**Now we Know its 29 Trillion in Circulation Represented by 6 Trillion bank Notes

[Rayzur]

Tuesday Sept 18, 2012

Iraq Said To Be Planning Currency Overhaul, Redenomination

Iraq's 25,000-dinar banknotes apparently won't get you as far as they used to.

BAGHDAD -- A senior Iraqi Central Bank adviser says the government has adopted a two-pronged plan to restructure the national currency in order to facilitate large transactions and make government accounts more efficient, RFE/RL's Radio Free Iraq reports.

Mudhhir Muhammad Salih, a member of the bank's advisory panel, told RFE/RL on June 23 that in the short term, larger banknote denominations of the dinar would be issued to simplify major transactions.

He said that because so many Iraqis still dealt mainly in cash, it was cumbersome to carry bags full of money to pay for expensive items like cars. The inconvenience leads people making such purchases -- as well as many entrepreneurs -- to use dollars for those kinds of transactions instead of dinars, something the government wants to end.

He added that large denominations equivalent to around $100 would be issued to simplify major purchases, and new coins and lower denominations would be introduced for smaller transactions.

In the longer term, Saleh said a redenomination was needed wherein three zeros will be dropped so that the 25,000-dinar banknote -- currently the largest denomination -- becomes a 25-dinar note.

He said the change was inevitable, considering the economy is expecting high growth in the coming years with a planned increase in oil production to finance reconstruction projects.

Saleh said there were currently some 29 trillion dinars in circulation in Iraq, represented by some 6 trillion banknotes of various denominations, most of them quite small. He said this also caused complications for the Central Bank and government, as well as commercial accounting departments.

Saleh said the monetary-restructuring plan was drawn up with the help of foreign experts and financial institutions, including the International Monetary Fund, of which Iraq has been a member since 1945.

The plan will soon be presented to the cabinet, which is expected to subsequently send a bill to parliament.

Saleh noted that until 1980 the Iraqi dinar exchange rate was 1 dinar/$3.3 compared to $1/1,168 dinars now due to hyperinflation that occurred during the latter part of the late ousted leader Saddam Hussein's reign.

My link

[Butifldrm]

Rayzur, from the CBI auctions over the past 6 month, I don,t believe they still have 29T in circulation. This news is not for the average Iraqi. This news is for the speculator. JMO. They have not and will not release the their true numbers until this is done.

[ReVbo]

29 trillion dinars represented by 6 trillion banknotes? That means the average note is 5 dinars. That doesn't sound right. Do they even have a 5 dinar note? If so, does it get to keep its value, or does it become worth 5 fils when the RD happens?

[keepmwlknfny]

Rayzur, from the CBI auctions over the past 6 month, I don,t believe they still have 29T in circulation. This news is not for the average Iraqi. This news is for the speculator. JMO. They have not and will not release the their true numbers until this is done.

What is your impression of how the auctions work??

And what would be the difference in news for the average Iraqi and news for speculators?

[Rayzur]

Rayzur, from the CBI auctions over the past 6 month, I don,t believe they still have 29T in circulation. This news is not for the average Iraqi. This news is for the speculator. JMO. They have not and will not release the their true numbers until this is done.

Butifldrm .... I have to take your word on it numbers and I don't speak the same language (in fact I think its very darn cool you can actually watch auctions over a period of time and come to meaningful conclusion that would rebut these numbers. .. I basically could say they have auctions... sell something to someone. and based on that I watch the opinon of DV colleagues I respect to figure out if its a good or bad thing . Yeah I know....my bad with numbers)...

I thought it was interesting to see someone say that it was represented by 6 billion in currency, and most of that was small notes... like ReVbo picked up.... and wondered if that number could be plugged into a forumulation that would lead to possible scenarios, or thoughts... like ReVbo said, thqat would mean 5 dinar notes... so is the CBI person saying there aren't that many 25 K notes out there? Or the 25K notes are the large ones he speaks of when talking about bank to bank transactions, and we might hold the bank to bank demonination, which is not all the prevelant in Iraq at present..... I'm pretty sure if I kept going, I could wrap this into an RV just around the cornor.... And have to reply on you guys to see if there is something meaningful in the numbers or if I am just wrapping them around mathmatically improbable conjecture.... Something oh so easy to do these days...

Thanks you guys for the feedback.... helps keep things in context....

Blessings ~~

[zul]

June 24, 2011 <=====

BAGHDAD -- A senior Iraqi Central Bank adviser says the government has adopted a two-pronged plan to restructure the national currency in order to facilitate large transactions and make government accounts more efficient, RFE/RL's Radio Free Iraq reports.

Rayzur/ Butifldrm,

This was from June 24, 2011.

So if CBI had removed a lot of dinar from circulation lately, it wont be reflected here.

Edited September 18, 2012 by zul

[Rayzur]

Ok How About This One About Talibani Having Sucessful Surgery Dated Today in both Places....

(and Stil think its interesting that the other article (above) was posted in the site under tomorrows (today) date... As you see it had the Sept 18 header Mabye thats their way of saying as of today... its the same as it was then...

In any case... on to the Talibani article

09/17/2012

New advertising return President of Refinery to Sulaymaniyah Monday hopes possibility resolving the political crisis intractable about a year ago, and predicted observers to attract city senior political leaders, led by Prime Minister Nuri al-Maliki in the coming days.

President Talabani had successful surgery in the German capital Berlin He stayed there since last June for a period of at the stage of physical therapy and the completion of phase medical surveillance.

reiterated officials visited Talabani in Refinery say that it was throughout all stages of treatment following what is happening in the country almost detailed has been issued for more than a statement or declaration, either through meetings conducted with the Ministry of political leaders or through phone calls.

Vice President Khudair Khuzaie seen in a newspaper interview back Talabani beginning to work in what he called a national project, acknowledging differing views of the political forces, denying that all copies are similar.

From Sulaymaniyah to Baghdad

The head of the Kurdistan Alliance bloc MP Fuad Masum predicted in his remarks to Al Sharq Al Awsat that the meetings to be conducted by the president with political leaders and leaders of blocs and parties will for the most part on the political crisis, and therefore the preliminary consultations in Sulaymaniyah will be a prelude to the talks official will intimate the president of Baghdad After a few days of its existence in Sulaymaniyah ..

In a telephone interview I had with the former director of the Office of President of the Republic, ruled Kamran Qirdaghi lead efforts and meetings Talabani with politicians quick solution to the crisis, pointing to the need for the participation of all parties, leaders and their understanding of their role in overcoming the problems.

Qaradaghi Ban said Talabani is a sponsor of the reconciliation process between the political blocs, and despite the respect that surrounds a person Talabani by everyone except that Qirdaghi ruled out of quick solutions, but better what to expect is to prevent the deterioration of the situation and exacerbate the crisis more than it is now.

Boss beards and hugging

In response to a question about whether we will see a reconciliation character such as "Boss beards" and hugging between the poles of the political process in the presence of Talabani, as an indicator to solve problems, cautioned Qirdaghi that such scenes were repeated many times, but no longer reflect the credibility of intentions to resolve differences and to find solutions final, Qrhaga expectation that progress being calm political atmosphere, not much has changed until the next election.

http://www.iraqhurr.org/content/article/24711264.html

[gross0612]

29/6 =about 5 dinar per note on average oops!

[Doctor Smith]

Does that mean there is no way it will RV?

It means nothing. Until they actually take some real action. Besides flapping the voice box.

If they actually, some day, implement this. It means temporarily printing a higher value note like 100,000 Dinar for example. And then lopping.

Why not just lop and save the printing costs for the larger 100,000 note? Makes no sense.

[Doctor Smith]

29 trillion wouldn't surprise me. That would be about 29 billion US Dollars worth. Hopefully they'll let it float on the open market like the latest rumor article stated.

[SocalDinar]

Thanks Rayzur,

Hopefully translation error but says 29 Trillion in circulation in Iraq Does this truly mean Inside Iraq only?

As far as the 6 trillion notes I just cant make the math work. Unless they have small denoms already printed and being considered in circulation, but actually still held by the CBI

[SocalDinar]

This article from June 2011??

Edited September 18, 2012 by SocalDinar