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Change the Iraqi currency and the expected effects

alan_coaks_3

By alan_coaks_3,
in Iraq & Dinar Related News

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Rabbi Newbie

Rabbi

Posted
Posted (edited)

Always consider the source fo an article. This one comes from "a source at the Central Bank of Iraq." That could be the janitor for all we know. And this article is posted by a writer in Reirut who "specializes in economic affairs." Fuggedaboudit!!!!

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coldwarvet Newbie

coldwarvet

Posted
Posted

Look, let's step back for a minute and do a REAL "reality check." Can any of us say that ANY translation we have read of ANY article, originally written in Arabic, has been clear and unequivocal?

Can ANY of us say that we trust the accuracy of the Iraqi media unreservedly?

Does it make ANY sense at all for the Central Bank of Iraq to telegraph their intentions, one way or the other?

Is it not strange that the only place where this information resides is in the media? Why not on the CBI web site, if that's their official position?

Does it make any sense at all that they would be talking and talking and talking about a redenomination, when they could have easily done it at any time over the last several years?

Does it make any sense that they would ask their own people to turn in their IQD in exchange for USD, simply so they can redenominate?

In my opinion, the reason for the delays is crystal clear: they are attempting create a negative climate around holding onto IQD, so they won't have as much out there to cash in when they DO RV.

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TrinityeXchange Newbie

TrinityeXchange

Posted
Posted

I would like to remind all of you, my friends, that regardless of what the currency is (25k note, 25 note, etc etc.) our primary concern is its value. We are believing for a RE-value-ation of the currency because we believe that it is currently UNDER-value-d. So what did the deputy governor of the CBI tell us concerning the value of the IQD? He specifically said that it is not a soft currency but a hard currency and is not affected by neighboring countries nor politics because its value is derived from 3 things:

  1. International tradeability - making it a reserve currency just like the usd, yen, euro, pound etc
  2. Oil - which we know the quantity of "sweet crude" is still beating expectations
  3. Investments - anybody read the news lately of all of the investments taking place in the project to rebuild Iraq

So considering all of these 3 sectors we must ask ourselves is this currency still undervalued? If the answer is yes, then forget any adverse news and hold onto your investment. If the answer is no, then it is time to get out of this investment.

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dgibbs20 Newbie

dgibbs20

Posted
Posted (edited)

WHY DOES EVERYTIME SOMEBODY MENTIONS AN LOP, PEOPLE START TO GO IN ON THEM AS IF IT'S NOT A POSSIBILITY? THAT IS STILL A POSSIBILITY. ADAM BELIEVES IT, I BELIEVE IT. I THINK WE ARE LIVING IN A FANTASY WORLD IF WE DON'T PREPARE FOR THAT AS WELL... #I'MJUSTSAYING

EVEN THOUGH WE PRAY THAT IS NOT THE CASE, AND I PRAY THAT IT IS A NON-FACTOR, THE PENDULUM CAN SWING BOTH WAYS.

Edited by Markinsa
Reduced Font Size: Please Read Forum Rules Regarding Font Size
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Stryker365 Newbie

Stryker365

Posted
Posted (edited)

WHY DOES EVERYTIME SOMEBODY MENTIONS AN LOP, PEOPLE START TO GO IN ON THEM AS IF IT'S NOT A POSSIBILITY? THAT IS STILL A POSSIBILITY. ADAM BELIEVES IT, I BELIEVE IT. I THINK WE ARE LIVING IN A FANTASY WORLD IF WE DON'T PREPARE FOR THAT AS WELL... #I'MJUSTSAYING

EVEN THOUGH WE PRAY THAT IS NOT THE CASE, AND I PRAY THAT IT IS A NON-FACTOR, THE PENDULUM CAN SWING BOTH WAYS.

Wow, my ears hurt, you didn't have to scream it, I got it....we understand...now can you just say it next time...laugh.giflaugh.giflaugh.gif we're not stupid we know that, now calm down before you hurt yourself

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Stryker365 Newbie

Stryker365

Posted
Posted

I would like to remind all of you, my friends, that regardless of what the currency is (25k note, 25 note, etc etc.) our primary concern is its value. We are believing for a RE-value-ation of the currency because we believe that it is currently UNDER-value-d. So what did the deputy governor of the CBI tell us concerning the value of the IQD? He specifically said that it is not a soft currency but a hard currency and is not affected by neighboring countries nor politics because its value is derived from 3 things:

  1. International tradeability - making it a reserve currency just like the usd, yen, euro, pound etc
  2. Oil - which we know the quantity of "sweet crude" is still beating expectations
  3. Investments - anybody read the news lately of all of the investments taking place in the project to rebuild Iraq

So considering all of these 3 sectors we must ask ourselves is this currency still undervalued? If the answer is yes, then forget any adverse news and hold onto your investment. If the answer is no, then it is time to get out of this investment.

OK, what was the question again...laugh.giflaugh.giflaugh.giflaugh.gif ..you know it will not let me choose to many Emoticons but I am trying too...laugh.giflaugh.giflaugh.gif ...good point Trinity!!!wink.gif I'll keep mine.biggrin.gif

Thanks Markinsa for toning it down and Trinity I liked what you had to say!!!

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tjfoz Newbie

tjfoz

Posted
Posted

No matter what anyone thinks a LOP is still a possibility. I think its a 51/49. Been in this for 6 years, And i slightly lean towards a RV . I think these guys are smart enough to pull the right move for them and their country. Time is ticking . Come here RV.

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Stryker365 Newbie

Stryker365

Posted
Posted

No matter what anyone thinks a LOP is still a possibility. I think its a 51/49. Been in this for 6 years, And i slightly lean towards a RV . I think these guys are smart enough to pull the right move for them and their country. Time is ticking . Come here RV.

I think we have much better odds but at least you're still on the side of RV, it is a shame that with all the great articles and the fact that they have made great achievements that you do not have more faith.

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sourpuss Newbie

sourpuss

Posted
Posted

Weeks before the GOI’s intent to change the currency and the expected effects

Posted: February 27, 2012 in Top Headlines

Tags: Central bank, Central Bank Iraq, Currency, exchange rate, iran, Iraq, iraqi, Iraqi dinar

Change the Iraqi currency and the expected effects

Monday, February 27, 2012

A source at the Central Bank of Iraq weeks before the government’s intention to change the currency by deleting three zeros from the right side of the categories of the current currency, any division of denominations present on A, and thus become a category one thousand dinars, the current, for example, equal to the new dinars and the five thousand is equal to 50 new dinars and a thousand percent, equal to a hundred new dinars.

And will be the new currency in 2013 and the establishment of the new currency will take place of the current two-year void at the end of the old currency, but banks will continue to receive for 10 years after the switch for the purposes and not for circulation.

The source added that the purchasing power of the new currency will remain equal to the value of the current purchasing power of currency.

Valslah worth a thousand dinars, which now becomes the new dinars worth of currency, which the current value of becoming a million dinars worth a thousand dinars, and so on.

Because of the importance of the topic and some people have a misunderstanding as there are those who believe that it is possible to make profits from the current Iraqi dinar buy and sell in the post, you should ask two questions – first: What is the government’s goal of this change?

The second: How will the government, especially the monetary authority, to ensure the relationship between the two currencies offsetting existing and new so as not to cause harm to any of the switch?

It can be said in answer to the first question that the Iraqi dinar was until 1981 partly covered with gold and foreign currencies (70 percent), and partly because the Iraqi treasury permissions Iraq was applied to the vestiges of the gold standard.

In order to maintain the cover, successive governments have continued to link fiscal policy, especially current expenditure and investment expenditure in the case of balance of payments, an increase of the revenues from Iraqi foreign assets, especially oil export revenues, reserves of gold.

The success of this linkage applied administrative restrictions on foreign exchange, both, trade in goods and services, and capital movement, and applied monetary and fiscal policies of the province.

Iraqi dinar remained a result, maintaining a stable exchange rate and the official of $ 3.2 of the dinar.

The Iraqi dinar has as large a store of value inside Iraq and in foreign markets, especially markets of neighboring countries.

But after the disappearance of Iraq’s vast reserves of foreign currency after the outbreak of the Iraq war – Iran and the impact of the high costs of the war, the government left the labor law of the currency and started to spend without quantitative restrictions, which led to a continuing decline in the Iraqi dinar exchange rate in the value of purchasing power.

And increased economic blockade imposed on Iraq in 1990 it worse.

Despite the government’s adherence to the Iraqi official exchange rate of $ 3.2 of the dinar in official dealings, highlighted the developments of the last price is the price of dinars on the black market, which is determined by the forces of supply and demand, and reached the price of three thousand dinars to the dollar.

After the occupation of Iraq and the lifting of the ban on exports of oil reserves of the country and abroad, and turning to the Iraqi Central Bank to regulate the daily auctions for the sale of currency for the banks, the value of Iraqi dinar than three thousand dinars to the dollar to about 1125 dinars now.

Deprived the Iraq war – the economic blockade of Iran and the Iraqi dinar after a lot of consideration as a store of value and medium of the circulation, causing the transformation of most of the transactions to the dollar.

And thus the dollarization of the economy got in Iraq.

It will be the first impact of the decision to change the currency to the rehabilitation of the dinar and make way for all denominations, including small to find its way back to trading as well as to end the dollarization of the economy and return to the Iraqi dinar to deal only.

As for your second question, and most importantly, Vldman offsetting the relationship between the two currencies existing and new, you need the monetary authority to issue instructions provided on the following:

Divided the Iraqi government expenses, including salaries of staff at A as well.

The civil servant who receives currently 1.5 million dinars become a new salary of 1500 dinars, divided the prices of goods and services on A as well, becomes a commodity that is worth a thousand dinars and the dinars, equal to the censoring effect.

And divide the existing debt on individuals and the government, companies and the banking sector A as well, the person that his trust to the bank becomes a current million dinars his trust again.

And take all the courts and judicial authorities in this division, upon receipt of specific complaints.

But if the dollar of the debt shall continue to fulfill it to the dollar.

As well as bank deposits are divided over a thousand.

But the monetary authority will continue to face more difficult task is to determine the exchange rate of the Iraqi dinar.

Will resort to install it to the dollar or a basket of currencies or managed float method of tracking any leave, as is currently the case, is determined by the forces of supply and demand within the margin of acceptable power to intervene to maintain.

The most appropriate option for the conditions in Iraq as a developing country is to stabilize the exchange rate, both against the dollar or to a basket of currencies, and choosing the appropriate exchange rate because the official exchange rate of the previous $ 3.2 of the dinar was originally overstated and should be chosen exchange rate less may be the price at which the link dinar against Currently the dollar after dividing it into a thousand dollars to 1.125 dinars a good price.

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redsand Newbie

redsand

Posted
Posted (edited)

Very telling article. 2 currencies will be out. 10 year period in which one can return the old currency. Only weeks away. ITS NOT A LOP with the new and old denoms in play.

Can we have the link though? Don't wanna get into too much of what it means until I see the legitimacy of this. ;)

Thanks!

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sandyf Newbie

sandyf

Posted
Posted

I have counted 6 math and fact inconsistencies in this article that just are NOT true.

Someone needs to go to college before they write articles about the finances of a country.

Garbage Article in MY OPINION.

Agreed, also the bottom line from the original is missing.

* Writer specializing in economic affairs - Beirut

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mrref Newbie

mrref

Posted
Posted

Weeks before the GOI’s intent to change the currency and the expected effects

Posted: February 27, 2012 in Top Headlines

Tags: Central bank, Central Bank Iraq, Currency, exchange rate, iran, Iraq, iraqi, Iraqi dinar

Change the Iraqi currency and the expected effects

Monday, February 27, 2012

A source at the Central Bank of Iraq weeks before the government’s intention to change the currency by deleting three zeros from the right side of the categories of the current currency, any division of denominations present on A, and thus become a category one thousand dinars, the current, for example, equal to the new dinars and the five thousand is equal to 50 new dinars and a thousand percent, equal to a hundred new dinars.

And will be the new currency in 2013 and the establishment of the new currency will take place of the current two-year void at the end of the old currency, but banks will continue to receive for 10 years after the switch for the purposes and not for circulation.

The source added that the purchasing power of the new currency will remain equal to the value of the current purchasing power of currency.

Valslah worth a thousand dinars, which now becomes the new dinars worth of currency, which the current value of becoming a million dinars worth a thousand dinars, and so on.

Because of the importance of the topic and some people have a misunderstanding as there are those who believe that it is possible to make profits from the current Iraqi dinar buy and sell in the post, you should ask two questions – first: What is the government’s goal of this change?

The second: How will the government, especially the monetary authority, to ensure the relationship between the two currencies offsetting existing and new so as not to cause harm to any of the switch?

It can be said in answer to the first question that the Iraqi dinar was until 1981 partly covered with gold and foreign currencies (70 percent), and partly because the Iraqi treasury permissions Iraq was applied to the vestiges of the gold standard.

In order to maintain the cover, successive governments have continued to link fiscal policy, especially current expenditure and investment expenditure in the case of balance of payments, an increase of the revenues from Iraqi foreign assets, especially oil export revenues, reserves of gold.

The success of this linkage applied administrative restrictions on foreign exchange, both, trade in goods and services, and capital movement, and applied monetary and fiscal policies of the province.

Iraqi dinar remained a result, maintaining a stable exchange rate and the official of $ 3.2 of the dinar.

The Iraqi dinar has as large a store of value inside Iraq and in foreign markets, especially markets of neighboring countries.

But after the disappearance of Iraq’s vast reserves of foreign currency after the outbreak of the Iraq war – Iran and the impact of the high costs of the war, the government left the labor law of the currency and started to spend without quantitative restrictions, which led to a continuing decline in the Iraqi dinar exchange rate in the value of purchasing power.

And increased economic blockade imposed on Iraq in 1990 it worse.

Despite the government’s adherence to the Iraqi official exchange rate of $ 3.2 of the dinar in official dealings, highlighted the developments of the last price is the price of dinars on the black market, which is determined by the forces of supply and demand, and reached the price of three thousand dinars to the dollar.

After the occupation of Iraq and the lifting of the ban on exports of oil reserves of the country and abroad, and turning to the Iraqi Central Bank to regulate the daily auctions for the sale of currency for the banks, the value of Iraqi dinar than three thousand dinars to the dollar to about 1125 dinars now.

Deprived the Iraq war – the economic blockade of Iran and the Iraqi dinar after a lot of consideration as a store of value and medium of the circulation, causing the transformation of most of the transactions to the dollar.

And thus the dollarization of the economy got in Iraq.

It will be the first impact of the decision to change the currency to the rehabilitation of the dinar and make way for all denominations, including small to find its way back to trading as well as to end the dollarization of the economy and return to the Iraqi dinar to deal only.

As for your second question, and most importantly, Vldman offsetting the relationship between the two currencies existing and new, you need the monetary authority to issue instructions provided on the following:

Divided the Iraqi government expenses, including salaries of staff at A as well.

The civil servant who receives currently 1.5 million dinars become a new salary of 1500 dinars, divided the prices of goods and services on A as well, becomes a commodity that is worth a thousand dinars and the dinars, equal to the censoring effect.

And divide the existing debt on individuals and the government, companies and the banking sector A as well, the person that his trust to the bank becomes a current million dinars his trust again.

And take all the courts and judicial authorities in this division, upon receipt of specific complaints.

But if the dollar of the debt shall continue to fulfill it to the dollar.

As well as bank deposits are divided over a thousand.

But the monetary authority will continue to face more difficult task is to determine the exchange rate of the Iraqi dinar.

Will resort to install it to the dollar or a basket of currencies or managed float method of tracking any leave, as is currently the case, is determined by the forces of supply and demand within the margin of acceptable power to intervene to maintain.

The most appropriate option for the conditions in Iraq as a developing country is to stabilize the exchange rate, both against the dollar or to a basket of currencies, and choosing the appropriate exchange rate because the official exchange rate of the previous $ 3.2 of the dinar was originally overstated and should be chosen exchange rate less may be the price at which the link dinar against Currently the dollar after dividing it into a thousand dollars to 1.125 dinars a good price.

Where in the heck did you get this article from?? :lol::lol: Something just doesn't add up. :lol:

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Rabbi Newbie

Rabbi

Posted
Posted

This article was floated a couple of days ago. It was posted by a writer in Beirut who reports on economic affairs. It does NOT come from either the GOI or CBI, so it is nothing more than an opinion or some other un-official rhetoric being put forth by some Lebanese reporter.

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rsskelton Newbie

rsskelton

Posted
Posted

will be the new currency in 2013 and the establishment of the new currency will take place of the current two-year void at the end of the old currency

Read more: http://dinarvets.com/forums/index.php?/topic/107250-change-the-iraqi-currency-and-the-expected-effects/#ixzz1navltLcW

I believe the way this is written, that it is an event that transpires after the RV has already taken place.

The way I read this, and by the time it happens, The country of Iraq will be nothing but a distant sandy memory in the back of my mind. It reads to me like this happens after we are all out. By the way, the writer is from Lebanon and, IMO it's just one more persons opinion.

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