zaborniake

I said we haven't seen them mention a new code as of yet. I'm simply stating that based on the new denominations mentioned in this article that there could be a wholesale replacement of the currency seeing as how only the 50 will seemingly survive after the new notes are released.

The Attorney-Khalil: The new currency will consist of the categories (1, 2, 5, 10, 25 and 50, 100, 200) dinars, as well as small metal groups (50 and 250) fils. So, here we're seeing a report of the new denominations. Only a 50 is currently recognized on the CBI site. No 250. No 500. I don't think that they'd mint and print a new 25 and 100 dinar coin, so I'm assuming they're talking about new 25 and 100 notes rather than the coins on the site. I'm thinking they may be pitching all the denoms on the CBI site and rolling out a whole new series of notes with a new currency code. This would be bad news for us. No, we haven't seem mention of a new code yet, which is good. If this is the case however, and they do release the new notes with a new value at the same time with a new code, we'd be looking at a limited exchange window for a predetermined rate. Just thinking out loud here.

Aren't these denominations mentioned in the article completely different (other than the 50) than those on the CBI site? New notes, new currency code, limited cash in period for the old IDQ for new just like the Saddam era exchange?

Bump. This is huge news if true. Next, Erbil and Ch 7.

March 14th.

Too big to fail: Iraq style. +1 for you too C. Not sure who negged you.

You'd think they'd have to issue a new one to designate the new from the old. If they did, that would obsolete the current non three zero notes.

Has anyone seen any mention of a new currency code?

Tough **** Brad.

I might be misunderstanding the concept of IMF Article VIII, but if they accept the terms of the article don't they have to use only one currency? Can't the GOI/CBI pass a law requiring the use of the IQD for in country purposes? It would be no different than you or me trying to buy a Big Mac with euros in the US.

If our IQD becomes NID, that's a bad thing.

No, but DeLaRue does print banknotes as part of their portfolio of services. http://www.delarue.com/ProductsSolutions/BanknoteProduction/

I've been wary of the idea of a national meeting since they mentioned it. These guys can hardly get everyone to come to work, let alone conduct a compromise to resolve their petty political/religious/tribal differences for the good of the country. I hope that the Arab Summit is held as scheduled, but I'm not holding my breath. The idea that Iraq may go into the Summit without a seated GOI and other huge political rifts is also disconcerting. That being said, the longer all these issues are allowed to remain unresolved, IMO the less likely the Summit is to be held on time. They are not positioned to take the leadership role in the ME as they say they want to.

So we've all seen the articles on the RV/D which mention money laundering and counterfeiting as a fear which would cause significant damage to the economy. Now, these are opinions, but can anyone explain the logic behind these fears? We know the currency is one of the most sophisticated in the world. Anyone with dinar has seen the security features. Are they worried people will try to counterfeit these new lowers? Where is this money supposedly being laundered to? If they lop the three zeros, why the concern with these illegal currency transactions? Even if someone had pallets of $25K notes, post lop they'd only be worth 1/1000 at a 1:1 exchange. Not nearly as big a deal if they were a straight 1:1 RV. I don't see the argument. Any ideas?

Can someone explain to me why M keeps insisting that Iraq is fully sovereign and independent? Is he unaware of the remaining sanctions, as well as the crippled programmed current rate?

Well, the IMF site says XIV. If we're checking the CBI site for the rate, then I'd expect the IMF site to be the authority on the move to VIII. Maybe Enorrste is tipping the vodka bottle back again.

IMF Article VIII? If that's what you mean, no. Check the IMF website. They're still under XIV.

Yep.

This is a pretty good translation. Let's be clear: this is a LOP article. There have been plenty of them. Whether Iraq plans on doing this remains to be seen. Translation errors, decimals or commas, don't get wrapped around the axle looking for things that aren't there. I am not a lopster, and there are things in this article that are contradictory to others that have been put out. This one seems to be from Kurdistan. Let's see if the CBI has a retort.

What a ******* *******.

So, where's the Reuters article?

Well, the IQD is the official currency of Iraq. I'm not certain that a law needs to be passed or not. I do know, however, that they have to go to one currency when they accept the obligations of Art 8. Iraq doesn't have a choice. It's just a matter of when.

Consider the flexibility that the USD provides individuals (or countries) vice the IQD. Why handcuff yourself with IQD?! Just take a look at the IMF's Art 14 currency restrictions. Iraq needs to make the dinar a viable alternative to other currencies (besides just using it to wipe your ass or stuff a mattress). That's going to have to happen before Iraq can move to IMF Art 8.

I don't see the demand for USD going down versus the IQD as long as the exchange rate stays so low. We all know that the USD is considered stable/preferred on the Iraqi streets. IMO, to move to a one currency system there's going to have to be an event that forces people to use the IQD. Whether that's a RV/D remains to be seen.

If the UN is coming, hopefully they'll be less inclined to postpone this.