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Central Bank announces the withdrawal of 50 dinars a class of trading


yota691
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Experts: 50 dinars born "dead" .. and canceled due to fraud and the deletion of zeros

 

A source in the CBI revealed that the bank has decided to withdraw the currency of 50 dinars from circulation category because of fraud and conflict with other categories when deleting zeros from the currency, and while experts confirmed that the abolition of the small category guide to take prices upward trend, said the 50 dinars born "dead" because they are too small and can not be accepted compared to other groups.

The Central Bank of Iraq, the day before yesterday, the currency was withdrawn from the category of 50 dinars from circulation due to "low value and stop the audience from the circulation," according to a statement of the bank. A source in the CBI told the "term" that "the Bank does not want a conflict between the currency category of 50 dinars and 500 dinars in case of deletion of zeros from the last," noting that "the central decided to cancel the deal with 50 dinars category formally instructed banks government and private bring this group to the bank in order to burn them. "
The source, who declined to be named, said "the Bank issued a decision not to deal with a class of 50 because of a major fraud after reprinted in 2003", adding that "the citizen is no longer handles this category because of the small cluster of cash for this currency, and because the cheapest thing in the market to be sold for 250 dinars for it canceled the same. "
He pointed out that "the citizen who owns a coin 50 dinars category can replace it in the bank within a specific number, it is impossible to bring people billions of dinars in this category are demanding to replace them because they certainly false."
For his part, said an expert on economic affairs Maytham Laibi "long" that "the decision to cancel the coin 50 dinars very painful, because it shows that the presence of an upward trend of prices, so that Tfariv currency has become not used in daily use," noting that "after ten years of the 50 dinars coin presence and lack of circulation dramatically means that the Iraqi market tended to handle large groups rather than to deal with small groups, indicating the money supply expanded significantly. "
Laibi and pointed out that "most of the countries of the world do not put such a condition when you drag the currency market, but they can be non-acceptance of the currency in circulation at the same time be accepted in the banking system, especially as the term is too short, which is up to two months only," but he also said "The decision can not be considered wrong in its entirety, because it has become a reality if the result of the use of this currency, and to identify specific timeframe for ending the deal in this category is the only weak point in the resolution."
In turn, said economist Ahmed Sabih told the "term" that "this group of Iraqi currency issued in the light of expectations down price levels to be smaller class can be traded among the public," noting that "the category of 50 dinars stillborn because it is very small Currency and can not be accepted in circulation compared to other groups that make up some of the complications. "
He Sabih saying that "the 50 dinars as long as calculated on the Iraqi currency bloc, it is better to replace the category of other more acceptable as a class 250 dinars, which represents smaller currency accepted by the public in circulation", adding that "this decision administrative true and does not reflect any economic effects is carried at liquidity or a reflection of the state of inflation, but it is a good procedure followed by many banks to get rid of the categories is acceptable in circulation. " The bank said in a statement received "long", a copy of which, the day before yesterday, that "due to stop the public from trading cash paper category 50 dinars, he decided to withdraw this banknote from trading on the basis of the powers vested in Article 36 of the Bank Act No. 56 of 2004".
The statement added that "banks and branches will begin to replace these banknotes presented to it without fees or commission," he said, adding that "banks will be deposited at the bank and its branches for the purpose of being the equivalent value in the accounts we have."
Bank pointed out that "the term that will replace these banknotes will begin on the first of March to 30 of April next," noting, "Once the replacement period banknote will be null and void and will not be accepted in Iraq."
The 50 dinars category smaller paper currency from within the paper categories, which also include 250 dinars and 500 dinars and a thousand dinars and 5 thousand dinars and 10 thousand dinars and 25 thousand dinars. Iraq issued a new currency in 2003 in the wake of dropping the former regime.
 
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Yes it can - this is the risk we face!  Why is eliminating the 50 good?  Article states that value will be restored in accounts in country, but over here - SQUAT!

 

Without a change in value - This is BAD!  Lowest denim is what 100 Dinar note.

 

C'mon people - THINK!!!!

One reason that I opened a warka acount. All digital money. Let's hope for the best though. Let's get this RV started!

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Whatever it starts out at, it appears that the 50 dinar note will be insignificant. I have no clue what rate that might be. It wouldn't surprise me to see other lower notes be retired after the 50 is removed.

On the bright side we know that the ministry of planning intent is to get to 1.13 according to its official study and maintain that for 3 years I believe they said.

That official study has a date on it from the 80's.

I'll try to dig it up later when I'm at my computer.

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Ok. Here it is. This is from the "Planning Budget" link of that study.

http://www.mop.gov.iq/mop/index.jsp?sid=1&id=295&pid=259

"In turn, The Guidance For Technical And Economic Feasibility Studies And Post-Project Assessment Of Development Project (Regulations No. 1 for the Year of 1984 and it’s amendment for the year of 1990) has specifies a series of steps to be undertaken, which lead to the completion of a Capital Budget."

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I'm with Trin Ex on this one. A float seems to make the most sense. If you depeg from the dollar at 1166:1 there will be a lot of trading of dinar to get to 1:1. We and anybody who trades currency who has been following this thing, know that the IQD is grossly undervalued. A float from where it is gives investors and traders the widest margin for appreciation. We can presume that the dinar is as cheap as it is going to get right now therefore a float from here presents limited downside risk in the event of a float. Since you can't unring a bell the cbi only gets one real shot at this. If they come out at a high rate and thier markets aren't ready for that shock, the value could plummet on forex, which would be very bad for the banks. It would give investors the opportunity to buy it cheap and cash in at the bank for a higher rate, and since banks only exchange currency to make money it could do significant damage to the banking system in Iraq. Trinity I think you have the most plausible scenario. It's much easier to suppress a currencies value that is rising too fast than trying to support a currencies value that is tanking. We know based on the IMF report from 2010 that they estimated the value at between .86 and 1.13. It's only gone up from there. Float it from where it is currently and it leaves a ton of room for appreciation. JMHO. Hope we find out real soon.

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I'm with Trin Ex on this one. A float seems to make the most sense. If you depeg from the dollar at 1166:1 there will be a lot of trading of dinar to get to 1:1. We and anybody who trades currency who has been following this thing, know that the IQD is grossly undervalued. A float from where it is gives investors and traders the widest margin for appreciation. We can presume that the dinar is as cheap as it is going to get right now therefore a float from here presents limited downside risk in the event of a float. Since you can't unring a bell the cbi only gets one real shot at this. If they come out at a high rate and thier markets aren't ready for that shock, the value could plummet on forex, which would be very bad for the banks. It would give investors the opportunity to buy it cheap and cash in at the bank for a higher rate, and since banks only exchange currency to make money it could do significant damage to the banking system in Iraq. Trinity I think you have the most plausible scenario. It's much easier to suppress a currencies value that is rising too fast than trying to support a currencies value that is tanking. We know based on the IMF report from 2010 that they estimated the value at between .86 and 1.13. It's only gone up from there. Float it from where it is currently and it leaves a ton of room for appreciation. JMHO. Hope we find out real soon.

You have a link to that IMF report?

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Ok. Here it is. This is from the "Planning Budget" link of that study.

http://www.mop.gov.iq/mop/index.jsp?sid=1&id=295&pid=259

"In turn, The Guidance For Technical And Economic Feasibility Studies And Post-Project Assessment Of Development Project (Regulations No. 1 for the Year of 1984 and it’s amendment for the year of 1990) has specifies a series of steps to be undertaken, which lead to the completion of a Capital Budget."

You are correct bsims25.   That document which is still on their website is from The Saddam Hussein era of Iraq.

It is legit just out dated and certainly not relevent any more.

 

This is the MOP document TrinityXchange mentions

http://www.mop.gov.iq/mop/index.jsp?sid=1&id=308&lng=en

 

But like you said if you dig a bit deeper you can see that its is very old document

http://www.mop.gov.iq/mop/index.jsp?sid=1&id=295&pid=259

Well what TritnX is saying  is exactly what Ennorste HAS BEEN SAYING FOR THE PAST 2 YEARS.......i mentioned to someone the other day they may want to pay attention to what e was saying and i was immediatlty told E was clueless. :shrug: :shrug:

Not trying to be negative here Chinadawg as you so often say. I just want to see whats real and not fabricated.

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I can see how they could float the markets but it does seem that if they start at 1166 and end up at 1:1 too quickly that the local markets would stay in confusion and have a big lag in market prices and goods sold. There seems to have to be some control instead of making $1 runs without some education that one day that car for sale took a 25% loss at the current posted price from the week before. I can see a lower RV with a slower float. 

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Here's an IMF report from 2011.

http://www.imf.org/external/pubs/ft/scr/2011/cr1175.pdf

This is from page 9.

"15. The CBI will continue to aim at keeping inflation low, predominantly by maintaining a stable exchange rate. The low level and the relative stability of inflation do not suggest any significant over- or undervaluation of the Iraqi dinar. Also, a stable exchange rate continues to provide a solid anchor for the public’s expectations in an otherwise highly uncertain environment and in an economy with a very low level of financial intermediation. Meanwhile, the CBI will continue to keep its policy interest rate positive in real terms. To enhance mobilization of domestic financing, limitations on state-owned banks’ use of government deposits for investing in Treasury bills have been reduced, while the pension fund has also been allowed to invest in Treasury bills and to participate in auctions directly."

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So did the IMF really say in 2010 that they estimated the value at between .86 and 1.13... but turn around the very next year and say...

"The low level and the relative stability of inflation do not suggest any significant over- or undervaluation of the Iraqi dinar."

If anyone has a link to the 2010 report please post it. I'm looking.

Edited by bsims25
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GM Yota,

 

So we have lower denominations, correct :bravo:

The articles do not reflect anything from the Official CBI site.

Inconsistencies are 'stop' the 50 dinar category - which implies "no need" which is inconsistent with a release of dinar from tight monetary control to international market.

Article also describes "replacement" which again has no evidence.

Articles describes conflict with 500 dinar in case of LOP which is laughable.

I conclude article is a waste of reading time.

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I can see how they could float the markets but it does seem that if they start at 1166 and end up at 1:1 too quickly that the local markets would stay in confusion and have a big lag in market prices and goods sold. There seems to have to be some control instead of making $1 runs without some education that one day that car for sale took a 25% loss at the current posted price from the week before. I can see a lower RV with a slower float.

The Swiss Franc recently had a rapid rise in it's value, and I never read about any

Confusion or chaos in the market place.

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Ok, so I just spent over an hour at the IMF website, and read every single report they had on Iraq dated 2010 and There is nothing saying they estimated the value at between .86 and $1.13.

I wonder which "guru" is responsible for this one. Lol

My 2 guesses would be either Millionday, tlar.

The Swiss Franc recently had a rapid rise in it's value, and I never read about any

Confusion or chaos in the market place.

The franc moved about 30%...

An IQD move to a dollar would be about 100,000%

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Ok, so I just spent over an hour at the IMF website, and read every single report they had on Iraq dated 2010 and There is nothing saying they estimated the value at between .86 and $1.13.

I wonder which "guru" is responsible for this one. Lol

My 2 guesses would be either Millionday, tlar.

Seriously???? Millionday only quotes what is in ink. She helps make sense of articles that are hard to comprehend. Step off.

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Ok, so I just spent over an hour at the IMF website, and read every single report they had on Iraq dated 2010 and There is nothing saying they estimated the value at between .86 and $1.13.

I wonder which "guru" is responsible for this one. Lol

My 2 guesses would be either Millionday, tlar.

The franc moved about 30%...

An IQD move to a dollar would be about 100,000%

Ok, recheck your math. More likely 1000% to 3000%. And that's only at the dollar to

$3 dollar rate. Which these articles aren't suggesting.

Most likely from 10cents then float on the market. But highly possible just float from

1166.

And YES, a 30% jump in currency markets is practically unheard of. When the Swiss Franc

did that it instantly became international news.

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Ok, recheck your math. More likely 1000% to 3000%. And that's only at the dollar to

$3 dollar rate. Which these articles aren't suggesting.

Most likely from 10cents then float on the market. But highly possible just float from

1166.

And YES, a 30% jump in currency markets is practically unheard of. When the Swiss Franc

did that it instantly became international news.

I was a little off... A move from .00086 to 1 is actually around 116,500%!! Lol

Grab a calculator and take the current .00086 and multiply it by 116,500%... That equals ~1.

.00086 times your 1000% only equals .0086

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really for us to debate about whether or not there will be no bump, a slight bump, a small bump or a big bump prior to moving from a rigid to a flexible exchange regime is a waste of effort team.  NO ONE KNOWS and if 1 out of 20 of us are correct, it will do absolutely nothing for us.  the important thing is for us to identify what it is that iraq is actually doing so that we can properly prepare.  any actions of ours are all reactionary to what the CBI decides to do and so it behooves us get solid information on what they are about to do.  from my research it looks like a float is coming.

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really for us to debate about whether or not there will be no bump, a slight bump, a small bump or a big bump prior to moving from a rigid to a flexible exchange regime is a waste of effort team. NO ONE KNOWS and if 1 out of 20 of us are correct, it will do absolutely nothing for us. the important thing is for us to identify what it is that iraq is actually doing so that we can properly prepare. any actions of ours are all reactionary to what the CBI decides to do and so it behooves us get solid information on what they are about to do. from my research it looks like a float is coming.

So , if it does float, how do we properly prepare? Won't we STILL be watching The CBI rate and looking into new news?

Just saying. Not Too much will change. We will still be praising yota and all who bring great news

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