Parliament questions CBI over deleting zeros

[Frank519]

Experts: the deletion of zeros from the Iraqi currency strategy needs to be a private cash

Baghdad (news) .. is the question of the deletion of zeros from the Iraqi currency of the important issues of concern to the citizen and the economists at the same time and this was useful for the Parliament to invite the Central Bank Governor Sinan al-Shabibi come to the House of Representatives in its day to discuss this subject,

The members of parliament discussed with the Governor a number of economic aspects of interest to public affairs, including (to delete the zeros) of the Iraqi currency.

The subject of the deletion of zeros from the Iraqi currency and small nominal value while maintaining Bakimiteha cash and purchasing of issues that are discussed in many seminars, as addressed by the statements and press reports, in this context, says adviser to the CBI the appearance of Mohammed Saleh, said that this year will see the start of the process of deleting the zeros , stressing that the bank has completed 50% of the preparations that are working on since 2005.

Saleh pointed out that the strategy based on the principle of gradual substitution of the Iraqi currency with another is lower than three zeros, and pointed out that the positives of this strategy is that it will be less expensive and easier to trade.

He added that the deletion of zeros from the Iraqi currency will depend on monetary policy, long-term, indicating that this step requires the issuance of legislation and laws before the foot as part of the strategic management of the currency in Iraq.

The appearance of Mohammed Saleh, said that the need to delete the zeros come from the “mass Iraqi monetary, which has become too large a product of the stage of inflation lasted about 30 years rose from 25 billion to $ 21 trillion, “adding that” the largest category of cash is 25 thousand dinars, equivalent to $ 23,while the largest category during the year 1979 and the period that preceded the Iran-Iraq war 25 dinars, equivalent to $ 75 at the time.

“Today,” the largest Iraqi faction of 25 thousand dinars Atadl only $ 23 with the smallest currency we have is 250 dinars, “and will allow the delete operation” reduce the size of the cluster of cash currency, ie, that the paper of a thousand dinars, turn to one dinar, This means reducing the 21 trillion dinars to 15 billion with coins, metal, and small groups.

“Saleh pointed out that the strategy, which purports to Central taken” in line with the Constitution and the economic life of good and facilitate internal transaction, “noting that” part of the margin of the inflation rate of between 1-3 % falls to the large number of cash representing the cost of transactions in the case of the deletion would decrease the cost. “and on the continuing high prices despite the official figures, which refers to the low rate of inflation Saleh explained that” monetary policy is not interested to return prices to square one, but aimed at reducing the rates of increase in prices which were up 32% in 2007, and today dropped those increases to the level of one decimal place around 7% only, “saying the number” a victory for the economic program of Iraq, where there are no important central Iraqi only achieve stability in the general level of prices and stability of the system Financial.

Adding that the bank would issue treasury transfers of $ 3 trillion dinars during the next few days, to cover the contracts of electricity through the legal cash reserve held by banks for the benefit of

From his part, sees Dr. Hilal Al-Tahan, that the application of such a strategy will not cause economic turmoil, or damage in the local market at the present time, while the economic analyst is willing to find satisfaction Blibl that the timing of the launch of this strategy is not appropriate now, noting that the country’s economy must be in a position of strength before applying those changes.

Vimabin academic and an economist at the University of Karbala, said that the process of deleting three zeros from the Iraqi currency will lead to currency appreciation, pointing out the need for a quiet policy to persuade the citizens and get used to it for a period not exceeding two years.

http://bit.ly/fTIcD7

[sportfisher]

the process of deleting three zeros from the Iraqi currency will lead to currency appreciation http://bit.ly/fTIcD7

I'm good with that

[rich daniels]

wow a ton of information here!!!

now, scooter and the rest, would you be so kind as to explain what it means

it sounds mostly good but some of it is not what i expected.

[krmayo]

From his part, sees Dr. Hilal Al-Tahan, that the application of such a strategy will not cause economic turmoil, or damage in the local market at the present time, while the economic analyst is willing to find satisfaction Blibl that the timing of the launch of this strategy is not appropriate now, noting that the country’s economy must be in a position of strength before applying those changes.

I'm not happy about that. However, I believe this is dis-information and half-truths.

[Frank519]

i know the LOP has been beaten to death and there is no way they can do it. It just makes me nervous when i see things like 1000 dinar will be worth 1 dinar. If someone with more understanding could explain that it would be helpfull.

thanks

[tbush]

i know the LOP has been beaten to death and there is no way they can do it. It just makes me nervous when i see things like 1000 dinar will be worth 1 dinar. If someone with more understanding could explain that it would be helpfull.

thanks

It is simply that one dinar being a lower denomination bill will have the purchasing strength of 1000 dinars due to the revaluation/increase in the strength of the IQD

[Traconesu02]

Thanks for the post Frank519

[zantac]

the smallest currency we have is 250 dinars,

I would also like this bit explained in detail as many of use have a smaller denom than that.

I hold a lot of 50 dinar notes so how can the smallest ones be 250IQD?????????

[Traconesu02]

I would also like this bit explained in detail as many of use have a smaller denom than that.

I hold a lot of 50 dinar notes so how can the smallest ones be 250IQD?????????

I agree zantac - We all know there are 50 dinar notes out there. This does not put much validity in this post if they do not even know their current smallest denom out there.

[Frank519]

thanks for the explanation tbush, one good point made is they stated this is still planned to happen this year GO RV

[VIZIOIRAQI]

I agree zantac - We all know there are 50 dinar notes out there. This does not put much validity in this post if they do not even know their current smallest denom out there.

They pulled the 50 dinar out of circulation , so they don't count it right now. No Worries they know they have it , and that we do to!

[tbush]

I would also like this bit explained in detail as many of use have a smaller denom than that.

I hold a lot of 50 dinar notes so how can the smallest ones be 250IQD?????????

This is only IMO that I do and always have felt that there is bad translation of Arabic to English even through using Google translate with all articles when it comes to a proper format. The only thing that I can think of with the 250 dinar spoke of here is maybe they are refering to the ration cards of 250 IQD. If for example they are using a RV of let's say 1.17 USD then the 250 card is worth 292.5 USD, if they are using the RI of 3.22 then the 250 IQD on the ration card is worth 805.00 USD. Just my thoughts, hope it's OK.

[VIZIOIRAQI]

It is simply that one dinar being a lower denomination bill will have the purchasing strength of 1000 dinars due to the revaluation/increase in the strength of the IQD

correct good answer

Here is the part I like Saleh pointed out that the strategy based on the principle of gradual substitution of the Iraqi currency with another is lower than three zeros, and pointed out that the positives of this strategy is that it will be less expensive and easier to trade.

[FishMan1969]

In watching Iraq Internet TV live at 9:30 am, they were showing different news than their regular cookie cutter articles.

Concentrated on Shabibi and showed him in front of the Parliament. Then they spent a lot of time on showing Natural Gas Production sites, and the last thing they showed was Hillarious Clinton. Does anyone know if she is there right now?

http://www.albaghdadia.com/livehigh

They ran new video clips in this segment. Usually they use old parliament video clips every day... the same old clips over and over....

Just trying to put this article in perspective with their TV news.

Thanks for the post Frank519

[Traconesu02]

They pulled the 50 dinar out of circulation , so they don't count it right now. No Worries they know they have it , and that we do to!

That is good to know. Still surprising they do not mention them.

I guess not much mention of our $1000 bills either but they are still valid currency.

Thanks for the reply VIZIOIRAQI.

In watching Iraq Internet TV live at 9:30 am, they were showing different news than their regular cookie cutter articles.

Concentrated on Shabibi and showed him in front of the Parliament. Then they spent a lot of time on showing Natural Gas Production sites, and the last thing they showed was Hillarious Clinton. Does anyone know if she is there right now?

http://www.albaghdadia.com/livehigh

They ran new video clips in this segment. Usually they use old parliament video clips every day... the same old clips over and over....

Just trying to put this article in perspective with their TV news.

Thanks for the post Frank519

Here is an article on Hilary over there.

http://articlesofinterest-kelley.blogspot.com/2010/12/hello-this-is-huge-egypt-iraq-jordan.html

[DgreenFSU66]

i know the LOP has been beaten to death and there is no way they can do it. It just makes me nervous when i see things like 1000 dinar will be worth 1 dinar. If someone with more understanding could explain that it would be helpfull.

thanks

and 1 dinar is worth .86 us dollars....

[MovieMaker]

Don't Wry . . . .The RV's a Cmin!

[Danneedsrvnow]

The subject of the deletion of zeros from the Iraqi currency and small nominal value while maintaining Bakimiteha cash and purchasing of issues that are discussed in many seminars, as addressed by the statements and press reports, in this context, says adviser to the CBI the appearance of Mohammed Saleh, said that this year will see the start of the process of deleting the zeros , stressing that the bank has completed 50% of the preparations that are working on since 2005.

Anyone know what the above statement means referring to the banks completing 50% of the preparations beginning in 2005? 50% seems kind of low in expecting an rv this year...but then again, they also say this year will see the start of the process of deleting the zeros! My other question would be, what they consider to be the "start" of the process?

Hopefully Scooter can shed some light on this article.

Thanks for the interesting post!!

Dan

[Snatcher]

Mohammed Saleh, said!

[Inicio]

i know the LOP has been beaten to death and there is no way they can do it. It just makes me nervous when i see things like 1000 dinar will be worth 1 dinar. If someone with more understanding could explain that it would be helpfull.

thanks

Frank519: this article seems to confirm no lop. Gradual replacement of the big bills after a revaluation.

"Saleh pointed out that the strategy based on the principle of gradual substitution of the Iraqi currency with another is lower than three zeros, and pointed out that the positives of this strategy is that it will be less expensive and easier to trade."

[keepmwlknfny]

I dont think this article is all that valid.....Shabibi might be in front of parliment now but those statements about the process being 50% completed on this "deletion of zeros" has been repeated over and over again.....I have one article in particular from Feb of this year saying some of the EXACT things mentioned here in particular about the 50% completion of this process......Maybe a cover of whats really being said or what Shabibi is really doing in front of parliment?? I mean to go from Feb to Dec and they are still only 50% done, even though they have been working on this all year seems like hogwash to me.....

[bahtman]

The appearance of Mohammed Saleh, said that the need to delete the zeros come from the “mass Iraqi monetary, which has become too large a product of the stage of inflation lasted about 30 years rose from 25 billion to $ 21 trillion, “adding that” the largest category of cash is 25 thousand dinars, equivalent to $ 23,while the largest category during the year 1979 and the period that preceded the Iran-Iraq war 25 dinars, equivalent to $ 75 at the time.

“Today,” the largest Iraqi faction of 25 thousand dinars Atadl only $ 23 with the smallest currency we have is 250 dinars, “and will allow the delete operation” reduce the size of the cluster of cash currency, ie, that the paper of a thousand dinars, turn to one dinar, This means reducing the 21 trillion dinars to 15 billion with coins, metal, and small groups.

Thanks for the post Frank. I saw it on another site and came over to post it and found you already had.

It seems that it pretty much spells out the rate, NO?

In the blue above, the ratio is 1000 to 1.

In the red above, in the same sentence, that ratio is 1400 to 1

So the red does not agree with the blue. I don't understand that part, but so be it.

Anyway the rate with the blue equals $1.17 per dinar.

And the rate with the red equals 40% more or about $1.64 per dinar.

And there you have your range for the RV!!!

[keepmwlknfny]

The appearance of Mohammed Saleh, said that the need to delete the zeros come from the “mass Iraqi monetary, which has become too large a product of the stage of inflation lasted about 30 years rose from 25 billion to $ 21 trillion, “adding that” the largest category of cash is 25 thousand dinars, equivalent to $ 23,while the largest category during the year 1979 and the period that preceded the Iran-Iraq war 25 dinars, equivalent to $ 75 at the time.

“Today,” the largest Iraqi faction of 25 thousand dinars Atadl only $ 23 with the smallest currency we have is 250 dinars, “and will allow the delete operation” reduce the size of the cluster of cash currency, ie, that the paper of a thousand dinars, turn to one dinar, This means reducing the 21 trillion dinars to 15 billion with coins, metal, and small groups.

Thanks for the post Frank. I saw it on another site and came over to post it and found you already had.

It seems that it pretty much spells out the rate, NO?

In the blue above, the ratio is 1000 to 1.

In the red above, in the same sentence, that ratio is 1400 to 1

So the red does not agree with the blue. I don't understand that part, but so be it.

Anyway the rate with the blue equals $1.17 per dinar.

And the rate with the red equals 40% more or about $1.64 per dinar.

And there you have your range for the RV!!!

Not sure how you came up with that bro....this is a LOP....plain and simple.....you cant reduce the money supply by simply raising the value......you would have to turn every 1000 dinar to 1 to reduce the cash supply....no other way around that.....but like I was saying Im not so sure I believe anything said here because the same things have been repeated in articles over and over since Feb about the 50% completion....not to mention I dont think the numbers are true on the supposed amount in circulation either....and they wouldnt be still printing these bills if they were about to deem them worthless......all we can do is wait and see what unfolds with the govt being completed and CH7 being lifted on the restrictions of the currency.....but no matter how you want to think this article says its talking about redenominating or lopping the zeros....something that we DONT want!!!

[^theStig]

This article quotes Mohammed Saleh anything he is quoted in should be regarded as irrelevant.

I personly believe he is nothing more than a stooge that the CBI uses to foster disinformation through. He has contradicted himself several times this week alone.

[EBJNYC]

I'm not happy about that. However, I believe this is dis-information and half-truths.

Don't fret -- as soon as New Govt. is seated -- FDI (Foreign Direct Investment) MONEYFLOW via oil contracts, etc., will come into Iraq with Godspeed -- CBI will have to appreciate dinar BEFORE this happens to curtail HUGE inflation.

Edited December 4, 2010 by EBJNYC