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.

Exactly Zig. The ISO code remains the same and at this point that IS the factual truth regarding the direction the CBI is currently moving.

Keep, You assume you speak the truth. Yet what you are doing is just repeating your interpretation of things based on your viewpoints. Your interpretations and opinions are not factual truths and might be just as misleading as Okie and Terry K. You say you don’t want the many new comers to get the wrong idea, yet the truth is you could very well be the one giving the new comers a wrong idea too. You, quite honestly, do not know what they are reporting. You only think you know based on what you think they are stating. Like the rest of us, including Okie, you in fact have no facts. Also, there is much more coming out of Iraq regarding their currency. One thing that has not come out of Iraq, however, is a new ISO code. How about sharing your thoughts about what is currently going on with Turki; not Turkey but Turki. Yes, he had or has much to do with the currency and things are changing. This possible change could have something to do with the currency as Turki now holds or had held a fairly high position in the CBI. Perhaps if you could expand your expertise with other conversations your credibility could also expand. I understand you might be trying to help others and it is possible Okie feels he is doing the same thing. Not slamming you Keep; I'm trying to help. In the past I was glad to have had your educated outlook and opposing views for balance. Yet today it seems your past educated views have become somewhat myopic when this process really could still go several directions.

Now there is some truth.

Very true Zig. If they are planning to totally dollarize and do their commerce in dollars, this card should work just fine in Iraq and anywhere in the world. I understand that the individual cards might not have as many dollars deposited into them each month as what many of us are common with, but the cards could still make purchases very efficiently with dollars. Then as the Iraqi economy picks up along with wages, the amounts being deposited each month into the cards could rise nicely. At any time in the future, perhaps when the dinar and dollar are close to or at 1 to 1, Iraq could change over to using dinar on the cards instead of the dollar. This could relieve the need to get the small denominations out before they are ready, and it could help the private banks to start building and selling their banking services to the Iraqi population. The value of the dinar could still go up at any time while using dollars in the Iraqi economy. Yes, it is true that the volume of dinar circulating inside of Iraq would virtually not exist. Even so, when the dinar becomes internationally traded the dinar could generate much demand throughout the world to drive up the value very quickly. This is just my opinion from trying to see things from possible angles.

I agree with you Zig. No ISO code means no redenomination and there is no new ISO code or even an application for one at this point. In my opinion, until a new ISO code is applied for, all redenomination talk belongs in the rumor section along with the pumpers. As reality stands right now, we are looking for an increase in the exchange rate.

Socal, I believe you are right in that the CBI needs to get the market rate back to 1166 and keep it stable there. For how long is anybody's guess. I believe this is a move by the CBI to readjust or correct the market rate back to that 1166 mark.

LadyGrace, the HCL would be my guess. Let's hope.

I believe it is an old rehashed article. Maybe Iraqi media needed an article to fill a space. This article was easy to fudge a little to try to make it sound current and could help keep speculation down. Two birds with one stone. Markinsa does have a valid point to be considered yet no new numbers have been brought up to reflect any new reserve amounts. The article also gives those who like to look for negative or potentially discouraging material something to talk about for a while. I guess, for some, the article could be like drinking a big glass of water and now they are looking for someone to relieve themselves on. Sorry if that is a little raw for a morning comment. And, of course, this is only my opinion and is not intended for any specific individual.

Bob Seger said it best … Same old cliché “is this a woman or a man?” Turn the page please.

Let's hope the next photo we see of Maliki is ten years from now somewhere deep in the Andes Mountains holding a rope with a donkey attached to it.