Liquidity & Large Denoms

[LittleMissGrits]

For several weeks now the going thought has been that the large denominations are being taken out of circulation, liquidity becoming tight ... some say from 75 to 90% of large denoms already collected. And yet, there have been no sightings of the lower denoms being is use ... my question ... exactly what are the Iraqis using for money if every time they turn in a 10 or a 25K note it is taken out of circulation???? Am I missing something here?

[lambert]

Good question. They do have smart cards from what boots on the ground have been saying. But other than that. .........who knows. We do know they are suffering though and that just is not right

[gregg450]

I think they have been encouraged to use Cash Cards but some US Dollars may still be being used as well. IDK

[kjwayne]

According to one of the guest from another site, the 10k and 25k bills are mainly used between large banks only. This so thet don,t have to have tag team truck drivers 8 times a day to transport money back and forth.

[Doc31]

Thanks for the post

[keepmwlknfny]

For several weeks now the going thought has been that the large denominations are being taken out of circulation, liquidity becoming tight ... some say from 75 to 90% of large denoms already collected. And yet, there have been no sightings of the lower denoms being is use ... my question ... exactly what are the Iraqis using for money if every time they turn in a 10 or a 25K note it is taken out of circulation???? Am I missing something here?

That's not exactly how it works, every bill they use for purchases isn't destroyed...alot of itgets funneled back into the banks reserves to support loans and things given out by banks....70% of their money supply was removed or brought back in and as far as how much currency is in circulation there is no way that it's close to 30 trillion dinar....that's just ludacris....

[PAPATOM]

ludicris is a wrapper!

you won't have to see the smaller denoms just cus they are lowering the number of big bills....the small denoms would take a basket full to purchase many things.

did someone say there was 30 trillion in circulation?

[keepmwlknfny]

ludicris is a wrapper!

you won't have to see the smaller denoms just cus they are lowering the number of big bills....the small denoms would take a basket full to purchase many things.

did someone say there was 30 trillion in circulation?

LOL get it? ludacris....hahaha but anyways there have been alot of numbers thrown out there as to how much dinar is actually there and those numbers are anywhere from 25 to 29 trillion dinar i believe......no way....no how......there is no way in hell they would print that much dinar and put it out there for a country that only has 31 million people......the US has no where near that number of dollars out in circulation and our population is like 25 million times that

[zantac]

LOL get it? ludacris....hahaha but anyways there have been alot of numbers thrown out there as to how much dinar is actually there and those numbers are anywhere from 25 to 29 trillion dinar i believe......no way....no how......there is no way in hell they would print that much dinar and put it out there for a country that only has 31 million people......the US has no where near that number of dollars out in circulation and our population is like 25 million times that

According to a Reuters report on 11 Feb 2010, Iraq expects to redenominate its dinar currency by knocking three zeros off the nominal value of bank notes to facilitate currency transactions.

Emerging from years of war and sanctions, Iraq is trying to revamp its economy and boost oil production with a raft of crude deals that may vault it to one of the world's top oil producers.

'The goal is to improve the payment and receiving system in the country and consequently to reform cash management,' said Mudher Kasim, a senior advisor at the central bank.

Kasim said that the central bank expected to start rolling out new notes by the end of the year or the beginning of 2011. Iraq has 25 trillion dinars in circulation, officials say. An Iraqi cabinet committee ordered the change in 2007, but the central bank did not think it is appropriate until recently.

http://www.rferl.org/content/Iraq_Planning_Currency_Redenomination/1950504.html

[keepmwlknfny]

According to a Reuters report on 11 Feb 2010, Iraq expects to redenominate its dinar currency by knocking three zeros off the nominal value of bank notes to facilitate currency transactions.

Emerging from years of war and sanctions, Iraq is trying to revamp its economy and boost oil production with a raft of crude deals that may vault it to one of the world's top oil producers.

'The goal is to improve the payment and receiving system in the country and consequently to reform cash management,' said Mudher Kasim, a senior advisor at the central bank.

Kasim said that the central bank expected to start rolling out new notes by the end of the year or the beginning of 2011. Iraq has 25 trillion dinars in circulation, officials say. An Iraqi cabinet committee ordered the change in 2007, but the central bank did not think it is appropriate until recently.

http://www.rferl.org/content/Iraq_Planning_Currency_Redenomination/1950504.html

Exactly my point.....heres one that says 25 trillion.....no way in the world they would need to even print that much when its HARDLY even used and its not worth anything......the most widely used currency in the world is the Euro and its at half of what they "say" Iraq has in Dinar..... I for one dont believe any of those numbers on what they have in circulation.....logically it makes no sense and just doesnt add up......especially when they say that the average Iraqi only spends what is equivilant to a little over 2 US dollars a day......

[MrRich]

The general director of the bank Abdul Hussein al-Yassiri told a news conference attended by the "morning" that the bank has achieved an important work focuses on two aspects, namely the withdrawal of excess liquidity from circulation, and then put into the market again, and managed to withdraw 24 trillion and 800 billion dinars, representing 70 percent of the liquidity ...

My link

24.8 trillion divided by .70 = 35.4 trillion

This is a big part of the problem with the whole $3 RV theory. Even if they have reduced it by 70% they still have 10 trillion left, which would amount to a $30 trillion money supply with a $3 RV. That's twice the US money supply in a nation with 1/10 the population and less than 1/100 of our GDP.

[sportfisher]

For several weeks now the going thought has been that the large denominations are being taken out of circulation, liquidity becoming tight ... some say from 75 to 90% of large denoms already collected. And yet, there have been no sightings of the lower denoms being is use ... my question ... exactly what are the Iraqis using for money if every time they turn in a 10 or a 25K note it is taken out of circulation???? Am I missing something here?

they do have 1k, 500, 250, & 50 dinar notes in circulation.

[zantac]

This is a big part of the problem with the whole $3 RV theory. Even if they have reduced it by 70% they still have 10 trillion left, which would amount to a $30 trillion money supply with a $3 RV. That's twice the US money supply in a nation with 1/10 the population and less than 1/100 of our GDP.

This is were i have been all along for over 4 years, in this for 7 but the chances of an RV/RI in the next 2 years is to say very hard to grasp.

Sorry to be negative but it aint happening any time soon

[sportfisher]

The general director of the bank Abdul Hussein al-Yassiri told a news conference attended by the "morning" that the bank has achieved an important work focuses on two aspects, namely the withdrawal of excess liquidity from circulation, and then put into the market again, and managed to withdraw 24 trillion and 800 billion dinars, representing 70 percent of the liquidity ...

My link

24.8 trillion divided by .70 = 35.4 trillion

This is a big part of the problem with the whole $3 RV theory. Even if they have reduced it by 70% they still have 10 trillion left, which would amount to a $30 trillion money supply with a $3 RV. That's twice the US money supply in a nation with 1/10 the population and less than 1/100 of our GDP.

How do you get a larger number than you started with after removing 70% of its value ??? You don't divide by the percentage You subtract the value of the percentage

70% reduction of 24.8 trillion = 7.44 trillion

90% reduction of 24.8 trillion = 2.48 trillion

2.48 trillion x 3 = 7.44 trillion.................................interesting how the 7.44 comes up again after multiplying by $3, what's so hard to swallow about a $7.44 trillion money supply ???

[jmw]

LOL get it? ludacris....hahaha but anyways there have been alot of numbers thrown out there as to how much dinar is actually there and those numbers are anywhere from 25 to 29 trillion dinar i believe......no way....no how......there is no way in hell they would print that much dinar and put it out there for a country that only has 31 million people......the US has no where near that number of dollars out in circulation and our population is like 25 million times that

that is why it isn't worth anything...too much in circulation...that is what caused the inflation that got them where they are today....only way to increase the value is to reduce the amount in circulation...no other way.

[sportfisher]

that is why it isn't worth anything...too much in circulation...that is what caused the inflation that got them where they are today....only way to increase the value is to reduce the amount in circulation...no other way.

what inflation ??? under 3%

[MrRich]

How do you get a larger number than you started with after removing 70% of its value ??? You don't divide by the percentage You subtract the value of the percentage

70% reduction of 24.8 trillion = 7.44 trillion

90% reduction of 24.8 trillion = 2.48 trillion

2.48 trillion x 3 = 7.44 trillion.................................interesting how the 7.44 comes up again after multiplying by $3, what's so hard to swallow about a $7.44 trillion money supply ???

The purpose in dividing the 24.8 trillion by .70 was to show the total that was in circulation prior to the 24.8 trillion being removed. According to the statement I quoted 24.8 trillion dinar had been removed which amounted to a 70% reduction.

"managed to withdraw 24 trillion and 800 billion dinars, representing 70 percent of the liquidity ."

So you divide by .70 to find out how much was in circulation prior to the reduction which comes to 35.42 trillion and then subtract the amount that was withdrawn which was 24.8 trillion and you get 10.62 trillion dinar remaining. Sorry I didn't make that clear earlier.

I could live with a $7.44 trillion money supply if their GDP figures were in the trillions instead of the billions. According to the numbers I've seen their GDP for 2009 was 115 billion. By the way, where did you get the 90% reduction figure? Did I miss something?

[MrRich]

what inflation ??? under 3%

Yes, inflation is low now but for many years they were printing more and more dinar as their currency was devalued down to 4000 dinar (I think?) to $1. Remember, it's been twenty years since there was a valuation of 3 IQD = 1 USD, and at that time the number of dinar totaled in the billions, not trillions.

[sportfisher]

The purpose in dividing the 24.8 trillion by .70 was to show the total that was in circulation prior to the 24.8 trillion being removed. According to the statement I quoted 24.8 trillion dinar had been removed which amounted to a 70% reduction.

"managed to withdraw 24 trillion and 800 billion dinars, representing 70 percent of the liquidity ."

So you divide by .70 to find out how much was in circulation prior to the reduction which comes to 35.42 trillion and then subtract the amount that was withdrawn which was 24.8 trillion and you get 10.62 trillion dinar remaining. Sorry I didn't make that clear earlier.

I could live with a $7.44 trillion money supply if their GDP figures were in the trillions instead of the billions. According to the numbers I've seen their GDP for 2009 was 115 billion. By the way, where did you get the 90% reduction figure? Did I miss something?

Hey Mr. Rich,

my bad, I was skipping through too fast, thought it said 24.8 tril. money supply

the 90% from main thread post ( ... some say from 75 to 90% of large denoms already collected.)

and I had read as 90% speculative present liquidity reduction, 70% was as of May or June?

thanks for the breakdown

[keepmwlknfny]

I have seen statements that ave stated they reduced their EXCESS Liquidity by 70%, so how do you figure that means they "removed or brought back in" 70% of their money supply? It doesn't sound like the same thing to me, can you explain it to a dummy like me or are you just spouting unfounded economic mumbo-jumbo?

Im just spouting unfounded economic mumbo-jumbo They have taken portions of M1 and M2 to funnel it back into the banks for the purposes of loans and things of that nature......do you want me to hold your hand??