Enorrste: The Definitive Response to Gjrl1978 and the facts behind the Plan to RV

[ronscarpa]

The Definitive Response to Gjrl1978 and the facts behind the Plan to RV

Posted in zzz - 4 June 2010

The reply to this persons remarks represent an excellent history of the Iraqi RV plan - and I consider it an excellent analysis and a good read. I believe it will give any student of the IQD a better undertstanding of our investment and the potential outcome of the RV/RI.....JMHO...!

RON

Gjrl1078 on May 28, 2010 at 1:58 PM

This whole dinar nonsense has to be one of the funniest things I have come across in a while. I didn't know countries could arbitrarily change the value of their money. This is just going to be like Saddam's exchange rate, a freaking joke. I wish I could short you people, or sell you dinars at highly inflated prices. If the dinar is going to skyrocket next week, why can people still buy them from dinartrade.com? Wouldn't they just hold onto all of their dinars?

---------------------------------------------------------------------------

Enorrste Reply:

I would like to take you on a journey that will show just how the plan has not only been created and laid out publicly for 5 years, but also that it has become more and more specific every year. Finally, when the “chaff” is removed from the“wheat” by poor reporting or outright falsehoods, the picture we see is very consistent and should give you all a great sense of relief that this ride is nearly over.

We start our journey back in September of 2005 when an official statement was released to the media in which it was announced that Al Zubaidi, the head of the Ministry of Finance, had recommended to Shabibi, the head of the CBI, “Shabibi needs to raise the value of the Iraqi dinar and return to normal through the lifting of three zeroes.” In addition the article showed that the CBI, the Ministryof Finance, and the Central Bank would bring experts together and that “the proposals to get the value of the Iraqi dinar equivalent of [to] the American dollar, this goal we will strive to achieve.”

http://www.talkgold.com/forum/showthread.php?t=28719&page=44

In June of 2006, just eight months later, the original proposal was expanded upon just slightly by the Ministry of Finance and the CBI in a joint statement: “The Ministry of Finance together with the Central Bank are studying a proposal to raise the value of the Iraqi dinar in order to return it to previous levels where one Iraqi dinar was valued at 3.33 US dollars.” Further elaboration on the plan that was being worked on was also given in the same article: “A statement by B.J. AL Zubaidi, the Minister of Finance, in which he said that he had suggested to the Chairman of the Central Bank, Dr.Sinan AL Shibibi, that three zeros be taken from the Iraqi Dinar in order to raise its value so that one Dinar be equal to a Dollar.”

http://www.iraqdirectory.com/DisplayNews.aspx?id=1593

Then in January of 2007 Al Zubaidi, the head of the Ministry of Finance, in an article on the raising of salaries made this additional statement regarding the dinar: “Al Zubaidi emphasized that the Ministry of Finance and in consultation with the Central Bank seeks to identify the exchange rate of the dollar at 1260 dinar during this year. It also laid down a plan to restore the Iraqi dinar to its former era during the coming three years expressing his hope to stabilize its exchange rate at 1000 dinar for the dollar during the coming period.”

http://www.iraqdirectory.com/DisplayNews.aspx?id=2994

Here, interestingly, for the first time Al Zubaidi has given us a future time table for the RV of the dinar. He states clearly that the plan would come to fulfillment “during the coming 3 years”. Since he was quoted in January of 2007 we can now see, 3 years later, that the time of fulfillment is upon us. This is HIS words, and not mine. Furthermore he specifically refers to bringing the dinar back to what it was "in a former era". This means before the Saddam regime, as I have shown elsewhere, and specifically refers to $3.33 for the RV rate as shown just above.

Then in August of 2008 another statement was issued: ”Finance Ministry has prepared a plan to increase the value of the dinar against the dollar and then delete the three zeroes from the dinar's value to contribute to the advancement of the Iraqi economy during the coming period.” Here we now were able to see that there is an order of events that will occur, with the raising of the value of the dinar coming first, and then the “delete the three zeros” afterwards. At the time I’m sure that everyone invested in dinars wondered what “delete the three zeros” could possibly mean.

http://translate.google.com/translate?hl=en&ie=UTF-8&sl=ar&tl=en&u=http://www.foratnews.com/paper.asp%3FID%3D8383&prev=_t&rurl=translate.google.com&twu=1

The answers started flooding in finally early this year. In earlyFebruary of 2010 the following statement was made: “The Iraqi Central Bank is planning to redenominate the national currency in an effort to ease transactions and allow people to carry less paper money….. that a plan has been made to remove three zeros from the currency and phase out the current bank notes late this year….Salih said by the end of 2010 the new banknotes will be fully introduced while the old banknotes will be gradually removed from circulation…..Both will be legal tender in Iraq until the old notes are completely withdrawn….. but by dropping the zeros it will make it easier for both the banks to deal with their customers and for the general public to carry money.”

We were being given a hint as to the meaning of “delete the three zeros” in this statement. Yet it was still not quite clear to all.

http://www.rferl.org/content/Iraq_Pl...n/1950504.html

On the 10th of February a further clarification of this long process was revealed: “The CBI begins the end of the year and gradually replace the currency now in circulation a new currency which zeroes deleted within the strategy to reform the monetary system started in 2005.” We finally got a clarification of the “delete the three zeros” meaning: it refers to the removal of bank notes with3 zeros on them from circulation over the remainder of this year. Furthermore, the CBI was nice enough to refer back to the beginning of this long planned process, which it said was begun in 2005 and which we have now documented to be the case.

http://articlesofinterest-kelley.blogspot.com/2010/02/two-currencies-coexist-together-and.html

Remarkably another statement was issued on the same day, February 10:

“CBI begins the end of the year and gradually replace the currency now in circulation a new currency which zeroes deleted within the strategy to reform the monetary system started in 2005.”

http://www.azzaman.com/index.asp?fna…htm&storytitle

The very next day, on the 11th of February, Al Zubaidi backed up the statement from the CBI as follows: “this proposal by the Ministry of Finance to the Central Bank of Iraq was not affected increase or decrease but it is just delete the zeros vocation not only the case in many countries Noting that the Iraqi dinar would be offset dollar or slightly more than after theapplication of this proposal…. The proposal to raise three zeroes from the currency will be in accordance with the right monetary policy [and] is not gradual, as happened in Turkey and this policy will raise the monetary value of the Iraqi currency and will of the Iraqi dinar Strength of cash against all currencies.”

Here we received another inkling of the rate for the RV. Whereas before we had two documents from previous years that indicated a proposed rate of over $3 for the dinar, this proposal is now stated to be at or above $1 for the dinar. From Al-Iraq News.com

Then on February 23 we received a great find from John1025:

“Finance Minister Baqir Jabr Al-Zubaidi: At the end of this year will see the current Iraqi dinar currency pair and the new Iraqi dinar, which is no different for the same amount, noting that the employee's salary is not affected by the standard of living….. This is not like the ministry, but the jurisdiction of the Central Bank independent of the ministry's proposal but it is the proposal I submitted to me three years ago, by deleting three zeros and the Central Bank studied this proposal and the bank's board finally approved by the end of this year we will see Ammeltian the current Iraqi dinar and the new Iraqi dinar, which is no different for The same amount will not be affected employee's salary and standard of living of the citizen with the survival of the dinar in the same Altdlol .”

http://translate.google.com/translat...%26tbs%3Dqdr:d

Not coincidentally, in my view, Al-Zubaidi refers back to the process that he mentioned 3 years ago,when he said that the plan would come to fulfillment in 3 years. He is fulfilling his own statement and stating without equivocation that the plan is right on schedule.

On February 28 we received the most detailed discussion of the “action plan” yet:

The Iraqi Central Bank defended its policy to withdraw by the deletion of zeros from the cash currency in order to reduce inflation, againt its critics [who say that it is] a policy that is "progressive" and long-term, although most critics regarded the policy as a unit, which the Economic Adviser to the Prime Minister called "in vain" and that it would cost the budget a lot but come to no real avail.

Central Bank adviser Muhammed Al Salih appeared to discuss the economic policy of the central bank for withdrawing cash from the local market due to the"inflation suffered by the money supply, which rose from 25 billion dinars in 1980 to 23 trillion dinars now. He said “it is important to reduce [the money supply]," noting that the process of lifting the zeroes is a "long-term policy adopted by the Iraqi government and the central bank, which will direct the project as soon as the development of the Iraqi economy warrants it, and that this may be this year or next and will probably require a longer time, depending mainly on the stability [of the economy] for the operation."

Saleh told (Voices of Iraq) that "there is no need to rush the process at the moment but at the same time it is required because the subject of reform will not change the value of the currency, except to make the bills smaller." He stressed that Iraq "During the next few years, according to the new development plan, will raise its oil production, and resources will increase significantly.” He added, “and we therefore need a strong currency and low [denomintated notes] at the same time, [thereby making them] easy to handle. "

http://ar.aswataliraq.info/?p=202726

Later that same day Dr.Saad Al-Hassoun Hayali, a spokesman for the CBI, gave this statement:

“[He added] that the policy of the Iraqi Central Bank [is] to raise and support the Iraqi dinar; [it] is very important in increasing customer confidence in Iraqi dinars, which contribute to increase the volume of foreign investment and local levels in Iraq, and [this is] the axiom of the theory of money, banking, currency and prestige of the state: [namely] when the currency weakens [there is] less prestige of the state.”

http://articlesofinterest-kelley.blo...l/Iraq%20Banks

And also on the 28th of February we received a statement from none other than Prime Minister Nuri Al-Maliki himself:

“Iraqi Prime Minister Nouri al-Maliki said on Sunday that the process to re-evaluate the Iraqi dinar has to do with economic conditions that have to be strengthened.

"’The Iraqi dinar has all the reasons to grow stronger thanks to an increase in revenues and development of the economy,’ Maliki said in response to some questions through the National Information Center.

"’The government would not rush matters but would rather work on finding all the guarantees to render this measure a success. The Central Bank of Iraq (CBI) is currently entrusted with drawing up a study on the whole issue and would give its decision soon,’ said the Iraqi premier.

“The Iraqi dinar's exchange rate is suffering from low value against foreign currencies as a result of decades of wars and economic embargo that brought the local currency's exchange rate to the rock bottom from three dinars per dollar in the late 1970s and 1980s to 3,000 dinars per dollar after the 1990 invasion of Kuwait, followed by a 13-year crippling sanctions regime.”

http://www.zawya.com/story.cfm/sidZA...01/?query=iraq

On the following day, March 1, Shabibi gave a further clarification of the action plan:

“The governor of the Central Bank of Iraq (CBI) on Monday said that the current exchange rate (1,170 Iraqi dinars per dollar) is reasonable, adding that the bank has enough foreign reserves to defend the exchange rate.

“ ‘The CBI is [now] adopting a managed floating policy of exchange rate, through which a reasonable exchange rate is fixed,’ Sinan Al-Shabibitold Aswat al-Iraq news agency.

“’The [new] current exchange rate is reasonable and stable and can be defended by our vast foreign reserves, totaling $43 billion U.S. dollars at the moment,’ Shabibi explained.”

I have already explained elsewhere how I believe that this article has inaccurately stated the intentions of Shabibi. The phrase in parentheses was interjected into the article by a reporter, and was not stated by Shabibi himself. With its removal the intent of Shabibi is more clear. In addition, as I have argued, the word “current” is also incorrectly translated into English from Arabic and it should read “new” instead, as I have indicated in brackets. Do a search for the meaning of "current" and you will see that a synonym is "new".

Therefore, I have argued that Shabibi has announced the final fulfillment of the 5 year “action plan” begun in 2005 and he is right on the schedule laid out 3 years ago by Al-Zubaidi in which he indicated in 2007 that the plan would require another 3 years to complete. Therefore Shabibi’s statement should correctly be understood as the announcement of the adoption of a new exchange rate for the dinar. As I have stated before, the only way in which the last sentence can have proper meaning is for it to refer to a new rate rather than the old (current) rate. Unless a new rate is being discussed the statement that it is “reasonable and stable and can be defended” has no bearing on the old rate whatsoever. The old rate is not only not reasonable, as stated by Maliki the day before as being “too low”; but it also does not need to be “defended” by huge reserves. The reserves of Iraq were only $11 billion just 3 years ago, and the rate was the same then as it is now (.00086). The increase in reserves therefore MUST refer to a new rate that is defensible by these reserves being in place.

We received two articles that had to be quickly dismissed by the CBI. The first referred to a new rate coming out at 1000 dinars to 1 dollar in June of this year. The CBI flatly denied that this is in their plan and went further to state that “Iraq’s currency policies are far from such decisions.” By using the word “far” I can only assume that he is stating that the imminent RV will be much higher than 1000 to 1.

Then in March we received a copy of the Letter of Intent that Shabibi had sent to the IMF, dated February 16 of this year but not revealed until early March. In that letter he stated that it was his intention to move Iraq back under Article 8 of the IMF charter where all internationally recognized countries are. Furthermore he stated that he would bring the Iraqi dinar into the international exchange market "in the near future". Finally he also said that once there he would allow the dinar to move under a "managed float". This is an indication that an RV will take place in the near future and that the dinar will be placed on Forex, the world's currency market, and allowed to float upward under managed conditions.

Here is the direct quote:

"To improve the functioning of foreign exchange auctions, we plan to develop organized exchange markets outside the central bank, including an interbank foreign exchange market. Our aim is to establish a forward market in Iraqi dinars in the near future."

http://www.imf.org/external/np/loi/2010/irq/020810.pdf

Since early March when we had the elections in Iraq there has been a degree of chaos and the RV has not occurred. However, based on a Reuters article from 2 days ago we now see that the world is exerting greater pressure on Iraq to get this done. In particular, China is now on record requesting Iraq to expedite the RV of the dinar so that China and Vietnam can do the same. We had heard as far back as early February that there may be up to 24 countries that will RV at or near the time of the IQD. So the pressure is being applied internationally.

Finally, we now have evidence that the PM position will be solved in short order. The UN and US jointly stated that Allawi's coalition has the right to form the new government. And just today we see that Maliki finally realizes that he must step down. He is hoping to be allowed to head the opposition in parliament. This means that early next week we should see Allawi announcing his new coalition, which will include, IMO, his own Iraqiya group, the Kurds, and either the National Coalition and/or Maliki's own State of Law group. Should he be able to pull this off, and I suspect he will, there will be great unity in the new government.

Allawi is on record stating that the RV will occur as soon as he is elected.

Therefore, we see not only that this will happen, but also that it has been planned for 7 years to happen. Furthermore, we have every reason to expect a rate in the $3 range based not on our hopes only but on the statements from the Ministry of Finance and the CBI themselves.

In short, gjrl1978, you are naive and ignorant. Now you are up to date. Please take your seat.

Steve

[plc8413]

Great information Steve, your info was to the point and backed by links, by the way I have your free book.

[Chief V]

Thanks for posting the timeline info Ron, sad that this woman was bashed the way she was at the end, lost some respect points there for ole E that's for sure, not that I had that much for him, but he is good with his economic analysis as he's proven that more than one, although his arrogance is unnecessary that's for sure.

[Maynard57]

thanks, Ron.

good stuff, Maynard.

BUt a pretty ungentlemanly closing.

[kox]

No. I think he was right on...her reply was rather catty...tell it like it is.... Thanks for the post

[ReturnToGod]

Very helpful, Ron; many thanks for posting this piece which connects the dots for us all. God Bless.

[twestbrook]

Thanks, Ron, for this post. Chief V, I don't know why you find Steve/E arrogant. Perhaps because he called Gjrl1078 "naive and Ignorant" ...I think that this person was attacking something that we all believe in without any knowledge on the subject and needed to be taken down a rung and that Steve did it eloquently and without malice. I listen to E's calls, and I find him to be humble...he is very knowledgeable on the IQD and the workings of the Iraq government (as much as a sane person can be), but he freely admits that he sometimes makes mistakes. I find his demeanor refreshing compared to some of the other "gurus". Just my two cents... God bless us all...and soon!

[Chief V]

Thanks, Ron, for this post. Chief V, I don't know why you find Steve/E arrogant. Perhaps because he called Gjrl1078 "naive and Ignorant" ...I think that this person was attacking something that we all believe in without any knowledge on the subject and needed to be taken down a rung and that Steve did it eloquently and without malice. I listen to E's calls, and I find him to be humble...he is very knowledgeable on the IQD and the workings of the Iraq government (as much as a sane person can be), but he freely admits that he sometimes makes mistakes. I find his demeanor refreshing compared to some of the other "gurus". Just my two cents... God bless us all...and soon!

In short, gjrl1978, you are naive and ignorant. Now you are up to date. Please take your seat.

Of course we all believe in it, and the simple fact that she doesn't is no reason for Steve to act like (SFM), I've seen that same type of response from him (SFM) numerous times, and it's pretty tiring, especially from someone who is so "humble" as you call it, that does not sound like a "humble" comment to me at all. He is very knowledgeable and I've never knocked that and read all his posts and arguments with Fi3ryPho3nix when he was up and current on here too. We all make mistakes, perhaps she is naive and ignorant to the facts, but that's her problem, she probably has no business being on the site that this came from as that is why several folks have been removed from this site, the same type of attitude. I've stayed with this site due to the respect levels that have been reached here, and can do without the rhetoric. Guess that's why I'm not on that site then.... JMO

God Bless as well.

[jstwhstle]

Thank you for all the time spent finding news & with your help we can try to understand what is really happening in Iraq. Blessings on you.

[Telabiz]

Ignorance is bliss , With the ups and downs of this investment I would have to say . Don't feel insulted by the folks who , Know more , or the folks who know more and insult others for not knowing . In the end Nobody know's for sure . This could be a major investment however , Worst case : I cash in my Dinar for what I paid (Less Shiiping) Just Sayin'

[deenar]

I have no problem with E calling Gjrl1078 ignorant and naive. Those are the exact words I would use to describe this person.

[YANNAVIA]

Great find Ron, thanks for posting it! This is by far one of the best history timelines on the IQD I've read yet.

[lambert]

No. I think he was right on...her reply was rather catty...tell it like it is.... Thanks for the post

I second that motion! Very haughty statement on her part. The slight spanking at the end was warranted.

[sparklingblue]

A wonderful read let hope that the rv is so soon.

[dinardoll]

This was Extremely informative and laid out. I hope GJrl1978 pays attention or she may regreat her naivety!

[BlueOrchid919]

Gjirl1978 or no Gjrl1978, I truly appreciate the information shared in this thread! Perhaps some can learn, perhaps not. I sure did!

B

[Racheal]

Thanks, I am using your post as a condensed explanation of why I believe in this investing over the past years. Thanks for putting it together! NOW Gjirl1978 knows too.

[Jim m]

Bashing the basher, heck I call that fair.

As far as this post is concerned it is the best I have seen so far in laying out the history of this thing.

Kudo's to you and thank you so much.

Jim M

The value of a man resides in what he gives and not in what he is capable receiving.

- Albert Einstein

[TexaSwa]

Great opinion peice.

He takes some liberties with his interpretation of “delete the zeros” but I certainly hope he’s correct. 3+ RV would be great. A redenomination would be bad.

[eileen]

Okay, this was a great post and truly appreciate it!!! As far as this "girl" goes, she got exactly the answer I would have given her! Go RV/RI!!

[LOCOMOJO]

...........took a lot of time to put this all together, thank you

[Pam&Brian]

Gjrl1978 doesn't have to be bashed... she's merely uninformed and has a right to her own opinion. Hopefully she will do some research on her own and join the rest of us (informed and uninformed) in this potentially good investment!

[Jac]

Certainly Ron and E diserve Stars for this post.

Thank you and blessings.

[Rhnda]

The Definitive Response to Gjrl1978 and the facts behind the Plan to RV

Posted in zzz - 4 June 2010

The reply to this persons remarks represent an excellent history of the Iraqi RV plan - and I consider it an excellent analysis and a good read. I believe it will give any student of the IQD a better undertstanding of our investment and the potential outcome of the RV/RI.....JMHO...!

RON

Gjrl1078 on May 28, 2010 at 1:58 PM

This whole dinar nonsense has to be one of the funniest things I have come across in a while. I didn't know countries could arbitrarily change the value of their money. This is just going to be like Saddam's exchange rate, a freaking joke. I wish I could short you people, or sell you dinars at highly inflated prices. If the dinar is going to skyrocket next week, why can people still buy them from dinartrade.com? Wouldn't they just hold onto all of their dinars?

---------------------------------------------------------------------------

Enorrste Reply:

I would like to take you on a journey that will show just how the plan has not only been created and laid out publicly for 5 years, but also that it has become more and more specific every year. Finally, when the “chaff” is removed from the“wheat” by poor reporting or outright falsehoods, the picture we see is very consistent and should give you all a great sense of relief that this ride is nearly over.

We start our journey back in September of 2005 when an official statement was released to the media in which it was announced that Al Zubaidi, the head of the Ministry of Finance, had recommended to Shabibi, the head of the CBI, “Shabibi needs to raise the value of the Iraqi dinar and return to normal through the lifting of three zeroes.” In addition the article showed that the CBI, the Ministryof Finance, and the Central Bank would bring experts together and that “the proposals to get the value of the Iraqi dinar equivalent of [to] the American dollar, this goal we will strive to achieve.”

http://www.talkgold.com/forum/showthread.php?t=28719&page=44

In June of 2006, just eight months later, the original proposal was expanded upon just slightly by the Ministry of Finance and the CBI in a joint statement: “The Ministry of Finance together with the Central Bank are studying a proposal to raise the value of the Iraqi dinar in order to return it to previous levels where one Iraqi dinar was valued at 3.33 US dollars.” Further elaboration on the plan that was being worked on was also given in the same article: “A statement by B.J. AL Zubaidi, the Minister of Finance, in which he said that he had suggested to the Chairman of the Central Bank, Dr.Sinan AL Shibibi, that three zeros be taken from the Iraqi Dinar in order to raise its value so that one Dinar be equal to a Dollar.”

http://www.iraqdirectory.com/DisplayNews.aspx?id=1593

Then in January of 2007 Al Zubaidi, the head of the Ministry of Finance, in an article on the raising of salaries made this additional statement regarding the dinar: “Al Zubaidi emphasized that the Ministry of Finance and in consultation with the Central Bank seeks to identify the exchange rate of the dollar at 1260 dinar during this year. It also laid down a plan to restore the Iraqi dinar to its former era during the coming three years expressing his hope to stabilize its exchange rate at 1000 dinar for the dollar during the coming period.”

http://www.iraqdirectory.com/DisplayNews.aspx?id=2994

Here, interestingly, for the first time Al Zubaidi has given us a future time table for the RV of the dinar. He states clearly that the plan would come to fulfillment “during the coming 3 years”. Since he was quoted in January of 2007 we can now see, 3 years later, that the time of fulfillment is upon us. This is HIS words, and not mine. Furthermore he specifically refers to bringing the dinar back to what it was "in a former era". This means before the Saddam regime, as I have shown elsewhere, and specifically refers to $3.33 for the RV rate as shown just above.

Then in August of 2008 another statement was issued: ”Finance Ministry has prepared a plan to increase the value of the dinar against the dollar and then delete the three zeroes from the dinar's value to contribute to the advancement of the Iraqi economy during the coming period.” Here we now were able to see that there is an order of events that will occur, with the raising of the value of the dinar coming first, and then the “delete the three zeros” afterwards. At the time I’m sure that everyone invested in dinars wondered what “delete the three zeros” could possibly mean.

http://translate.google.com/translate?hl=en&ie=UTF-8&sl=ar&tl=en&u=http://www.foratnews.com/paper.asp%3FID%3D8383&prev=_t&rurl=translate.google.com&twu=1

The answers started flooding in finally early this year. In earlyFebruary of 2010 the following statement was made: “The Iraqi Central Bank is planning to redenominate the national currency in an effort to ease transactions and allow people to carry less paper money….. that a plan has been made to remove three zeros from the currency and phase out the current bank notes late this year….Salih said by the end of 2010 the new banknotes will be fully introduced while the old banknotes will be gradually removed from circulation…..Both will be legal tender in Iraq until the old notes are completely withdrawn….. but by dropping the zeros it will make it easier for both the banks to deal with their customers and for the general public to carry money.”

We were being given a hint as to the meaning of “delete the three zeros” in this statement. Yet it was still not quite clear to all.

http://www.rferl.org/content/Iraq_Pl...n/1950504.html

On the 10th of February a further clarification of this long process was revealed: “The CBI begins the end of the year and gradually replace the currency now in circulation a new currency which zeroes deleted within the strategy to reform the monetary system started in 2005.” We finally got a clarification of the “delete the three zeros” meaning: it refers to the removal of bank notes with3 zeros on them from circulation over the remainder of this year. Furthermore, the CBI was nice enough to refer back to the beginning of this long planned process, which it said was begun in 2005 and which we have now documented to be the case.

http://articlesofinterest-kelley.blogspot.com/2010/02/two-currencies-coexist-together-and.html

Remarkably another statement was issued on the same day, February 10:

“CBI begins the end of the year and gradually replace the currency now in circulation a new currency which zeroes deleted within the strategy to reform the monetary system started in 2005.”

http://www.azzaman.com/index.asp?fna…htm&storytitle

The very next day, on the 11th of February, Al Zubaidi backed up the statement from the CBI as follows: “this proposal by the Ministry of Finance to the Central Bank of Iraq was not affected increase or decrease but it is just delete the zeros vocation not only the case in many countries Noting that the Iraqi dinar would be offset dollar or slightly more than after theapplication of this proposal…. The proposal to raise three zeroes from the currency will be in accordance with the right monetary policy [and] is not gradual, as happened in Turkey and this policy will raise the monetary value of the Iraqi currency and will of the Iraqi dinar Strength of cash against all currencies.”

Here we received another inkling of the rate for the RV. Whereas before we had two documents from previous years that indicated a proposed rate of over $3 for the dinar, this proposal is now stated to be at or above $1 for the dinar. From Al-Iraq News.com

Then on February 23 we received a great find from John1025:

“Finance Minister Baqir Jabr Al-Zubaidi: At the end of this year will see the current Iraqi dinar currency pair and the new Iraqi dinar, which is no different for the same amount, noting that the employee's salary is not affected by the standard of living….. This is not like the ministry, but the jurisdiction of the Central Bank independent of the ministry's proposal but it is the proposal I submitted to me three years ago, by deleting three zeros and the Central Bank studied this proposal and the bank's board finally approved by the end of this year we will see Ammeltian the current Iraqi dinar and the new Iraqi dinar, which is no different for The same amount will not be affected employee's salary and standard of living of the citizen with the survival of the dinar in the same Altdlol .”

http://translate.google.com/translat...%26tbs%3Dqdr:d

Not coincidentally, in my view, Al-Zubaidi refers back to the process that he mentioned 3 years ago,when he said that the plan would come to fulfillment in 3 years. He is fulfilling his own statement and stating without equivocation that the plan is right on schedule.

On February 28 we received the most detailed discussion of the “action plan” yet:

The Iraqi Central Bank defended its policy to withdraw by the deletion of zeros from the cash currency in order to reduce inflation, againt its critics [who say that it is] a policy that is "progressive" and long-term, although most critics regarded the policy as a unit, which the Economic Adviser to the Prime Minister called "in vain" and that it would cost the budget a lot but come to no real avail.

Central Bank adviser Muhammed Al Salih appeared to discuss the economic policy of the central bank for withdrawing cash from the local market due to the"inflation suffered by the money supply, which rose from 25 billion dinars in 1980 to 23 trillion dinars now. He said “it is important to reduce [the money supply]," noting that the process of lifting the zeroes is a "long-term policy adopted by the Iraqi government and the central bank, which will direct the project as soon as the development of the Iraqi economy warrants it, and that this may be this year or next and will probably require a longer time, depending mainly on the stability [of the economy] for the operation."

Saleh told (Voices of Iraq) that "there is no need to rush the process at the moment but at the same time it is required because the subject of reform will not change the value of the currency, except to make the bills smaller." He stressed that Iraq "During the next few years, according to the new development plan, will raise its oil production, and resources will increase significantly.” He added, “and we therefore need a strong currency and low [denomintated notes] at the same time, [thereby making them] easy to handle. "

http://ar.aswataliraq.info/?p=202726

Later that same day Dr.Saad Al-Hassoun Hayali, a spokesman for the CBI, gave this statement:

“[He added] that the policy of the Iraqi Central Bank [is] to raise and support the Iraqi dinar; [it] is very important in increasing customer confidence in Iraqi dinars, which contribute to increase the volume of foreign investment and local levels in Iraq, and [this is] the axiom of the theory of money, banking, currency and prestige of the state: [namely] when the currency weakens [there is] less prestige of the state.”

http://articlesofinterest-kelley.blo...l/Iraq%20Banks

And also on the 28th of February we received a statement from none other than Prime Minister Nuri Al-Maliki himself:

“Iraqi Prime Minister Nouri al-Maliki said on Sunday that the process to re-evaluate the Iraqi dinar has to do with economic conditions that have to be strengthened.

"’The Iraqi dinar has all the reasons to grow stronger thanks to an increase in revenues and development of the economy,’ Maliki said in response to some questions through the National Information Center.

"’The government would not rush matters but would rather work on finding all the guarantees to render this measure a success. The Central Bank of Iraq (CBI) is currently entrusted with drawing up a study on the whole issue and would give its decision soon,’ said the Iraqi premier.

“The Iraqi dinar's exchange rate is suffering from low value against foreign currencies as a result of decades of wars and economic embargo that brought the local currency's exchange rate to the rock bottom from three dinars per dollar in the late 1970s and 1980s to 3,000 dinars per dollar after the 1990 invasion of Kuwait, followed by a 13-year crippling sanctions regime.”

http://www.zawya.com/story.cfm/sidZA...01/?query=iraq

On the following day, March 1, Shabibi gave a further clarification of the action plan:

“The governor of the Central Bank of Iraq (CBI) on Monday said that the current exchange rate (1,170 Iraqi dinars per dollar) is reasonable, adding that the bank has enough foreign reserves to defend the exchange rate.

“ ‘The CBI is [now] adopting a managed floating policy of exchange rate, through which a reasonable exchange rate is fixed,’ Sinan Al-Shabibitold Aswat al-Iraq news agency.

“’The [new] current exchange rate is reasonable and stable and can be defended by our vast foreign reserves, totaling $43 billion U.S. dollars at the moment,’ Shabibi explained.”

I have already explained elsewhere how I believe that this article has inaccurately stated the intentions of Shabibi. The phrase in parentheses was interjected into the article by a reporter, and was not stated by Shabibi himself. With its removal the intent of Shabibi is more clear. In addition, as I have argued, the word “current” is also incorrectly translated into English from Arabic and it should read “new” instead, as I have indicated in brackets. Do a search for the meaning of "current" and you will see that a synonym is "new".

Therefore, I have argued that Shabibi has announced the final fulfillment of the 5 year “action plan” begun in 2005 and he is right on the schedule laid out 3 years ago by Al-Zubaidi in which he indicated in 2007 that the plan would require another 3 years to complete. Therefore Shabibi’s statement should correctly be understood as the announcement of the adoption of a new exchange rate for the dinar. As I have stated before, the only way in which the last sentence can have proper meaning is for it to refer to a new rate rather than the old (current) rate. Unless a new rate is being discussed the statement that it is “reasonable and stable and can be defended” has no bearing on the old rate whatsoever. The old rate is not only not reasonable, as stated by Maliki the day before as being “too low”; but it also does not need to be “defended” by huge reserves. The reserves of Iraq were only $11 billion just 3 years ago, and the rate was the same then as it is now (.00086). The increase in reserves therefore MUST refer to a new rate that is defensible by these reserves being in place.

We received two articles that had to be quickly dismissed by the CBI. The first referred to a new rate coming out at 1000 dinars to 1 dollar in June of this year. The CBI flatly denied that this is in their plan and went further to state that “Iraq’s currency policies are far from such decisions.” By using the word “far” I can only assume that he is stating that the imminent RV will be much higher than 1000 to 1.

Then in March we received a copy of the Letter of Intent that Shabibi had sent to the IMF, dated February 16 of this year but not revealed until early March. In that letter he stated that it was his intention to move Iraq back under Article 8 of the IMF charter where all internationally recognized countries are. Furthermore he stated that he would bring the Iraqi dinar into the international exchange market "in the near future". Finally he also said that once there he would allow the dinar to move under a "managed float". This is an indication that an RV will take place in the near future and that the dinar will be placed on Forex, the world's currency market, and allowed to float upward under managed conditions.

Here is the direct quote:

"To improve the functioning of foreign exchange auctions, we plan to develop organized exchange markets outside the central bank, including an interbank foreign exchange market. Our aim is to establish a forward market in Iraqi dinars in the near future."

http://www.imf.org/external/np/loi/2010/irq/020810.pdf

Since early March when we had the elections in Iraq there has been a degree of chaos and the RV has not occurred. However, based on a Reuters article from 2 days ago we now see that the world is exerting greater pressure on Iraq to get this done. In particular, China is now on record requesting Iraq to expedite the RV of the dinar so that China and Vietnam can do the same. We had heard as far back as early February that there may be up to 24 countries that will RV at or near the time of the IQD. So the pressure is being applied internationally.

Finally, we now have evidence that the PM position will be solved in short order. The UN and US jointly stated that Allawi's coalition has the right to form the new government. And just today we see that Maliki finally realizes that he must step down. He is hoping to be allowed to head the opposition in parliament. This means that early next week we should see Allawi announcing his new coalition, which will include, IMO, his own Iraqiya group, the Kurds, and either the National Coalition and/or Maliki's own State of Law group. Should he be able to pull this off, and I suspect he will, there will be great unity in the new government.

Allawi is on record stating that the RV will occur as soon as he is elected.

Therefore, we see not only that this will happen, but also that it has been planned for 7 years to happen. Furthermore, we have every reason to expect a rate in the $3 range based not on our hopes only but on the statements from the Ministry of Finance and the CBI themselves.

In short, gjrl1978, you are naive and ignorant. Now you are up to date. Please take your seat.

Steve

It is not my aim here to be pretentious or argumentative, but Gjrl1078 is not as naive and ignorant as Steve proclaims. The value of a currency is Never an arbitrary valuation, it is Always relative to a country's GDP and it is Always relative to All other Global currencies. Iraq can most certainly RV their currency in anyway they choose, but it HAS to be relative to the rest of the world to be recognized and accepted as a True Value.

Lets take a simple example...there are almost 30 trillion dinar now in circulation. If suddenly tomorrow Iraq proclaims that the Dinar is on parity with $1 US dollar, this would mean that the new value of the Dinar exceeds the combined GDP of the US, European Union, Russia and China (which all have a combined GDP of approximately $29 trillion dollars) Sooooo....a few things would obviously have to happen, the cost of everything would suddenly have to be significantly raised or lowered to accomodate this new arbitrary valuation. Since a $40,000 US salary isn't going to drop to $40 a year, nor is a $2.00 gallon of milk going to suddenly cost $2000, the economic and mathematical feasibility of this RV making you wealthy is approximately ZERO.....The currency will be RV'd, most certainly, but not without the 000 LOP, or without taking ALL the current currency out of circulation and starting over. It just doesn't work the way many of these forums proclaim.

I hope that makes some sense?

The sun has a greater chance of exploding Tomorrow, than Dinar holders suddenly becoming wealthy. If the RV of the Dinar happened the way these Dinar sellers pitch the deal, you have to remember, US Banks buying your new fortune held piles of Dinar, would have to devalue their currency by apprx 1/1000 for the valuation to be true....this of course will not happen. In reverse, the US can not arbitrarily raise the value of $1 US dollar to $1000 US Dollars relative to the new RV of Dinar.

So, if you have 500,000 dinar today, after the RV, you will actually have 500 dinar and the value of your holdings will be the same, give or take a couple bucks. Your 500,000 dinar are NOT suddenly going to have an equivalent valuation of $500,000 dollars. This is just economically and mathematically IMPOSSIBLE.

I am not a naysayer or a pessimist, but millions of people are buying Dinar with the notion that they are going to accumulate wealth for being so foresighted. Do you really think you know something via these forums that the banking industry that runs the globe doesn't know? Ask yourself, if the Dinar was going to suddenly make people wealthy, would you really be able to get your hands on the currency?....the answer unfortunately is NO.

DTrade and similar companies don't sell you Dinar for some philanthropic purpose, they sell Dinar because they are not regulated and they can get away with charging you a 25% mark up for the transaction.....Do the math, if DTrade or similar companies are doing 600-1000 transactions daily at $100 a pop, they are making a BUTT LOAD of CASH....since this has been going on now for over five years, sellers of Dinar have made hundreds of millions of dollars, the holders of Dinar have made NOTHING!!!!

Believe me....I would love to be selling Dinar, unless of course I believed the RV was going to work the way it is explained in the forums....then of course I wouldn't sell any...I would hold my Dinar and wait for my astronomical wealth to occur.

Lastly, currency is NEVER bought and sold in hard paper currency. These days, currency is always sold in the form of an option via the foreign exchange markets.

Billions are traded daily as supply and demand has a cause and effect on the value or the "power" of the currency. If the Dinar is every going to have any appreciation, I assure you, it will begin to trade in global markets long before it is made available to the everyday Joe or Jane. Right now, it doesn't trade anywhere, because NO single bank believes the Dinar has any value....C'mon, Iraq has a GDP of 100 billion dollars. Nobody on the planet buys or sells anything outside of IRAQ in Dinar...They use dollars which affects the changing value of the dollar...Not the Dinar.

Obviously for the sake of brevity, I have left gaps in how a currency is valued, but I hope this brings some perspective to the "we are all gonna get rich" mentality associated with purchasing the Dinar. The entire globe has to be involved in the valuation of a currency, otherwise, as Gjrl1078 correctly stated, everybody would get up tomorrow and arbitrarily RV their currency....Best wishes in All your investments and may all your moves toward prosperity be based on logic, common sense and simple math.... NEVER on pipe dreams.

With Warm Regards,

Rhonda.

[Rhnda]

No, not at all...I am not suggesting that there will not be an RV on the Dinar... Absolutely there will be, BUT it WON"T have the "wealth factor" on the dollars that you have invested as some have uncorrectly inferred. All the hoopla about the RV that you read is fairly accurate, but what isn't accurate most of the time is the way the "RV" is being portrayed relative to your bank account and invested dollar. An equal value RV to the dollar is a mathematical and economic impossibility.

Too often it is portrayed that if you have1,000,000 dinar, that suddenly you will be able to run down to the bank and cash it in for $1,000,000 US. Not true!!! Absolutely Not True!!! The US would have to devalue our dollar dramatically for this to even be remotely on the horizon. There are approximately $7 trillion US dollars in circulation. If the 30 trillion dinar were suddenly worth $30 trillion dollars, there is not only not enough US Dollars, there isn't enough money in the entire world to buy or compensate for the new value of the dinar...Does that make sense? A country worth a few hundred billion can suddenly wake up one morning and be worth more than the rest of the combined planet.

It would be like having a $300,000 dollar house in a nice neighborhood and listing it for sale at $3 billion. Understand? Your house value is relative to the value of all the other houses in the neighborhood...very simple supply and demand.

And yes to a certain extent the comparison to Kuwait can be made given that the country can stabilize the government, drastically overhaul the infrastructure, and increase production of oil. What gets continuously overlooked though in these forums is that Iraq has 25,000 times more dinar in circulation than Kuwait. Which brings us back to the point I made in the above post....The greatest likelihood is that you will see the dinar depreciate some from current values and then something comparable to the triple zero LOP. There is much for Iraq and it's allies to gain from implementing these basic economic policies, but for the investor of dinar, for it to happen the way it is portrayed in these forums is totally in another galaxy. The dinar WILL hopefully grow in the same type of proportions as do most economies when they redevelop their nations. Could you double your money 12 years out...sure, but even this will require steady growth at a pace that exceeds the rest of the world.

***Please note that I am not bashing this forum...I would imagine that Adam's ebook is worth every penny, as is worst case, you will learn more about economics than you currently know...Pardon me - I don't mean that to sound pretentious, but the forum would never grow to it's current size without the hopes and unrealistic dreams of thousands of readers. ( I really wish I would have thought of this...it is indeed a cash cow...it is actually marketing genius)

So anyhow...yes the dinar will RV, but NOT on values anywhere close to a penny, nickel, dime, quarter, or dollar....the entire monetary system will be revamped first.

My sincere apologies if I have offended anyone...

I just wanted to get past the screen and mirrors and look directly at the math.

Warm Regards,

Rhonda