Med Chat 7/18/12

[Blackbird06]

tdk says to (07:51:41):

like you said watch CBI and its coming Med

Med says to (07:51:55):

I HATE TO SAY IT

"I TOLD YOU SO"

LOL

tdk says to (07:52:17):

yes you did

and i am glad you did

Med says to (07:52:26):

THIS IS NOT ROCKET SCIENCE

AND ANYONE WHO BREAKS IT DOWN TO A POINT THAT YOU CANT UNDERSTAND

IS DOING NOTHING BUT CONFUSING THE ISSUES

tdk says to (07:53:26):

thats what you did and have done for us

Med says to (07:53:29):

THIS IS A VERY SIMPLIFIED COUNTRY

LOTS OF PREDJUDICES AND FEARS

tdk says to (07:53:49):

they make it hard sometimes

Med says to (07:53:57):

THAT IS THOUGH ON THE POLITICAL SIDE

CBI HAS BEEN ABLE FOR THE MOST PART

DIVERT AND STAY OUT OF IT

tdk says to (07:54:32):

CBI has stayed the course

Med says to (07:54:36):

EVEN THOUGH THE NATIONAL ALLIANCE HAS TRIED TO BRING THEM INTO IT

WE ARE ALL SITTING GOOD

WE KNOW BY FACT

THAT THE CENTRAL BANK HAS ISSUED A STATEMENT

DESPITE THE COUNCIL OF MINISTERS ATTEMPTS TO STOP THE RV

THE CENTRAL BANK IS MOVING FORWARD

AND IT WILL BE DONE

WE ALSO KNOW BY FACT

THAT 1 DINAR WILL EQUAL 1 USD

WE ALSO KNOW BY FACT WHAT THE NEW CURRENCY VALUES WILL BE AND THE FILS

WE ALSO KNOW THIS BY STATEMENTS

FROM CBI

THEY DO NOT WANT TO ENTER THE NEW CURRENCY IN THE MIDDLE OF A FISCAL YR

THIS CONTRADICTS THE STATEMENTS OF MID YEAR

AND I UNDERSTAND WHY

TO MAKE A MASSIVE UNDERTAKING LIKE THIS IN THE MIDDLE OF A YEAR IS PUTTING UNDO STRESS ON CHANGING VALUES

AND THE ENTIRE BUDGET WOULD HAVE TO BE CONVERTED THEN

NOW WE KNOW BY FACT THAT THE NEW BUDGET

FOR 2013 IS WHEN THEY WANT TO ENTER INTO THE NEW RATE AND NEW ISSUE

OK GRANTED THEY HAVE NEVER AGREED ON ONE BEFORE IT WAS DUE

BUT THEY DID STATE THEY WANTED TO MOVE ON IT EARLY

SO ON THAT

ALL WE CAN DO IS HOPE

HOPE

THAT THEY DO GET IT DONE SO IT IS BENEFICIAL FOR ALL

INCLUDING US

NOW EVERYTHING I DISCUSSED

IS ALL FACTUAL

AND CAN BE FOUND IN THE FORUMS

IT IS NOT ME GIVING MY OPINION

JUST STRAIGHTENING OUT THE BLOODY SENTENCES

TO MAKE SENSE

OK THAT IS THE GIST

IT IS THAT SIMPLE

I AM NOT MAKING IT MORE COMPLICATED THAN IT REALLY IS

JUST TO IMPRESS ANYONE

sadielou says to (08:05:31):

Thank you Med

Looking Up says to (08:06:06):

Thank you Med we appreciate you breaking if down for us and this is great news

[Snotrocket]

Here's the article...

Tuesday, 17 July 2012, 09:16 GMT

Iraqi currency change to take effect next year

A money trader in Erbil's Exchange market with buched of different Iraqi banknotes is counting money in this photo of February 2, 2012. /GLOBE PHOTO/Safin Hamid

The Kurdish Globe

By Muhammed Tahir

Many doubt that removing the zeros on the Iraqi Dinar will strengthen its value.

As per a plan by the Central Bank of Iraq (CBI), new banknotes will be printed and introduced into the market starting from the beginning of 2013. The new banknotes will have three less zeros and the text and design will be modified as well.

Although, some economists argue that the disadvantages of the change outweigh the advantages, the CBI will start the implementation of the plan at the beginning of 2013 without the approval of the Council of Ministers.

"The zeros are removed for the purpose of increasing the value of Iraqi Dinars in a way that one Iraqi Dinar will be equal to one US Dollar," said Mahma Khalil, decision-maker of the parliament's Economic and Finance Committee, who argues that due to the increase in the oil and gas revenue of the country, the currency change is needed.

It is expected that this year's oil revenue will reach USD 100 billion; and by 2014, this number is expected to rise to USD 300 billion.

Dr. Ahmed Chawsheen, another member of the same committee, however, rejects this idea and argues that the value of money does not increase by removing zeros but rather by the development of industry and increase in domestic production.

By production, MP Shawsheen does not mean only oil and gas, but rather producing majority of market demands domestically, "then the value of currency increases automatically."

Aiyob Smaqayee, an economist, also argues that without a strategic planning for economic development, removing zeros would not only have little positive impact, but on the contrary may lead to negative effects on the economy.

A number of countries such as Turkey, Brazil and Argentine have in the past removed zeros from their currencies, but due to lack of strong economic policies, their currencies failed to gain notable value, and even depreciated afterwards.

Preventing or paving the way for money forging?

MP Khalil told the Kurdish Globe that by changing the currency, the possibility of forging money would be lowered, and hence he has expressed his support for the CBI initiative.

MP Dizayee, however, does not agree with his committee's head in this respectt, and states that changing the currencies will create a complication in the market and paves the way for corruption and misuse.

"The banks might change the currencies easily for a group of people but not for another group," Dizayee told the Kurdish Globe. "Moreover, there might be some wealthy people who keep their money to change it at a later stage if they think they make a profit out of it. These will create chaos in the market."

Reports have also indicated that in some countries, influential people had changed the old currencies in the banks and then withdrew them several times and changed them back again.

Iraqi is already at the top of the list of the world's most corrupt countries and this fact increases the possibility of further corruption through the currency change process.

Decreasing trust in Iraqi Dinars

In addition to internal chaos, Smaqayee also believes that changing the Iraqi Dinar several times would diminish the trust in the currency in the world markets and hence push its value down.

While Dizayee believes that printing new banknotes would cost a lot and is a burden on the CBI, Khalil states that the cost is only USD 125 million, which is not significant compared to the USD 65 billion balance of the CBI.

Smaqayee also argues that collecting the old notes and destroying them is yet another additional cost.

The nominations of the new banknotes

Khalil says the new currency will be in the shape of coins and banknotes. The coins will be in different nominations like IQD 0.25, IQD 0.5, IQD 1 and IQD 2. And the nominations of the banknotes will be IQD 5, IQD 10, IQD 25, IQD 50 and IQD 100.

Moreover, for the first time the Kurdish language will also be used on the new currency in addition to Arabic and English, with a proposal to print a picture of a historical site in the Kurdistan Region on one of the denominations.

According to the CBI plan, the new notes will be introduced in early 2013 and the changing process will be done gradually over a period of two years, during which both the old and the new currency will be used in parallel.

This gradual transition, according to Chawsheen, is a mistake and allows the possibility of corruption by the banks. He thinks that before introducing the new notes, an amount equal to the existent notes currently in circulation should be printed and thus the changing process should be conducted in one day, to prevent misuse and corruption.

Every day a different decision

Chawsheen told the Globe that the first mistake by the government was replacing the Swiss banknotes and adding zeros to it.

"Now they regret this and want to remove the zeros again," said Chawsheen. "By this they will confuse the public. Why adding zeros and removing them later?"

Three zeros were added to the Iraqi Dinar after the fall of Saddam's regime, and in 2013 and after less than 10 years, they will be removed.

Background

- In 2003, new Iraqi Dinar banknotes were printed with three zeros added

- This banknote has been used since then

- In early 2013 new banknotes without the three zeros will be introduced

- For the first time Kurdish language will also be used on the notes

- The picture of a historical site of Kurdistan will also be printed on one of the denominations

- There will also be coins

- The coins will have 4 nominations: IQD 0.25, IQD 0.50, IQD 1 and IQD 2

- The banknotes will have 5 nominations: IQD 5, IQD 10, IQD 25, IQD 50 and IQD 100.

- The maximum nomination of the current notes is IQD 25,000.

http://www.kurdishglobe.net/display-...0D67AD912016D9

[Halo9678]

IMHO,

The new notes will have the Kurdish language on them leads me to believe that the larger notes, while still holding their value, will become less common place. Therefore, it is entirely possible for BOTH currencies to exist at the same time. This may also serve as a unifiying event for Iraq. If they do this in the first quarter of 2013, it may make it alot easier for bookkeeping purposes as well... Patience is a virtue, or so the say....

[nonstop]

was just a few months ago that early 2012 was the expected rv date and months before that end of 2011 and a few months before that early 2011 and before that the end of 2010 was the definite rv time! lol So many dates coming and going why am i still here? lol