BelievingInTheBest

These are replacement notes for the used, torn and worn out notes. Regardless of the rate increase, Iraq is way over due for new notes to conduct business with. I like the thought that they are replacing the 10K notes at this point and not the 25K. There might be good reason for the 25K notes not being released. Time will tell.

In my opinion, the CBI is selling bonds to bring in more dinar from the market. The CBI has stated they want to reduce the money supply and I believe that is what they are doing. Reducing liquidity of the dinar. The auctions are a tool to control liquidity and inflation. The bonds are simply another tool the CBI has chosen to use to reduce liquidity. This is very good news in my opinion.

That is my opinion as well. And makes most sense. They want the dinar to be a strong / hard currency and a reserve currency throughout the world. It needs value, a controlled supply and a strong demand. All things Iraq is working on. Contracting the IQD (reducing the supply) through the bonds is a part of the bigger picture. Getting the dinar into other countries and having trade agreements with many other countries helps to increase the demand and volume of dinar flowing in the world markets.

Aren't bonds a way to reduce liquidity or money supply? Reducing the money supply is good for us as it increases the value of our dinar.

We are getting closer.

And all that crisis, in my opinion, is orchestrated by the government blocks that would prefer to keep Iraq in the stone ages. The ruling class want to remain the ruling class and fear giving power to the people. I believe the Iraqi people have seen what freedom looks like and what it can bring them and will carve out a stable republic in time. Could they go on like this for a long time? Perhaps so, but not if they want to be a member of the WTO, bring in investors, be a donor country, etc. All things they plan to do and become in 2014. If they plan to stay like this for a long time, they probably would release some extra small notes to help out with the torn notes in the market place. But there are many articles stating that the small dinar notes are torn and worn and that tells me the small notes are in short supply in the markets of Iraq and they are not releasing any more. I don't think they are planning to continue on like this for very long. Just an opinion on things.

Rabbi; thank you for the clarification on you thinking. Your contractor example shines some light on a very good point regarding a staging rate.

Very sad. Perhaps Iraqis should take the stance of having suicide bombers buried with a pig to slow those activities. I am not for cruelty or disrespect, just saying those of that mentality might think twice about their actions.

For me the misinformation or disinformation is encouraging because of why they might be saying it. I am trying my best to watch what Iraq is doing and not what they are saying. Look at all the banks going in and all the other positive activities going on. There is so much infrastructure being built for economic growth in Iraq. One of the last thing the world wants to see is an Iraq that has failed economically and politically. I really think we are in a good place regardless of the dog and pony show that we are seeing. .

Yes Zig, I believe they are talking about the amount of notes being used. Notice they do not mention introducing a new currency. This means that they will need to run their entire economy on only 25 percent of the current currency. In my thinking, they will need to increase the value of the currency to get that job done. Especially when they also start to take the dollars out of circulation in Iraq as I imagine that step is a part of the plan in the not so distant future. So, one quarter of the amount of dinar notes with no dollars in the future. Think on that one for a bit and it can get exciting.

Do you think that rule would ever got voted on Zig?

So, who is this Mohammed Kazem and why should his words have any influence? Just curious here.

That is the way I see it Socal.

Those rascally dwarves and their gremlin cousins cause problems everywhere they go!

Hairboll51, Thanks for taking the time to do some leg work on this "delete the zeros" topic. It does bring some light to a topic that can KEEP some people very confused.