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Iraqi Officials Divided Over Dinar 'Reset'


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http://www.iraq-businessnews.com/2013/07/22/officials-divided-over-dinar-reset/

 

 

Two Iraqi parliamentary committees monitoring fiscal policy in Iraq have held two contradictory positions on the Iraqi currency “reset” project, which would delete three zeros from the currency. There has been much debate about the project’s feasibility and the date of its implementation.

 

While the parliamentary Economic Committee believes that the deletion of three zeros from the Iraqi currency would strengthen it, the parliamentary Finance Committee fears that this project would open the door to counterfeit operations.

 

In a statement to Al-Monitor, Mudher Mohammad Saleh, former deputy governor of the Central Bank of Iraq, warned against the consequences of such a step if it is not implemented at the appropriate time.

 

Abdul Abbas Shayya, a member of the Economic Committee in the Iraqi parliament, told Al-Monitor, “Reforming the management of the Iraqi currency now requires the deletion of three zeros. This has been endorsed by the parliamentary Economy and Investment Committee.”

 

Shayya, an MP for the State of Law Coalition led by Prime Minister Nouri al-Maliki, added that the Economic Committee “asked the government and the Central Bank to quickly replace the current Iraqi currency with another that is less [in value] by three zeros.”

 

“The Iraqi currency is weak, and the money supply has amounted to multi-trillions because of the existence of these useless zeros,” he said. “The country will witness a significant increase in oil revenues, financial earnings and high budgets. Thus, we need to print new banknotes, as estimated by the Central Bank.”

“Iraq would need about 9 billion banknotes in the event of applying the deletion of zeros. Iraq today is dealing with 4 billion banknotes,” he said.

 

MP Nahida Daini of Ayad Allawi’s Iraqiya List agrees with Shayya, her colleague in the Economic Committee. In an interview with Al-Monitor, she stressed the need to implement the Iraqi currency “reset” project. However, she said that the government fears money laundering operations in the event of the project’s implementation.

 

She said, “The Economic Committee last week requested to implement the deletion of zeros from the currency, but the Council of Ministers asked to delay the process for fear of money laundering operations.”

 

Daini believes that the government’s fears “are mere concerns.” She said, “There are regulators in Iraq who can follow up and ensure the integrity of the project.”

Meanwhile, the parliamentary Finance Committee believes that channelling resources toward ensuring the stability of the local currency exchange rate is better than the deletion of zeros.

 

Magda al-Tamimi, member of the parliamentary Finance Committee, told Al-Monitor, “The delay in deleting zeros from the currency was due to fears of possible fraud operations. The Finance Committee is currently focused on controlling the currency auction,” which is carried out by the Central Bank to ​​provide merchants with hard currency necessary for import.

 

Iraq’s fiscal policy has come under criticism due to the fluctuation of local currency exchange rates against global currencies.

 

According to Tamimi, “Iraq is not ready to control the possible currency fraud that may result from the deletion of zeros.” The Finance Committee, Tamimi added, “is now working toward controlling the Iraqi currency auction, which is witnessing a significant fluctuation in the exchange rate of the Iraqi dinar against the dollar.”

 

“Development is the gateway to strengthening the currency. Thus, raising the value of the dinar is more important than the deletion of zeros,” she said.

 

Saleh told Al-Monitor, “The deletion of three zeros from the currency means deleting three grades from the calculation records of the Republic of Iraq. The decision to implement the deletion of zeros next year is very dangerous and risky. This issue must be done at the appropriate time.”

 

Saleh added, “We need to reform the currency management and accounting systems in the country in general. This can only be initiated in a new fiscal year.”

“There are many encouraging positive factors to reform the currency management system,” he said, also noting that the deletion of zeros “does not only involve changing the design of the currency. It implies changing the economic system in the country in general.”

 

Omar al-Shaher is a contributor to Al-Monitor’s Iraq Pulse. His writing has appeared in a wide range of publications including France’s Le Monde, the Iraqi Alesbuyia magazine, Egypt’s Al-Ahaly and the Elaph website.

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“Development is the gateway to strengthening the currency. Thus, raising the value of the dinar is more important than the deletion of zeros,” she said.

Deletion of zeros is not the same as increasing the value i.e., exchange rate of our current notes. Its a redenomination and a LOP...its that simple. I hope the good guys win, and they RV the currency here or else we break even.

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This crap is getting old, the current currency was state of the art when issued and was not worth the paper it was printed on then and still isn't. Last year alot of money was allocated for more De La Rue Machines. There has been absolutely no articles in the past 10 years stating that counterfiet currency was good enough to pass the De La Rue process? I honestly cannot see any difference in Iraq IN OR OUT OF CHAPTER VII. I'm sure we are in for a whole new BOOK OF EXCUSES before any changes occur. Printing articles like this is not the way to attract International business, and looking at some of the articles lately, Iraq is sure losing big business confidence quickly after gaining some after exiting Chapter VII.  

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Development is the gateway to strengthening the currency. Thus, raising the value of the dinar is more important than the deletion of zeros,” she said.

Could this be saying that the deletion of the zeroes IS the removal of the 000's in the exchange rate (.00086 - .86) but not as important as raising the value (maybe say AFTER the removal of the zeroes revaluing to the 3.3 level thats going around?)

Saleh told Al-Monitor, “The deletion of three zeros from the currency means deleting three grades from the calculation records of the Republic of Iraq. The decision to implement the deletion of zeros next year is very dangerous and risky. This issue must be done at the appropriate time.”

Saleh added, “We need to reform the currency management and accounting systems in the country in general. This can only be initiated in a new fiscal year.”

“There are many encouraging positive factors to reform the currency management system,” he said, also noting that the deletion of zeros “does not only involve changing the design of the currency. It implies changing the economic system in the country in general.”

Could this mean that the new denoms are forthcoming and "changing the economic system" means all prices in all markets will thus need to be changed to reflect new monetary value?

Read more: http://dinarvets.com/forums/index.php?/topic/155478-officials-divided-over-dinar-reset/#ixzz2ZsrmAEy0

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Behind all this is the struggle for power. It is a true axiom that the one who controls the gold (currency) controls the people.  At this point the GOI and the CBI are verbally sparring for the control of the country.  

 

 

 

“Development is the gateway to strengthening the currency. Thus, raising the value of the dinar is more important than the deletion of zeros,” she said.

Deletion of zeros is not the same as increasing the value i.e., exchange rate of our current notes. Its a redenomination and a LOP...its that simple. I hope the good guys win, and they RV the currency here or else we break even.

I think you're correct.  Hopefully it will be a revaluation.

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"Currency reset project, which would delete three zeroes."

Crystal clear

Parliaments economic committee wants to delete three zeroes, the parliament finance committee fears counterfeiting

"To quickly replace the iraqi currency with another"

"Money supply has amounted to multi trillions because of the existence of useless zeroes"

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"Currency reset project, which would delete three zeroes."

Crystal clear

Parliaments economic committee wants to delete three zeroes, the parliament finance committee fears counterfeiting

"To quickly replace the iraqi currency with another"

No re domination, they are replacing the old tattered dinar with the lower denoms printed back 2004.

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This crap is getting old, the current currency was state of the art when issued and was not worth the paper it was printed on then and still isn't. Last year alot of money was allocated for more De La Rue Machines. There has been absolutely no articles in the past 10 years stating that counterfiet currency was good enough to pass the De La Rue process? I honestly cannot see any difference in Iraq IN OR OUT OF CHAPTER VII. I'm sure we are in for a whole new BOOK OF EXCUSES before any changes occur. Printing articles like this is not the way to attract International business, and looking at some of the articles lately, Iraq is sure losing big business confidence quickly after gaining some after exiting Chapter VII.  

***///

 

:twothumbs:  :tiphat:  :bravo:

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In this article the argument isnt rd vs rv. its delete three zeroes now....orpostpone and work towards increasing the market rate through the auctions

Saleh told Al-Monitor, “The deletion of three zeros from the currency means deleting three grades from the calculation records of the Republic of Iraq.Which means..................?

all accounts inside of iraq that show a current balance of 1 trillion dinar....will be converted. to 1billion. all records contracts etc. will be corrected during the reform of deleting three zeroes. Its the way it happens Edited by sandstorm
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did you read the article?

Of course.  One thing is for sure, they are not re-dominating right now, but they are replacing the tattered dinar.  This is my opinion of course, they are going down in the basement to retrieve the dinar, ld's printed in 2004.  They did not state this, but the last paragraph was a hint, imo only and as always I could be wrong.

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In this article the argument isnt rd vs rv. its delete three zeroes now....orpostpone and work towards increasing the market rate through the auctions

all accounts inside of iraq that show a current balance of 1 trillion dinar....will be converted. to 1billion. all records contracts etc. will be corrected during the reform of deleting three zeroes. Its the way it happens

“Development is the gateway to strengthening the currency. Thus, raising the value of the dinar is more important than the deletion of zeros,” she said.

Read more: http://dinarvets.com/forums/index.php?/topic/155478-officials-divided-over-dinar-reset/#ixzz2ZtBHKTTO

 

 

WTH do you call that statement then?  It's exactly what it said it was...RD vs RV (gradual rise).  They keep postponing it because it will never pass.  IF they start floating it, with their economy getting stronger they'll find they don't need it to which is what the statement above is saying.  In other words let's raise the value first and if we can't get it going stronger than what we needed...then we'll RD or...RV to a buck which is what has been hinted...then RD to get to the 3 buck range.  It is actually possible for us to make a great return on this speculation.  I know you don't believe it which is why you always have to throw negs into everything you see ...but it is possible...there is no other country like Iraq in the world just like there is no US...you can't compare them to a Turkey or a Lebanon blah blah blah.  They have potential, do you see other countries sending businesses to get into Turkey or Lebanon...hell no!   Because they have NO POTENTIAL for business.   

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Im throwing reality...not negativity. This article states replacing with a whole new currency. that is the worst thing that can happen. if you dont see that in a guru phamplet with full discloseure....then so be it.

the next rate for the dinar will be 1000:1. I want you to remember that.....so in a few months we can come back to this conversation.

But.....believe what you will. dont let my minority opinion of the article persuade you of anything. im not here to clear things up, orteach people economcs, or understand open marketoperations, or exchange rates. take your dreams and run with them. i want you too. o

But please dontstart with a bunch of invalid statements on why iraq can or cannotrv. you totally believe they will...you always willno matter what. thats cool.i hope your right. i really do.

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Im throwing reality...not negativity. This article states replacing with a whole new currency. that is the worst thing that can happen. if you dont see that in a guru phamplet with full discloseure....then so be it.

the next rate for the dinar will be 1000:1. I want you to remember that.....so in a few months we can come back to this conversation. But.....believe what you will. dont let my minority opinion of the article persuade you of anything. im not here to clear things up, orteach people economcs, or understand open marketoperations, or exchange rates. take your dreams and run with them. i want you too. o

agreed.

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Its a tough issue to conversate aboit. peoples emotions, hopes, dreams and wants fill the whole topic...by the time someone gives a unboased opinion.....its like open season on em. best to all. i hope your every dream comes true. i just cant sort threw all that to find a base for conversation.

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Saleh told Al-Monitor, “The deletion of three zeros from the currency means deleting three grades from the calculation records of the Republic of Iraq.

I take this as moving the decimal point in the Nominal rate.

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Im throwing reality...not negativity. This article states replacing with a whole new currency. that is the worst thing that can happen. if you dont see that in a guru phamplet with full discloseure....then so be it.

 

What's your take on the old and new co-existing for two years then? Is it that the old would be worth .1166 and the new would be worth whatever the rate comes out at? That sure would be a mess. Can they even do that? 

 

If there's one thing that's been made clear in all of this I think it's that.

Edited by _RFJ
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sandstorm, quick, call keep & sell dinar & get outa this dv mess ASAP. here is your warning article amoung many others. you have been warned. Don't worry about the rest of the dv'ers, they will have to answer for themselves. do whats best for you NOW!!!

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This crap is getting old, the current currency was state of the art when issued and was not worth the paper it was printed on then and still isn't. Last year alot of money was allocated for more De La Rue Machines. There has been absolutely no articles in the past 10 years stating that counterfiet currency was good enough to pass the De La Rue process? I honestly cannot see any difference in Iraq IN OR OUT OF CHAPTER VII. I'm sure we are in for a whole new BOOK OF EXCUSES before any changes occur. Printing articles like this is not the way to attract International business, and looking at some of the articles lately, Iraq is sure losing big business confidence quickly after gaining some after exiting Chapter VII.  

 

Couldn't have been said any better!   :bravo:

Edited by PD46
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