Parliament questions CBI over deleting zeros

[Jazzy baby]

Posted: December 4, 2010 by Justhopin in Iraqi Dinar/Politics

Tags: Business and Economy, CBI central bank of iraq, Central Bank of Iraq, Currency, Dinar, exchange rate, Iraq, iraqi, Iraqi dinar, parliament, redenomination, Revaluation, Saleh, shabibi 0

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

[blueskygal]

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.

OK folks I am not going to get upset about this statement above " 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."

A quiet policy is critical and two years which we have seen before, for them to get used to it is just fine BUT, something just struck me....why would you want 25K and 10K notes circulating out there in the market? I would think the existence of those notes would be highly dangerous when the zeros are deleted - so I would have to agree with prior posts that they have to get those turned in asap. Also, why issue a banknote for $1, $5, $10 etc if it wont buy you anything? The $25k note is worth $23 US

IS anyone else concerned about this article? It seems to point to further delays I really really hope its wrong.

[Retiredofficer]

Thinking a Scooterism is in line here...

[eddieisme]

“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.

Read more: http://dinarvets.com/forums/index.php?/topic/43976-parliament-questions-cbi-over-deleting-zeros/#ixzz179Ho9gAD

WTF

[fenix]

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.

OK folks I am not going to get upset about this statement above " 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."

A quiet policy is critical and two years which we have seen before, for them to get used to it is just fine BUT, something just struck me....why would you want 25K and 10K notes circulating out there in the market? I would think the existence of those notes would be highly dangerous when the zeros are deleted - so I would have to agree with prior posts that they have to get those turned in asap. Also, why issue a banknote for $1, $5, $10 etc if it wont buy you anything? The $25k note is worth $23 US

IS anyone else concerned about this article? It seems to point to further delays I really really hope its wrong.

first... don't freak out. This scenario has been discuss and sounds like hey want to have both currencies operational so as to not confuse citizens. That doesn't hinder an RV. Also this is just speculation by these two guys it's not what is being acted upon, and may very well be he "smoke" that is referred too and I think this would definitely deter speculation.

[Russ63]

Scooter, Adam M, Any Thoughts?

[demouser]

i have a question,

if the thousand note will turn into one dinar, does it make a different on the value in warqa account?

I mean if it really works on that way, should people who have account on warqa has advantage right? Correct me if I am wrong.

[legacyman73]

They won't come on here. I haven't seen them in a while. It's all smoke you guys because they will hurt their country if they did the 000's off. Don't buy into it and remember that we all got into this investment to make some money. So if it's a couple of bucks that fine at least I made some money off it. But come on do you really think they will do that? It's crazy! Hangin there we are almost done with this ride. Go rv

[pureau79]

I don't know about them, but I have a few thoughts... problem is, I can't say any of them on this forum! Just remember though folks, we have seen and heard a great deal of this type of slight of hand in recent months. Think about what would happen if large numbers of investors gave up on this "scam". Many people are easily discouraged and most of us are so frustrated by the lack of action that we could just scream and wallpaper our shops and mudrooms with the pretty paper. This would be an economic windfall to the treasury of Iraq. I would almost bet my bottom dollar that those crafty little peeps down at the CBI are as involved in information and misinformation as anyone.

Just a thought.

[Mongo]

“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.

Read more: http://dinarvets.com.../#ixzz179Ho9gAD

WTF

Sorry...........but.......(NO LOP)..............is me Eddie?..........you is....you is

[legacyman73]

i have a question,

if the thousand note will turn into one dinar, does it make a different on the value in warqa account?

I mean if it really works on that way, should people who have account on warqa has advantage right? Correct me if I am wrong.

Don't buy into it, it's not going to happen! To answer your question it would be a big no. Doesn't matter if it is.

[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]

Already posted at 6:34 am this morning :

http://dinarvets.com/forums/index.php?/topic/43975-parliament-questions-cbi-over-deleting-zeros/page__pid__290065__st__0entry290065

[Jazzy baby]

you know dinar trade did say that you can trade or exchange in your dinar for lower denom's if you choose to hold on to some after the RI. and as for the LOP I believe your 25000 note is still worth 25000 dinar the CBI will just take it out of circulation. There are to many of them out there as well, so i don't think we will hav ea short window to cash in either. It takes time to remove a bill or note from circulation. Though I know I will run as fast as I can to the bank.

[Richardk]

I see from some of the comments that the "L" word is implicated but not used. This doesn't mean there will be a "L" (hate using that word) just more verbage on the redom IMO. Yes, at one time the Warka accounts were the option to protect part of your investment incase a "L" took place. Again IMO this is just a discussion on the redom.

Stay grounded, calm and be happy....We will all smile soon

Go RV/RI

[keepmwlknfny]

Yes, at one time the Warka accounts were the option to protect part of your investment incase a "L" took place.

Go RV/RI

Wouldnt matter if you have electronic funds or not.....if it redenominates your account will be affected just the same....there is no safe haven for a currency that redenominates or lops the zeros....EVERYONE is affected......

i have a question,

if the thousand note will turn into one dinar, does it make a different on the value in warqa account?

I mean if it really works on that way, should people who have account on warqa has advantage right? Correct me if I am wrong.

Same answer for you.....