Shabibi .. Is it enough to replace the Iraqi currency to save it from collapse?

[Ana]

GOING GLOBAL - EAST MEETS WEST - ARTICLES OF INTEREST

CURRENT NEWS EVENTS: BRINGING OUR WORLD (EAST AND WEST) CLOSER TOGETHER TO FORM A GLOBAL SOCIETY: STRIVING TO CREATE EQUALITY AND SUSTAINABILITY FOR EVERYONE AND EVERYTHING ...

FRIDAY, AUGUST 19, 2011

Shabibi .. Is it enough to replace the Iraqi currency to save it from collapse?

Coming up ... <a href="http://articlesofinterest-kelley.blogspot.com/2011/08/august-25-2011-economic-meeting-shabibi.html" style="color: rgb(68, 85, 102); ">August 25, 2011 ~ Jackson Hole Economic Meeting - Shabibi 2010, hopeful on economy, Jackson Hole ...

Saturday, August 6, 2011 PM - 6th September 1432 - Issue: 8455

Shabibi .. Is it enough to replace the Iraqi currency to save it from collapse?

In the past years have fallen Iraqi dinar value due to inflation and deterioration caused by economic sanctions imposed on Iraq after the Kuwait war, through the fall of Baghdad in 2003, to turn into a semi massacres day All these factors made the value of the dinar is going down, prompting the central bank in the same year resort to the adoption of a new mechanism to maintain the dinar's exchange rate lies in the development of an auction foreign exchange to sell quantities of the dollar, resulting from the sale of oil in world markets, and converted to the Development Fund for Iraq, which transforms in turn to the bank to sell in local currency, but it was not enough to save the value of their currency collapse, under the terms of the price fall to become a day about 1120 dinars per dollar.

Thus pushing the Iraqi Central Bank's decision to replace the currency Atkhama by deleting three zeros in an attempt to raise the value of the world.

Has announced Shabibi Iraqi Central Bank Governor completing the preparation of a plan to replace the current banknotes after the cancellation of three zeros, and include 30 trillion dinars (26 billion dollars), is the value of expected cash bloc, stressing that the timing will be determined by the government and parliament, Iraqi.

On the other hand, sees the first in the Central Bank of Iraq the appearance of Mohammed Saleh said that the fundamental problem in the timing of the single currency only, but the application of the new project will be according to mechanisms scalable in the form is not felt by the citizens, are put quantities in the market and the withdrawal of which is maintained by the government banks of the block and replace , and remain only in the possession of the citizens of the trading day, and can conduct his business in the two currencies of any existing and new,'s goods as current price, for example, JD 1000 The customer can give the seller the present paper a class 1000 dinars, as well as be able to give him a coin a new category of one dinar.

In the view of economists that this action is not enough to save the Iraqi dinar from collapse as long as the Iraqi economy is weak currency should always be linked strongly the country's economy, and the best proof of that the United States where the dollar dropped because of debt and faltering economy, and generally coming days will determine, either revalue the Iraqi currency if there is demand for it globally or to depreciate more.

http://articlesofint...lace-iraqi.html

Edited August 21, 2011 by Ana

[Elixir]

posted yesterday

[RVDinar4MyFamily]

GOING GLOBAL - EAST MEETS WEST - ARTICLES OF INTEREST

CURRENT NEWS EVENTS: BRINGING OUR WORLD (EAST AND WEST) CLOSER TOGETHER TO FORM A GLOBAL SOCIETY: STRIVING TO CREATE EQUALITY AND SUSTAINABILITY FOR EVERYONE AND EVERYTHING ...

FRIDAY, AUGUST 19, 2011

Shabibi .. Is it enough to replace the Iraqi currency to save it from collapse?

Coming up ... <a href="http://articlesofinterest-kelley.blogspot.com/2011/08/august-25-2011-economic-meeting-shabibi.html" style="color: rgb(68, 85, 102); ">August 25, 2011 ~ Jackson Hole Economic Meeting - Shabibi 2010, hopeful on economy, Jackson Hole ...

Saturday, August 6, 2011 PM - 6th September 1432 - Issue: 8455

Shabibi .. Is it enough to replace the Iraqi currency to save it from collapse?

In the past years have fallen Iraqi dinar value due to inflation and deterioration caused by economic sanctions imposed on Iraq after the Kuwait war, through the fall of Baghdad in 2003, to turn into a semi massacres day All these factors made the value of the dinar is going down, prompting the central bank in the same year resort to the adoption of a new mechanism to maintain the dinar's exchange rate lies in the development of an auction foreign exchange to sell quantities of the dollar, resulting from the sale of oil in world markets, and converted to the Development Fund for Iraq, which transforms in turn to the bank to sell in local currency, but it was not enough to save the value of their currency collapse, under the terms of the price fall to become a day about 1120 dinars per dollar.

Thus pushing the Iraqi Central Bank's decision to replace the currency Atkhama by deleting three zeros in an attempt to raise the value of the world.

Has announced Shabibi Iraqi Central Bank Governor completing the preparation of a plan to replace the current banknotes after the cancellation of three zeros, and include 30 trillion dinars (26 billion dollars), is the value of expected cash bloc, stressing that the timing will be determined by the government and parliament, Iraqi.

On the other hand, sees the first in the Central Bank of Iraq the appearance of Mohammed Saleh said that the fundamental problem in the timing of the single currency only, but the application of the new project will be according to mechanisms scalable in the form is not felt by the citizens, are put quantities in the market and the withdrawal of which is maintained by the government banks of the block and replace , and remain only in the possession of the citizens of the trading day, and can conduct his business in the two currencies of any existing and new,'s goods as current price, for example, JD 1000 The customer can give the seller the present paper a class 1000 dinars, as well as be able to give him a coin a new category of one dinar.

In the view of economists that this action is not enough to save the Iraqi dinar from collapse as long as the Iraqi economy is weak currency should always be linked strongly the country's economy, and the best proof of that the United States where the dollar dropped because of debt and faltering economy, and generally coming days will determine, either revalue the Iraqi currency if there is demand for it globally or to depreciate more.

http://articlesofint...lace-iraqi.html

This is Shabs himself saying this, and that is clearly an RD and cannot be interpreted any other way.

This is where I have always said that if they are using misdirection to deter speculation on the currency, it would be about the deletion of the zeros.

I really don't like seeing Shabs say it though, he is not just some spokesman, he is the CBI, and what he says is taken as truth throughout the world financial community.

Let's hope this is nothing more then more misdirection.

He has to speak about the change that is coming, and they cannot speak of anything other then a RD because of the risks of massive currency speculation.

Time will tell, still makes zero sense for them to do it, but regardless of what you hear people say, IT IS A POSSIBLITY.

[bamagirl]

posted yesterday

And the day before that.

[ftruck7]

This is Shabs himself saying this, and that is clearly an RD and cannot be interpreted any other way.

This is where I have always said that if they are using misdirection to deter speculation on the currency, it would be about the deletion of the zeros.

I really don't like seeing Shabs say it though, he is not just some spokesman, he is the CBI, and what he says is taken as truth throughout the world financial community.

Let's hope this is nothing more then more misdirection.

He has to speak about the change that is coming, and they cannot speak of anything other then a RD because of the risks of massive currency speculation.

Time will tell, still makes zero sense for them to do it, but regardless of what you hear people say, IT IS A POSSIBLITY.

So, i guess he should just come out and say, We are going to RV 1-1 so all of the world can make money at Iraq's expense?

[RVDinar4MyFamily]

So, i guess he should just come out and say, We are going to RV 1-1 so all of the world can make money at Iraq's expense?

That is exactly why we will never hear anything other then them talking about and RD. They need to talk about it, but can't give away their true intentions.

[Carrello]

So, i guess he should just come out and say, We are going to RV 1-1 so all of the world can make money at Iraq's expense?

You need to stop by more often.

[srdedeaux]

Shabs go ahead and PUSH THAT BUTTON!

[ashtray]

they will know in the coming days .. not weeks months or years .. he said days .. ..i think if this passes parliment .. it will go into effect the next day

what ever they do

[LS1Hawk]

What Shabibi said:

Shabibi .. Is it enough to replace the Iraqi currency to save it from collapse?

What HE COULD NOT SAY:

Is it enough to replace the Iraqi currency to save it from collapse? No, this is why we are Revaluing the currency to be as stong and desireable as the Dollar. Thus, starting down the road to bringing THE GLORY BACK TO THE IRAQI DINAR.

Why?

Because like it was mention above by RVDinar4MyFamily: " they cannot speak of anything other then a RD because of the risks of massive currency speculation."

I.E. a run on the IQD.

This is the only thing that makes sense. If they are concerned that this new currency isn't going to fix their problem, don't you think they would have thought this out before spending the time and money to implement this scheme? To fix this, they have to bring the value back up, otherwise they are stuck in the same sinking boat.

[fastarnie]

either revalue the Iraqi currency if there is demand for it globally or to depreciate more.

I think there will be a demand seeing the ISX up 40%. JMHO

[ftruck7]

That is exactly why we will never hear anything other then them talking about and RD. They need to talk about it, but can't give away their true intentions.

Playing along with the lobsters.

Let's do this!!

[jupitergirl]

Enoch8's take on this.................This is yet another economist, who is making a strong case, that to simply offer a separate Class of Dinar, is not enough.

They are saying, that to do what Turkey did, to offer 2 separate prices...... one for the JD Class 1000 and a separate price of 1 IQD, at the market, IS NOT ENOUGH, to address inflation.

The article is arguing against the lop...... no way to skirt around that issue..... as it is certainly being discussed.

Mr Shabibi..... it is time to put that to rest.

Look at what else the author is saying....

There are 30 Trillion in circulation, (by all measure, that proves to be accurate).

The current value of the entire 30 Trillion, at the current rate, is only $26 Billion Dollars.

In the 1970s and 80s, the value of the circulation was, about $80 Billion Dollars.

Oil was only about $15 per barrel. Today it is averaging about $90 or so.

That means, there is about a 600 % inflation, which means there has to be at least 6 times that $80 Billion Dollars worth of IQD in circulation, just to keep up with inflation, alone.

6 x $80 Billion is $480 Billion..... just to keep up.

There is currently only $26 Billion in circulation.... and there is over 85% of that, out of the country.

This means, that over half of the economy is being based on USD.

To simply place a new class.... and to do what Turkey did, does not solve that problem. There would not be enough money in circulation, to meet the demand..... especially assuming they 'Dedollarize'. Even if they completely withdrew the $30 Trillion and replaced it.... with 1s replacing 1000s...... the circulation would be 18.5 times under the value of the need, just to be on par with the MOP Basis year of 1988.

That still does not even address, the additional out of country demand increase, of a minimum of 4 to 5 times the demand, of 1988, based on those statistics.... which can be proved conclusively, by all accounting documents, from CBI, MOP, IMF, CIA and numerous other documents.

I will stick with a very, very conservative number, and call that a 400% increase in foreign demand.

4 x 18.5 = 74.

So..... at the very minimum...... EVEN IF THEY PRINTED $30 TRILLION LOW DENOMS....... (Which is ridiculous) they will not print nearly that much...... but even if they did.... they would have to Revalue it at a minimum, of 74 times...... just to meet that standard of living, of the pre Saddam Eras.

BUT!!!!

We all know, that standards of living and general lifestyles will increase.... just to modernization alone, would at a very minimum, create more than double or triple the demands of the 70s and 80s, which multiplies the need to at least 2 to 3 times that 74. Call it 200 times as a fair and conservative estimate.

Now that puts the rate at roughly 20 cents...... even IF, CBI leaves 30 Trillion in circulation.....which we all know is ridiculous.

Since CBI had reported, they had 27 Trillion in circulation, from 2010, and are reporting now, that by 2012, there is an additional 3 trillion..... I am making a presumption, that CBI can leave about

$3 Trillion IQD in circulation and (Because the demand is needed, would not cause inflation or overheating of the economy, but would draw, fair market competition, to offset it), would also have the effect of increasing the value, by 10 more times, by removing 90% of the existing from circulation.

10 x 200 is 2000. 2000 x .00086 = about $1.72....... roughly the GCC average!!!

MOP projections, extrapolated, might suggest the more conservative number, of about $1.30..... which is consistent, given these are only rough, conservative averages.... which are consistent with several methodologies of averaging Trade Balance with oil verses non oil, Tradition Gravity Equations and Qualitative to Quantitative averages, to Trade Balance.

Can you see, how it is impossible, to go the way of Turkey???

That is basically what this article is saying.

See it ??

[LS1Hawk]

Enoch8's take on this.................This is yet another economist, who is making a strong case, that to simply offer a separate Class of Dinar, is not enough.

They are saying, that to do what Turkey did, to offer 2 separate prices...... one for the JD Class 1000 and a separate price of 1 IQD, at the market, IS NOT ENOUGH, to address inflation.

The article is arguing against the lop...... no way to skirt around that issue..... as it is certainly being discussed.

Mr Shabibi..... it is time to put that to rest.

Look at what else the author is saying....

There are 30 Trillion in circulation, (by all measure, that proves to be accurate).

The current value of the entire 30 Trillion, at the current rate, is only $26 Billion Dollars.

In the 1970s and 80s, the value of the circulation was, about $80 Billion Dollars.

Oil was only about $15 per barrel. Today it is averaging about $90 or so.

That means, there is about a 600 % inflation, which means there has to be at least 6 times that $80 Billion Dollars worth of IQD in circulation, just to keep up with inflation, alone.

6 x $80 Billion is $480 Billion..... just to keep up.

There is currently only $26 Billion in circulation.... and there is over 85% of that, out of the country.

This means, that over half of the economy is being based on USD.

To simply place a new class.... and to do what Turkey did, does not solve that problem. There would not be enough money in circulation, to meet the demand..... especially assuming they 'Dedollarize'. Even if they completely withdrew the $30 Trillion and replaced it.... with 1s replacing 1000s...... the circulation would be 18.5 times under the value of the need, just to be on par with the MOP Basis year of 1988.

That still does not even address, the additional out of country demand increase, of a minimum of 4 to 5 times the demand, of 1988, based on those statistics.... which can be proved conclusively, by all accounting documents, from CBI, MOP, IMF, CIA and numerous other documents.

I will stick with a very, very conservative number, and call that a 400% increase in foreign demand.

4 x 18.5 = 74.

So..... at the very minimum...... EVEN IF THEY PRINTED $30 TRILLION LOW DENOMS....... (Which is ridiculous) they will not print nearly that much...... but even if they did.... they would have to Revalue it at a minimum, of 74 times...... just to meet that standard of living, of the pre Saddam Eras.

BUT!!!!

We all know, that standards of living and general lifestyles will increase.... just to modernization alone, would at a very minimum, create more than double or triple the demands of the 70s and 80s, which multiplies the need to at least 2 to 3 times that 74. Call it 200 times as a fair and conservative estimate.

Now that puts the rate at roughly 20 cents...... even IF, CBI leaves 30 Trillion in circulation.....which we all know is ridiculous.

Since CBI had reported, they had 27 Trillion in circulation, from 2010, and are reporting now, that by 2012, there is an additional 3 trillion..... I am making a presumption, that CBI can leave about

$3 Trillion IQD in circulation and (Because the demand is needed, would not cause inflation or overheating of the economy, but would draw, fair market competition, to offset it), would also have the effect of increasing the value, by 10 more times, by removing 90% of the existing from circulation.

10 x 200 is 2000. 2000 x .00086 = about $1.72....... roughly the GCC average!!!

MOP projections, extrapolated, might suggest the more conservative number, of about $1.30..... which is consistent, given these are only rough, conservative averages.... which are consistent with several methodologies of averaging Trade Balance with oil verses non oil, Tradition Gravity Equations and Qualitative to Quantitative averages, to Trade Balance.

Can you see, how it is impossible, to go the way of Turkey???

That is basically what this article is saying.

See it ??

JupiterGirl, Thanks so much for that post. That gave me a better understanding and faith that this will be a blessing to many Beyond Measure.

[Darin]

Jupiter,

Thanks for the Enoch8 interpretation. The man is very smart, in my opinion. He has an opinion about how something would play out with reasonable and feasible concepts that stand behind it. Although, it is an opinion, many may disagree.

$3 Trillion IQD in circulation and (Because the demand is needed, would not cause inflation or overheating of the economy, but would draw, fair market competition, to offset it), would also have the effect of increasing the value, by 10 more times, by removing 90% of the existing from circulation.

Read more:

Interesting part of that explanation.

Lets say BIW (Big Iron Worker) is correct on the information he provides that the amount in circulation is not 30 trillion, but much lower. Than, removing a large % from circulation would come with ease.

Just something to add

[Joeshmoe]

Wow...I think I will need to re-read that post about 5 or 6 times to makes sense of it all! Great post jupiter!