New parliamentary calls for the deletion of zeros from the local currency

[Markinsa]

New parliamentary calls for the deletion of zeros from the local currency

February 10, 2015FayhaaEconomics

 

 

New number of Representatives calls for the deletion of zeros from the Iraqi currency. 
To this end, the Finance Committee member Ahmed Hama Rashid said the proposal to delete the zeros has existed for four years and there are several proposals to apply it, indicating that the time is not right at the present time for the application of the procedure, especially after the drop in oil prices, Hama added that the process of deleting the zeros need to be a great economic power, pointing out that the process of replacing the currency after deletion of zeros requires big money, and Iraq is unable at this time to do these procedures.

 

[unirod]

always the claim that the time is never right.

[dinar33]

Makes more sense than not. As much as I wish otherwise. Thanks for posting Mark.

[v-star 650]

awwwww  !  oil  is  too low ,  or,  not  enough  cash  to back  it ,  or,   the  wife  is  busy  remodeling  the  cash vault  !      OIL   will climb back too around  80.oo   per  barrel ,  and  I think the budget  was passed , at  a  value  of oil  in the  50.oo  dollar range  ?  {  I think that is right  ,    so right  there ,  is  30.oo  dollars  per  barrel  for  the  reserves  to back  what ever  project .......  }    if  some one  would  like  to do a break down  as  what  kind of  money  for  the reserves  would  have  at  current  oil production,  that  would  be  nice  !     { I am  sure it  would  be  well enough  for  a  currency value , of  1 too 1 ----  easy breezy ----      

[10 YEARS LATER]

Some will never commit - fence straddlers all the way - or just vote " Present " 

[Palmtree1970]

more talk more excuses

[Rabbi]

"pointing out that the process of replacing the currency after deletion of the zeroes requires big money."

 

OK, so the deletion of the zeroes will (a) result in the need to replace the currency, and ( require big money.  If they were going to float the currency - making this a longer-term program - it will take much more timer for them to replace the already-tattered-and-torn notes currently in circulation.  Furthermore, a float doesn't require BIG money.  It requires NO money!  At least no money in addition to what the CBI is already "on the hook for" at the current exchange rate.  For me, that number is, at most, $34.3 billion, i.e., 40 trillion x $1/1,166 IQD.  As an aside, I believe that 40 trillion number is actually much lower because much of the dinar in circulation is in the CBI's possession, not in the market.  The CBI has been sucking in dinars through the auctions, while they have dollarized the economy. 

 

That said, what do you think is going to happen when they make the change in economic policy to both require everyone to use the dinar instead of the dollar and to free-float the dinar exchange rate?  Mass hysteria in the dinar trading platforms?  Ya think?  We would witness a wildly-fluctuating exchange rate - up AND down - as the market forces take over the trading and create volatility by both buying AND selling the dinar.  This is certainly the last thing the IMF and other the PTB want to see.  And it creates an accounting and legal nightmare for any businesses wanting to enter into the Iraqi economy.   

 

Now, on the other hand, A REVALUATION WOULD REQUIRE BIG MONEY, for the reason stated above.  And it will cause the need to replace the currency...all at once!  And combined with a managed float (which was Shabibi's plan), the dinar would make a much smoother transition to becoming a internationally-recognized currency.  The legal and accounting issues, like those that are mandated by FASB #52, are able to be handed easily because there would be a set date and a set RV conversion factor.

 

I'm sorry, but this "float" idea just doesn't float!  Pun intended!

[tlars brother]

Some of you newshounds try and analyze every article from 300 feet--especially these delete the zero articles.  Waste of time. Do you honestly think they are going to telegraph when they are going to initiate the project???Nope. and as above stated, it will be a managed float up or down max 2% and will not float from 1166.the term is actually reconfigured monetary value, not RV.(for the record)

[Laid Back]

Deleting of the 000's no good for us..... Means RD or LOP.

[tommyboy]

Might be just all the rhetoric and smoke and mirrors before the actual RV, as Adam said.Could be a lot closer than we think!!!

[KDuesing]

What do we expect them to say? Time is pefect wake up early tomorrow its going down?

 

They are in a tough spot, they need to educate people of the incoming monitary changes without giving away exactly when.

 

In my opinion lower oil prices is a better time to start this process because they need more purchasing power to help make up for oil income being lower then the past. Remember they import almost everything and if there not making enough money off oil sales they have to find other ways.

[trvlr787]

Where is the proof that the CBI is holding as much dinar as some think.  I know this is a popular topic but I have never seen any proof of what they have

[Markinsa]

Where is the proof that the CBI is holding as much dinar as some think.  I know this is a popular topic but I have never seen any proof of what they have

 

Go to this post and click on the links: http://dinarvets.com/forums/index.php?/topic/196123-breitling/page-2#entry1492560

 

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[trvlr787]

Go to this post and click on the links: http://dinarvets.com/forums/index.php?/topic/196123-breitling/page-2#entry1492560

 

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Thanks.   They make my head spin

[Markinsa]

Thanks.   They make my head spin

 

What do you want to know?

 

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[dontlop]

Deleting of the 000's no good for us..... Means RD or LOP.

Agreed

. Do you honestly think they are going to telegraph when they are going to initiate the project?

Yes , yes I do , I don't remember any zero deletions that werent planned in the open and everyone knew when it was coming

Zero deletions have been used for a long time and " laid back " is correct in what they are used for

So if they are going to delete three zeros they will advise the public of their plans

It's not a loss or a gain it's just an exchange

You can google it

They are talking about it in this article , they have mentioned time frames in the past as to when they woukd do it

So yes , from the obvious articles from them they will tell us if or when they would implement it

Not a doubt in my mind

If they are going to delete zeros they will tell us

I would go as far as saying its 100% guarenteed they will tell us but I cant , it's iraq , so maybe 99%

And if you do Google it and find something different , please share it

Edited February 12, 2015 by dontlop

[DinarThug]

Hi My Name's Tlarry - This Here Is My Brother Tlar And This Is My Other Brother Tlar !

 

 

           

 

 

Some of you newshounds try and analyze every article from 300 feet--

 

Some Of Us Don't Rely On "Intel Contacts"!

 

Like Ur 0 For 6 In Recent Predictions "Brother"!

 

         

[dontlop]

This old article explains how they woukd use students to educate the public in recieving it

The central bank's policy is aimed - according to the benefit - to the stability of the exchange rate of the dinar against the U.S. dollar, likely equal to the price of the Iraqi dinar against the U.S. dollar during the next two years after the implementation of the project to delete three zeros from the Iraqi currency. And in favor of the view that the Iraqi citizens need to raise awareness in the villages and towns and schools also require that students have a role in the media help citizens to receive the project.

http://translate.googleusercontent.com/translate_c?depth=1&hl=en&nv=1&rurl=translate.google.com&sl=auto&tl=en&u=http://www.almutmar.com/index.php%3Fid%3D201213504&usg=ALkJrhgg1euZp9VeZfH8lf4vI-_JtmYbag

So let's hope they just rv and forget about deleting zeros

I wish they were talking about deleting three zeros off the exchange rate but they say the currency

[trvlr787]

What do you want to know?

How many trillion in value does the bank hold vs total and how much has been pulled in to the bank over say the last year. I'm not a numbers person so it has to be dumbed down.

Edited February 12, 2015 by Markinsa
Fixed Quote Box

[dontlop]

Page 17 - Currency Outside of Banks = 34,995,453 Million Dinar in phisical currency

If it's out side of banks it's not within the central bank system in iraq

That equals just about 35 trillion dinar in phisical currency

The bank has Difference = 5,634,583 Million Dinar

5.6 trillion dinar is in the central bank phisical curency

Close to 35 trillion outside the central bank phisical currency

Total dinar issued around 40 trillion actual phisical currency

Plus it has electronic dinar , that's dinar that isn't currency notes but issued in loans and in deposits at the cbi

Those other numbers above are just phisical currency

I think the entire lot is around 77 trillion dinar being used at the time

Actual note count is around 4 billion

Some notes are 25k , 10k , 5k, and so on

But total dinar in phisical currency is what I listed

They got a pile of dinar out there

.

The actual note count can be figured out by adding 6 zeros to the notes issued

Edited February 12, 2015 by dontlop

[dontlop]

6,703,211 for example is the amount in millions for the 10k note

So since it's listed in millions of dinar on the chart you add 6 zeros to that number then devide it by 10,000 to get the amount issued just in 10k notes

So let's do it

6,703,211,000,000

Six trillion 703 billion 211 million dinar issued just in 10k notes

So we devide that number by 10,000 and we will know how many actual 10k notes are issued by the cbi

6,703,211,000,000 devided by 10,000 equals

670,321,100 actual 10k notes issued by the cbi.

Over a half a billion notes just in the 10 k notes

670 million 321 thousand 100 notes just in 10 k notes issued

Just look at markinsas link on page 17 and explore it shows it all

http://www.cbi.iq/documents/Annual_2013.pdf

It can't be out side of banks in digital form

I just hope they got enough hard currency to rv all that

Abadi can do it

I think maliki just didnt want to

He held it up

So maybe someone can put on their thinking cap and explain it to us

Cause I don't got a clue

10s of

Thousands have tried

They come and they go

So far over 40 thousand members been thru dv

So we wait

And I'm not sure everyone gets cash payments from the goi for their Salarys

I thought they were using cards , electronic dinar

So if you got a bank account and your dinar is electronic , it's going to need to be rvd too , right ?

If it was your atm card , woukdnt you want your dinar rvd too?

Businesses use digital dinar , checks and such

There's a lot out there that people refuse to admit exist

So the auctions

Let's talk about those auctions

Are they phisical notes that are being bought by the cbi or are the digital ?

They show cash portion on the auction report and the majority is not cash

Very little is cash

Those links help out a lot

Maybe TLARS brother knows

[dontlop]

Like today

Out of 80 million dinar bought at auction

Only 5 million were cash

Because I don't think the cbi issues digital dollars

I think they issue digital dinars

Who knows

Maybe they do

I'm sure the fed has digital foriegn currency

Edited February 12, 2015 by dontlop

[Jaygo]

Like today

Out of 80 million dinar bought at auction

Only 5 million were cash

Because I don't think the cbi issues digital dollars

I think they issue digital dinars

Who knows

Maybe they do

I'm sure the fed has digital foriegn currency

Ok we get it.. Go find something to do.

[dontlop]

Ok we get it.. Go find something to do.

First of all who's we ?

And what do you get ?

If you don't want to read it don't click on it

Tell me what to do

Ah ha ha ha ha ha

See I don't think some people understand that all that money that's listed on the cbi web site as currency outside of banks is phisical cash there's no way for them to be holding digital currency outside of banks

So there's around 40 trillion dinar in phisical dinar out there in people's hands

So the people who keep saying they don't have much currency out there don't have a clue

That's why everyone laughs at them in the rumor forum

Edited February 12, 2015 by dontlop

[dontlop]

If oil was 100 dollars a barrel and iraq had 170 billion barrels of oil

And they did have 40 trillion dinar outside the banks

170 billion times 100 dollars is 17 trillion dollars worth of oil

If they did rv to a dollar like some gurus said they are

Rving 40 trillion dinars to a dollar would cost more than two times the money they could get for all 170 billion barrels at 100 dollars a barrel

Two times would be 34 trillion dollars

They really need to start developing the private sector for the gurus sake

Edited February 12, 2015 by dontlop