Abadi: We are with the deletion of zeros is likely to begin replacement of the currency early in 2012

[wishwell11]

Abadi: We are with the deletion of zeros is likely to begin replacement of the currency early in 2012

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

[tommyboy]

To quote wishwell:

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. "

Sounds like our old triple 0's will be viable currency for a while, and when Iraq finally makes it into the IMF and the exchange rate increases so will our investment.

[wishwell11]

To quote wishwell:

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. "

Sounds like our old triple 0's will be viable currency for a while, and when Iraq finally makes it into the IMF and the exchange rate increases so will our investment.

Not quoting Wishwell11....the article. Yes, it will increase. but like us all ..sure wish those zeros would have stayed.

I've never seen the number 0, carry so much weight and mean so many different things.

[mrmcwhipit]

Lets just hope they still honour the currency thats outside the country, when they talk of making new currency because the old money size has become unreasonable it does make me wonder?

maybe part of their eviel plan that my friend says they probably have? he says because look who we are dealing with?

[easyrider]

What this tells me is that the Rd proccess wil start next year but that doesnt mean they cannot raise the value till next year this is all a process by phases and how many times have we heard both old and new currency will coexist. Shabs will raise the value first then the RD will come later next year thats what i get out of it.

Edited September 12, 2011 by easyrider

[keepmwlknfny]

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."

Not good.....once again admitting that the amount of currency in circulation is too much....

And again mentioning that Turkey and France did the same of what they are planning.....(RD)

I pray that this is not the final decision yet and they kick it out! Saw an article yesterday stating they didnt approve of the bill because there were other ways of raising the value of the dinar. Now if only they would listen to that statement and kick this delete the zeros the hell out of parliment and tell shabs he is freakin stupid for even bringin that up!!

[MakeMeRich]

Hummmm it is good to see them making progress I want it done yesterday hahahaha

[sfredieu]

Keeps I couldn't agree with you more.I hope they get rid of removing the zero crap also.

[82Corp.]

What this tells me is that the Rd proccess wil start next year but that doesnt mean they cannot raise the value till next year this is all a process by phases and how many times have we heard both old and new currency will coexist. Shabs will raise the value first then the RD will come later next year thats what i get out of it.

Easy' you are correct!

[JWJW11]

Easy' you are correct!

I agree! Also I think we should consider when they refer to 2012....they may be referring to OCT 1 when the new fiscal 2012 year/budget begins...

[laylow]

My first instinct is to think of "smoke and mirrors" when they put out this stuff and the journalists over there just gobble it up (along with regurgitating old articles once in awhile on slow news days) but the really sly thing is that they are apparently serious. When they say stuff like "next year" that ends up being true since they don't get very much accomplished very fast and need a vacation to do anything of value, and they appear to be putting their information right upfront which is totally throwing off the westerners who look for conspiracy in everything.

These folks are hard to grasp, no wonder they don't follow democratic ideology very well.....and this hercky jercky movement seems to be throwing all of us off too. Can't believe anything they say for certain yet.

[GT ACE]

My first instinct is to think of "smoke and mirrors" when they put out this stuff and the journalists over there just gobble it up (along with regurgitating old articles once in awhile on slow news days) but the really sly thing is that they are apparently serious. When they say stuff like "next year" that ends up being true since they don't get very much accomplished very fast and need a vacation to do anything of value, and they appear to be putting their information right upfront which is totally throwing off the westerners who look for conspiracy in everything.

These folks are hard to grasp, no wonder they don't follow democratic ideology very well.....and this hercky jercky movement seems to be throwing all of us off too. Can't believe anything they say for certain yet.

It's too bad the CIA/NSA didn't have these morons working for us when we were up against the KGB! The Iwakis would have had the Russians so frustrated and confused they wouldn't have known what was up and what was down. These morons have had 8000 years to perfect their utterly stupid ways of doing things and circle talk that no one will ever figure out what they say or mean!

[BULLY! BULLY!]

THIS MAKES ME THINK OF THE RUMOR TO GET OUT QUICK WHEN IT RV'S, I THINK THEY SAID WITHIN 3 MONTHS OF RVING. THAT COINCIDES WITH RD AT THE FIRST OF THE YEAR IF THEY RV'ED NOW. COULD BE MORE CHANGES COME 2012

[Realdinar]

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."

Not good.....once again admitting that the amount of currency in circulation is too much....

And again mentioning that Turkey and France did the same of what they are planning.....(RD)

I pray that this is not the final decision yet and they kick it out! Saw an article yesterday stating they didnt approve of the bill because there were other ways of raising the value of the dinar. Now if only they would listen to that statement and kick this delete the zeros the hell out of parliment and tell shabs he is freakin stupid for even bringin that up!!

good point keep, hopefully, they choose a different way other than the path turkey went.

[behaviorkat]

This is good news ~ I believe Shabs only needed approval for the new notes and not the actual rv itself and the CBI said October 1 with the new fiscal year!

Belize beaches......

[betty1970]

It just staggers me that not one of us, with combined total years in this haven't found a good Iraqi translator

Should start a fund to pay for one........

[keepmwlknfny]

This is good news ~ I believe Shabs only need approval for the new notes and not the actual rv itself and he said October 1 with the new fiscal year!

How is this good news??

[behaviorkat]

How is this good news??

how is it not? There was agreement and Oct 1st is very close!- imo

Lobsters are good eating but do not think well!

[keepmwlknfny]

how is it not? There was agreement and Oct 1st is very close!- imo

Lobsters are good eating but do not think well!

Its talking about replacing the entire currency and doing the same thing that Turkey did, they even mentioned that its a problem about the amount of currency out there in circulation and since they havent been trying to reduce the amount of currency in circulation in other ways like selling bonds and treasuries, they put a plan in front of parliment to RD the currency to reduce the money supply....if they were just removing the larger bills from circulation, and trading them in for an even amount in lower denoms, it still doesnt take care of the inflated money supply.

'

I hate to see this as much as the next guy but they are clearly talking about a lop....

[Blessed4ever]

But cant they LOP AND RV?

[Dalite]

But cant they LOP AND RV?

That is a very real possibility.

If they move the rate just $.14, the dinar will equal a dollar, which is one of the things that continues to get mentioned as a goal.

If they can move it that much, it could be more; as much as production and the reserves can support and still keep the country running as smooth as possible.

Hopeful for that to happen...

[trooper]

This is pretty clear "revalue the remaining foreign currency" "Diversify currency composition" & "remove exchange restrictions" Does it get any plainer!!!!!

Revalue the remaining foreign currency denominated balance sheet items!

COMPONENTS/RESTRUCTURING TO RV

I have reviewed in some detail the requisite criteria for the restructuring and implementation of the Central government investment accounts under the PFM Public Financial management System as mandated by the MOF and coordinated with the IMF & World Bank. The process is somewhat skewed given that the plan methodology is integrated with the Iraq 2011 Budget which as we all know has fluctuated pro forma income and production projections with the contributory oil pricing variable. With these in mind, one should also bear in mind that the Iraq economic policy has experienced delays in their capital budget primarily due to the political uncertainties as noted in the IMF report (noted below).

The key components of production increases, pricing and large investments in the oil infrastructure have reduced the 2011 budget deficit while allowing for an increase in more transparent government finance activities. This trend toward a surplus position in the following years is realistic and will put government finances on a sustainable footing to help rebuild the government’s financials.

I believe that the revaluation we are looking for is more than clearly defined and outlined in the letter of intent to the IMF: “Iraq: Letter of Intent, Memorandum of Economic and Financial Policies, and Technical Memorandum of Understanding”

http://www.imf.org/e.../irq/030311.pdf

1.We have worked with IMF staff to complete the review of exchange laws and regulations and are considering measures to remove the identified exchange restrictions on current international transactions.

2. In this regard, we formed a Bank Reconciliation Unit that comprises technical level staff from the banks, the CBI and the Ministry of Finance, and with the assistance of Ernst and Young (who were the agents of the Ministry of Finance in the external debt restructuring process) to: (i) deal with all legacy external liabilities taking into account the government’s actions in the context of Iraq’s external debt restructuring (ii) indentify and propose to write-off non-performing loans to defunct state-owned enterprises; (iii) propose a course of action for other remaining unreconciled accounts; and (iv) after the balance sheets have been cleaned up, revalue the remaining foreign currency denominated balance sheet items.

3. The CBI will follow the guidelines to diversify currency composition and establish an appropriate duration and credit risk profile, and build capacity for risk analysis.

I encourage everyone to review this letter and contrast its content to the economic reality of revaluation as not just a pipe dream but a documented FACT as outlined.

http://www.imf.org/e.../irq/030311.pdf

FOR THOSE WHO STILL DON'T UNDERSTAND

http://help.sap.com/...106/content.htm

[Carrello]

Why would Dr. Shabibi present a plan to just drop the 3 zeros to the Finance Committee? This does nothing to further his plan, and it certainly does not make the IQD the most powerful currency in the ME. Dropping and then revaluing over time? Time - being the operative word.

Many of us are hoping that this current plan be thrown out, but why was it presented?

And if it is more S&M, I am going to buy something leather.

[82Corp.]

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."

Not good.....once again admitting that the amount of currency in circulation is too much....

And again mentioning that Turkey and France did the same of what they are planning.....(RD)

I pray that this is not the final decision yet and they kick it out! Saw an article yesterday stating they didnt approve of the bill because there were other ways of raising the value of the dinar. Now if only they would listen to that statement and kick this delete the zeros the hell out of parliment and tell shabs he is freakin stupid for even bringin that up!!

Keepmwlknfny,

With your rationale of removing three zeros’ from a 25,000 currency note what happens to IDQ funds in a bank account. Does 50,000,000 IQD now become 50,000 IDQ and what effect will this have on fractional banking and economic growth for Iraq?

[Carrello]

It just staggers me that not one of us, with combined total years in this haven't found a good Iraqi translator

Should start a fund to pay for one........

I have one, lives almost next door. He was a translator for the government in Saudi, and he needs money. For $50 he would probably translate for a week.

My vendors are into 90 and 120 days, so I am busted or I would do it.