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cheevo

Iraq halts plans to cut zeros off dinar currency-cabinet

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Don't know why you were negged but evened you out, don't get it... :D

Here's why...People like to hear lies & rumors. The truth kills them.

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This is good news.

The big question is are the lower denoms being printed or already printed.

Thanks Cheevo!! Great find!!

GO SHABS!!!

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Yippy Dippy Day! Finally some news to get my hopes up!

Oh Happy Day.......oh happy daaay, Oh Happy Day............

I was wondering if this would make you smile......happy day friend!!

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I think ppl think its like facebook....the like or dislike the headline..... Its not like i made this article up! Lol. Dont shoot the messenger!

Worse than that they think deleting the zeroes is a good thing!!

Another + for you CHEEVO

GO SHABS!!!

The ministers are now in control of CBI. It would appeare Miliki's threats to fire Shabs has finally materialized.

I'm mixed on this one Luigi.

Good or Bad?

On one hand most here believe Shabs is the man. But he has spoken about an RD many times.

Maybe Shabs has been the holdup?

Any thoughts on this.?

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That drop the zeroes stuff always did make my stomach turn, let's move on Shabbs, to greener deserts, RV by June '12. :D

Thanks for the post cheevo! a +1 served your way.

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Iraq halts plans to cut zeros off dinar currency-cabinet

Thu Apr 12, 2012 3:10pm EDT

* Cabinet says stops plans to redenominate dinar "until further notice"

* Iraq has over 30 trillion Iraqi dinars in circulation

* Plan to trim zeros not seen as a priority

By Aseel Kami

BAGHDAD, April 12 (Reuters) - Iraq has decided to hold off on a plan to knock three zeros off the nominal value of bank notes of its currency because it does not believe the economic climate is suitable, the cabinet secretary said on Thursday.

The central bank said last August it planned to redenominate the Iraqi dinar to simplify financial transactions in an economy that is still heavily centralised and dominated by oil, and where deals are often carried out in cash.

The proposal to restructure the dinar to bring more liquidity into the market has been awaiting parliamentary approval since last year.

On Thursday, a statement on the website of the cabinet secretary said the cabinet had decided to halt all procedures relating to the redenomination of the dinar "until further notice".

"The economic committee discussed this issue and so did cabinet ... There is a possibility that it could cause some problems in the economic situation. Besides that, this operation is so big that cabinet sees circumstances are not right to control this," cabinet secretary Ali al-Alaq told Reuters.

Iraq is slowly getting back on its feet after years of war and sanctions. Oil accounts for 95 percent of government revenues and the country's banking system is still highly underdeveloped.

HUGE PROCESS

The central bank has kept the dinar fixed at 1,170 dinars to the dollar in its daily auction but it recently moved to revalue the dinar slightly to 1,166 dinars after demand for the U.S. currency soared.

The central bank said it also had to tighten regulations over who can participate in the auctions as Iraqi traders sought to snap up dollars for resale in neighbouring Syria and Iran, both under Western economic sanctions.

Sales of dollars in currency auctions held by Iraq's central bank rose as high as $400 million on some days in December from a previous average of $150 million, according to central bank data.

"We have more than 30 trillion dinars in circulation. To withdraw this amount from the market and then to examine them and to dispose of them is a huge process. Even the technical and the monetary capabilities to control a process like this, we consider as insufficient and it is not seen as a priority currently," Alaq said.

The central bank says Iraq's large foreign reserves, which have risen to a record $60 billion on the back of high oil prices, will shield it from any damage to its financial system on the national level.

http://www.reuters.com/article/2012/04/12/iraq-currency-idUSL3E8FC8G120120412

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Sounds to me....well like we're closer than ever.

(I find myself admiring their never ending efforts at dis-information, not sure why, but I just do)

Iraq halts plans to cut zeros off dinar currency-cabinet

Thu Apr 12, 2012 3:10pm EDT

* Cabinet says stops plans to redenominate dinar "until further notice"

* Iraq has over 30 trillion Iraqi dinars in circulation

* Plan to trim zeros not seen as a priority

By Aseel Kami

BAGHDAD, April 12 (Reuters) - Iraq has decided to hold off on a plan to knock three zeros off the nominal value of bank notes of its currency because it does not believe the economic climate is suitable, the cabinet secretary said on Thursday.

The central bank said last August it planned to redenominate the Iraqi dinar to simplify financial transactions in an economy that is still heavily centralised and dominated by oil, and where deals are often carried out in cash.

The proposal to restructure the dinar to bring more liquidity into the market has been awaiting parliamentary approval since last year.

On Thursday, a statement on the website of the cabinet secretary said the cabinet had decided to halt all procedures relating to the redenomination of the dinar "until further notice".

"The economic committee discussed this issue and so did cabinet ... There is a possibility that it could cause some problems in the economic situation. Besides that, this operation is so big that cabinet sees circumstances are not right to control this," cabinet secretary Ali al-Alaq told Reuters.

Iraq is slowly getting back on its feet after years of war and sanctions. Oil accounts for 95 percent of government revenues and the country's banking system is still highly underdeveloped.

HUGE PROCESS

The central bank has kept the dinar fixed at 1,170 dinars to the dollar in its daily auction but it recently moved to revalue the dinar slightly to 1,166 dinars after demand for the U.S. currency soared.

The central bank said it also had to tighten regulations over who can participate in the auctions as Iraqi traders sought to snap up dollars for resale in neighbouring Syria and Iran, both under Western economic sanctions.

Sales of dollars in currency auctions held by Iraq's central bank rose as high as $400 million on some days in December from a previous average of $150 million, according to central bank data.

"We have more than 30 trillion dinars in circulation. To withdraw this amount from the market and then to examine them and to dispose of them is a huge process. Even the technical and the monetary capabilities to control a process like this, we consider as insufficient and it is not seen as a priority currently," Alaq said.

The central bank says Iraq's large foreign reserves, which have risen to a record $60 billion on the back of high oil prices, will shield it from any damage to its financial system on the national level.

http://www.reuters.com/article/2012/04/12/iraq-currency-idUSL3E8FC8G120120412

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Last December they said they were in phase 2 of the 3 phases of this project. Maybe phase 2 is dragging out a big longer :unsure: ....nah... :lol:

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Hello Dinar Vets! Another newbie here...just wanted to say hello and that I appreciate the vast wealth of knowledge on this site! I have been "lurking" since last July and have learned so much about this investment from just reading what you all have to say. It's funny because I work at a bank and they have no clue what dinar is. My 80 year old mother actually holds the dinar.....I'm just trying to keep up with what's going on. WHEN this happens and depending on what it does I will quit the bank and go to "work" for Mom. She is beginning to need some help. But for now I'm hanging in at the bank and would never quit my job until all is said and done. Thanks for letting me introduce myself and thanks again for all the great stuff on this site!

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I don't usually quote Guru's but this guy makes sense:

Bear5642: well have you seen the latest that they have decided to stop the lifting of the 3 zeros? This could be the tell tale sign of the rv. My contact in iraq quote "lower denoms are not in the market places" its not smoke because a lot of stuff came out today in referance to the imf and the chapter7 issue so they can revalue their currency. They feel they must revalue first before they can drop the zeros. They feel they must revalue first before they can drop the zeros. It makes perfect sense who would want to exchange their currency for smaller notes if they were not worth more first i have been saying this all along and this totally discredits a lop.

Also, didn't China once say there was no way they would RV their currency...and then the next day they RV'd their currency.

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Last December they said they were in phase 2 of the 3 phases of this project. Maybe phase 2 is dragging out a big longer :unsure: ....nah... :lol:

Phase two was to educate the public. The articles regarding the deletion of the zeroes have been out there often.

So much confusion and conflicting articles.

Hello Dinar Vets! Another newbie here...just wanted to say hello and that I appreciate the vast wealth of knowledge on this site! I have been "lurking" since last July and have learned so much about this investment from just reading what you all have to say. It's funny because I work at a bank and they have no clue what dinar is. My 80 year old mother actually holds the dinar.....I'm just trying to keep up with what's going on. WHEN this happens and depending on what it does I will quit the bank and go to "work" for Mom. She is beginning to need some help. But for now I'm hanging in at the bank and would never quit my job until all is said and done. Thanks for letting me introduce myself and thanks again for all the great stuff on this site!

Welcome WB

Gave you your first +

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Phase two was to educate the public. The articles regarding the deletion of the zeroes have been out there often.

So much confusion and conflicting articles.

Phase 2 also included pulling in the large notes which they have been doing since December. ;) They are taking in the dinar and giving them USD.

Phase 3 is the new currency exchanged for the USD they hold. That's why the thought is 1:1...make it easy for them since they are using USD and not their dinar.

There would be no use for lower demons and coins if the money was not going to "Revalue".

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I don't usually quote Guru's but this guy makes sense:

Bear5642: well have you seen the latest that they have decided to stop the lifting of the 3 zeros? This could be the tell tale sign of the rv. My contact in iraq quote "lower denoms are not in the market places" its not smoke because a lot of stuff came out today in referance to the imf and the chapter7 issue so they can revalue their currency. They feel they must revalue first before they can drop the zeros. They feel they must revalue first before they can drop the zeros. It makes perfect sense who would want to exchange their currency for smaller notes if they were not worth more first i have been saying this all along and this totally discredits a lop.

Also, didn't China once say there was no way they would RV their currency...and then the next day they RV'd their currency.

I would have to agree with you!!!

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Phase two was to educate the public. The articles regarding the deletion of the zeroes have been out there often.

So much confusion and conflicting articles.

Welcome WB

Gave you your first +

Thank You!

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The wait for the revaluation of the Iraqi dinar has caused me to fall into dire straights. Since I still have not given up completely, I do not want to sell my dinar; However due to my great financial need, I have 3 acres of prime beachfront property ( fantastic ocean view ) in Arizona that I am willing to let go at a bargin. If you are interested, just drop a line on my profile page. ( Hey, if you'll believe some of the B.S. coming out of Iraq right now, you'll believe anything, lol ).

RSS

Is there a bridge anywhere near your property?

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If you are confused, I re-opened the article from jonjon and merged it with this one since they are discussing the same topic.

Just trying to keep everyone happy. :lol:

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I see this as good news as well!

This means one plan is off the table, now what options do they have left? Their countries coffers of currency are swelling, the country at nearly all levels is in turmoil. At this point they have no other choice, but to increase the value of the dinar. There has been a run on US currency in the Middle East, and clearly it is stated in the article that the reason the exchange rate was changed 4 dinars (or 6?), was because of the high demand for the us dollar.

The demand for the dollar is going to remain high, until it eventually it will dry up. This is where the dinar comes in, and creates a perfect climate to make the iraqi dinar more valuable, because they can't find any more dollars!

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I may be way off base here, but I thought that any and all decisions about the currency of Iraq would be made, and announced by Dr. Shabibi. It was my understanding that he and only he is responsible for this. At the same time I was reading information stating this, I was reading that the government, meaning members of parliament, did not have the say over currency. It has been stated more than once right here on this forum that Maliki, who is supposecly the representative of his parliament, had nothing to do with the RV, that it is all on the shoulders of Dr. Shabibi.

Okay, having said all that, why is it that we are suddenly jumping up and down, or out the tenth floor window, depending on your viewpoint, when this "news" is coming from the Director General of the Council on Cabinet Affairs (I think that was his title), which means it is a decision about the currency that is coming from the Cabinet, which represents the regular members of parliament. That would suggest that even if Shabibi wanted to "push the button" he would have to have approval from the government, the members of parliamment, the cabinet. all of them. That would require a lot of discussion and voting and you know that these people are notorious for their laxidazical approach to government vis a vis such things as showing up for meetings, having time between holidays to take a vote, having the Kurds or Sadr drop a fly in the ointment, not to mention they cannot agree on anything important. (Remember how long it took to even get a seated government which happened well after the deadline, They have no idea what deadline means!)

So, if currency matters have to be settled in parliament first, before Dr. Shabibi can announce anything, why are we even waiting on a day to day basis? If this is truly the case, it could take another year or more. Just my opinion, maybe someone can explain what is wrong with it?

:)

smee2

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