Economic News Financial Alnibaah: next year will see the circulation of two currencies at the same

[gamaray]

Economic News Financial Alnibaah: next year will see the circulation of two currencies at the same

20/06/2012 10:03

BAGHDAD / Center Brief for the Iraqi Media Network - revealed the parliamentary finance committee that Iraq will see the two currencies traded at the same time over the next year 2013 of the new currency in circulation after deletion of zeros with the survival of the current currency trading throughout the year in question.

A member of the Finance Committee Hassan Salman's (Center Brief for the Iraqi Media Network) that "the central bank operates in more than six months from now on the position of the deletion of zeros from the Iraqi currency and the current that will be applied starting from next year."

He pointed out that "the Finance Committee informed and in constant contact with the central bank governor and his aides who constantly learn about the Finance Committee on the details of this issue and the process of replacing the current currency the new currency will continue over the next year."

He said, "will end the current currency, the beginning of 2014 and this process will lead to the strengthening of the Iraqi currency fluctuations, especially after the Iraqi dinar exchange rate against the U.S. dollar in recent times."

And that "currency adjustment will benefit the Iraqi economy and will facilitate the handling of cash in the country by reducing the money supply in circulation now, which Tkdrbhawwala 30 trillion dinars."

He revealed the CBI earlier that the new Iraqi currency will increase by three zeros, indicating that he made an extensive study concluded that the lifting of the zeroes will strengthen the value of the Iraqi currency.

The Central Bank of Iraq four branches in Basra and Sulaymaniyah, Erbil and Mosul, where established bank independent Iraqi under the law of the Central Bank of Iraq issued on the sixth of March / March 2004, which is responsible for maintaining price stability and the implementation of monetary policy, including exchange rate policies and the management of foreign reserves and the issuance of and currency management, in addition to regulate the banking sector

http://translate.google.com/translate?sl=auto&tl=en&js=n&prev=_t&hl=en&ie=UTF-8&layout=2&eotf=1&u=http%3A%2F%2Fwww.imn.iq

[Double R]

interesting

[DEESEAN]

Not interesting BAD AZZ...

[jg1]

Next year? this sounds familiar.

[SocalDinar]

Well now its said that two currencies exist at the same time.

Nothing new there but it's out. What now?

This line confuses me, This is what they want us to believe.

the new Iraqi currency will increase by three zeros, indicating that he made an extensive study concluded that the lifting of the zeroes will strengthen the value of the Iraqi currency.

Are they talking about the rate will have 3 zeroes removed ?So basically even money.

The new currency at one rate and the old at present rate?

Thanks Gamaray

Edited June 20, 2012 by SocalDinar

[sandstorm]

Dv, we only want one currency existing with just more denoms added. two different currencies is not good. Smoke and mirrors??

Edited June 20, 2012 by sandstorm

[yota691]

Dv, we only want one currency existing with just more denoms added. two different currencies is not good. Smoke and mirrors??

Your forgetting about all that dinar that been Suck in!!

Low exchange rate of the dinar against the dollar .. The market is witnessing a surge in turnout

05/20/2012 3:01

Deputy: five conditions capable of reviving the economy most notably a correct vision

of Baghdad - Haider Filaih spring

saw the dollar on Saturday, an unexpected drop was accompanied by clear decline in the prices of materials and goods in local markets, and attributed the specialists in the economic reasons for the drop to a kind of balance in supply and demand between the dollar and the dinar as the two goods can be purchased and traded with them, but economists said the rising rates of dollar sales in the auction currency held by the central bank was behind the low exchange rate of foreign currency (dollar) against the dinar, where the dollar fell to $ 123 thousand dinars for every 100 dollars, after rising in recent weeks to reach about 130 thousand dinars.

The official reports that the Central sold last Thursday, nearly 250 million dollars and was able to absorb three trillion dinars during the last month for selling two billion dollars and is expected, analysts and financial experts that the see the dollar fall further in the coming days to coincide with the increase in sale auctions currency from the dollar and the decline in demand to buy it in local markets.

In the opinion of a member of the Finance Committee in the House of Representatives Abdul-Hussein al-Yasiri importance to maintain the central bank to what he regarded as a gain economically can come back to the country many benefits, pointing out that any goods including the U.S. dollar can control the exchange rate by increasing the display in the market, government, but the Yasiri warned of further alienate reserves, Iraq, the federal dollar, saying that the central now depends largely on the increase in selling prices to meet demand growing from the private sector at the expense of compromising Bahtiattiyath federal, expected during the coming period to witness the dollar stable market price significantly after the policy in mitigating the rise of the dollar by the dominant central.

praised Yasiri Speaking (morning) on the role and capacity auction the central bank to reduce the continued rise of the dollar, stressing that such auctions has clearly meet all the needs of the local market and thus reduce the value of the dollar against the dinar.

said Yasiri that among the main reasons for the high dollar in recent times are some of the actions by the dominant central task in the development of the bank restrictions on participate in the auction, which led to increased demand clearly on Chierfat private and outlets selling the dollar the other, which led eventually to increase the rate of exchange, indicating that these measures is inconsistent with the market policy pursued by Iraq, as passed by the new constitution of the country, noting that the increase in sale dollar at auctions currency at the expense of maintaining the value of the dinar is damaged much of the Iraqi economy as a result of negligence on the amounts by reserves of Iraq from the hard currency, but the Yasiri pointed to the need that so they can be to create a balance between supply and demand of the dollar.

criticized Yasiri stop most productive economic activities other non-oil, pointing out that the absence who are agricultural and industrial is hurt a lot to the economy and led to the keep to rely almost entirely on oil revenues, saying that this dependence on the economy, rent-seeking factor shares down many of the economic activities in the country and led to be the only outlet for the dollar is sell oil only and the absence of the rest of the work which could be helpful in supporting the revenue of the country such as agriculture and industry.

called Yasiri to the importance of that so they can be private-sector support as detailed important joints of the national economy and has the capabilities allow it to increase the revenues of the country of the dollar and raise exports and reduce the size of the revenue, which is now costing Iraq a lot of money, stressing the need to improve all infrastructure related to the rise of the private sector and to use all possibilities to ensure Banashh enact laws and legislation would enable it to compete with the imported product and pay for the issue of the economic process, as passed by the new Iraqi constitution.

Yasiri said that the Iraqi economy in way to recovery during future periods, and that the dollar will stabilize or fall in front of the value of Iraqi dinar, but the Yasiri stressed the need to provide a five conditions for the achievement of many of the economic gains of the country, said in the forefront of the importance of having an economic vision real reality of development in Iraq, as well as the presence of thoughtful planning in order to achieve this vision, as it allows to achieve the highest success rates, it can be achieved according to Yasiri in the event of a decision of a uniform can be reflected positively on the economic reality of Iraq, a third condition mentioned by the Member of Parliament to promote economically in Iraq, adding to the these conditions the need for regulations and laws to help move the economy, as well as provide a cadre believes in the importance of transition in Iraq to the level of advanced economies.

The central bank predicted in his speech for the (morning) the stability of exchange rates through a package of measures said that the process taken to reduce works that are harmful to the Iraqi economy in general, pointing out that the increase in exchange rates of the dollar against Iraqi dinar return to a number of precautionary measures he has taken to reduce the smuggling of the dollar. and Deputy Governor of the Bank Mazhar Mohammad Saleh said the Iraqi dinar is the currency is very strong , which is covered by 120 percent of its value at current exchange rates, as well as that all the mass domestic monetary covered, so the central bank is working to control the cases of high exchange rate or increasing the rates of inflation through intervention in pumping large quantities of foreign currency through Mzhadath, especially and that the dollar is the main currency to cover the cost of many foreign goods and services that are imported, but the central and according to the benefit of monitoring the presence of changing the size of the request, of the market was only the volume of sales simple everyday to the market demand began to double from the past many times and abnormally, and this is what necessitated the Bank to impose additional constraints to participate in the Mzhadath daily. confirms economists need to seek the central bank to maintain the stability of the exchange rate of dollar winner is now against the dinar, stressing that that province on the exchange rate enough to reduce the prices of many materials and goods in local markets and thus lower rates of inflation, which rose a few days ago due to higher cost materials that are imported to the dollar.

and also points to that, an economist at the World Bank Acanutormagd the picture, which suggested that the pressures facing the dollar is still going on, despite the depreciation of the exchange rate, calling for further measures precautions to maintain the current rate of exchange to which the same dollar in the local markets, and this comes through the combination of all the efforts to revive the economy, especially auctions currency and the activation of productive activity and monitor the direction the dollar to prevent smuggling, according to Suri, who pointed out that the volatility made ​​in the value of the dollar the past few days as a result for central bank policy relating to supply and demand. http://www.alsabaah.com/ArticleShow.aspx?ID=27423

[tedro]

Dv, we only want one currency existing with just more denoms added. two different currencies is not good. Smoke and mirrors??

HOW/WHY would two currencies be "not good"...........................unfortunately I do not agree, so without getting into a pissing match with you perhaps you could explain your side first?? No disrespect intended.

[sandstorm]

Your forgetting about all that dinar that been Suck in!!

Low exchange rate of the dinar against the dollar .. The market is witnessing a surge in turnout

05/20/2012 3:01

Deputy: five conditions capable of reviving the economy most notably a correct vision

of Baghdad - Haider Filaih spring

saw the dollar on Saturday, an unexpected drop was accompanied by clear decline in the prices of materials and goods in local markets, and attributed the specialists in the economic reasons for the drop to a kind of balance in supply and demand between the dollar and the dinar as the two goods can be purchased and traded with them, but economists said the rising rates of dollar sales in the auction currency held by the central bank was behind the low exchange rate of foreign currency (dollar) against the dinar, where the dollar fell to $ 123 thousand dinars for every 100 dollars, after rising in recent weeks to reach about 130 thousand dinars.

The official reports that the Central sold last Thursday, nearly 250 million dollars and was able to absorb three trillion dinars during the last month for selling two billion dollars and is expected, analysts and financial experts that the see the dollar fall further in the coming days to coincide with the increase in sale auctions currency from the dollar and the decline in demand to buy it in local markets.

In the opinion of a member of the Finance Committee in the House of Representatives Abdul-Hussein al-Yasiri importance to maintain the central bank to what he regarded as a gain economically can come back to the country many benefits, pointing out that any goods including the U.S. dollar can control the exchange rate by increasing the display in the market, government, but the Yasiri warned of further alienate reserves, Iraq, the federal dollar, saying that the central now depends largely on the increase in selling prices to meet demand growing from the private sector at the expense of compromising Bahtiattiyath federal, expected during the coming period to witness the dollar stable market price significantly after the policy in mitigating the rise of the dollar by the dominant central.

praised Yasiri Speaking (morning) on the role and capacity auction the central bank to reduce the continued rise of the dollar, stressing that such auctions has clearly meet all the needs of the local market and thus reduce the value of the dollar against the dinar.

said Yasiri that among the main reasons for the high dollar in recent times are some of the actions by the dominant central task in the development of the bank restrictions on participate in the auction, which led to increased demand clearly on Chierfat private and outlets selling the dollar the other, which led eventually to increase the rate of exchange, indicating that these measures is inconsistent with the market policy pursued by Iraq, as passed by the new constitution of the country, noting that the increase in sale dollar at auctions currency at the expense of maintaining the value of the dinar is damaged much of the Iraqi economy as a result of negligence on the amounts by reserves of Iraq from the hard currency, but the Yasiri pointed to the need that so they can be to create a balance between supply and demand of the dollar.

criticized Yasiri stop most productive economic activities other non-oil, pointing out that the absence who are agricultural and industrial is hurt a lot to the economy and led to the keep to rely almost entirely on oil revenues, saying that this dependence on the economy, rent-seeking factor shares down many of the economic activities in the country and led to be the only outlet for the dollar is sell oil only and the absence of the rest of the work which could be helpful in supporting the revenue of the country such as agriculture and industry.

called Yasiri to the importance of that so they can be private-sector support as detailed important joints of the national economy and has the capabilities allow it to increase the revenues of the country of the dollar and raise exports and reduce the size of the revenue, which is now costing Iraq a lot of money, stressing the need to improve all infrastructure related to the rise of the private sector and to use all possibilities to ensure Banashh enact laws and legislation would enable it to compete with the imported product and pay for the issue of the economic process, as passed by the new Iraqi constitution.

Yasiri said that the Iraqi economy in way to recovery during future periods, and that the dollar will stabilize or fall in front of the value of Iraqi dinar, but the Yasiri stressed the need to provide a five conditions for the achievement of many of the economic gains of the country, said in the forefront of the importance of having an economic vision real reality of development in Iraq, as well as the presence of thoughtful planning in order to achieve this vision, as it allows to achieve the highest success rates, it can be achieved according to Yasiri in the event of a decision of a uniform can be reflected positively on the economic reality of Iraq, a third condition mentioned by the Member of Parliament to promote economically in Iraq, adding to the these conditions the need for regulations and laws to help move the economy, as well as provide a cadre believes in the importance of transition in Iraq to the level of advanced economies.

The central bank predicted in his speech for the (morning) the stability of exchange rates through a package of measures said that the process taken to reduce works that are harmful to the Iraqi economy in general, pointing out that the increase in exchange rates of the dollar against Iraqi dinar return to a number of precautionary measures he has taken to reduce the smuggling of the dollar. and Deputy Governor of the Bank Mazhar Mohammad Saleh said the Iraqi dinar is the currency is very strong , which is covered by 120 percent of its value at current exchange rates, as well as that all the mass domestic monetary covered, so the central bank is working to control the cases of high exchange rate or increasing the rates of inflation through intervention in pumping large quantities of foreign currency through Mzhadath, especially and that the dollar is the main currency to cover the cost of many foreign goods and services that are imported, but the central and according to the benefit of monitoring the presence of changing the size of the request, of the market was only the volume of sales simple everyday to the market demand began to double from the past many times and abnormally, and this is what necessitated the Bank to impose additional constraints to participate in the Mzhadath daily. confirms economists need to seek the central bank to maintain the stability of the exchange rate of dollar winner is now against the dinar, stressing that that province on the exchange rate enough to reduce the prices of many materials and goods in local markets and thus lower rates of inflation, which rose a few days ago due to higher cost materials that are imported to the dollar.

and also points to that, an economist at the World Bank Acanutormagd the picture, which suggested that the pressures facing the dollar is still going on, despite the depreciation of the exchange rate, calling for further measures precautions to maintain the current rate of exchange to which the same dollar in the local markets, and this comes through the combination of all the efforts to revive the economy, especially auctions currency and the activation of productive activity and monitor the direction the dollar to prevent smuggling, according to Suri, who pointed out that the volatility made ​​in the value of the dollar the past few days as a result for central bank policy relating to supply and demand. http://www.alsabaah.com/ArticleShow.aspx?ID=27423

thanks yota. no i didnt forget, its the title of this article thats an awakening. of course, im not going to say its going to happen. two currencies is exactly what we dont want. Im just not sure what to believe.

[SocalDinar]

The official reports that the Central sold last Thursday, nearly 250 million dollars and was able to absorb three trillion dinars during the last month for selling two billion dollars

If this is true and you look at this years auctions since US pulled out we must be the only ones left holding dinars.

Thanks Yota and Gama

Edited June 20, 2012 by SocalDinar

[sandstorm]

The official reports that the Central sold last Thursday, nearly 250 million dollars and was able to absorb three trillion dinars during the last month for selling two billion dollars

If this is true and you look at this years auctions since US pulled out we must be the only ones left holding dinars.

Thanks Yota and Gama

The thing with the auctions is we dont know how much has been permanently removed. we have the ministry of finance who reintroduces those dinars back into the economy. how much, we dont know.

[ReVbo]

The official reports that the Central sold last Thursday, nearly 250 million dollars and was able to absorb three trillion dinars during the last month for selling two billion dollars

If this is true and you look at this years auctions since US pulled out we must be the only ones left holding dinars.

Thanks Yota and Gama

Cue Keep with his standard rebuttal.

[sandstorm]

HOW/WHY would two currencies be "not good"...........................unfortunately I do not agree, so without getting into a pissing match with you perhaps you could explain your side first?? No disrespect intended.

Because one currency replaces the other. two currencies will have two different rates. one for the old currency and one for the new. we only want one currency with lower denoms added to this class of currency, then withdrawl the three zeroes. when two currencys are presented. you either pay with a new 10 dinar note, or an old 10,000 note, for an item that costs approx. $10

Edited June 20, 2012 by sandstorm

[rockfl9]

Really bad translation...

They must allow for both to exist to avoid a rush on the banks and not require them to have a lot of new dinars on hand on day one...then as worn bills come in they will be destroyed... Prices will be adjusted to reflect the new rate. Typical life of paper money is about a year... The concern should be how long will the old money be allowed in circulation??? If you dont exchange by that date--- POOF

[Biker]

Well look at it this way, If they only let one currency exist witch would be the new, Guess what you lose. They are saying two currency's exist, the old that you have in your hand. And the new printed currency. Remove the 000s so the new currency will be worth what the removal of 000s is worth. And the old bills for ONE YEAR will be worth Face value.

[jg1]

Your forgetting about all that dinar that been Suck in!!

Low exchange rate of the dinar against the dollar .. The market is witnessing a surge in turnout

05/20/2012 3:01

Deputy: five conditions capable of reviving the economy most notably a correct vision

of Baghdad - Haider Filaih spring

saw the dollar on Saturday, an unexpected drop was accompanied by clear decline in the prices of materials and goods in local markets, and attributed the specialists in the economic reasons for the drop to a kind of balance in supply and demand between the dollar and the dinar as the two goods can be purchased and traded with them, but economists said the rising rates of dollar sales in the auction currency held by the central bank was behind the low exchange rate of foreign currency (dollar) against the dinar, where the dollar fell to $ 123 thousand dinars for every 100 dollars, after rising in recent weeks to reach about 130 thousand dinars.

The official reports that the Central sold last Thursday, nearly 250 million dollars and was able to absorb three trillion dinars during the last month for selling two billion dollars and is expected, analysts and financial experts that the see the dollar fall further in the coming days to coincide with the increase in sale auctions currency from the dollar and the decline in demand to buy it in local markets.

In the opinion of a member of the Finance Committee in the House of Representatives Abdul-Hussein al-Yasiri importance to maintain the central bank to what he regarded as a gain economically can come back to the country many benefits, pointing out that any goods including the U.S. dollar can control the exchange rate by increasing the display in the market, government, but the Yasiri warned of further alienate reserves, Iraq, the federal dollar, saying that the central now depends largely on the increase in selling prices to meet demand growing from the private sector at the expense of compromising Bahtiattiyath federal, expected during the coming period to witness the dollar stable market price significantly after the policy in mitigating the rise of the dollar by the dominant central.

praised Yasiri Speaking (morning) on the role and capacity auction the central bank to reduce the continued rise of the dollar, stressing that such auctions has clearly meet all the needs of the local market and thus reduce the value of the dollar against the dinar.

said Yasiri that among the main reasons for the high dollar in recent times are some of the actions by the dominant central task in the development of the bank restrictions on participate in the auction, which led to increased demand clearly on Chierfat private and outlets selling the dollar the other, which led eventually to increase the rate of exchange, indicating that these measures is inconsistent with the market policy pursued by Iraq, as passed by the new constitution of the country, noting that the increase in sale dollar at auctions currency at the expense of maintaining the value of the dinar is damaged much of the Iraqi economy as a result of negligence on the amounts by reserves of Iraq from the hard currency, but the Yasiri pointed to the need that so they can be to create a balance between supply and demand of the dollar.

criticized Yasiri stop most productive economic activities other non-oil, pointing out that the absence who are agricultural and industrial is hurt a lot to the economy and led to the keep to rely almost entirely on oil revenues, saying that this dependence on the economy, rent-seeking factor shares down many of the economic activities in the country and led to be the only outlet for the dollar is sell oil only and the absence of the rest of the work which could be helpful in supporting the revenue of the country such as agriculture and industry.

called Yasiri to the importance of that so they can be private-sector support as detailed important joints of the national economy and has the capabilities allow it to increase the revenues of the country of the dollar and raise exports and reduce the size of the revenue, which is now costing Iraq a lot of money, stressing the need to improve all infrastructure related to the rise of the private sector and to use all possibilities to ensure Banashh enact laws and legislation would enable it to compete with the imported product and pay for the issue of the economic process, as passed by the new Iraqi constitution.

Yasiri said that the Iraqi economy in way to recovery during future periods, and that the dollar will stabilize or fall in front of the value of Iraqi dinar, but the Yasiri stressed the need to provide a five conditions for the achievement of many of the economic gains of the country, said in the forefront of the importance of having an economic vision real reality of development in Iraq, as well as the presence of thoughtful planning in order to achieve this vision, as it allows to achieve the highest success rates, it can be achieved according to Yasiri in the event of a decision of a uniform can be reflected positively on the economic reality of Iraq, a third condition mentioned by the Member of Parliament to promote economically in Iraq, adding to the these conditions the need for regulations and laws to help move the economy, as well as provide a cadre believes in the importance of transition in Iraq to the level of advanced economies.

The central bank predicted in his speech for the (morning) the stability of exchange rates through a package of measures said that the process taken to reduce works that are harmful to the Iraqi economy in general, pointing out that the increase in exchange rates of the dollar against Iraqi dinar return to a number of precautionary measures he has taken to reduce the smuggling of the dollar. and Deputy Governor of the Bank Mazhar Mohammad Saleh said the Iraqi dinar is the currency is very strong , which is covered by 120 percent of its value at current exchange rates, as well as that all the mass domestic monetary covered, so the central bank is working to control the cases of high exchange rate or increasing the rates of inflation through intervention in pumping large quantities of foreign currency through Mzhadath, especially and that the dollar is the main currency to cover the cost of many foreign goods and services that are imported, but the central and according to the benefit of monitoring the presence of changing the size of the request, of the market was only the volume of sales simple everyday to the market demand began to double from the past many times and abnormally, and this is what necessitated the Bank to impose additional constraints to participate in the Mzhadath daily. confirms economists need to seek the central bank to maintain the stability of the exchange rate of dollar winner is now against the dinar, stressing that that province on the exchange rate enough to reduce the prices of many materials and goods in local markets and thus lower rates of inflation, which rose a few days ago due to higher cost materials that are imported to the dollar.

and also points to that, an economist at the World Bank Acanutormagd the picture, which suggested that the pressures facing the dollar is still going on, despite the depreciation of the exchange rate, calling for further measures precautions to maintain the current rate of exchange to which the same dollar in the local markets, and this comes through the combination of all the efforts to revive the economy, especially auctions currency and the activation of productive activity and monitor the direction the dollar to prevent smuggling, according to Suri, who pointed out that the volatility made ​​in the value of the dollar the past few days as a result for central bank policy relating to supply and demand. http://www.alsabaah.com/ArticleShow.aspx?ID=27423

I think the auctions are not getting rid of the currency. They are using the dinars in their budget. They may be keeping back the big bills "removing the zeros" and then the funds are a electronic amount in the banking system. Right or wrong. The rest are in reserves.

[keepmwlknfny]

Cue Keep with his standard rebuttal.

Cant help it that some still dont understand whats being said.....or that most people think deleting the zeros is the RV we want.....

Just trying to keep as much truth around because of all the BS thats passed as fact....

Just because the central bank can absorb a lot of dinar doesnt mean its being taken out of circulation....its all just a repeating cycle....

If it was taking currency out of circulation, then it would be reflected in its financials....even if the CBI is getting ahold of it, its still a liability unless destroyed which in that case, it would be taken off the books....so regardless of if its in the CBIs hands or in the citizens hands, its still a liability and still has to be backed...

[tedro]

Well look at it this way, If they only let one currency exist witch would be the new, Guess what you lose. They are saying two currency's exist, the old that you have in your hand. And the new printed currency. Remove the 000s so the new currency will be worth what the removal of 000s is worth. And the old bills for ONE YEAR will be worth Face value.

GOOD JOB BIKER...............you got it right IMO. If you have an "old" 25,000 dinar note it will still be worth face value (face value= value of the RV: if RV is 1 dinar to 1 dollar, the ya got $25,000 dollars, not dinars).....to be a good citizen you would want to trade-in your 25,000 dinar note (before it expires in one year) for say 50 "new" 500 dinar notes.....50X500=25,000...........everything stays equal and above board, the currency transaction remains smooth, just got to be aware of the "old" currency expiry date. Pretty simple don't ya think ??

[SocalDinar]

The thing with the auctions is we dont know how much has been permanently removed. we have the ministry of finance who reintroduces those dinars back into the economy. how much, we dont know.

Thats a secret.

I think the CASH column at exchange rates currency auctions at CBI site is the actual value of notes.

Much less than the actual total auction.

Auction for 6/19 total was $192,745 MIl USD But the cash column shows only $5,300 Mil USD

The rest is electronic transfers

[TQueezy]

Exactly right...

Two currencies would mean two different exchange rates, as it would be impractical and financially ruin the CBI to honor the old notes at face value using the new currency's new exchange rate of 1dinar:1usd, or whatever it may be.

That is what we as investors would hope that US Banks do, honor our older bills at face value for the new dinar exchange rate, but... never in economics or finance would that ever make any sense.

Our only hope is for the CBI to just keep the currency code the same and introduce lower denomination bills to add to the currency lineup and exchange out for the lower bills, hopefully requiring banking accounts and cash deposits to turn paper into electronic money and burn paper money to reduce the money supply. Then they might be able to afford a really low RV, such as 10 cents.

If enough people went electronic banking, they could use banking processes and money supply manipulation through pulling in and destroying of the older high face value notes to come out at a 1:1 and foot the bill by selling treasury bonds and other securities and beefing up their foreign currency exchange supply at the CBI and individual banks.

Just my thoughts...

[zigmeister]

The thing with the auctions is we dont know how much has been permanently removed. we have the ministry of finance who reintroduces those dinars back into the economy. how much, we dont know.

No we don't know.....doesn't Iraq make you want to google poop?

[unirod]

Because one currency replaces the other. two currencies will have two different rates. one for the old currency and one for the new. we only want one currency with lower denoms added to this class of currency, then withdrawl the three zeroes. when two currencys are presented. you either pay with a new 10 dinar note, or an old 10,000 note, for an item that costs approx. $10

What if I wish to pay with my debit card? Should I argue I'm using Old Electronic Dinars? or New Electronic Dinars? How can the smart people reconcile this?

[jas428]

What if I wish to pay with my debit card? Should I argue I'm using Old Electronic Dinars? or New Electronic Dinars? How can the smart people reconcile this?

EXACTLY my point that I always discuss, but never get any replies. How will two rates of exchange affect the electronic currency? There is no proof that I have "old" or new dinars in my bank account?!?!

[sandstorm]

What if I wish to pay with my debit card? Should I argue I'm using Old Electronic Dinars? or New Electronic Dinars? How can the smart people reconcile this?

The electronic form of currency in accounts will be adjustedto new dinar value.everything is adjusted. no way around it

[jas428]

The electronic form of currency in accounts will be adjustedto new dinar value.everything is adjusted. no way around it

Yes, and to adjust everything to the new rate would include the old denoms as well, hence an RV. Do you agree? They absolutely cannot have 2 different rates and also have electronic accounts. The only way 2 rates would work is if they only had paper money, not electronic funds - which is not the case at all.