Iraq: the start of procedures to delete 3 zeros from Alamlha the

[deniscanada]

Iraq: the start of procedures to delete 3 zeros from Alamlha the

 

 

 July 27, 2013

 

 BAGHDAD, Iraq (CNN) - said the Finance Committee representative in Iraq, said the central bank, according to the communications of the official start of this year procedures deleting three zeros from the local currency, saying that it would lead to the development of cash transactions and international economic, in a new development at the level of currency Iraq, which has suffered large waves of inflation and the decline in exchange rates.

 

 It quoted "IMN" official member of the Finance Committee, Abdul Hussein al-Yasiri, saying that he is supposed to begin preparations necessary to delete the three zeroes from the local currency, adding that the local currency "will reduce from four billion units to one billion units, which will make a smooth flow in the process of transfer of the currency. "

 

 Yasiri between the Finance Committee "to make changes to support the local currency because of the economic importance of the country."  The central bank says that the deletion of zeros is part of a plan to develop its monetary policy and currency management reform.

 

 The CBI had said in August / last August that he plans to delete the zeros from the Iraqi dinar to facilitate financial transactions carried out through cash in most cases.

 

 Among the difficulties faced by Iraq if they wanted to embark on the deletion of zeros from the dinar is pulling about 30 trillion dinars in circulation in the Iraqi market now, then get rid of them and replace them with a new currency.

 

http://translate.googleusercontent.com/translate_c?depth=1&hl=en&prev=/search%3Fq%3Dhttp://alkaramaonline.com/news/%2525D8%2525A7%2525D9%252584%2525D8%2525B9%2525D8%2525B1%2525D8%2525A7%2525D9%252582-%2525D8%2525A8%2525D8%2525AF%2525D8%2525A1-%2525D8%2525A5%2525D8%2525AC%2525D8%2525B1%2525D8%2525A7%2525D8%2525A1%2525D8%2525A7%2525D8%2525AA-%2525D8%2525AD%2525D8%2525B0%2525D9%252581-3-%2525D8%2525A3%2525D8%2525B5%2525D9%252581%2525D8%2525A7%2525D8%2525B1-%2525D9%252585%2525D9%252586-%2525D8%2525A7%2525D9%252584%2525D8%2525B9%2525D9%252585%2525D9%252584%2525D8%2525A9%2525D8%2525A7%26biw%3D1088%26bih%3D479&rurl=translate.google.ca&sl=ar&u=http://alkaramaonline.com/news/%25D8%25A7%25D9%2584%25D8%25B9%25D8%25B1%25D8%25A7%25D9%2582-%25D8%25A8%25D8%25AF%25D8%25A1-%25D8%25A5%25D8%25AC%25D8%25B1%25D8%25A7%25D8%25A1%25D8%25A7%25D8%25AA-%25D8%25AD%25D8%25B0%25D9%2581-3-%25D8%25A3%25D8%25B5%25D9%2581%25D8%25A7%25D8%25B1-%25D9%2585%25D9%2586-%25D8%25A7%25D9%2584%25D8%25B9%25D9%2585%25D9%2584%25D8%25A9%25D8%25A7&usg=ALkJrhig1iQ2ERpYkpQfaFQfZFWpE_uOTg

 

 

when you go to the link you may have to scroll down to see the article

[jg1]

Among the difficulties faced by Iraq if they wanted to embark on the deletion of zeros from the dinar is pulling about 30 trillion dinars in circulation in the Iraqi market now, then get rid of them and replace them with a new currency.

 

If they were going to LOP, why pull in the dinars now, when to LOP, you just do it and turn in your money for exchange? I dont get it. 

 

[rico1]

When? I hope 

Edited July 27, 2013 by rico1

[Roadrunner]

OK, the part that I don't quite get is when it says "will reduce four billion units to one billion units". That doesn't fit with anything I have read up to this point. I am not sure how that works. If anybody understands that, help me out here.

Roadrunner

[jobug38]

Great article deniscanda! Hope this August it's finally over and we get paid!

[FreckledFuzz]

OK, the part that I don't quite get is when it says "will reduce four billion units to one billion units". That doesn't fit with anything I have read up to this point. I am not sure how that works. If anybody understands that, help me out here.

Roadrunner

I am going to take a stab at it and say in this context they are talking about the physical note itself regardless of denomination.

So, whether a 25K or 50 dinar note - it would be designated as 1 ' unit '

They are looking to reduce the physical dinar paper supply from 4 billion notes to 1 billion

[Roadrunner]

I am going to take a stab at it and say in this context they are talking about the physical note itself regardless of denomination.

So, whether a 25K or 50 dinar note - it would be designated as 1 ' unit '

They are looking to reduce the physical dinar paper supply from 4 billion notes to 1 billion

I had not looked at it from that perspective. That certainly is a posibility. Either way, if they are talking about reducing the supply, that is a good thing.

Roadrunner

Edited July 27, 2013 by Roadrunner

[caracam]

I am going to take a stab at it and say in this context they are talking about the physical note itself regardless of denomination.

So, whether a 25K or 50 dinar note - it would be designated as 1 ' unit '

They are looking to reduce the physical dinar paper supply from 4 billion notes to 1 billion

I have to agree coz 4B or 1B dinars is peanuts.

That's like 4 or 1 million US$.  Probably wouldn't last a week in operating expenses.

[jg1]

I had not looked at it from that perspective. That certainly is a posibility. Either way, if they are talking about reducing the supply, that is a good thing.

Roadrunner

Could be good or bad, depending on how exactly they implement their plans. Hopefully its the way in our favor.  Decreasing the money supply through a LOP is not good for us. 

[MillieChatham]

Double thanks, Denisvanada. Maybe August will be the month.

[waterman13]

Delete the ZEROS NOW!

[Boozer]

Just do it, enough talk

[jg1]

Delete the ZEROS NOW!

Off the value, not the notes. 

[Roadrunner]

Could be good or bad, depending on how exactly they implement their plans. Hopefully its the way in our favor.  Decreasing the money supply through a LOP is not good for us.

This doesn't sound like a LOP to me. A LOP would reduce four billion to four million. Sounds more like pulling in part of the currency to reduce what is in circulation. I never really subscribed to that theory, but that is what this sounds like to me.

Roadrunner

Edited July 27, 2013 by Roadrunner

[deniscanada]

the comments in this art that caught my attention were:

 

 

 "in a new development at the level of currency Iraq"

"The CBI had said in August / last August that he plans to delete the zeros from the Iraqi dinar"

 

this is the first time I have seen a time line, other than word soon!

And what is the new Development??????

so what has changed to get the new development?

 

now the search go to find out what the "new Development" is and what changed.

 

 

remember, it is Iraq and don't hold your breath for August

 

 

 

[FreckledFuzz]

I am going to take a stab at it and say in this context they are talking about the physical note itself regardless of denomination.

So, whether a 25K or 50 dinar note - it would be designated as 1 ' unit '

They are looking to reduce the physical dinar paper supply from 4 billion notes to 1 billion

 

 

Now, I am going to further hypothesize and conjecture they are targeting the larger denoms for pull in

 

--the ones investors/speculators have.

 

There have been articles saying the general Iraqi public does not have [access to] the 10 and 25K notes

 

 

 

To reduce from 4 billion units to 1 billion units

 

 

removing 3 billion units

 

3,000,000,000

 

 

Let's say this 3 billion consisted of all 10K notes--this would be:

 

30,000,000,000,000 [30T]

 

 

or if it were all 25K notes it would be

 

75T

 

 

But, not knowing how many units there are of each denomination, and them saying they are reducing the units leads me to think this is what the plan is.

 

Further thought would be [with the information given or told through past news articles and CBI information--but not definitive] that the local Iraqi money supply is around 1 billion units which would comprise of the smaller demoniations

 

Assuming that their 1 billion units is all 1,000 notes would be

 

1,000,000,000,000 [1 trillion dinars]

 

for a population of about 33 million people

 

would be about 30,000 dinars per person/ [$300 US]

 

 

 

If they are looking to pull in the "units" , there has to be another event [incentive]  attached to it [RV] to pull their "units" in.

 

 

The math is just a generalization and rough, but the underlying theory is sound

Edited July 27, 2013 by FreckledFuzz

[vomer]

So we know something will happen 'in the coming days'.  Just a matter of what it is and when.

[kenshin7]

I am going to take a stab at it and say in this context they are talking about the physical note itself regardless of denomination.

So, whether a 25K or 50 dinar note - it would be designated as 1 ' unit '

They are looking to reduce the physical dinar paper supply from 4 billion notes to 1 billion

that is correct ,  

[Sector]

They might really be starting the process they didn't use that dreaded word SOON!

[Wayfarer]

Sound indeed, Freckled Fuzz. Thanks!

[Zebra0101]

Tomorrow... soon...

[Amos9:13]

Yeah this article has weird wording. 4 billion to 1 billion doesn't make any sense unless they are talking about destroying those notes they have in custody. Also he said local currency which seems odd. If they really only have 4 billion notes circulating that is VERY good for us. Looking at the behavior of the Iraqis that's quite possible. Let it float on up! Thank you Jesus!

[TQueezy]

Can anyone figure out a good breakdown of their M2 into 4 billion notes and approximately how many of each denomination note they have currently?

It could be a couple things:

They already have been pulling notes from the total through the foreign currency auctions at the CBI;

They will encourage big notes to come in with CBI reserves replacing the big notes in circulation, allowing them to write those notes off and the reserves will take in the dinar value (not sure if that's how it could work);

They will do even exchange for new denominations with a ratio exchange and using a new official exchange rate for the IQD against foreign currencies.

I may be delusional...

[FreckledFuzz]

Yeah this article has weird wording. 4 billion to 1 billion doesn't make any sense unless they are talking about destroying those notes they have in custody. Also he said local currency which seems odd. If they really only have 4 billion notes circulating that is VERY good for us. Looking at the behavior of the Iraqis that's quite possible. Let it float on up! Thank you Jesus!

I believe 'local'-- when used throughout this article -- and in it's context means 'current or present'

Not local in the near proximity.

Here is the quote as to my thinking process:

 

 Yasiri between the Finance Committee "to make changes to support the local currency because of the economic importance of the country."

Or 'local' meaning Iraq's currency

[sandstorm]

Can anyone figure out a good breakdown of their M2 into 4 billion notes and approximately how many of each denomination note they have currently?

It could be a couple things:

They already have been pulling notes from the total through the foreign currency auctions at the CBI;

They will encourage big notes to come in with CBI reserves replacing the big notes in circulation, allowing them to write those notes off and the reserves will take in the dinar value (not sure if that's how it could work);

They will do even exchange for new denominations with a ratio exchange and using a new official exchange rate for the IQD against foreign currencies.

I may be delusional...

lets for example use only the 10k note. 4 billion, that would be approx. 35-40 trillion in dinar. so at quick sight..it looks feasible with the current m2 stats. jmo