Cabinet Secretariat: Government seeks to have the exchange rate 1,000 dinars to the dollar

[boomer113189]

2 - 4 - 2013

Excluded the General Secretariat of the Council of Ministers to replace or cancel three zeros currency at this stage, it is seeking to raise the value of the dinar against the dollar.

And the Secretariat's statement quoted its Secretary Ali Mohsen Al-allaq, as saying that "the project currency substitution and cancel three zeroes discussed during the last period of the Council of Ministers, the Council stressed that this project is not a priority for the Government at the moment, there is no real problem in this area."

"The Exchange itself requires significant tuning process, there are still issues concerning this aspect after the fall of the dictatorial regime, with limited currency block, it now has doubled from what it was at the time, and pull this block is a difficult task."

He added that "some have wrong impression involves deleting zeros will reduce the volume of cash in circulation as the quantity, and the fact that it does not diminish, even by 1% despite the Government believes that the currency is a good thing if there are suitable conditions for its application, but does not give them priority when providing stable conditions".

He noted that "the Iraqi dinar to rise the price of the dollar, and economic and financial viability of dinar was able to be stronger than it is currently, and that the chances of higher value are available, especially with the growth of the accumulated reserve at the Central Bank which exceeded [65] billion dollars, rising steadily along with high economic growth in Iraq, and is now one of the most developed countries in the world thanks to the expansion of oil production".

Confirmed that substantive and economic components available in the direction of the rising dinar exchange rate against the dollar, noting that "the Government is seeking to have 1000 dinar exchange rate against the dollar, meaning that the price of the currency class 100 $ 100,000 Iraqi dinar", stating that "any improvement in the political situation can contribute to achieve this faster."

The Cabinet decided in its meeting held on 10 April, wait in the application deleting zeros from the local currency to further notice.

The Iraqi Central Bank, the Bank Adviser Mohammad Saleh appearance, has confirmed to IGN need Iraq to an administrative reform of the currency, and the deletion of zeros is the step comes within the country's administrative reform process, in order to reduce the cost of cash transactions in the economic process, in addition to the need to provide small groups currency used in trade transactions of small daily.

Officials at the Central Bank, in addition to some politicians and economists urged the Government to delete the zeros from the currency and issued new currency large cash categories, in addition to having small coins.

Observers say that the Government intended to delete zeros from the currency as a step towards improving the purchasing power of the Iraqi dinar, but economists underestimated the importance of this step, saying that the cost of raising the zeros will be greater than the benefit of raising zeros.

My link

[tommy17]

I say bullspit. we must be close to have articles like this come out.. 1000 to 1 does not do anything for their economy and unemployment.

[boomer113189]

I say bullspit. <_</> we must be close to have articles like this come out.. 1000 to 1 does not do anything for their economy and unemployment. :)/>

the first artical about getting the dinar to 1000 dinar to 1 dollar came out about 9 months ago and the central bank gov said he promised to get it there. now you see this one expect the dinar exchange rate to get to 1000 to 1 dollar then remove the zeros from the currency it will help out iraq economy hugely and the people will be greatful

[Nani?]

the first artical about getting the dinar to 1000 dinar to 1 dollar came out about 9 months ago and the central bank gov said he promised to get it there. now you see this one expect the dinar exchange rate to get to 1000 to 1 dollar then remove the zeros from the currency it will help out iraq economy hugely and the people will be greatful

wait what? removing the zeros helps the eco? are you sure? seems like that would be lopping to me... but maybe I'm understanding you wrong.

[boomer113189]

wait what? removing the zeros helps the eco? are you sure? seems like that would be lopping to me... but maybe I'm understanding you wrong.

yes it helps the economy and its people and investors,i am sure beacuse many countries that have done it have called it a Success. yes your right its called lopping aka redenomination aka rebasing currenc aka currency reform

[20Mil]

yes it helps the economy and its people and investors,i am sure beacuse many countries that have done it have called it a Success. yes your right its called lopping aka redenomination aka rebasing currenc aka currency reform

You are correct. This is what happens when countries stabilize and after experiencing high or even hyper-inflation due to excessive printing and spending. It is more like a "reset" button once things stabilize again.

Mexico did this in 1993, now they are booming (1000:1 RD)

Argentina in 1985 (1,000:1 RD)

Bolivia in 1987 (1,000,000:1 RD)

Georgia in 1995 (1,000,000:1 RD)

Germany in 1923 (1,000,000,000,000:1 RD)

There are tons and tons of other examples but I'm not going to list them all as it is unnecessary.

I am thinking that the managed float will start up again later this month and the IQD exchange rate will increase slowly (2-5 dinars per day) until it reaches 1000.

What they do from there is anybody's guess...and I don't want to be the one to mention the word as last time it put me in the lopster tank for a few days! :D/>

Edited February 5, 2013 by 20Mil

[boomer113189]

You are correct. This is what happens when countries stabilize and after experiencing high or even hyper-inflation due to excessive printing and spending. It is more like a "reset" button once things stabilize again.

Mexico did this in 1993, now they are booming (1000:1 RD)

Argentina in 1985 (1,000:1 RD)

Bolivia in 1987 (1,000,000:1 RD)

Georgia in 1995 (1,000,000:1 RD)

Germany in 1923 (1,000,000,000,000:1 RD)

There are tons and tons of other examples but I'm not going to list them all as it is unnecessary.

I am thinking that the managed float will start up again later this month and the IQD exchange rate will increase slowly (2-5 dinars per day) until it reaches 1000.

What they do from there is anybody's guess...and I don't want to be the one to mention the word as last time it put me in the lopster tank for a few days! :D/>/>

Exactly 20Mil i see some has done homework on past countries currency that have done this. iraq will follow suit

[bald1]

JMO but this has hidden agenda to slow the speculation. Tell the people that lop will occur when it reaches 1000:1 many will cash in pulling many of the larger bills in. Basically a scare tactic. But who knows this Iraq land of confusion.

[boomer113189]

idk you could be right about the hidden agenda BUT the central bank of iraq's old Gov and this new gov said they plan on taking the dinar to 1000 to 1 then Reabasing the dinar at 1000 old dinars to 1 new dinar . and no its not me saying that its there gov and its not my opioin eaither its sraight from the cenrtal bank gov people

[bald1]

True however they do contradict themselves often. Parliament appears to have one idea and CBI another.

[boomer113189]

the parliaments is in agreement about rebasing the dinar

[bald1]

My bad,

[hoosier1470]

This is a whole lot of misleading info purposely being released by the Iraqi media! They have not invested this much time to come out at 1000:1! Its amazing how much time has been put into this by the IMF, World Bank, BIS, United States Treasury, etc,etc,etc.....this is about money!! A whole lot of money!! We will see very soon! God Bless!

[rico1]

You are correct. This is what happens when countries stabilize and after experiencing high or even hyper-inflation due to excessive printing and spending. It is more like a "reset" button once things stabilize again.

Mexico did this in 1993, now they are booming (1000:1 RD)

Argentina in 1985 (1,000:1 RD)

Bolivia in 1987 (1,000,000:1 RD)

Georgia in 1995 (1,000,000:1 RD)

Germany in 1923 (1,000,000,000,000:1 RD)

There are tons and tons of other examples but I'm not going to list them all as it is unnecessary.

I am thinking that the managed float will start up again later this month and the IQD exchange rate will increase slowly (2-5 dinars per day) until it reaches 1000.

What they do from there is anybody's guess...and I don't want to be the one to mention the word as last time it put me in the lopster tank for a few days! />

If they are going to have a managed float up to 1000 why not let it free float from there??

Just a stupid question.

[boomer113189]

the world bank the imf and the US have been in other countries that have rebase to its not a phenomenon it just the way it is

[dontlop]

You are correct. This is what happens when countries stabilize and after experiencing high or even hyper-inflation due to excessive printing and spending. It is more like a "reset" button once things stabilize again.

Mexico did this in 1993, now they are booming (1000:1 RD)

Argentina in 1985 (1,000:1 RD)

Bolivia in 1987 (1,000,000:1 RD)

Georgia in 1995 (1,000,000:1 RD)

Germany in 1923 (1,000,000,000,000:1 RD)

There are tons and tons of other examples but I'm not going to list them all as it is unnecessary.

I am thinking that the managed float will start up again later this month and the IQD exchange rate will increase slowly (2-5 dinars per day) until it reaches 1000.

What they do from there is anybody's guess...and I don't want to be the one to mention the word as last time it put me in the lopster tank for a few days! :D/>/>/>

i read about this too . the inflation caused by debt to gdp .. i was wondering if those countrys debts were forgiven like iraqs were before the rd.... or maybe they had stablized their debt first . or were they still in debt .. i know germany after had piles of debt that wans forgiven . they had to pay for years

Edited February 5, 2013 by dontlop

[zul]

idk you could be right about the hidden agenda BUT the central bank of iraq's old Gov and this new gov said they plan on taking the dinar to 1000 to 1 then Reabasing the dinar at 1000 old dinars to 1 new dinar . and no its not me saying that its there gov and its not my opioin eaither its sraight from the cenrtal bank gov people

I dont see anything in this news that says they are rebasing their dinar 1000 old to 1 new.

All i see is they are talking about increasing the value of dinar without deleting 3 zeros and without issuance of new currency..

And Salleh, who is no longer in CBI, is being mentioned in this article. Must be old article.

[dontlop]

I.

.never mind

Edited February 5, 2013 by dontlop

[boomer113189]

rebasing is the same as removing zeros from currency, Al-Shabibi said that and also the new central bank gov agrees with him they both want to bring the dinar to 1000 to 1 dollar then rebase the dinar

[20Mil]

If they are going to have a managed float up to 1000 why not let it free float from there??

Just a stupid question.

This could be dangerous for the IQD to let supply and demand dictate its value at this time.

Read this for more information: Post #60

Basically they have spent the past decade trying to keep inflation under control as well as their exchange rate for their currency. Different factors could affect a currency in good and bad ways. For example, if there was a massive bombing downtown Baghdad this could send shock waves to their currency if a free market dictated price through supply and demand. Instability is probably the biggest reason as to why a free float is not a smart move at this time.

i read about this too . the inflation caused by debt to gdp .. i was wondering if those countrys debts were forgiven like iraqs were before the rd.... or maybe they had stablized their debt first . or were they still in debt .. i know germany after had piles of debt that wans forgiven . they had to pay for years

Yes many of the countries who experienced high or even hyper-inflation in the past have had debt forgiven by creditors whether they be government loans, corporate contracts that were not fulfilled, etc...

Take a look at this link, its in regards to Iraq and some of its current loans: https://finances.worldbank.org/facet/countries/Iraq

Tons and tons of loans as well as donations are listed on that link. They could be for road rehabilitation, investment projects, multilateral financing arrangements, etc... I think this would interest you DontLop.

https://finances.worldbank.org/facet/countries/Iraq

There are currently 147 loans, donations, grants, etc... given / loaned to Iraq for different reasons. Total is probably well into the $ Hundreds of Billions, I'm not going to bother going through them all though as they don't pertain to me or my agenda. Have fun!

Edited February 5, 2013 by 20Mil

[zul]

rebasing is the same as removing zeros from currency, Al-Shabibi said that and also the new central bank gov agrees with him they both want to bring the dinar to 1000 to 1 dollar then rebase the dinar

The CBI said in August last he plans to delete the zeros from the Iraqi dinar to facilitate financial transactions made through cash in most cases. Among the difficulties faced by Iraq if they are to foot the deletion of zeros from the dinar is the withdrawal of about 30 trillion dinars in circulation in the Iraqi market (about 27 billion dollars) and then disposed of and replaced with a new currency.

Withdrawal of 30 trillion dinars in circulation...and then disposed <=== I could be wrong, but this sounds like physical withdrawal to me.

[LIBoy]

Any movement, no matter how small, is a good movement. At least that's what my doctor says.

[RVPleaseToday]

And once again we debate the opinion of a politician in a news story. Opinions in Iraq are cheap, plentiful and all over the place. Kind of like the U.S. ;)/>

These guys are trying to influence public opinion to their way of thinking.

Edited February 5, 2013 by RVPleaseToday

[mrmcwhipit]

There has to be much propaganda er um i mean, even if it it was i wouldnt tell you.

[boomer113189]

the dinar has to be 1 or above to make this a good investment not even close to that if they keep going at this rate