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CBI: Deleting the zeros law will strengthen value; Economist says Dinar to equal one USD


truthful1
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CBI: Deleting the zeros law will strengthen value; Economist says Dinar to equal one USDPosted: October 10, 2011 by THE CURRENCY NEWSHOUND - Just Hopin in Iraqi Dinar/Politics

Tags: Central bank, Central Bank Iraq, Currency, Deputy Governor, Iraq, iraqi, Iraqi dinar, Revaluation, Saleh Dinar is equal to the dollar

Deputy Governor of the Central Bank of the appearance of Mohammed Saleh: that the bill included proposals for a new currency and the groups that carried and details of technical and economic.

Saleh pointed out during the permit media to switch the currency and the deletion of zeros decision taken by the executive branch and approved by the legislature, and that the project will not be implemented hastily, but will be taken among other factors to consider before you start to implement it, including the date of the financial year and the strength of the national economy, among other indicators in the favor of the view that

This law, if approved, will have a positive impact on the Iraqi currency in several aspects of the need during the next phase, which will strengthen the value of the Iraqi currency.

He described the favor of a system of cash payments of the current Iraqi regime miserable, noting that the largest denomination in which value does not exceed twenty dollars, stressing that the deletion of zeros will enhance the value of the Iraqi currency, and reduces the cost of handling cash, currency should its current estimated size of today Petrlionat dinars, making the process of dealing monetary cost is high.

And the concerns of rigging the new currency in the event made or it will affect negatively on the economic situation, responded in favor of: that it reflects the look bleak, do not forget that there are other countries in deciding to switch its currency and dropped them zeros, such as Turkey, Romania and Brazil, without being of its economy to shocks and thus Iraq is not engaged in unknown waters or walking on the road did not knock him one before is likely to include the new currency for the population of the coin by the paper.

The increased zeroes on the Iraqi dinar to the days of inflation, which came on the value of the Iraqi currency as a result of previous wars and the subsequent economic blockade was over, the currency of Iraq to the paper was printing the former regime, issued in large quantities without the cover, while the Iraqi dinar until the mid-eighties equivalent of more than three U.S. dollars.

But the adviser to Iraqi Prime Minister for Economic Affairs Abdullah Hussein Al-Anbuge said in a press statement: that corruption is rampant in state institutions and the low level of efficiency and economic situation in general at this time not in favor of lifting of the zeroes.

He pointed to what he said that he was pitfalls will change the currency, and the deletion of zeros, including the risk of fraud and increasing the demand for goods for reasons of fake due to payment of dinars instead of a thousand dinars, as now, explaining that the re-printing of new currency will have the costs of expensive, stressing that attempts will be made to convince the bank Central plans to slow down in this regard.

Previously, the President of the Iraqi Securities Commission confirmed that, earlier, that the deletion of zeros from the Iraqi currency will not affect trading in the Iraqi Stock Exchange and its shares

The director of a money transfer companies externally Sami Rashid: I think that lifting the zeros from the currency will increase confidence in the currency, and will lead to increased purchasing power of citizens, and the phenomenon of trading blocs will drop large cash used by Iraqis since the nineties.

He believed economic analyst Talal Jassim said the switch of the Iraqi currency a necessary but pointed to the need to provide the conditions necessary for its implementation, particularly the security and political stability, adding that the relative stability of the Iraqi currency after the issuance of currency recently, and the result of the return link Iraq to the global economy and the availability of reserves of foreign currency due to oil exports , encouraged the Central Bank to consider the deletion of zeros.

Jassim (economist) added that the lifting of the zeroes of the three will lead to an exchange rate of one dollar per dinar to Jasim, who called to the need to follow the policies of peaceful citizens and to persuade them to get used for a period not exceeding two years.http://bit.ly/nbeGtO

Edited by truthful1
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Jassim (economist) added that the lifting of the zeroes of the three will lead to an exchange rate of one dollar per dinar to Jasim, who called to the need to follow the policies of peaceful citizens and to persuade them to get used for a period not exceeding two years.

http://bit.ly/nbeGtO

That says it all to me IF this guy is correct and IF Iraq actually accomplishes something that they plan.

1) RV to 1:1 will not happen until deletion of zeros which is at LEAST a year away. 2) unless you invested millions of dollars, no one will make millions from this investment.

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The question I have then since Shabibi has said that the Iraqi dinar will be the strongest currency of the Arab nations..... how will that happen at 1:1 ...... the Iraqi law and the IMF agreement states that there will be a structured fluxuation of 2 to 2.5% +/- every 90 days .... It would take them decades to get back to 3.22 .... It does not seem likely that it is possible based on what has been said in the past. But seeing how Iraq does business, I guess anything is possible..... Is this smoke and mirrors again? Remember this is coming from an economist.... not a CBI offical

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That says it all to me IF this guy is correct and IF Iraq actually accomplishes something that they plan.

1) RV to 1:1 will not happen until deletion of zeros which is at LEAST a year away. 2) unless you invested millions of dollars, no one will make millions from this investment.

Or, it means that it will take at least 2 years for the peaceful citizens, cough, cough, to get used to the change in currency and exchange rate that could happen any time.

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That says it all to me IF this guy is correct and IF Iraq actually accomplishes something that they plan.

1) RV to 1:1 will not happen until deletion of zeros which is at LEAST a year away. 2) unless you invested millions of dollars, no one will make millions from this investment.

A good call.

Also, consider this sequence.

Inflation goes up, RD plan gets resistance in parliament.

CBI has to increase the exchange rate to offset rise in inflation.

Time passes. The exchange rate has been allowed to increase 170 dinar per dollar, the RD plan looks like it will be executed.

The 170 dinar slippage yields an exchange rate of 1000:1 going into the RD.

The result is a 1:1 exchange rate after RD, and the opportunity to ride the value of the dinar as long as it continues making gains.

The two year co-existence of currencies reinforces confidence that the dinar will now purchase the same as the dollar; and now has a better chance of exceeding the dollar's purchasing power.

Successive increases in the exchange rate continually make the dinar more valuable than the dollar.

Iraq continues to grow, restart industry and agriculture more effectively. Further increases in the exchange rate are required to offset the inflation that comes from increased production.

Great increases in production cause larger increases in inflation, requiring larger increases in exchange rate.

Since the RD has already placed the dinar at a size and value that will promote future growth, the growth occurs more rapidly, and there is no longer the fear of redenomination.

It could happen this way. Smaller gains, but ones that increase as long as we are content to continue holding. No fear of new currency exchange to stop the process, or introduce additional transaction spreads for holding.

Straight up RV always choice one, but the other option is much better than nothing...

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They will continue to contract the money supply and they will not update their M1/M2 figures to reflect the absorption for good reason....

on their clock they will allow the dinar to rise slowly in price with their controls in place.

As they do this over time more and more people will cash out. $2,000 for a million dinar or $5,000 for a million dinar. If you don't consider this a possibility after your dissapointment that it didn't come out 1 to 1 initially, you may sell....just sayin

I think at the same time they will introduce a new denomination as it has value in the economy.

This can be a very long process to do this but consider this

They have known about their currency situation for decades and it doesn't take 5 years of talking about doing a LOP to do it even by Iraqi standards....

They got a lot of the currency out of the Iraqi's...guess who's next?

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If the dinar were to increase in value, do you think an Iraqi official would put forth an article that says it will. I would think their posts would be a feint - saying you are going one way when you are going "thuther". At this point, anything from Iraq is much less credible than Okie-and I believe that.

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They will continue to contract the money supply and they will not update their M1/M2 figures to reflect the absorption for good reason....

on their clock they will allow the dinar to rise slowly in price with their controls in place.

As they do this over time more and more people will cash out. $2,000 for a million dinar or $5,000 for a million dinar. If you don't consider this a possibility after your dissapointment that it didn't come out 1 to 1 initially, you may sell....just sayin

I think at the same time they will introduce a new denomination as it has value in the economy.

This can be a very long process to do this but consider this

They have known about their currency situation for decades and it doesn't take 5 years of talking about doing a LOP to do it even by Iraqi standards....

They got a lot of the currency out of the Iraqi's...guess who's next?

im trying to understand your logic. so the cbi pulled in all the dinar from iraq and gave their people usd, and now there going to rv 1000 times. dont you think that would cause the iraqis to overthrow the government. the cbi soaks up all dinar in country, just to make it valuable. how does that restore wealth?

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This one says exactly what nearly all of the other hundreds of articles in the last 8 months or so have said. If the articles are accurate, we lose. If for some strange and inexplicable reason they're all lies (or "smoke") then all we can do is wait and see what the truth is. It's not like each new article contradicts the last. There's no point in beating this poor dead horse over and over again. It would seem probable that the purpose of the continued repetition is to educate the people as to what is coming in the not too distant future. Whatever their intentions, clearly the end is not "imminent" as the pumpers would like us to believe. Given that they still have to "approve" whatever it is they intend to do, and then have to "print, and safely distribute" a new currency, it simply has to be at least a few months away, and probably much longer. Unfortunately, there is no way a process so complex can occur overnight, and there's no way they can afford to announce it until every detail has been completed and put into place. My gut feeling is that if there was even a remote possibility that this was going to involve a straight RV rather than a value-neutral RD, hopefully followed by small, incremental increases, there would be absolutely no "public" discussion. It would be secret, and happen virtually overnight. Only a select few know the reality, so the rest of us WAIT...... not what anyone wants to hear, but it's the likely reality. If there's one thing we've learned over these seemingly endless years, it's that Iraq does nothing quickly. :blink:

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The question I have then since Shabibi has said that the Iraqi dinar will be the strongest currency of the Arab nations..... how will that happen at 1:1 ...... the Iraqi law and the IMF agreement states that there will be a structured fluxuation of 2 to 2.5% +/- every 90 days .... It would take them decades to get back to 3.22 .... It does not seem likely that it is possible based on what has been said in the past. But seeing how Iraq does business, I guess anything is possible..... Is this smoke and mirrors again? Remember this is coming from an economist.... not a CBI offical

If I remember correctly he said I will make my currency strong and powerful. How in this green planet is that going to be accomplished @ a 1:1 ratio ? I also remember him mentioning a managed float. Look, I'm in this as much as the next guy. With O sprouting off concerning taxing the rich you know who it is intended towards. Kuwait value at minimum...slightly higher would be my best guess. A value lower than Kuwait would suggest an inferior Country...and from what we have witnessed concerning Iraq, that is not true!!! Let's wait for the EU turmoil to settle. G20 meeting 11-04-11.

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If you invested millions of Dinars you will make millions of Dollars; Seems very simple to me...............................................! GO RV B) B) B)

You mean if one bought Millions of Dinars one will make Millions of Dollars.?... Not necessarily.... Depends....If one bought 10 Million Dinars and then it RV's at 1:1 with a lop then the 10M becomes 10,000 Dinars which will get you 10,000 Dollars... Again... It depends.....Hopefully they won't castrate the zeros....

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If this is from Currency Newshound I thought their posts weren't suppose to be in the NEWS section as they were deemed unreliable and more opinion based than factual. Am I wrong on that, Bumper or K98night?

Thanks,

Design Interrupted

I moved the Topic from Rumors to the News section because it has a link that takes you directly to the news article. This is the translated article. th_smiley_two_thumbs_up.gif

http://translate.goo...p%3Fnid%3D11181

Also, I think a direct link and translation from the original article would be preferable when posting, that way we can omit the Currency Newshound relation altogether.

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I moved the Topic from Rumors to the News section because it has a link that takes you directly to the news article. This is the translated article. th_smiley_two_thumbs_up.gif

http://translate.goo...p%3Fnid%3D11181

Also, I think a direct link and translation from the original article would be preferable when posting, that way we can omit the Currency Newshound relation altogether.

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Thank you very much Markinsa, greatly appreciated!

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If this is from Currency Newshound I thought their posts weren't suppose to be in the NEWS section as they were deemed unreliable and more opinion based than factual. Am I wrong on that, Bumper or K98night?

Thanks,

Design Interrupted

Design, you are right about Currrency Newshound. But this article is no different that a hundred (or more) valid news articles we have seen before. This article, theoretically, is not news.

People are getting their panties in a bunch over information that is rhetoric.

See ya!

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