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About pt497

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  1. 1.“The Central Bank has prepared all requirements needed to delete the zeroes of the Iraqi Currency”, Saleh said. 2.“The project of deleting zeroes is complete." 3.“The new currency will be printed after deleting the zeroes and will include the Kurdish language in addition to the Arabic language." Here are the phrases that have my attention from the 1st article. Note that the 3rd line states that the new currency will be printed "after" deleting the zeroes". They will delete the zeroes first and then introduce the new bills. This at least implies that a revalue will occur before redomination is introduced. They have stated that both large and new small bills will co-exist for a time. At least we should know at the very beginning of the process what kind of revalue will be impemented.
  2. You don't need a "pro" to clear this up. The article is dealing with the hyper-inflation Iraq experienced during the Gulf war, 2003-4. Hyper-inflation is why the new currency came out with the high denominations. Its that simple. That have since reduced the inflation to what it is today.
  3. A creditor society is fraudulent built on a financial system promoting high risk investment.
  4. Rec'd 7/12/10 Working Paper No. 10/159: Inflation and Conflict in Iraq: The Economics of Shortages Revisited Author/Editor: Grigorian, David A.; Kock, Udo Summary: Containing inflation has turned out to be one of the most challenging aspects of economic management in Iraq. This paper posits that conventional as well as unconventional factors explain inflation dynamics in the recent past. We build a theoretical model based on the insights into the workings of socialist economies under supply shortages provided by Shleifer and Vishny (1992) to help explain price dynamics. In the model, strategic behavior of the fuel distribution monopolist results in fuel shortages, with implications for fuel and non-fuel inflation. A number of step-wise adjustments of administered prices for fuel products since December 2005 offer an interesting experiment to help study this behavior. Our findings show that inflation may have been influenced by shortages in fuel and non-fuel commodity supplies, which themselves are driven by violence and rent-seeking. [Matched: Iraq] DISCLAIMER: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.
  5. This person is probaby referring to an economist's analysis posted previously of the possiblility of Iraq doing an in-country LOP only. If your money is in-country it is affected.
  6. As further explanation of Mongo's Nominal and Actual values, if I may. I will post this again as this issue was addressed previously by a CBI executive (you can look back for the articles yourself). It was stated specifically that the dropping of the 3 zeroes would not change the "face" (the term he used) value of the currency. What is the "face" value? That is the actual numbers on the currency. 25,000 dinar will remain as a 25,000 dinar, just as a 25 dinar introduced will be 25 dinars. What will change is the "purchase" value (the term used in the article). This means that the 25,000 note will have an increased purchase value of the dinars over less face valued dinars (such as a 25 dinar). In order to introduce new lower currency denominations it further means that of all the currency in its "base" purchase value will need to be equalized with a "constant" for all the currencies in circulation (new and existing dinars). This means that a "revalue" will occur in exchange rate to accomodate the increased "purchase" value given the dinars for purchase of goods at the new "market" rate (purchase value) of the dinar. The "removal" of the 3 zeroes is the removal of 3 zero denominations from circulation because they will no longer need a 1000 dinar note to purchase a coke for example, only 1 dinar because of the increase of purchase value as a result of increase in exchange rate (ex. assuming a 1 to 1 exchange with the USD). This is the best "layman" terms I have seen to explain this.
  8. Baghdad, Iraq (CNN) -- Ayad Allawi's Iraqiya coalition won the most seats in Iraq's parliamentary elections, according to results that Iraqi election officials issued Friday. Allawi's bloc edged out Prime Minister Nuri al-Maliki's coalition by two in the final count of Iraq's March 7 election for the 325-member parliament, officials said. Allawi is a former Iraqi prime minister. Allawi's bloc won 91 seats, and the State of Law coalition gained 89. The Iraqi National Alliance, dominated by Shiite parties, got 70 seats, and a Kurdish alliance took 43. Now Allawi will begin the tough work of gathering at least 163 seats to forge a coalition government. Allawi, who was prime minister in 2004, is a secular Shiite whose bloc includes prominent Sunni Arab politicians, including Vice President Tariq al-Hashimi. Al-Maliki has asked for a manual recount as members of his State of Law coalition and other blocs have alleged voter fraud as the margin of votes separating the candidates has narrowed. Video: Protesters call for recount RELATED TOPICS Iraq Elections and Voting Nuri al-Maliki Baghdad He has pledged to appeal the results. Hundreds of supporters of al-Maliki's political bloc took to the streets of Baghdad demanding that the election commission conduct a manual recount. The protesters carried Iraqi and religious flags and chanted. In other demonstrations in the last week, thousands of al-Maliki supporters took to the streets of Najaf, Karbala, Babil province and Basra demanding a manual recount. But the Independent High Electoral Commission has rejected demands for a recount. Spokesman Judge Qassim al-Aboodi has said there must be "compelling reasons" and strong evidence of widespread fraud for a recount. "We made our decision a few days ago and nothing is going to change it," said Saad Al-Rawi, a commissioner with the electoral body. "There will be no manual counting, and this is according to IHEC's professional standards." Demonstrators protested Friday outside the governor's office in central Baghdad. They were searched at checkpoints. As the crowd yelled slogans, helicopters circled above. The chants had an anti-Baathist theme similar to al-Maliki's election campaign. Some chanted: "No return for Baathists," a reference to the political party of executed Iraqi dictator Saddam Hussein. One person held a huge banner that referred to the Baathists: "Before they have executed our sons and today they will execute our votes." North of Baghdad, at least 20 people were killed and 60 others wounded Friday in a bombing outside a busy restaurant and a coffee shop in Khalis, a town about 75 kilometers (46 miles) from Baghdad in Diyala province, police said. Al-Maliki has been highly critical of Hussein's Baath Party. A few weeks after the 2003 invasion of Iraq, top U.S. administrator L. Paul Bremer dissolved Baathist institutions, including the Iraqi army, that were viewed as threats against building a new Iraqi society. The Baath Party was declared illegal, and many Sunni Arabs who were members lost their government jobs. As a result, the Sunni Arab community became disenfranchised -- many embraced the rising insurgency and stayed away from the first elections in 2005.
  9. pt497

    Just a thought

    You would have to have 10 major dealers selling 100 billion to make 1 trillion. I've heard of about 4 or 5 "major" dealers and then banks. I personally think that the perception of private investors and amount of dinars they own is generally overblown simply because those speculating are immersed and preoccupied with the dinar, the forums, etc. I'd be really surprised if even 1/10th of 1 percent of US citizens own dinars our of the 300M population. Then obviously you have others around the world that have invested. But even then, it really would add up to a spit in the bucket in contrast to the 25 Trillion Iraq has said was in circulation. I consider your perception fairly accurate and still may be too high.
  10. This isn't much of a rumor, but does give the mentality of an official currency exchange company's perception of the dinar. Was in need to use the exchange last week for travel. Stopped at the exchange in the Cleveland airport and while there made inquiry as to the status of the dinar. The teller didn't hesitate in responding stating "We've had many inquiries as of late. It is not yet on the exchange but we have been informed repetitively now for the last few months by our higher ups to expect it to be put on the exchange" (quote paraphrased). Obviously, the expectation of this Exchange Company has been for the dinar to go international at any given time. Just thought I would pass this on.
  11. BAGHDAD / Aswat al-Iraq: Iraqi Prime Minister Nouri al-Maliki said on Sunday that the process to re-evaluate the Iraqi dinar has to do with economic conditions that have to be strengthened.
  12. Your explanation is a "re-numbering" of the existing currency. Redenomination simply looks at new denominations of currency to replace existing. At least that is what accurate terminology suggests. The term "redenomination" is not definitive one way or the other.
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