Najaf start using a smart card transactions daily in the state departments of the month as a future

[DRV1804]

Najaf start using a smart card transactions daily in the state departments of the month as a future

09:17 14/09/2011

Najaf start using the smart card in the daily dealings of all government departments from next month.

A spokesman for Najaf province, Ziad Al Salhi told the correspondent N (a move to shift towards the use of scientific techniques of modern-day transactions, especially receipt of monthly salaries and in banks and some other events, in addition Walt facilitate the process of trading cash currency for Afard, businessmen and traders in the conversion money smoothly by making use of this type of card inside and outside Iraq)

For his part, Moataz Abdullah al-Hazir project manager for the smart card and e-government in Najaf said (that the company has completed all preparations to use the card to smart in the province of Najaf and will be used as a first stage in the government official before so they can be used card standardized information to all residents to maintain pointing that this type of use will greatly facilitate the cardholders receive their monthly salaries of the branches of the Rafidain and good and will facilitate future operations to pay some bills important Kfatourta water and electricity as well as for use in the payment of wages and other entitlements in the markets, malls and commercial facilities that will be placed ATMs mechanism during the period the next.

He said: The governor of Najaf are the first provinces that use smart cards in the trading of electronic and process a number of other provinces that are working to complete this project by including the provinces of Karbala, Nasiriyah and other Iraqi cities, indicating that this type of uses technology guarantees the elimination of many of rampant corruption)

http://translate.googleusercontent.com/translate_c?hl=en&rurl=translate.google.co.uk&sl=ar&tl=en&twu=1&u=http://non14.net/display.php%3Fid%3D15705&usg=ALkJrhjJSLPqbWl8qluQ3Q_4MhY6Ex8bjQ

[20MillionDinar]

Najaf start using a smart card transactions daily in the state departments of the month as a future

09:17 14/09/2011

Najaf start using the smart card in the daily dealings of all government departments from next month.

A spokesman for Najaf province, Ziad Al Salhi told the correspondent N (a move to shift towards the use of scientific techniques of modern-day transactions, especially receipt of monthly salaries and in banks and some other events, in addition Walt facilitate the process of trading cash currency for Afard, businessmen and traders in the conversion money smoothly by making use of this type of card inside and outside Iraq)

For his part, Moataz Abdullah al-Hazir project manager for the smart card and e-government in Najaf said (that the company has completed all preparations to use the card to smart in the province of Najaf and will be used as a first stage in the government official before so they can be used card standardized information to all residents to maintain pointing that this type of use will greatly facilitate the cardholders receive their monthly salaries of the branches of the Rafidain and good and will facilitate future operations to pay some bills important Kfatourta water and electricity as well as for use in the payment of wages and other entitlements in the markets, malls and commercial facilities that will be placed ATMs mechanism during the period the next.

He said: The governor of Najaf are the first provinces that use smart cards in the trading of electronic and process a number of other provinces that are working to complete this project by including the provinces of Karbala, Nasiriyah and other Iraqi cities, indicating that this type of uses technology guarantees the elimination of many of rampant corruption)

http://translate.goo...Q3Q_4MhY6Ex8bjQ

I just brought this up a few days ago! I was talking about how Iraq's GDP is 90% OIL which is generated through the Government. So if all of the government employees and the Welfare is done through Smart Cards (electronic) then 90% of Iraq's economy could technically operate without cash! In my opinion this is huge.

With a GDP of $113 Billion and 90% of that is OIL related business. Then only 10% of Iraq's GDP is through the private sector - $11.3 Billion. When you exchange that to IQD it is about 12.7 trillion Dinars.

I feel that is all they would need to have in circulation at this time assuming 100% of the Iraqi citizens do not have bank accounts.

If this is the case then who says that they cannot "destroy" the IQD notes that are brought in through the Currency Auctions on a daily basis? If the whole reason they WERE NOT destroying the notes was to "cycle" them back through the system, well, I say that logic is now void with the transition to Smart Cards aka "e-government"

Edited September 14, 2011 by 20MillionDinar

[Elixirbaby]

[20MillionDinar]

This is what I posted 2 days ago:

The following are my thoughts at this time:

What is the newest note available? Anybody holding any 2011 notes? I think the newest is 2010... Does this mean that they have stopped printing new dinars for almost 2 years now? If this is the case then we need to keep in mind that a lot of currency is being turned in and destroyed as the average lifespan for a typical note in Iraq is less than 6 months. I have heard 3 months but we will go with 6 to be on the safe side. If they aren't printing new notes then they are definitely not replacing the notes that are being turned in!

Currency Auctions: This is the method the CBI could use to bring in massive amounts of dinar and take them out of circulation if/when they choose to do so. I have already proven that they do in fact bring in a ton of Dinars by selling USD, however, we can't find proof that they are destroying them and removing them from circulation at this time.

Also, there are no new financial indicators available by the CBI at this time. If I'm not mistaken they are over a year old. They could bring in at least 25 trillion in one year's time if they needed to, easily! What are the latest financial indicators? I also believe there is all different kinds of ways people are reading them.

With a transition to electronic banking for ALL government employees as well as the usage of the USD on the streets of Iraq, it isn't too far fetched to say that they have not already done this or plan on doing this soon. This doesn't even take into consideration the amount of dinar that is technically in the CBI's "reserves" which could easily be wiped out of circulation by the stroke of a pen.

Everything here has been discussed and I think we all agree on everything but one thing.

What are they doing with the Dinar that is purchased via the Currency Auctions? We all know that it is a cycle but I don't think that anybody can prove that the CBI and GOI cannot withdraw them from circulation if that is part of their plan...

Read more: http://dinarvets.com.../#ixzz1XxJumBmD

Now we know that the GOI is transitioning to a 100% e-government so what will they do now with all of the IQD notes that they bring in through the currency auctions? I have a pretty good idea....remove them from circulation reducing the cash bloc.

By the way, if you average out their currency auctions they could bring in over 2 trillion Dinars a month!

Edited September 14, 2011 by 20MillionDinar

[zigmeister]

Good post 20 Million. I have wondered how much they bring in a month. It seems 2 T could be a real possibility.

[20MillionDinar]

Good post 20 Million. I have wondered how much they bring in a month. It seems 2 T could be a real possibility.

Thanks Zigmeister! Check this out...

I posted this up on August 7th. This is from the post titled: "Open Market Operations aka Currency Auctions" This thread is pinned at the very top of the news section, the following is from the first page, about half way down:

**Disclaimer: Do not take this at face value. This is only an EXAMPLE I am using to make it easier with the numbers.

$100,000,000 ($100 Million Dollars) = 116,950,000,000 Iraqi Dinars (roughly 117 billion dinars)

It is safe to say that an average currency auction that takes place in Iraq ranges anywhere from $60,000,000 being sold up to $200,000,000 USD being sold. I am not exactly sure but let's go with an average of $100,000,000 per auction. I think we are safe to say that is an "average" currency auction.

So if they are able to bring in roughly 117 Billion Dinars per auction. they would need about 10 auctions to bring in a Trillion Dinars. That would be roughly 2 weeks.

2 weeks for 1 Trillion Dinars. So the CBI could technically bring in 2 Trillion Dinars a month right?

24 trillion in one year's time.

They have been doing these auctions for quite some time now. Like for years and years... I think it is safe to say that if they wanted to remove physical currency in circulation they could do it using the methods they are using on a daily basis. Simple as that.

Read more: http://dinarvets.com/forums/index.php?/topic/78776-open-market-operations-aka-currency-auctions/#ixzz1XxNCCYlw

Now that they have transitioned to an e-government this is a very likely scenario! Also, keep in mind that their currency auctions are double this more than often. Just the other day they auctioned off roughly 213,000,000 USD. 2 Trillion Dinars a month is being conservative in my opinion...

[zigmeister]

I totally agree. What we don't know for a fact is what they do with the trillions of dinar they pull in for auctions. There is the real question isn't it? Do they pull them in, hold them, burn them or do they recirculate them. Which I am thinking out loud if they haven't printed any currency since 2010, and say they pulled in approximately 24 T, and they are going smart cards there may not be that much dinar out there really. Does that make sense?

[20MillionDinar]

I totally agree. What we don't know for a fact is what they do with the trillions of dinar they pull in for auctions. There is the real question isn't it? Do they pull them in, hold them, burn them or do they recirculate them. Which I am thinking out loud if they haven't printed any currency since 2010, and say they pulled in approximately 24 T, and they are going smart cards there may not be that much dinar out there really. Does that make sense?

Exactly! I believe that they have been letting them cycle through the system so to say. BUT, now that the government is moving to 100% e-government via Smart Cards they can now keep them and remove them from circulation if they choose to do so.

They will not need to put them back in the system after bringing them in via the Currency Auctions now that they are using Smart Cards for ALL government payments.

90% of GDP is OIL (Government)

90% of Cash can be removed now that 90% of all business and payments can be made via Smart Cards

That is how I am viewing this.

Only time will tell...

[milo825]

Now that they have transitioned to an e-government this is a very likely scenario! Also, keep in mind that their currency auctions are double this more than often. Just the other day they auctioned off roughly 213,000,000 USD. 2 Trillion Dinars a month is being conservative in my opinion...

You wouldn't by chance know if the currency auctions were this large every September would you? Reason I ask is because I am under the impression that a new fiscal year starts in October, so I'm wondering if it is normal for them to bring in as much as they are currently.

[20MillionDinar]

You wouldn't by chance know if the currency auctions were this large every September would you? Reason I ask is because I am under the impression that a new fiscal year starts in October, so I'm wondering if it is normal for them to bring in as much as they are currently.

I am not entirely sure. You are right about a new Fiscal year starting in October though. I have seen them sell $200,000,000 quite a few times, but I think it would be safe to say that an "average" auction is $100,000,000...

My opinion is that it is not entirely out of the norm.

[milo825]

I am not entirely sure. You are right about a new Fiscal year starting in October though. I have seen them sell $200,000,000 quite a few times, but I think it would be safe to say that an "average" auction is $100,000,000...

My opinion is that it is not entirely out of the norm.

Oh I completely agree with that. I was wondering because if it is normal practice to do so it would appear the increase this week was in preparation of the new year solely based on the previous years. If it was not normal then speculatively I would hope that the increase was a final push in collecting as much as possible based on the news out now and the new fiscal year. I honestly think you are accurate in your thought process and assuming that 2T is brought in and X is recirculated Y is held and Z is destroyed. Being conservative as I read your posts I was thinking if the recycled was 1.5T and if the stored and destroyed were equal then 250B each. 3T a year destroyed and 3T a year stored for the rainy day fund I don't know how many years the auctions have been going on so I know it's all speculation based on your well thought out theory. So if this was not a normal practice for closing out the year then why the increase? Also is there an ideal reserve amount (i.e. Instead of 58T if Iraq were at __T then everything would be fantastic), and with all the reports of inflation being high I was wondering what is a high inflation one to be concerned with 5, 6, or 7 just doesn't sound terrible. Sorry to unload but I feel like you are far better qualified than I to answer these questions.

[20MillionDinar]

To be honest, I am very surprised that more people have not chimed in on this thread. The Iraqi Government transitioning to a 100% e-government is beyond HUGE!!

This current project they are working on should help make the transition over to the banking system. This in turn will allow them the ability to use more fractional reserve banking" and less hard cash.

Let's say they have 30 trillion physical dinars in circulation and they can now eliminate 90% of that physical cash it brings them down to roughly 3 trillion Dinars. Isn't this the biggest problem people have with Iraq and a potential RV?

Maybe I'm reading more into this article then I should, but, I don't think I am...

[zigmeister]

I found a September 21, 2010 on Dinar Daddys site, I can't link with DD because it is not allowed. But I could not find 2010 on CBI.

Announcement No. (1738)

The latest daily currency auction was held in the Central Bank of Iraq on the 21-SEP-2010. The results were as follows:

DETAILS NOTES

Number of banks 19

Auction price selling dinar / US$ 1170

Auction price buying dinar / US$ —–

Amount sold at auction price (US$) 251,125,000

Amount purchased at Auction price (US$) —–

Total offers for buying (US$) 251,125,000

Total offers for selling (US$) —–

Currency Auctions

Announcement No. (1978)

The latest daily currency auction was held in the Central Bank of Iraq on the 14-SEP-2011. The results were as follows:

DETAILS NOTES

Number of banks 22

Auction price selling dinar / US$ 1170

Auction price buying dinar / US$ -----

Amount sold at auction price (US$) 188,003,000

Amount purchased at Auction price (US$) -----

Total offers for buying (US$) 188,003,000

Total offers for selling (US$) ----

My link

[hoosier1470]

Thanks for the post! Interesting info here!

[milo825]

Announcement No. (1738)

The latest daily currency auction was held in the Central Bank of Iraq on the 21-SEP-2010. The results were as follows:

DETAILS NOTES

Number of banks 19

Auction price selling dinar / US$ 1170

Auction price buying dinar / US$ —–

Amount sold at auction price (US$) 251,125,000

Amount purchased at Auction price (US$) —–

Total offers for buying (US$) 251,125,000

Total offers for selling (US$) —–

Currency Auctions

Announcement No. (1978)

My link

Thank you

It really is impressive the research some of you on here are capable of doing

[DayTrader]

To be honest, I am very surprised that more people have not chimed in on this thread. The Iraqi Government transitioning to a 100% e-government is beyond HUGE!!

This current project they are working on should help make the transition over to the banking system. This in turn will allow them the ability to use more fractional reserve banking" and less hard cash.

Let's say they have 30 trillion physical dinars in circulation and they can now eliminate 90% of that physical cash it brings them down to roughly 3 trillion Dinars. Isn't this the biggest problem people have with Iraq and a potential RV?

Maybe I'm reading more into this article then I should, but, I don't think I am...

I Completely Agree. So Says.............DayTrader

[20MillionDinar]

Oh I completely agree with that. I was wondering because if it is normal practice to do so it would appear the increase this week was in preparation of the new year solely based on the previous years. If it was not normal then speculatively I would hope that the increase was a final push in collecting as much as possible based on the news out now and the new fiscal year. I honestly think you are accurate in your thought process and assuming that 2T is brought in and X is recirculated Y is held and Z is destroyed. Being conservative as I read your posts I was thinking if the recycled was 1.5T and if the stored and destroyed were equal then 250B each. 3T a year destroyed and 3T a year stored for the rainy day fund I don't know how many years the auctions have been going on so I know it's all speculation based on your well thought out theory. So if this was not a normal practice for closing out the year then why the increase? Also is there an ideal reserve amount (i.e. Instead of 58T if Iraq were at __T then everything would be fantastic), and with all the reports of inflation being high I was wondering what is a high inflation one to be concerned with 5, 6, or 7 just doesn't sound terrible. Sorry to unload but I feel like you are far better qualified than I to answer these questions.

Milo825 - Thank you for the post.

I am not too sure what determines a "large" currency auction vs. a "small" auction. I wish I knew...

The currency auctions have been going on since 2003, however, I don't think they were withdrawing any IQD's from circulation at all. The Ministry of Finance sells several hundred million dollars a month to the CBI to satisfy the domestic demand generated by government expenditure (payment of salaries, pensions, etc.)

The reason I don't believe they were withdrawing notes for the past 8 years is because of the simple fact that they kept on printing new notes. It would be stupid to print more but withdraw and destroy at the same time.

If anybody can show that they have any 2011 notes then we know they are still printing. I personally don't think there are any 2011 notes available due to the fact that they are not printing new notes anymore. If this is the case then they can drastically decrease their currency in circulation due to a few major factors:

1) Old notes that are torn or no longer usable are turned in and destroyed - if they are not printing new then they will not replace the old.

2) Currency Auctions - Now that they are transitioning to a 100% e-government then 90% of their cash can now be withdrawn from circulation after being brought in through the currency auctions.

3) CBI's Reserves - Whatever is being held in the CBI's reserves is money that is as good as "out of circulation" in my mind.

So let's say that they have 30 trillion dinars (physical currency) and now 90% of their entire economy is now electronic, then it only makes sense to withdraw the remaining "unnecessary" currency out of circulation!

Inflation: I really don't know at what point is too much... I wouldn't think that 7% is very high, that is about where the US is at every year. Look at what use to cost a dollar, like 7-8 years ago, now cost about $1.50.

I found a September 21, 2010 on Dinar Daddys site, I can't link with DD because it is not allowed. But I could not find 2010 on CBI.

Announcement No. (1738)

The latest daily currency auction was held in the Central Bank of Iraq on the 21-SEP-2010. The results were as follows:

DETAILS NOTES

Number of banks 19

Auction price selling dinar / US$ 1170

Auction price buying dinar / US$ —–

Amount sold at auction price (US$) 251,125,000

Amount purchased at Auction price (US$) —–

Total offers for buying (US$) 251,125,000

Total offers for selling (US$) —–

Currency Auctions

Announcement No. (1978)

The latest daily currency auction was held in the Central Bank of Iraq on the 14-SEP-2011. The results were as follows:

DETAILS NOTES

Number of banks 22

Auction price selling dinar / US{:content:}nbsp; 1170

Auction price buying dinar / US{:content:}nbsp; -----

Amount sold at auction price (US$) 188,003,000

Amount purchased at Auction price (US$) -----

Total offers for buying (US$) 188,003,000

Total offers for selling (US$) ----

My link

Thanks Zigmeister! Looks like their auctions are on the "larger" side! Great news to me!

[zigmeister]

Yup....it appears so.

[Elixirbaby]

To be honest, I am very surprised that more people have not chimed in on this thread.

I wish I could pipe in with something intelligent but just not that smart. But I'm learning lots thanks to you and a few others on DV.

Keep it coming.

Go RV

[Brudog]

I agree! This sounds like huge news. Thanks for the post and your reply 20million.

[zigmeister]

I wish I could pipe in with something intelligent but just not that smart. But I'm learning lots thanks to you and a few others on DV.

Keep it coming.

Go RV

Sure you are!

[Elixirbaby]

Sure you are!

I play a good humble

[milo825]

Milo825 - Thank you for the post.

I am not too sure what determines a "large" currency auction vs. a "small" auction. I wish I knew...

The currency auctions have been going on since 2003, however, I don't think they were withdrawing any IQD's from circulation at all. The Ministry of Finance sells several hundred million dollars a month to the CBI to satisfy the domestic demand generated by government expenditure (payment of salaries, pensions, etc.)

The reason I don't believe they were withdrawing notes for the past 8 years is because of the simple fact that they kept on printing new notes. It would be stupid to print more but withdraw and destroy at the same time.

If anybody can show that they have any 2011 notes then we know they are still printing. I personally don't think there are any 2011 notes available due to the fact that they are not printing new notes anymore. If this is the case then they can drastically decrease their currency in circulation due to a few major factors:

1) Old notes that are torn or no longer usable are turned in and destroyed - if they are not printing new then they will not replace the old.

2) Currency Auctions - Now that they are transitioning to a 100% e-government then 90% of their cash can now be withdrawn from circulation after being brought iAn through the currency auctions.

3) CBI's Reserves - Whatever is being held in the CBI's reserves is money that is as good as "out of circulation" in my mind.

So let's say that they have 30 trillion dinars (physical currency) and now 90% of their entire economy is now electronic, then it only makes sense to withdraw the remaining "unnecessary" currency out of circulation!

Inflation: I really don't know at what point is too much... I wouldn't think that 7% is very high, that is about where the US is at every year. Look at what use to cost a dollar, like 7-8 years ago, now cost about $1.50

I can see that, do you think it possibly to bring in 2T burn X and reprint Y? I think you right that it probably isn't possible that this has been going on the entire time but maybe since there inflation leveled out to something more manageable. Reason I am inclined to think this is and I may be wrong but because it would become an unnecessary expense. I read that it cost something like $.13 to print a note as advanced as the iqd. If they burned 100B a month and even if they were all 25k notes that's still a considerable annual expense to accomplish nothing more than still worthless however clean money. Does the new fiscal year mean that money printed after October 1st will be dated 2012? Even if the goverment is on the smart card how much of the 30T do they have to keep in circulation I remember you said once that so much has to remain in circulation in comparison to another amount (sorry for the vagueness as I am unsure of the specifics). Assuming there is 30T in physical is that something that will be reflected in a M1 or M2 figure, and would the beggining of a new year mean they would have to display an accurate figure we could view. If they do post a M1 or M2 (not sure of the difference) I hope that you find your findings have been correct. Good point lol hadn't thought of inflation that way.

[20MillionDinar]

I can see that, do you think it possibly to bring in 2T burn X and reprint Y? I think you right that it probably isn't possible that this has been going on the entire time but maybe since there inflation leveled out to something more manageable. Reason I am inclined to think this is and I may be wrong but because it would become an unnecessary expense. I read that it cost something like $.13 to print a note as advanced as the iqd. If they burned 100B a month and even if they were all 25k notes that's still a considerable annual expense to accomplish nothing more than still worthless however clean money. Does the new fiscal year mean that money printed after October 1st will be dated 2012? Even if the goverment is on the smart card how much of the 30T do they have to keep in circulation I remember you said once that so much has to remain in circulation in comparison to another amount (sorry for the vagueness as I am unsure of the specifics). Assuming there is 30T in physical is that something that will be reflected in a M1 or M2 figure, and would the beggining of a new year mean they would have to display an accurate figure we could view. If they do post a M1 or M2 (not sure of the difference) I hope that you find your findings have been correct. Good point lol hadn't thought of inflation that way.

People have read and interpreted the financial indicators published by the CBI a number of ways. I think most agree that about 25 trillion is being held in the CBI's reserves. That leaves about 30 trillion physical dinar in circulation.

Physical Currency and Checking Accounts is considered M1

M2 is the combination of physical currency, checking accounts, and savings accounts. There are a few other things listed with M2 but that is the general idea.

So if the government is moving to an electronic system then we are probably safe to say that they can reduce about 90% of the physical currency in circulation bringing the 30 trillion down to 3 trillion or so.

Now, if the Iraqi citizens started using bank accounts more (right now only 30% or so of the population use commercial banks) then we could see even more money taken out of circulation!

As far as the printing of new currency goes, I really have no idea. If there are no 2011 notes in circulation, then I doubt they are printing and probably will not print any more in the future. At least not of the current denominations that are being used...

Hope this helps!

[zigmeister]

20 Million question. At some point I read an article that those who do use the bank, most have their savings in US dollars, not dinars. So does that change the M2 figures? Or does it change anything, meaning it does not change the figures of Trillions of dinars floating around?