Kurdistan Region May Be Forced To Change Currency !

[DinarThug]

CNN. Broadcasting Some Kurdish 'Leverage'!

 

 

 

Kurdistan Region may be forced to change currency
18.06.2014


Hemin Salih
BasNews, Erbil



According to Member of Finance Committee in Kurdistan Parliament Ali Hama-Salih the selling Kurdish oil via US dollar and the withholding of the budget by Baghdad will force the Kurdistan Region to change its currency.

Hama-Salih believes that the Kurdistan Region should either change its currency to dollar or create its own currency.

Since the start of the year the federal government has withheld much of the Kurdish share of the budget and the continuation of this will damage the region’s economy according to Hama-Salih.

Starting in July the Kurdistan Region will use the oil revenue, which is in US dollar, sent from Turkish Halk Bank to the Central Bank of Kurdistan while the KRG will use IQD to pay salary of public employees and investors.

“There are three options for Kurdistan Region, either there will be an agreement with the Central Bank, using US dollar or creating new currency for the Kurdistan Region,” Hama-Salih told BasNews.

Iraqi Finance Deputy Minister Fazil Nabi spoke to BasNews and stated that the amount of IQD in the Kurdistan Region will not create a financial problem.

“If the demand for IQD rises, the KRG can solve the demands through both bank branches in Erbil and Sulaymaniyah,” said Nabi.

The Director of the Central Bank in Erbil Adham Darwesh pointed out that IQD is too much in Kurdistan Region and there will be no financial issue at all.

“Beside having too much IQD outside of the banks, and there is a lot money inside the banks. Since the oil is sold via dollar, there will not be such issues,” said Darwesh.

Kurdish MP in Finance Committee of Iraqi parliament Najiba Najib mentioned that for this kind of situation, KRG could give dollar to investors and companies, but for KRG staff employees, they have to change the dollar to IQD.

“Baghdad’s door is open for Kurdistan Region. Whatever values the dollar has in Baghdad; Kurdistan Region can get IQD by that value. Thus, the impact won’t be that big for now, but after 2014 that the amount of selling oil will increase and the situation at that time will make a different decision,” said Najib.

http://basnews.com/en/News/Details/Kurdistan-Region-may-be-forced-to-change-currency-/23717

[moneysoon]

Thug,

Well, well, the plan is unfolding. Roll out the barrels......

[k98nights]

I'd rather have the Kurdish currency if they print it up.... hopefully we can exchange the IQD for it if they do.

[MyLadiesDaddy]

Right or wrong, who knows?

But my gut tells me that the Kurds had better get with the program before someone

does it for them.

[TrinityeXchange]

my money is with the Kurds if they make the opportunity available.  they appear to be the more serious minded entity when it comes to investments and economics.  all of this sunni vs shia stuff is frustrating as we watch senseless fighting over top of oil soaked sand and gold coated dust.  

[MyLadiesDaddy]

my money is with the Kurds if they make the opportunity available.  they appear to be the more serious minded entity when it comes to investments and economics.  all of this sunni vs shia stuff is frustrating as we watch senseless fighting over top of oil soaked sand and gold coated dust.

And I would agree with you, my friend.

However, it seems that's not exactly what Obama has in mind. He's speaking with

Iran at this very moment about how best to get rid of Maliki.

[calkid11]

Thank you

[Royce]

They already have the US dollars in Kurdistan as they do in the rest of the Iraq.   Using the US Dollar for everything in Kurdistan would only have to be changed at the banking level.  I believe that the CBI just past regulations that allow banks and brokers to handle the US dollars and the Dinar in the open market.  It wouldn't take much to move everything into the dollars in Kurdistan.   If the Kurd's come out with their own currency,  it would probably be 1 to 1 with the US Dollar.   If the Kurds move that direction it might force the RV or RI of the Dinar.  And I say it might, because nothing is for sure in Baghdad.

[gregp]

Notice the date given? July 1st. Everything is going to happen on July 1st.

[dontlop]

Only the cbi can issue legal tender in Iraq

[dontlop]

I guess laws are out the door now in Iraq

Its a civil war no doubt about it

http://m.washingtonpost.com/world/middle_east/un-raises-disaster-designation-in-iraq-as-refugees-flood-into-kurdistan/2014/06/18/da802188-f6d8-11e3-a606-946fd632f9f1_story.html

These people hate each other and its hot over there right now

They must be half insane in that heat

No will to live

Just run at the gun fire

It looks like the unification of Iraq is over

[sandfly]

THANKS

[DinarThug]

SOMEBODY CHECK HIS POCKETS !

[DinarThug]

Kurdistan Regional Government is considering dealing in U.S. dollars or printed work, especially the region to cope with the lack of Iraqi dinar
2014/6/21 11:35:35 AM 
BAGHDAD / Wi-News



According to observers, economists that the Kurdistan region of Iraq may be forced in the coming period, to deal in U.S. dollars, or printed currency of its own, as a result of the lack of Iraqi currency in the banks of the region, resulting from the continuation of the Iraqi government not to send the salaries of the staff of the region, and the adoption of the latter on oil money Kurdistan, which is sold in U.S. dollars.

The crisis has escalated since the beginning of this year, after the Iraqi government decided to cut staff salaries and financial benefits for the region and not to send any amount of history to the Kurdistan region, while appreciating the salaries of employees of the region b (580) billion Iraqi dinars per month, which led to an imbalance Financial in the region, which pays the salaries of its employees dues and financial investors in Iraqi dinars.

The network quoted a "Basenyoz" Kurdish, a member of the Finance Committee of the Parliament of Kurdistan Ali Hama Salih, saying that the region in front of three options to get out of the crisis of the scarcity of the Iraqi dinar in the banks of Kurdistan, either that we are in coordination with the Central Bank of Iraq, or dealing in U.S. dollars, or printed its own currency region, noting that "the Government of the Territory have shown its ability to print its own currency in Kurdistan."

He ruled out the Undersecretary of the Ministry of Finance of Iraq Fadel prophet, who resigned recently, and there is a shortage in the province of Kurdistan, the Iraqi dinar, pointing out that "the Iraqi dinar is still available in sufficient quantity in the region," according to the statement Emirati newspaper.

He added that the increase in demand for the Iraqi dinar, will lead to a rise in its exchange rate against the U.S. dollar, and the government of the region will be able then to solve the problem of lack of dinar by opening the door to buy it through a sub-central bank in each of the Sulaimaniyah and Arbil.

In turn, announced Erbil branch manager of the Central Bank for "lack of shortage in the quantity of the Iraqi dinar in the Kurdistan region," explaining that "the Iraqi dinar is still available in abundance outside the bank, in addition to a good amount of Kurdish existing banks."

Aura of peace

http://ynewsiq.com/?aa=news&id22=5056&iraq=%CD%DF%E6%E3%C9%20%DF%D1%CF%D3%CA%C7%E4%20%CA%CF%D1%D3%20%C7%E1%CA%DA%C7%E3%E1%20%C8%C7%E1%CF%E6%E1%C7%D1%20%C7%E1%C7%E

[moneysoon]

A perfect storm seems to be brewing. think of the implications!!!

[dontlop]

They will have to deal in dollars

Since the cbi is the sole authority that can issue legal tender on iraq

[Maggie123]

A perfect storm seems to be brewing. think of the implications!!!

 

I can think of quite a few... how about narrowing it down to the most obvious ones for you?

 

Honest Question Moneysoon...

[chess]

Hope they give us a fair exchange rate for our IQD..................

[blitzer]

Well, for sure, with Kurdistan being a fully autonomous State, by the constitution of Iraq, they DO in fact have the power to do what they are talking about.  Just like they had the power to sell their own oil.  And just like they have the legal power to break away from Iraq the rest of the way and form a totally independant state.  And we did tel them, back in 2007 or 08 that we would recognize them in the UN.  And this week even Turkey said they would welcome the creation of a freindly Kurdistan on the border........  So who knows.

 

It is a stone cold fact that the Kurds are doing much better at running a government and getting things done than the central government is.  And about 80 or 90% of all the oil production out of Iraq now is coming out of the Kurdish area, lol, not the rest of Iraq.  So lets go with the Kurds, and let the rest of Iraq fang itself to death like the bag of snakes it is.

 

It was a disaster when I was there, still is, always will be.

 

I"m ready to trade my IQD for whatever the Kurds wanna use.

[moneysoon]

I can think of quite a few... how about narrowing it down to the most obvious ones for you?

 

Honest Question Moneysoon...

Hello Maggie,

Just a couple of my thoughts:

1) petrodollar reconfirmed

2) forcing the hand of timeline....printed currency is already ready just waiting.....

3) rate has to be discussed should they go this route, for at minimum conversion rates for exchange.

4) the most obvious, liquidity issues. The right play could suck in even more dinar which increases demand even further which.....

[zzztop]

If they were to do this, wouldn't they need to have their own central bank?   If so, that could take a while.

[MyLadiesDaddy]

I think you're all missing the main issue here.

IF you're the CBI and you're seriously going to change your exchange rate substantially,

then you absolutely understand that the"GREATEST"danger to the success of such

an event is solely based on not having any currency in the market. I believe that how

to best remove the IQD from the markets is what they've been"STUDYING"for two years.

And human beings, being who they are, naturally there were some that found the

method being used repulsive. Nevertheless, greed being a powerful force they have chosen

That thousands should die to raise the most powerful nation ever.

And it's only fitting that Babylon will rise on the blood of innocence. After all Babylon

will lead all nations to hell.

That is what we are witnessing. That is why they have been reporting for about one

year of so little dinar in the markets. It's not just the Kurds. And considering how that

No one believes"ANYTHING"can happen during Ramadan I suspect that is exactly

when they will do it.

[uncirculd]

I see trouble with this.  shame on them if this is what I think.

[djgabrielie]

I'd rather have the Kurdish currency if they print it up.... hopefully we can exchange the IQD for it if they do.

Yeah will probably be able to exchange IQD for KRD after the KRD revalues.

[TrinityeXchange]

this is my only 2c worth of an opinion but here it go.  this article speaks volumes to me because before there is any significant change in the value of the iqd we KNOW at least one thing MUST happen.  the note count in circulation must be reduced.  the latest articles surrounding the note count revealed that the iqd went from 8-9B notes in circulation to 4B in circulation.  now we are reading in this article that the kurds are claiming there aren't enough notes in circulation while an opposing advisory is saying that there is a "satisfactory" amount in circulation.  ha!  the jig is up.  sounds to me like that note count has dwindled down enough for a 1-2-1 revaluation

 

next we see that the kurds appear to have been playing possum with their threat to leave baghdad.  they were forcing maliki's hand for article 140 after all and it appears that they may have it.