this news clip says its gonna LOP

[eyesofahkingtoldyouso]

http://english.cntv.cn/program/bizasia/20110908/104798.shtml

I know its not what many want to hear but at least I'm not posting some BS story about how it just RVd at 8.32 and cash in is on monday.

[bwilson300]

thanks for the clip but i think this is the same video that was posted a few days ago

go rv

Edited September 12, 2011 by bwilson300

[wishwell11]

This article released today from Parliamentary spokesperson, talks about new currency

http://translate.goo...TLlXgHCJefMRWcQ

Baghdad - where] The head of the parliamentary Finance Committee, Haider Abadi, that with the deletion of zeros from the Iraqi currency as an important and necessary condition that the actions to be associated with a sound and correct.

Predicted told all of Iraq [where] that "the start of the new currency to replace the beginning of 2012, wondering whether enough time remaining to the procedures associated with currency exchange, or will be extended period of time longer."

Abadi said that "a number of precautionary measures have been discussed with the Central Bank because the replacement process be successful and correct."

He said deputy state law that "one of the precautionary measures is that the currency is safer and less fraud because the old currency, and the percentage of fraud where a few, but the quantity was great Xu," The fraud case of an international and not without a state by as long as any fraud rings Valtzoar is in America, Britain and other countries. "

And Abbadi, "The new currency will not reflect negatively on the inflation situation in the country and will be dealing with finance in Iraq, the easiest and best delete the zeros."

He revealed that "the mechanism tends to replace the currency gradually and not all at once so as not to back the currency on our web site to the market again. Adding that" destruction of the old currency must be accompanied by strict measures to prevent the return of the old currency and the leakage to the market. "

He noted that "the new place that will bring the process of replacing the new currency and destroying the old currency has yet been set."

Abadi concluded his speech by saying that "the size of the Iraqi currency has become unreasonable and we are not the first country in the world to replace its currency, because many states have preceded us in this context, France and Turkey and others."

And we are talking some time ago in the Iraqi media regarding the change of currency, and issuing a new currency, and is noted that there are changes will occur in the form of new Iraqi currency, including the removal of zeros, and the inclusion of the Kurdish language to the Arabic language in the currencies.

There were conflicting reports on the feasibility of the deletion of zeros from the Iraqi currency, at a time which is regarded by some of the biggest financial corruption in Iraq because of money laundering is seen by many as the other comes in the framework of the currency reform of management system in preparation for the next phase. Ended 2

[DinarC]

Thanks for posting eyesofakingtoldyouso but this post belongs in the Lopster section.

Namaste!

Edited September 12, 2011 by DinarC

[Gasketman]

Hyperinflation was a problem, not is a problem. 7% is not hyperinflation. This video should be 10 years old.

[HopefulTxn]

Hyperinflation was a problem, not is a problem. 7% is not hyperinflation. This video should be 10 years old.

But the effects of their period of hyperinflation still remain. That is what has caused their monetary levels to be as high as they are now.

The ultimate question is simply how do they plan to remove those effects from their monetary system.

[andy3978]

Well then what becomes of the tens of billions of Dinars the cbi brings in on a daily basis via the auctions?

[keepmwlknfny]

Well then what becomes of the tens of billions of Dinars the cbi brings in on a daily basis via the auctions?

The auctions will continue most likely.....its pretty effective in keeping things stable....hell I think even Turkey still has their auctions.....

[ATHIM]

Well then what becomes of the tens of billions of Dinars the cbi brings in on a daily basis via the auctions?

Hey Andy, I am probably thinking along the same lines as you. They are shrinking the money supply for a strong RV. Costs them a few billion to save trillions.

One thing people neglect in these LOP V' POP discussions is what the bigger players hope to acheive through the whole Iraq episode, the outcome has already been concluded.

Our calculations are based on our knowledge of their money supply and I think but a few people know what that amount really is.

[HopefulTxn]

Hey Andy, I am probably thinking along the same lines as you. They are shrinking the money supply for a strong RV. Costs them a few billion to save trillions.

One thing people neglect in these LOP V' POP discussions is what the bigger players hope to acheive through the whole Iraq episode, the outcome has already been concluded.

Our calculations are based on our knowledge of their money supply and I think but a few people know what that amount really is.

According to all available documentation, their money supply is not shrinking but continuing to grow.

People have stated before that the 000 notes were being rounded up and destroyed. Yet they can provide nothing to substantiate the claim.

We all want to see that happen. But simply saying it is happening does not make it so.

Their money supply has shown to be increasing - month after month and year after year. No source put forward seems to discredit the available numbers.

[ATHIM]

According to all available documentation, their money supply is not shrinking but continuing to grow.

People have stated before that the 000 notes were being rounded up and destroyed. Yet they can provide nothing to substantiate the claim.

We all want to see that happen. But simply saying it is happening does not make it so.

Their money supply has shown to be increasing - month after month and year after year. No source put forward seems to discredit the available numbers.

Interesting points if thats whats actually happening, why would they be buying Dinar at the auctions and why would they use DFI funds, post release, to buy Dinar?

[HopefulTxn]

Interesting points if thats whats actually happening, why would they be buying Dinar at the auctions and why would they use DFI funds, post release, to buy Dinar?

What is there that states that they are buying dinar at the auctions? Every article I have seen states that they are buying and selling foreign currencies. Link

[Dalite]

Interesting points if thats whats actually happening, why would they be buying Dinar at the auctions and why would they use DFI funds, post release, to buy Dinar?

The auctions redistribute dollars and dinar to the local/ regional banks.

They help all banks keep a balance in both of the currencies in use.

Ther are not using them to contract the money supply.

As far as the DFI funds account; that is for infrastructure repair and for the good of the country.

It is not CBI reserves

That money is held at the Federal Reserve Bank in NYC; not the CBI.

I had suggested a possible outcome where the CBI gets permission to borrow against those funds to create a situation to let them RV, without having to RD first, but with the current battle by Maliki for the GOI to use CBI reserves to fund the GOI's deficit, I don't see the CBI getting permission to borrow against that fund.

Really, the balance sheets and aggregate figures published by the CBI, as well as their words in the recent press releases, all show the circulation to be at the 30 trillion level.

Earlier this year, it was at 27 trillion.

Approximately 4 trillion is in bank vault holdings. The circulation figures do not include unreleased currency, or currency replaced due to being "soiled".

It refers to the currency that the CBI holds the liability to back with it's foreign reserves, which are $58 billion; a mixture of 45% dollars, 45% euro and 10% in a combination of gold and British pounds.

[ATHIM]

Thanks Dalite and HopefulTxn.

[sfredieu]

I don't understand how they money supply keeps increasing when they have not printed any new dinar for 2011.I don't believe anything they say.if they had 30 billion dinar in circulation in pre war and now here it is 20 something years later,with inflation and there population increased 35% not to mention the dinar was 3 to 1 how in the hell could they dedollarize that country and do it with 30 billion dinar in circulation when the reach there final goal, that dinar would have to rv at 6 to 7 dinars to the dollar,and that's not going to happen.

[fiveten]

He revealed that "the mechanism tends to replace the currency gradually and not all at once so as not to back the currency on our web site to the market again. Adding that" destruction of the old currency must be accompanied by strict measures to prevent the return of the old currency and the leakage to the market. "

if they were to RD or LOp.. why would they care if the currency would leak back in to the market? if a 25k becomes $25 they wouldnt stress too much about leakage.. you would need a bunch of 25k notes to make it worth putting back on the market if it was only worth $25. the average person wouldnt do it but i suspect malki or sadr would do it.

[Dalite]

I don't understand how they money supply keeps increasing when they have not printed any new dinar for 2011.I don't believe anything they say.if they had 30 billion dinar in circulation in pre war and now here it is 20 something years later,with inflation and there population increased 35% not to mention the dinar was 3 to 1 how in the hell could they dedollarize that country and do it with 30 billion dinar in circulation when the reach there final goal, that dinar would have to rv at 6 to 7 dinars to the dollar,and that's not going to happen.

Hopefully someone will post the link for the charts showing the makeup of notes currently in circulation, as well as the barograph showing Circulation outside of banks, Foreign Currency deposits, Deposit Components of M2 and M2.

I saved the image, but lost the link.

It covered from Dec 2004 to April 2011.

Circulation cash rose from well below 10 trillion in 2004, hitting 20 trillion between 2008 and 2009.

As expected, sharp increases during high inflation, flatter curve once inflation was brought under control; rising to the 30 trillion in 2011; actually, Probably closer to 27 trillion in April.

As currency cash flattened, M2 started it's sharp rise to the 60 some odd trillion, with the deposits component rising proportionally, showing the lower inflation

Foreign reserves went from basically zero when Shabibi took over to the $58 billion we show today.

For the most part, currency sharply increases during periods of high inflation, only to be corrected when inflation is reduce to controllable levels.

If anyone has the link, please post, and I will be sure to save it this time.

Edited September 22, 2011 by Dalite

[the wolf]

http://cbi.iq/documents/Monetary_Aggregates_f.xls

Here is the link that will show the progression of their money supply. They use the auctions to maintain the pegged exchange value. They are required to purchase all IQD offered at the exchange price or adjust the price accordingly.