Raise the three zeros from the Iraqi currency

[Officiallytook]

 

For last bit of education

[mylilpony]

I remember shabbibi stating that the old dinars would circulate in the market and would be removed gradually for 2 years, or so. Also the dinars that any other country holds would have 10 years to slowly return those notes, or they can hold it as a reserve currency in their country. Also i guess i have a question and that is ...cant they go from 50 trillion dinars to 40 billion dinars with just a rate change and it not meaning that they have to remove the amount of notes from circulation that are equal to 50 trillion down to 40 billion? I always had the feeling that the larger notes like the 50k and the 100k were put out to suck in the other larger notes, thus removing notes from circulation and also changing the amount of the money supply then. Maybe i am mixed up but i cannot see the gradual pulling of notes for 10 years. I believe the way the article is written is a bit cryptic in terms of translation, but the 10 years was always stated from shabbs to be the length of time that another country had to gradually return the dinar they held. If shabbs still has anything to do with this economic policy, he always said that they would have a managed float with an erm(exchange rate mechanism), that would not deviate more than 2% up or down every 90 days. To just float the currency at lets say a dime and try to manage that with only 40 billion in reserves is not feasible. The stand by agreement with Iraq and the imf clearly stated that their reserves could not fall lower than 30 billion. So that only gives you 10 billion to work with in trying to keep the float manageable without losing control of the whole macroeconomic policy. Lets remember that when they do do this the imports and imports play a large role and also the paying of salaries, etc. When we were in control of the country many papers stated that it took somewhere around 4 billion dollars a month to just run the government, soooo that does not leave much room for speculation or a run on their currency. 

[DinarThug]

14 hours ago, DinarThug said:

Only Slightly Less Known In Italy Is The Shroud Of Trento !

Umbertino's Pepperoni Hoodie That He Wore While Running To The Bank After A Luigi Rumor !

Mmm ... I'm Getting Hungry Just Looking At That Thing - Somebody Pass Me A Sleeve ...{/b]

           

 

18 hours ago, WheresmyRV? said:

Thanks Thuggie!!  I guess it really is time to get excited if the pizza man and Enorrest is excited!

In Honor Of Kaperoni - Umbertino's Warming Up His Pizza Hoodie Again !

            

 

[caz1104]

14 hours ago, SocalDinar said:

Thanks Thug,

Still waiting and hoping.

Did u re-up? I thought u got rid of your Dinar

[DinarThug]

Central deletion of zeros early 2017

 

NEW MORNING

ECONOMIC AFFAIRS

NOVEMBER 8TH, 2016

73 READINGS

Baghdad morning 's New: 
The governor of the Iraqi Central Bank on the Keywords that project to delete the zeros will be implemented in early 2017, indicating that the bank began to develop the first steps of theproject. 

Keywords and said in a statement, said that « the goal of deleting three zeros from the Iraqi currency It is to support the Iraqi dinar and make it a competitor of foreign currency », pointing out that« this strategic project will serve the country 's economy if it will be inclusion of the Iraqi dinar in the global basket of currencies in the vital world exchanges ». 

he added that the bank« working on mechanisms for the implementation of this project is expected to start with the beginning of the year 2017 », indicating that« the central bank began the first steps of the project through the selection of designs, companies and thecountry that will be the currency printing ». 

He pointed out that« the new currency entry does not mean the destruction of ancient coins, but will continue in circulation for about ten years », pointing out that« this period will enable the central bank to withdraw the old currency in accordance with the dynamics and mechanics in order to preserve liquidity in the market ». 

in the same regard, the Central Bank of Iraq, decided on Tuesday to open two branches has to manage its activities and functions in the Kurdistan region. 

the bank said in a press statement, he said that « the Council of the Iraqi Central Bank board of Directors decided in its session numbered 1546 and held on 23.10.2016 has opened two branches to manage its activities and functions in the Kurdistan region.»

 

THE CENTRAL BANK OF IRAQ ON THE KEYWORD

http://www.newsabah.com/wp/new.....per/101541

 

[SnowGlobe7]

is early the same as soon??

[Wiljor]

Evening Thugs, much obliged amigo 

"the goal of deleting three zeros from the Iraqi currency It is to support the Iraqi dinar and make it a competitor of foreign currency"

Again!!!!!!!! Here is a statement about the Dinar being a competitor of foreign currency   

Something is in the works so let's hope that it is all what we are waiting for, the timing is very coincidental or this time is the real deal. I believe it's the real deal 

[SnowGlobe7]

please please please

[Candy01]

11 minutes ago, SnowGlobe7 said:

please please please

MEEEE, TOOO!!

[climber7]

Ho-kay 

So apologies if I'm missing something but while this all sounds positive and what we think we want to hear....thereve been many posts explaining why they won't give a date/rate--to keep too many people from buying dinar and ruining this investment 

Why then would they be telling the world now they're gonna do it early 2017? Isn't this counter productive? 

Confusing

Edited November 9, 2016 by climber7

[Synopsis]

6 minutes ago, climber7 said:

Ho-kay 

So apologies if I'm missing something but while this all sounds positive and what we think we want to hear....thereve been many posts explaining why they won't give a date/rate--to keep too many people from buying dinar and ruining this investment 

Why then would they be telling the world now they're gonna do it early 2017? Isn't this counter productive? 

Confusing

Confusing, yes, very much so.

There appear to be, at least to me, many supporting advancements in Iraq that, again to me, the currency considerations could be applied for the value of the IQD to compete with other currencies within this time frame.  Iraq has huge untapped natural resources (far beyond just oil) that would be in high demand to the outside world if there was a means to extract them and export them to the outside world.  As such, there are significant articles recently referencing outside world investment by foreign companies with their resources to do just that.  My opinion is how the IQD change happens will be a significant to substantial surprise to a vast number of people who know anything about the IQD.  As such, to prevent malpractices by the miscreants and last minute (or picosecond) investors, the likely entity (CBI) will short the time frame at a point in time unknown to the outsiders.  So, if my reasonably contestable theory has any substance, the heavy lifting of the IQD changes could happen before early 2017.  All speculation on my part, of course.

[climber7]

40 minutes ago, Synopsis said:

Confusing, yes, very much so.

There appear to be, at least to me, many supporting advancements in Iraq that, again to me, the currency considerations could be applied for the value of the IQD to compete with other currencies within this time frame.  Iraq has huge untapped natural resources (far beyond just oil) that would be in high demand to the outside world if there was a means to extract them and export them to the outside world.  As such, there are significant articles recently referencing outside world investment by foreign companies with their resources to do just that.  My opinion is how the IQD change happens will be a significant to substantial surprise to a vast number of people who know anything about the IQD.  As such, to prevent malpractices by the miscreants and last minute (or picosecond) investors, the likely entity (CBI) will short the time frame at a point in time unknown to the outsiders.  So, if my reasonably contestable theory has any substance, the heavy lifting of the IQD changes could happen before early 2017.  All speculation on my part, of course.

Thanks buddy for the well thought out synopsis 😜

So IYO you're saying since they're letting the cat out of the bag so to speak--they may RV sooner than 2017? 

Ive just seen so many posts stating they don't want a run on the dinar so that's why they won't disclose a date/rate 

if true--then something's wrong

Maybe they aren't concerned about explaining what they're going to do cause they aren't going to RV it?

Edited November 9, 2016 by climber7

[Synopsis]

6 minutes ago, climber7 said:

Thanks buddy for the well thought out synopsis 😜

So IYO you're saying since they're letting the cat out of the bag so to speak--they may RV sooner than 2017? 

Ive just seen so many posts stating they don't want a run on the dinar so that's why they won't disclose a date/rate 

if true--then something's wrong

Maybe they aren't concerned about explaining what they're going to do cause they aren't going to RV it?

My speculation or opinion may be as valid as anyone else's.   I try to make sense out of the articles to develop my opinions or perspectives and share like others.  So, I am saying it is a potential for them to RV sooner than 2017 for the reason(s) you mentioned and my belief about why they may RV sooner than 2017. I'm not a rocket scientist in any stretch of the term or anything like that but it seems to me for Iraq to be able to do the things Iraq has prepared for and now has the modern international connectivity to do, they need an internationally traded currency of their own for World Trade Organization practices to be fully implemented. Seems like international businesses are chomping at the bit to do business with Iraq internationally and there seems to be a lot of momentum built up internally and externally to try to make that happen.  With all the significant laws that are being passed, or are slated to be passed, I suspect ISIS being effectively dealt with may be a significant catalyst to get everything in place.  In my estimation, Iraq needs to demonstrate itself as being a Sovereign and Autonomous State for the necessary clout internally and internationally.  As such, ISIS, Turkey, and Iran will need to get the firm boot out of Iraq since you can't (in my opinion) have international businesses doing business in Iraq having uninvited and unwelcomed foreign troops running around in Iraq.  The coalition forces on the other hand likely have the Status Of Forces Agreement(s) in place to remain in Iraq in restricted areas and also provide training support to the various Iraqi peace keeping forces.

Just my 

[Wiljor]

56 minutes ago, Synopsis said:

My speculation or opinion may be as valid as anyone else's.   I try to make sense out of the articles to develop my opinions or perspectives and share like others.  So, I am saying it is a potential for them to RV sooner than 2017 for the reason(s) you mentioned and my belief about why they may RV sooner than 2017. I'm not a rocket scientist in any stretch of the term or anything like that but it seems to me for Iraq to be able to do the things Iraq has prepared for and now has the modern international connectivity to do, they need an internationally traded currency of their own for World Trade Organization practices to be fully implemented. Seems like international businesses are chomping at the bit to do business with Iraq internationally and there seems to be a lot of momentum built up internally and externally to try to make that happen.  With all the significant laws that are being passed, or are slated to be passed, I suspect ISIS being effectively dealt with may be a significant catalyst to get everything in place.  In my estimation, Iraq needs to demonstrate itself as being a Sovereign and Autonomous State for the necessary clout internally and internationally.  As such, ISIS, Turkey, and Iran will need to get the firm boot out of Iraq since you can't (in my opinion) have international businesses doing business in Iraq having uninvited and unwelcomed foreign troops running around in Iraq.  The coalition forces on the other hand likely have the Status Of Forces Agreement(s) in place to remain in Iraq in restricted areas and also provide training support to the various Iraqi peace keeping forces.

Just my 

Well said brother Synopsis and I concur. If we look at other nations, 3rd world countries, or even Vietnam, they do not have the same scenario that Iraq does. This is a unique place that has pretty much everything other global economies want, oil, gold, and other natural resources. Iraq can also feed its people meaning, they have the capacity and capability to farm and produce their own food. The Iraq Dinar is being forcefully held below value and we know that, and we have many experts here who have far more knowledge in economics who will agree. Imo, in order for a nation to grow along with the statement you spoke of in your comments, the currency must have value, it must trade internationally, it must be a sovereign country, it must have a sound and secure banking system, it must sustain currency reserves, it must be able to defend itself, it must have laws in place to protect its people and foreign companies who will open businesses their, but most important it must have growth potential, and that my friends is what all the noise is about. Everyone is trying to get their feet in iraqs door, Abadi has been working hard to get his nation ready, rid his government of theft and corruption  and we can plainly see events happen pretty much daily, they are now putting the final touches to laws, banking, security, HCL, to get themselves ready for the international stage. Why?, It's all about business and call it a coincidence or call it whatever but since their will be a change of command in the US and we are closing out the year 2017, things have been moving with a more urgent pace in Iraq. I could be wrong and this is my  but I still feel early 2017 we could see movement in the value of the IQD. 

 

[Synopsis]

5 minutes ago, Wiljor said:

Well said brother Synopsis and I concur. If we look at other nations, 3rd world countries, or even Vietnam, they do not have the same scenario that Iraq does. This is a unique place that has pretty much everything other global economies want, oil, gold, and other natural resources. Iraq can also feed its people meaning, they have the capacity and capability to farm and produce their own food. The Iraq Dinar is being forcefully held below value and we know that, and we have many experts here who have far more knowledge in economics who will agree. Imo, in order for a nation to grow along with the statement you spoke of in your comments, the currency must have value, it must trade internationally, it must be a sovereign country, it must have a sound and secure banking system, it must sustain currency reserves, it must be able to defend itself, it must have laws in place to protect its people and foreign companies who will open businesses their, but most important it must have growth potential, and that my friends is what all the noise is about. Everyone is trying to get their feet in iraqs door, Abadi has been working hard to get his nation ready, rid his government of theft and corruption  and we can plainly see events happen pretty much daily, they are now putting the final touches to laws, banking, security, HCL, to get themselves ready for the international stage. Why?, It's all about business and call it a coincidence or call it whatever but since their will be a change of command in the US and we are closing out the year 2017, things have been moving with a more urgent pace in Iraq. I could be wrong and this is my  but I still feel early 2017 we could see movement in the value of the IQD. 

 

Well said, Brother!  Are you ready for your Tim's? eh?

            

[Wiljor]

32 minutes ago, Synopsis said:

Well said, Brother!  Are you ready for your Tim's? eh?

            

 I'm all teeth bro 

[yota691]

Central Bank: the deletion of zeros in early 2017

November 7, 201669 Show

The governor of the Iraqi Central Bank on the Keywords that project to delete the zeros will be implemented in early 2017, indicating that the bank began to develop the first steps of the project.

Keywords and said in a statement on Monday that "the goal of deleting three zeros from the Iraqi currency is to support the Iraqi dinar and make it a competitor of foreign currency," pointing out that "this strategic project will serve the country's economy if it will be inclusion of the Iraqi dinar in the global basket of currencies in the bourses vital world. "

He added that the bank "is working on mechanisms for the implementation of this project is expected to start at the beginning of 2017," noting that "the central bank began the first steps of the project through the selection of designs, companies and the country in which the currency will be printed."

He pointed out that "the new currency entry does not mean the destruction of ancient coins, but will continue to trade for about ten years," pointing out that "this period will enable the central bank to withdraw the old currency in accordance with the dynamics and mechanics in order to preserve liquidity in the market."

[DIAMOND]

starting at the beginning of 2017 ain't got a problem with dat

[DinarThug]

11-8-2016   Newshound Guru Enorrste   Article:  "Central Bank: the deletion of zeros in early 2017"   The following quote adds some fuel to our story:  "this period will enable the central bank to withdraw the old currency in accordance with the dynamics and mechanics in order to preserve liquidity in the market."  We see from this...that this precludes any LOP discussion.  But more importantly there are the words "dynamics and mechanics" which clearly make this an ongoing process rather than an event.   The key is the last phrase referencing maintaining the liquidity in the market.  What makes this a particularly challenging process is that they are going to be reducing the money supply, which would normally reduce liquidity, but will be doing so only as the VALUE of the dinar rises, which will offset the reduction in liquidity.  I can understand why they have been hesitant to begin the process.  It hasn't ever been done before, that I am aware of.  Usually a currency loses value due to inflation.  In this case, however, the expectation is that it will gain in value.  What they cannot afford is to have 50 trillion dinars out there if the value skyrockets upward.  So I understand there caution.

 

[Freedomwish]

30 minutes ago, DIAMOND said:

starting at the beginning of 2017 ain't got a problem with dat

Keeping the faith!! Keeping the faith!! 

[DinarThug]

Enorrste:    I think it is time to start getting excited, again.  The first thing that I noticed in this article is the follow quite specific statement:

And he said: "The purpose of deleting three zeros from the Iraqi currency is to support the Iraqi dinar and make it a competitor of foreign currency", returned him as "this strategic project will serve the country's economy if it will be inclusion of the Iraqi dinar in the global basket of currencies in the vital world exchanges."
 
ARTICLE LINK:    Learn the benefits of removing zeros from the Iraqi currency

Enorrste:    There are four things to note here:

(1) the large notes will begin to be deleted "beginning in 2017";

(2) the purpose is to make the dinar stronger (note the word "support" and the phrase "competitor of foreign currency"; and

(3) this will "serve the Iraqi economy"; and

(4) the dinar will take its place in the basket of currencies in the "vital world exchanges."  Let's look at these one at a time.

The large notes will be deleted.  This cannot be a LOP because a LOP would not change the value of the dinar, and the other three points above make it clear that the dinar will rise in value. 
 
Therefore, there is only one way that the large notes can be removed from the market place without destroying the fragile liquidity that exists in Iraq already:  the value must rise enough to make it feasible to remove the large notes. 
 
KAP has rightly stated in another thread that a minimum of $.10 for the value of the dinar would make it possible to begin removing the three zero notes  This means that we must look for a minimum of a 100 times increase in the value of the dinar sometime during the coming year.
 
Second, the purpose is specifically stated to "support" the dinar and to make it a "competitor in world markets."  At this point the dinar is not internationally recognized or tradable.  Both of these factors must be eliminated for point number 2 to come to fruition. 
 
The only way in which they can "support" the dinar (in terms of value) and make it "competitive" in the world markets is to allow it to float and to rise to the point where the "support" and "competitive" value become real factors.  I therefore expect to see the float start shortly after the new year.
 
Third, this move will "serve the Iraqi economy."  Clearly a move to a float and an internationally recogized currency will cause imports prices to fall quickly and allow for imports into Iraq more easily.  This would, then, be consistent with point number 3 that the plan will "serve the Iraqi economy."
 
Finally, the statement is made that the dinar will takes its place in a "basket of currencies" that contribute to the "vital world exchanges."  At present the only currencies that hold this sort of recognition are the dollar, Canadian and Australian dollar, pound, euro, and a few others. 
 
By making this bold statement, therefore, the author is re-iterating what we found from Saleh years ago namely that the dinar is going to become a world reserve currency.
 
The only way in which the dinar can take this position is if it is internationally recognized, if Iraq is a part of Article VIII of the IMF Charter, if the value of the dinar is commensurate with that of the world's reserve currencys (worth about a dollar American, more or less), and is supported by reserves that PROVE that it is a strong currency. 
 
The current reserves of $40 billion are sufficient to make the currency the strongest in the world at $1 per dinar.  Unlike the US, they won't need "the full faith and credit of Iraq" to support their currency. 
 
However, in addition to the highest relative reserves, Iraq also has the second highest known reserves of underground wealth in the world.  Therefore it is well positioned to take its place as a world reserve currency as long as they stick to the plan.
 
So, what are the potential pitfalls?  Tobyboy may be correct on the first one:  Parliament.  I am not convinced, however, that Parliament has to act in this case.  The CBI is not moving to a new currency. 
 
It is merely replacing the larger notes with smaller ones as they become more valuable.  I don't think Parliament will be required or even asked to act on this matter.  If I am correct on this, then, the delay factor that Tobyboy refers to may not be an issue.
 
The second issue is more tricky, however, and that is the issue of security in the country.  I read today an article that stated that the Iraqi army is not prepared for the onslaught that is expected to come at them in Mosul.  This could well drag out indefinitely. 
 
It would not surprise me if the CBI were forced to delay implementation due to the security concern, as it apparently has done in the past. 

There is one glimmer of hope:  if Trump becomes president we should see a change in strategy toward ISIS in short order, putting them more on the defensive rather than on offense as is now the case.  Time, and the election, will tell.
 
The bottom line for me is that this article, even if it is repeating a plan elaboarated over a year ago, is more specific and continues the timeline from that earlier article.  2017 would appear to be the year when this will all truly begin to move forward.  Keep your fingers crossed!  Enorrste
 
Mike:   Bottom line, Iraq needs Article VIII compliance before the value will rise, the market spread is proving there's no demand for the dinar right now, in it's current state. 
 
I tend to agree with justwaiting, we've seen these types of articles in the past and Budgies brings up the next important point, it's going to take a while before you can begin to delete the zero's to begin with. So, if they start in 2017, when will the dinar be worth a dime? 
 
As far as the Dinar being held as a reserve currency, I don't think I'll see that in my lifetime, that's wishful thinking on the authors part.  The first thing that sticks out is there's over 50 trillion dinars in circulation with only $40 billion dollars to cover it.
 
Even at today's value they barely cover what's already out there in print. They'll have to drastically reduce money suppy before they can cover the dinar at 1-$1. 
 
Reserve currency is commonly used in international transactions and often considered a hard currency or safe-haven currency and it's going to be years before the iQD is held to with the same regard as the dollar, euro, yen and pound. Heck, the KWD is better positioned as a reserve currency, why would the world pick Iraq's dinar? 
 
Secure the borders, pass the banking legislation, create an open market economy, remove exchange restrictions and reduce the MCP, then we'll see an increase in the dinar. If anything, the past has proven to us over and over there are no short cuts, the IMF isn't going to give a pass to the sixth most corrupt nation on the planet.
 
Enorrste:   Mike, I tend to agree with you that entry into Article VIII is a necessary prerequisite.  I doubt any serious investors in dinars would play in the dinar market without some form of level playing field that is offered through Article VIII.
 
The market spread situation can be corrected by floating the currency.  An announcement that the currency would be allowed to float would automatically make the official rate and the street rate identical.  Furthermore, the plan is clearly stated to reduce the money supply from 50 trillion dinars to 40 billion dinars.  They just haven't started the process yet.
 
 It is my take that the article in this thread is saying that this process will begin in early 2017.  The CBI will begin destroying the large notes, thus reducing the money supply, and this will put upward pressure on the value of the currency, irrespective of Article VIII. 
 
If they also accept the Article VIII conditions, which I believe is the stated goal of the IMF, then the process could move along much faster.
 
 Trade would improve in Iraq, thus allowing more money to come into the country, relieving the liquidity crisis somewhat, and this would allow the CBI to begin reducing the money supply.  They are clearly on record that they want the money supply to be brought down to 40 billion dinars. 
 
They just have to have a mechanism to make this happen without too much of a jolt internally.  And, of course, they have to START.  I believe the article is saying that they have made a determination that the start will happen in early 2017.  Enorrste 

 

Enorrste:    The following quote adds some fuel to our story:
 
"this period will enable the central bank to withdraw the old currency in accordance with the dynamics and mechanics in order to preserve liquidity in the market."
 
ARTICLE LINK     http://warkaanews.net/?p=9350    Central Bank: the deletion of zeros in early 2017
 
Enorrste:   We see from this, as has been noted earlier, that this precludes any LOP discussion.  But more importantly there are the words "dynamics and mechanics" which clearly make this an ongoing process rather than an event.  The key is the last phrase referencing maintaining the liquidity in the market. 
 
What makes this a particularly challenging process is that they are going to be reducing the money supply, which would normally reduce liquidity, but will be doing so only as the VALUE of the dinar rises, which will offset the reduction in liquidity.  I can understand why they have been hesitant to begin the process. 
 
It hasn't ever been done before, that I am aware of.  Usually a currency loses value due to inflation.  In this case, however, the expectation is that it will gain in value.  What they cannot afford is to have 50 trillion dinars out there if the value skyrockets upward.  So I understand there caution.  Enorrste

 

[jg1]

On 11/5/2016 at 2:35 PM, jeepguy said:

WOW !  all that  being laid back might be paying off ! 

States removed The zeros from The currency Not exchange rate. Time Will tell whats in store for Us. 

[blueskyline]

Yes it does say remove the zeros from the currency . Which could also mean to Gradually, Gracefully remove the zeroed notes . The 25,000 ,10,000, 5,000 and the 1,000 from the Iraqi currency that will be left to remain in circulation during and after 10 years ....

Edited November 10, 2016 by blueskyline

[jg1]

25 minutes ago, blueskyline said:

Yes it does say remove the zeros from the currency . Which could also mean to Gradually, Gracefully remove the zeroed notes . The 25,000 ,10,000, 5,000 and the 1,000 from the Iraqi currency that will be left to remain in circulation during and after 10 years ....

No more plus's 😯

[Artitech]

They got less than two months to get off their asses and make things Happen! If President Trump gets involved, those OIL wells and OIL will be the property of the the UNITED STATES OF AMERICA, which they should be!! These Arabs better get their Sh-t together now! President Trump, is not going to operate like the little COWARD Subversive obama did!! There is a New Sheriff in Town! Plus, JMHO, that oil money should be given to the Veterans and families of anyone that ever served in that Sh-t hole (IRAQ)! I hope President Trump gives those sorry muslims 48 hrs to leave and give up! If they refuse to leave or surrender, drop an Atom bomb on them that would make Japans bomb look like fire cracker!