue" feature: Interview with Iraqi Finance Minister Baqir Jabr al-Zubaydi, conducted face-to-face by Ibrahim Amir, on the 2010 budget and the 2009 supplementary budget; place not given - live or recorded.]

Dubai Al-Sharqiyah Television in Arabic at 1414 gmt on 16 October 2009 carries in its "Dialogue" feature a 40-minute interview with Iraqi Finance Minister Baqir Jabr al-Zubaydi, conducted face-to-face by Ibrahim Amir. The interview's venue is not given, but Al-Zubaydi says he will be attending a meeting at the finance ministry in Baghdad at 1300 on the same day.

Asked about revenues, Al-Zubaydi says there is development in revenues from customs, taxes, and the sale or lease of State land.

Asked about the exchange rate of the Iraqi Dinar, Al-Zubaydi says the Central Bank is responsible for monetary policy. He says when he first came to the finance ministry he proposed to the governor of the Central Bank to increase the Iraqi dinar rate against the US dollar, and during a recent visit to Turkey he told the governor who was with him that Turkey has devalued its currency against the dollar from 4 million Turkish pounds (TL) to the dollar, to approximately TL 1.5 pounds to the dollar. He says the Central Bank has in fact made a decision on the matter, but its implementation needs time.

Source: Al-Sharqiyah TV, Dubai, in Arabic 1414 gmt 16 Oct 09

BBC Mon ME1 MEPol oy

http://research.scot...ction=headlines

Read more: http://dinarvets.com.../#ixzz1TQJItIoE

19 Months ago and counting :o

Edited by Jac
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If I remember correctly...wasn't Turkey almost in complete financial ruin at one point, and had to completely restructure themselves?? I could be wrong, but I vaguely remember having a conversation with a friend on the matter.

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Interesting..

If they knew "then" what they would doing in the future...

Why continue to print and export IQD (as some claim)

Why let the M1/M2 figures steadily rise?

And even with that article, they must of had an "idea" of what they're future plan was, and now as of recent, they've redefined that plan and are looking to implement/execute it.

Oh, if I could just hang out in the mind of Shabs for one day.. All my questions would be answered.

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If I remember correctly...wasn't Turkey almost in complete financial ruin at one point, and had to completely restructure themselves?? I could be wrong, but I vaguely remember having a conversation with a friend on the matter.

Yes a couple times, you are correct.

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Interesting..

If they knew "then" what they would doing in the future...

Why continue to print and export IQD (as some claim)

Why let the M1/M2 figures steadily rise?

And even with that article, they must of had an "idea" of what they're future plan was, and now as of recent, they've redefined that plan and are looking to implement/execute it.

Oh, if I could just hang out in the mind of Shabs for one day.. All my questions would be answered.

LOL or something similar to the movie "being john malkovich" would be cool. "Being shabs".

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I really wasn't pointing out Turkey and it problems with currency I was more interested in the line below and only that it has been discussed over and over. And the fact that later on in October 21, 2010 when Dr. Shabibi met with all the Directors of the Central Banks and other Global financial heads here in Jacksonhole Wyoming..he himself indicated the revaluation would be soon (whatever that meant) and that Iraq could in ffact (Shabibi's words) support a Iraqi Dinar Revalue of $6.00 to $12.00 USD that is per IQD.

(This line and basically they are still saying the same thing in 2011)

Asked about the exchange rate of the Iraqi Dinar, Al-Zubaydi says the Central Bank is responsible for monetary policy. He says when he first came to the finance ministry he proposed to the governor of the Central Bank to increase the Iraqi dinar rate against the US dollar...(and this was stated in October of 2009.)

Read more: http://dinarvets.com.../#ixzz1TQaTUAX1

Why still talk about it and not do something now?

Edited by Jac
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Interesting..

If they knew "then" what they would doing in the future...

Why continue to print and export IQD (as some claim)

Why let the M1/M2 figures steadily rise?

And even with that article, they must of had an "idea" of what they're future plan was, and now as of recent, they've redefined that plan and are looking to implement/execute it.

Oh, if I could just hang out in the mind of Shabs for one day.. All my questions would be answered.

Wouldn't we all love to do that??!!!

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I really wasn't pointing out Turkey and it problems with currency I was more interested in the line below and tonly that it has been discussed over and over. And the fact that later on in October 21m 2010 when Dr. Shabibi met with all the Directors of the Central Banks here in Jackhole Wyoming..he himself indicated the revaluation would be soon (whatever that meant) and that Iraq could in ffact (Shabibi's words) support a Iraqi Dinar Revalue of $6.00 to $12.00 USD that is per IQD.

Read mo

Wouldn't that be nice.

re:

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If I remember correctly...wasn't Turkey almost in complete financial ruin at one point, and had to completely restructure themselves?? I could be wrong, but I vaguely remember having a conversation with a friend on the matter.

Yea and they redenominated and fixed themselves....

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If I remember correctly...wasn't Turkey almost in complete financial ruin at one point, and had to completely restructure themselves?? I could be wrong, but I vaguely remember having a conversation with a friend on the matter.

Turkey had an economic meltdown between 2000 and 2001. A new ruling party was elected in 2002 and they have been on the rise ever since (except a hiccup in 2008), and redenominated their currency in 2005, removing 6 zeros from the lira.

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Yea and they redenominated and fixed themselves....

True but did it take them as long to do so as Iraq?

And wasn't foreign investment in Turkey the greatest part of what saved their economy? Just saying it was not all the

redenomination.

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Turkey had an economic meltdown between 2000 and 2001. A new ruling party was elected in 2002 and they have been on the rise ever since (except a hiccup in 2008), and redenominated their currency in 2005, removing 6 zeros from the lira.

In the end, you could refer to their situation as a hybrid scenario.

Yes, they removed the 6 zeros...

But they also raised the value of the Lira.

However, keep in mind, this was after they consumed up all the 6 zero notes off the street and in circulation. After the deadline surpassed, they raised the value of the lira.

We could expect to see the same thing hapen with the IQD if they were to 1000:1. R/D

This woud likely cause many to run to the bank to cash-in, mostlly due to fear of not wanting to miss the window.

Therefore, a creation of "a run on the banks would occur."

A lot of liquidity would be removed from the CBI. Dependent upon which region decides to exchange-in the most.

Could this be damaging? Well.... I would imagine having a net foreign reserve be at 50-some billion suddenly drop to 24 billion... not a good scenario.

Lets imagine if they did a R/D, the dollar defaulted, and all those that cashed in wished for a better safe-haven currency (i.e., GBP) Would the CBI have the ability to exchange that with other banks?

This shows an important to have a diversity of liquid assets (Foreign currencies) in your cash reserves.. Especially upon if one particular currency drops significantly in value, the CBI would not likely feel such a substantial impact.

... I am trying to read up about basel 3, as I think it increase capital reserves held by banks... I think this may drive up demand for foreign currencies to be held to increase lending.. This is also another theory on why I would believe that a R/V could occur as it would be more beneficial.

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In the end, you could refer to their situation as a hybrid scenario.

Yes, they removed the 6 zeros...

But they also raised the value of the Lira.

However, keep in mind, this was after they consumed up all the 6 zero notes off the street and in circulation. After the deadline surpassed, they raised the value of the lira.

We could expect to see the same thing hapen with the IQD if they were to 1000:1. R/D

This woud likely cause many to run to the bank to cash-in, mostlly due to fear of not wanting to miss the window.

Therefore, a creation of "a run on the banks would occur."

A lot of liquidity would be removed from the CBI. Dependent upon which region decides to exchange-in the most.

Could this be damaging? Well.... I would imagine having a net foreign reserve be at 50-some billion suddenly drop to 24 billion... not a good scenario.

Lets imagine if they did a R/D, the dollar defaulted, and all those that cashed in wished for a better safe-haven currency (i.e., GBP) Would the CBI have the ability to exchange that with other banks?

This shows an important to have a diversity of liquid assets (Foreign currencies) in your cash reserves.. Especially upon if one particular currency drops significantly in value, the CBI would not likely feel such a substantial impact.

... I am trying to read up about basel 3, as I think it increase capital reserves held by banks... I think this may drive up demand for foreign currencies to be held to increase lending.. This is also another theory on why I would believe that a R/V could occur as it would be more beneficial.

Also their important meeting in 2010. You will find all the Basel press releases posted for many of us posted the links here in October of 2010. It just happened to be news filled month regarding adding more cash reserves to banks. In fact we were all happy about that feeling the revaluation might be eminant.

God Bless America!

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True but did it take them as long to do so as Iraq?

And wasn't foreign investment in Turkey the greatest part of what saved their economy? Just saying it was not all the

redenomination.

I believe it is a cause and effect situation, and the two go hand-in-hand.

A money system that has been devalued by hyper inflation is not the most appealing aspect of a decision to invest.

Taking the initiative to ReDenominate and restore the true value to the money, commensurate with the countries ability to support it at current GDP instills confidence in the investor.

As the investor helps increase the GDP, he knows that the value of the money can rise accordingly.

ReValuing a currency that still carries the remnants of past hyper inflation would not be viewed as rational to the investor; the ending of that story is the same as a country ReDenominating in the middle of hyper inflationary conditions.

This story will play out, and more info will rise to the surface.

It will either support a RV on the basis of Iraq being capable of backing 180 trillion dollars of Dinar liability, or a RD to reduce that liability to 59 Billion and instill confidence in the future investor.

As it stands, Iraq is doing fairly well at attracting investments; mostly in oil, or in support of getting oil- all without Oil and Gas law in place to share the country's wealth with it's citizens. Based on this, maybe they feel there is no need for the confidence factor.

Time will certainly answer all of these questions.

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I believe it is a cause and effect situation, and the two go hand-in-hand.

A money system that has been devalued by hyper inflation is not the most appealing aspect of a decision to invest.

Taking the initiative to ReDenominate and restore the true value to the money, commensurate with the countries ability to support it at current GDP instills confidence in the investor.

As the investor helps increase the GDP, he knows that the value of the money can rise accordingly.

ReValuing a currency that still carries the remnants of past hyper inflation would not be viewed as rational to the investor; the ending of that story is the same as a country ReDenominating in the middle of hyper inflationary conditions.

This story will play out, and more info will rise to the surface.

It will either support a RV on the basis of Iraq being capable of backing 180 trillion dollars of Dinar liability, or a RD to reduce that liability to 59 Billion and instill confidence in the future investor.

As it stands, Iraq is doing fairly well at attracting investments; mostly in oil, or in support of getting oil- all without Oil and Gas law in place to share the country's wealth with it's citizens. Based on this, maybe they feel there is no need for the confidence factor.

Time will certainly answer all of these questions.

I hope time is on our side and we don't have to wait another two years, but if we do we do.

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When Turkey removed the zeros, they had continuing problems, things got worse and had to be bailed out by the IMF in the end. That is the lesson they learned from Turkey and the reason there will not be a LOP!!

Do you have any links to support this statement? The reason I ask is that a few people have made this assertion, while not providing links to back it up, but when researched the data available from the IMF and other sites that have been researched seem to state the direct opposite. That after the economic crisis they suffered in 2001, the new government worked with IMF programs beginning in 2002 and saw great improvement year after year until the global economic situation changed, which would mean that a redenomination had nothing to do with any problems that they incurred.

Examples:

After Turkey experienced a severe financial crisis in 2001, Ankara adopted financial and fiscal reforms as part of an IMF program. The reforms strengthened the country's economic fundamentals and ushered in an era of strong growth - averaging more than 6% annually until 2008, when global economic conditions and tighter fiscal policy caused GDP to contract in 2009, reduced inflation to 6.3% - a 34-year low - and cut the public sector debt-to-GPD ratio below 50%. Turkey's well-regulated financial markets and banking system weathered the global financial crisis and GDP rebounded strongly to 7.3% in 2010, as exports returned to normal levels following the recession. Link

Prior to the recent global recession which hit all economies throughout the world, the Turkish economy sustained strong economic growth for 27 quarters consecutively, making it one of the fastest growing economies in Europe. However, the global financial crisis has considerably challenged the macroeconomic and financial stability of many economies by adversely affecting financing facilities and external demand, thus causing a significant slowdown in all global economic activities. Link

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