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Iraqi Officials Divided Over Dinar 'Reset'


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Officials Divided Over Dinar ‘Reset’

 

Posted on 22 July 2013. Tags: Corruption, dinar, IQD, iraqi dinar, re-denomination, re-valuation, Redenomination, revaluation

 

 

By Omar al-Shaher for Al-Monitor. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

 

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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A question that concern's me is all these articles coming out that mention a rate change. The GOI are not stupid. They must realize this kind of talking could potentially put a rush on for the IQD, yet they are still doing these Interview's.

 

Am I missing something or doe's Iraq know something that cause's them no concern over this ?

 

   pp   :shrug: 

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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.

it would be .00086 and .86

I have a couple different takes. my first....is always about what the article is clearly saying. the second.....is usually how the article plays into my speculation. so im always...pretty blunt about what im reading....but when it comes to speculating i always look for the positive.

A question that concern's me is all these articles coming out that mention a rate change. The GOI are not stupid. They must realize this kind of talking could potentially put a rush on for the IQD, yet they are still doing these Interview's.

 

Am I missing something or doe's Iraq know something that cause's them no concern over this ?

 

   pp   :shrug: 

this is why i clearly dont see this as a type of situation tied to a rv of any big substance. Imo...this is a negative article about replacing the currency. sure....i realize if they rv...the lowers must come. sure a rd will still happen. but the clear and numerous examples of deleting three zeroes is not good however its rounded...or spun to sound good.
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A question that concern's me is all these articles coming out that mention a rate change. The GOI are not stupid. They must realize this kind of talking could potentially put a rush on for the IQD, yet they are still doing these Interview's.

Am I missing something or doe's Iraq know something that cause's them no concern over this ?

pp :shrug:

this is why i clearly dont see this as a type of situation tied to a rv of any big substance. Imo...this is a negative article about replacing the currency. sure....i realize if they rv...the lowers must come. sure a rd will still happen. but the clear and numerous examples of deleting three zeroes is not good however its rounded...or spun to sound good.

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!!!

its not enough to worry about selling. blown more on weekend. its a let it ride game.. ill continue to post what i think about an article.

for all those who do not wish to read my postings........theres ignore options to handle that. i speak bluntly and directly about what im reading. now if you want to speculate......we can do that all day. but i clearly seperate....examining an article.........vs speculating about whats going to happen.

a lot of dvers use there speculation to break down articles......and see only positives no matter what. So be it.

If it rvs fine.....if it doesnt fine. i dont have an emotional attachment....where i must always see something as a puzzle piece...to calm me and make me feel like a rv is a sure thing and its a blessing....and just a few days away.

Edited by sandstorm
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Most here....have had this same conversations 500 times with the same people. i know where some of the veterans sit with there ideas. and thats cool..i respect that and dont try to smash speculation.

but when it comes to examining an articles content.....i will debate and challenge. because iraq could openly say there going to lop..inan article.....and fifty people will post its a rv. if you want to speculate ona rv....more power to you......but making up crap that doesntexist in the body of an article is outrageous

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Most here....have had this same conversations 500 times with the same people. i know where some of the veterans sit with there ideas. and thats cool..i respect that and dont try to smash speculation.

but when it comes to examining an articles content.....i will debate and challenge. because iraq could openly say there going to lop..inan article.....and fifty people will post its a rv. if you want to speculate ona rv....more power to you......but making up crap that doesntexist in the body of an article is outrageous

People will believe what they want to believe.Why get worked up over it, ain't going change. Heck 50% of America think our Prez walks on water..........the other half thinks he should be under water. - peace

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this is why i clearly dont see this as a type of situation tied to a rv of any big substance. Imo...this is a negative article about replacing the currency. sure....i realize if they rv...the lowers must come. sure a rd will still happen. but the clear and numerous examples of deleting three zeroes is not good however its rounded...or spun to sound good.its not enough to worry about selling. blown more on weekend. its a let it ride game.. ill continue to post what i think about an article.

for all those who do not wish to read my postings........theres ignore options to handle that. i speak bluntly and directly about what im reading. now if you want to speculate......we can do that all day. but i clearly seperate....examining an article.........vs speculating about whats going to happen.

a lot of dvers use there speculation to break down articles......and see only positives no matter what. So be it.

If it rvs fine.....if it doesnt fine. i dont have an emotional attachment....where i must always see something as a puzzle piece...to calm me and make me feel like a rv is a sure thing and its a blessing....and just a few days away.

You are objectively trying to max this thing out.That's what is plain as day.Thanks .The window could be short folks keep open minds.

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Most here....have had this same conversations 500 times with the same people. i know where some of the veterans sit with there ideas. and thats cool..i respect that and dont try to smash speculation.

but when it comes to examining an articles content.....i will debate and challenge. because iraq could openly say there going to lop..inan article.....and fifty people will post its a rv. if you want to speculate ona rv....more power to you......but making up crap that doesntexist in the body of an article is outrageous

 

 

this is why i clearly dont see this as a type of situation tied to a rv of any big substance. Imo...this is a negative article about replacing the currency. sure....i realize if they rv...the lowers must come. sure a rd will still happen. but the clear and numerous examples of deleting three zeroes is not good however its rounded...or spun to sound good.its not enough to worry about selling. blown more on weekend. its a let it ride game.. ill continue to post what i think about an article.

for all those who do not wish to read my postings........theres ignore options to handle that. i speak bluntly and directly about what im reading. now if you want to speculate......we can do that all day. but i clearly seperate....examining an article.........vs speculating about whats going to happen.

a lot of dvers use there speculation to break down articles......and see only positives no matter what. So be it.

If it rvs fine.....if it doesnt fine. i dont have an emotional attachment....where i must always see something as a puzzle piece...to calm me and make me feel like a rv is a sure thing and its a blessing....and just a few days away.

No sandstorm we may not agree, but still it always good to hear your perspective for the most part.  Even when you are a sarcastic poop!  No problems for me.

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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. 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.”

 

Does this look like nothing will happen until 2014?

Read more: http://dinarvets.com/forums/index.php?/topic/155478-officials-divided-over-dinar-reset/page-2#ixzz2a06BLRJA

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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."


Read more: http://www.al-monitor.com/pulse/originals/2013/07/iraq-currency-debate-reset-fiscal-policy.html#ixzz2a5BDGKfB

 

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Boy, talking in circles, It looks like everyone is in charge, and no body knows what they are doing !

 

I am having difficulty finding Adams Wednesday chat,

 

Does anybody know where it is, or has he not done one this week yet ?

 

Lost in Space,

Islandman7

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