restructuring Iraqi currency money supply inflation works

[VIZIOIRAQI]

ECB: restructuring Iraqi currency money supply inflation works

http://gdb.rferl.org...F32_mw270_s.jpg

16.04.2011

Ahmed Al-Zubaidi

Iraqi Central Bank Adviser Dr. Mazhar Mohammed Saleh said the Bank maintained its policy on deleting three zeros from Iraqi dinar currently working.

He said in an interview to radio free Iraq to apply political restructuring Iraqi currency would fix management problems facing the country's money supply inflation of 28 trillion dinars, the currency structure is no longer commensurate with current prices and costs in Iraq.

The Iraqi Central Bank Adviser to the current situation to start this project, which would strengthen the Iraqi economy, but this project should first obtain the consent of the Iraqi Government, which in turn report to the Iraqi Council of representatives for approval.

The proposed deletion of three zeros from the currency has sparked controversy among economists Iraqis highlight differences including on the possible impact on the economic sector, especially if implemented suddenly and rapidly.

This disagreement has led the Economist as Brahimi previously was for years the Economic Adviser to the Iraqi Central Bank to show fear of execution of the project at present despite the completion of all studies on the economic situation is not conducive to that.

The Central Bank Adviser explained the appearance that these fears Muhammad Saleh, Iraq's economic situation is good and capable of carrying this project, and this experience has been applied in countries like Turkey that has six zeros from the currency deleted not long ago.

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Attached audio file translation..

Kap,

For the audio link, they are saying exactly what the article was stating about removing the 3 zeros to reduce the physical money supply and facilitate the transactions and help strengthen economic growth and stability. Saleh from the CBI was interviewed in the link and that is exactly what he said, that the CBI intends to remove the 3 zeros for all the reasons that we are aware of, etc and that it's the CBI's job to control inflation and reduce the money supply, which he currently reports as being 28 trillion Dinars. Then, the report talks about other people, such as economic experts, who support the change in the currency but feel that Iraq is not quite ready for the change in currency, etc and that they need to wait for more economic stability and more private sector development before they bring changes to the currency. The reporter then states that Saleh of the CBI stated that those comments by the economic experts are unfounded and that the Iraqi economy is in excellent shape and can adjust and withstand with no problem a change to the currency and that changing the currency would be for the better. He goes on to say that Saleh of the CBI also said that Turkey recently changed their currency in recent terms by removing 6 zeros from their bills and that it worked out fine and they were able to adjust very quickly with no issues (I checked and the Turkish RV happened in 2005 where in 2004 1 US Dollar equaled about 1,350,000 Lira and in 2005 1 US Dollar was now equal to 1.29 Lira, so they had a LOP and small RV in Turkey). Saleh goes on to say that CBI really doesn't care about all the speculative opinions of the economic experts and whoever wants to be scared of the change can be but that the change for the Dinar is indeed coming soon. Saleh finishes by saying that Iraq is not rushing to RV because they desperately need it to save the economy or something like that, but he says that they will RV/remove the 3 zeros soon because the big currency and low value are no longer suitable to Iraq's economic growth and that system of money with large bills is antiquated and out of practical usability in this day and age.

The audio is promising because it stresses yet again that CBI is planning to RV/Remove the 3 zeros and this time we have it in a live audio recording in a interview, with the CBI actually stating that they will do it soon, and that the info is not just coming from some news article or press release. This time, we have it in direct audio confirmation from the CBI that they are going to RV and RV soon and that they don't care about those who feel the time is not right because they feel it is the most appropriate time to RV. So I think this is excellent. The other stuff we already knew, about the benefits of the RV and why they want to do it. So yet another confirmation that it is going to happen. No Date or Rate, but at this point I don't care so long as they go ahead and just get it done!

http://www.microsoft...%2F4746251.html

[hammer911]

Very nice... Come on just do the RV...........

[HYDRANT]

THANKS VIZ NICE READ

[cdoak1fordinar]

THIS SOUNDS GOOD!!!!!!

[graml]

Nice find Viz.

[GT ACE]

Yes this does sound good, however the big variable in the equation is "soon". In the Arab/Muslim world "soon" can be right now to, well years! They always have an "out" and soon gives them as much time as they want!!!

[dinarck]

UUUHHHH........ Do I really have to point out here that this is not a good thing and they are in fact talking about LOPPING? Dang it! I hate being the bad guy!

[speculatorsRIDE]

UUUHHHH........ Do I really have to point out here that this is not a good thing and they are in fact talking about LOPPING? Dang it! I hate being the bad guy!

Are you absolutely sure of that? Since we know they are going to RV, could it not mean that they intend to to RV to a rate that will remove the 000's. If they RV'd to 1.00 would that not remove the 000's?

[dinarck]

Are you absolutely sure of that? Since we know they are going to RV, could it not mean that they intend to to RV to a rate that will remove the 000's. If they RV'd to 1.00 would that not remove the 000's?

It brings me no pleasure to point out the obvious here. When they mention Turkey again I think that says it all. Plus, if they we talking about a straight up RV they wouldn't be talking about it at all.

[Dalite]

If I heard it correctly at the Chamber of Commerce address, Shabibi stated plainly that the question of the 3 zeros had been "decided", and would be done "very soon".

That seems to be the topic that Shaleh is waltzing around here, only Shabibi apparently doesn't get paid by the word.

The reasoning is solid, and will ultimately benefit the Iraqi people and their economy.

Now it is a question of the foresight of the Bush administration, and their ability to foresee devaluation by denomination as a vehicle to limit liability for a future change in exchange rate. If they did their homework, the dropping of the zeros will not affect the dinar currently in possession of Americans.

So, it still looks like removing the decimal point 3 places in the currency and exchange rate to place the Dinar on parity with the dollar.

Now is the time to wait and see if the gamesmanship of the US economic advisors was sufficient to anticipate the level of expertise that Shabibi brings to the table.

I still believe that Shaleh is Baghdad Bob's brother, but at least this translation has him on record as being able to convey his bosses plan.

Currently, the possibilities range from loss of approximately $400.00 per million Dinar to a gross of up to $860,000.00 per million Dinar; depending on where the zeros land..

[Mrose001]

Well it is great news the wait will be over, bad news that the lop will create a break even, or small profit on the investment, unless the RV is 2,3,4 dollars but even then 500,000 that became 500 will not be a windfall.

He goes on to say that Saleh of the CBI also said that Turkey recently changed their currency in recent terms by removing 6 zeros from their bills and that it worked out fine and they were able to adjust very quickly with no issues (I checked and the Turkish RV happened in 2005 where in 2004 1 US Dollar equaled about 1,350,000 Lira and in 2005 1 US Dollar was now equal to 1.29 Lira, so they had a LOP and small RV in Turkey). Saleh goes on to say that CBI really doesn't care about all the speculative opinions of the economic experts and whoever wants to be scared of the change can be but that the change for the Dinar is indeed coming soon. Saleh finishes by saying that Iraq is not rushing to RV because they desperately need it to save the economy or something like that, but he says that they will RV/remove the 3 zeros soon because the big currency and low value are no longer suitable to Iraq's economic growth and that system of money with large bills is antiquated and out of practical usability in this day and age.

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[4Horsn2]

Great post!! I like "the currency structure is no longer commensurate with current prices and costs in Iraq". Along with the audio, this lends one to believe that this is very close!!

Thanks again for the post!!

[gp49]

Very encouraging post! Thanks VIZIO.

[dog53]

Hey we are all going to make money great. If they lop then rv to about $3 Your million will bring you $3000 . Not bad

[double_duce_duce]

thanks for the info. WONDERFUL POST. we need to get this nightmare over with, GO RV !!!!!!!!!!