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

[Nani?]

Keep your wrong but you just want to be right... It doesn't matter if they rd as long as they rv this year.

[FrankieV]

Keep your wrong but you just want to be right... It doesn't matter if they rd as long as they rv this year.

They would never RV and then RD (lop) later. It makes no sense and doesn't benefit Iraqis at all, only foreign currency speculators. It will not and can not happen.

[Carrello]

They would never RV and then RD (lop) later. It makes no sense and doesn't benefit Iraqis at all, only foreign currency speculators. It will not and can not happen.

I am no expert, or even knowledgeable, but if the currency had more value, it seems that just the very basics would improve for Iraqis. Would a healthier currency not help create jobs,start new businesses, money to buy a car, buy a generator, buy food, increase building of homes and infrastructure, etc.?

Edited September 12, 2011 by Carrello

[keepmwlknfny]

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?

Yes, if they remove three zeros even electronic accounts are adjusted accordingly at a ratio of 1000 to 1

Then what happens NORMALLY is that after the exchange process is over, the new dinar would carry a new value most likely around the USD so purchasing power and a stronger value is achieved while reducing the inflated money supply which would also bring some confidence in the currency itself and the dinar can grow further in value over time

Keep your wrong but you just want to be right... It doesn't matter if they rd as long as they rv this year.

Of course I would love to be wrong, but thats what the CBI is saying they are doing....not me....Id rather them throw out this plan to remove the zeros and implement other monetary policies to reduce the money supply and raise the value of the dinar but I havent seen any other plans to increase the value other then by RD first, and then RVing the new currency

[Ridewithme38]

Yes, if they remove three zeros even electronic accounts are adjusted accordingly at a ratio of 1000 to 1

Then what happens NORMALLY is that after the exchange process is over, the new dinar would carry a new value most likely around the USD so purchasing power and a stronger value is achieved while reducing the inflated money supply which would also bring some confidence in the currency itself and the dinar can grow further in value over time

This!

[zaborniake]

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.

I wonder myself about the presentation of a plan that had the possibility of being rejected. Perhaps I am mistaken, but I thought that there was global (IMF, WB, US, etc) coordination on helping Iraq reduce its debt, restore and update its banking systems, and reboot its economy.

If this process was completed in order to accomplish some financial/economic endgame for Iraq, how could the final implementation be left up to a vote by this dysfunctional "government"? It doesn't make sense, IMO.

[keepmwlknfny]

I wonder myself about the presentation of a plan that had the possibility of being rejected. Perhaps I am mistaken, but I thought that there was global (IMF, WB, US, etc) coordination on helping Iraq reduce its debt, restore and update its banking systems, and reboot its economy.

If this process was completed in order to accomplish some financial/economic endgame for Iraq, how could the final implementation be left up to a vote by this dysfunctional "government"? It doesn't make sense, IMO.

I think its basically because according to their laws/regulations/policies that the govt has to approve issuing a new currency regardless if the CBI controls the exchange rate. If it was simply raising the exchange rate, then the govt wouldnt need to be so involved in the process

[unirod]

Why is it that we seldom ever get a quote from shab's on anything. It's alway's these aids or no name experts who have ZERO influence on policy! And another thing which I'm sure is politically incorrect; After traveling all over the world, the Middle East as a society is the most dishonest that I have ever interacted with............. Sorry everyone but that's the truth!! So try not to get so worked up over the conflict in the R/D or RV messages.

[keepmwlknfny]

Why is it that we seldom ever get a quote from shab's on anything. It's alway's these aids or no name experts who have ZERO influence on policy! And another thing which I'm sure is politically incorrect; After traveling all over the world, the Middle East as a society is the most dishonest that I have ever interacted with............. Sorry everyone but that's the truth!! So try not to get so worked up over the conflict in the R/D or RV messages.

Shabs has been involved with these articles as well....got one bookmarked at home that mentions him speaking about this plan and to move forward with it in a nut shell....but where do you think his advisors get this information from??/

Its just like the presidents advisors that speak on his behalf....doesnt mean its not coming from the desk of the president.....

[MovieMaker]

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...

Let's hope! Straight up RV by Oct. My "dinar" Halloween costume is getting expensive!

Edited September 12, 2011 by MovieMaker

[Dalite]

The info below describes the requirement to write off all bad loans and recapitalize the two largest State Banks.

After getting the books correct, it would give a correct value to the foreign reserves.

This has been sold as proof of a RV many times before, but it is not.

Believe what you want, and lead others into the same belief, but this not the Revalue everyone is anticipating.

It is merely the IMF requirement to audit the 2 main State Banks, correct their balance sheets and come up with corrected figures.

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

[Ridewithme38]

If they were to RV the current dinar to 14 cents, then a 1000:1 RD on top of that would make the new dinar worth $140.00 which is not going to happen. They could RV to $0.0014 (a bit less than 2x the current $0.00086) and then RD 1000:1 to $1.40 for the new dinar.

I think what people believe is they will rd first making one dinar equal .86 cents then rv .14 to bring it on par with the dollar

[Dalite]

If they were to RV the current dinar to 14 cents, then a 1000:1 RD on top of that would make the new dinar worth $140.00 which is not going to happen. They could RV to $0.0014 (a bit less than 2x the current $0.00086) and then RD 1000:1 to $1.40 for the new dinar.

Actually, it would be. a $.14 RV that is concurrent with the RD.

Or, it could be allowing the exchange rate to float to 1000:1 then RD.

Sorry I didn't make that a bit more clear.

The concept is the implied rate after RD of $.86 would only have to be increased by $.14 to equal $1.00

[Carrello]

Indeed. A crying shame, is what it is.

Estewart, I was trying to give you a +1 and accidentally got you another -1. I am sorry. I keep trying.

I will get you on the rebound.

[Carrello]

I think its basically because according to their laws/regulations/policies that the govt has to approve issuing a new currency regardless if the CBI controls the exchange rate. If it was simply raising the exchange rate, then the govt wouldnt need to be so involved in the process

But the question was, as I read Zab's response, and as I presented my question, why would Shabibi present a plan that does not further his overall plan to increase the value. Maybe I missed something. I am just trying to understand.

Thanks Zab and Keep.

[keepmwlknfny]

But the question was, as I read Zab's response, and as I presented my question, why would Shabibi present a plan that does not further his overall plan to increase the value. Maybe I missed something. I am just trying to understand.

Thanks Zab and Keep.

Well a RD happening will still accomplish raising the value in the dinar because wonce they reduce the money supply, the currency is not as diluted and inflated and brings it down to a more managable number to back with a higher rate....if they RD, they could come out at around 1 USD.....

[Carrello]

Well a RD happening will still accomplish raising the value in the dinar because wonce they reduce the money supply, the currency is not as diluted and inflated and brings it down to a more managable number to back with a higher rate....if they RD, they could come out at around 1 USD.....

Thanks. Appreciate the info.

[sonny1]

This is great news its almost over.

[zul]

Yes, if they remove three zeros even electronic accounts are adjusted accordingly at a ratio of 1000 to 1

Then what happens NORMALLY is that after the exchange process is over, the new dinar would carry a new value most likely around the USD so purchasing power and a stronger value is achieved while reducing the inflated money supply which would also bring some confidence in the currency itself and the dinar can grow further in value over time

The purchasing power of the Iraqis WILL NOT increase with RD. If 25K dinar today buys you 20 cans of coke, after RD, the same 20 cans of coke will still cost you new 25 dinar or old 25K dinar tomorrow.

When CBI said..increase purchasing power..he was referring to the purchasing power of the people..and RD just wont do it.

Edited September 12, 2011 by zul

[hame55]

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....

KEEP - Here's a message for you.

LOP!

LOP!

LOP!

It's like a parrot around here. Braaawwwk!!!!

Here's the deal. The "new" currency is the lower denoms. The rest stays the same, 10 K 25K, etc.

"Dropping the zeroes" is what they MUST say in order to avoid a run on the Dinar. Their real intentions must be left ambiguous so we are forever wondering what will happen. The currency will stay as it is. 25,000 dinar is what you bought. It is what you have now and will not change. Dropping three zeroes from that note you bought as legal tender would be an act of fraud. Their economy would not recover from such an investor theft.

And remember the thieves (banksters) who are overseeing this RV. Do you really believe they will pass up this opportunity to make 1000%? DO YOU REALLY BELIEVE THIS?

I have asked you many times before, but you have not answered that last question: You come back with ...SQUAWK...TOO MUCH DINAR....CAN'T DO ANYTHING!!!!!

Just answer this simple question: Do you really believe the people who went to all this trouble printing new, hi-tech currency, rebuilding the country, profiting immensely in so many other ways with PSA's for oil drilling and other long-term economic agreements, WOULD PASS UP THIS CHANCE?

ARE YOU THERE KEEP?

[JOLLY ROGER]

Straight RV at a good rate, with a 30 to 60 day cash in window. That will get a lot those zeros back into the hands of the CBI.

Then RD. They can accomplish their goals and not run off the foreign investors.

What I'm trying to say is.....Please let "Team DV" makes some profit and we will consider reinvesting some of those profits in Iraq.

Pull the plug on us and the less likely we will be to spending another penny.

This is great news its almost over.

Good to hear a peep from Sonny

[keepmwlknfny]

The purchasing power of the Iraqis WILL NOT increase with RD. If 25K dinar today buys you 20 cans of coke, after RD, the same 20 cans of coke will still cost you new 25 dinar or old 25K dinar tomorrow.

When CBI said..increase purchasing power..he was referring to the purchasing power of the people..and RD just wont do it.

Exactly!! LOL You are explaining how the purchasing power is increased with the new dinar.....

The new 25 dinar will buy you what the old 25k note would....that in itself is an increase in purchasing power for the citizens, they are no longer having to use an inflated 25k note to buy a new hat but rather they can now use a new 25 dinar note to purchase that same hat....not to be confused with the exchange rate....the exchange rate will make its way north once the RD process is complete

KEEP - Here's a message for you.

LOP!

LOP!

LOP!

It's like a parrot around here. Braaawwwk!!!!

Here's the deal. The "new" currency is the lower denoms. The rest stays the same, 10 K 25K, etc.

"Dropping the zeroes" is what they MUST say in order to avoid a run on the Dinar. Their real intentions must be left ambiguous so we are forever wondering what will happen. The currency will stay as it is. 25,000 dinar is what you bought. It is what you have now and will not change. Dropping three zeroes from that note you bought as legal tender would be an act of fraud. Their economy would not recover from such an investor theft.

And remember the thieves (banksters) who are overseeing this RV. Do you really believe they will pass up this opportunity to make 1000%? DO YOU REALLY BELIEVE THIS?

I have asked you many times before, but you have not answered that last question: You come back with ...SQUAWK...TOO MUCH DINAR....CAN'T DO ANYTHING!!!!!

Just answer this simple question: Do you really believe the people who went to all this trouble printing new, hi-tech currency, rebuilding the country, profiting immensely in so many other ways with PSA's for oil drilling and other long-term economic agreements, WOULD PASS UP THIS CHANCE?

ARE YOU THERE KEEP?

Your really not understanding what you are reading huh?? Its not your fault....you have too much guruwax build up in your ears and brain..... Its not a fraud for them to drop zeros off the bills....its called a redenomination....it happens ALL THE TIME....do yourself a favor and read to learn for yourself a little and you will answer your own questions.....

Would I like for them to be lying about putting this plan in place to delete the zeros? Hell yea....who wouldnt?? Im just putting out what the CBI is saying (whether they do it or not is another story) but there is too much confusion out there because the gurus are so good at twisting the negative info into meaning something great for us....

[imgesing]

Dont allow the smoke to get in your eyes people. WHat they do and what they say are two different things.

Or do you all REALLY think they will spell it out for the world to see and make it sound profitable to keep the current denoms?

Relax the news is SMOKE and that is it. They are working and this will happen....

PEACE

[Ridewithme38]

Most if not all RD's had VERY long education campaigns to get the news out to the people of the country....so they'd know what to do when it happens....Sure it could all be smoke, the law they are signing could be imaginary....But if they ARE Redominating....this is exactly how they would do it

[Nottoolate]

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...

Agreed again JWJW11. At least I hope and pray that is what they are doing. completly dropping these 0's would devistate several economies not just ours.

Dont allow the smoke to get in your eyes people. WHat they do and what they say are two different things.

Or do you all REALLY think they will spell it out for the world to see and make it sound profitable to keep the current denoms?

Relax the news is SMOKE and that is it. They are working and this will happen....

PEACE

I'm sure like you, I am ready for this smoke to clear.