Dinar Rumor More on Deletion of Zero's from Dinar Rumors

[john1025]

The intention of the Ministry in the deletion of zeros from the Iraqi dinar?

2/22/10 The intention of the Ministry in the deletion of zeros from the Iraqi dinar?

On: Monday, 22-02-2010 08:39 صباحا

Finance Minister Baqir Jabr Al-Zubaidi: At the end of this year will see the current Iraqi dinar currency pair and the new Iraqi dinar, which is no different for the same amount, noting that the employee's salary is not affected by the standard of living, adding that Iraq's debt to Kuwait and Saudi Arabia is a political debt will be resolved in the near future after installed the figures, saying Rafidain working system called universal banking system, a sophisticated system that works for a major international banks so far completed 60% at the end of this year will be completed in full.

ا.

(Range economic) interviewed Zubaidi for files on fiscal policy, its prospects and problems encountered in its functioning.

Q: Are the changes that have taken place on the 2010 budget by the House of appropriate and meaningful fiscal policy Ptkadirkm?

ـ ن.

Yes, I believe that the changes made in the House not inconsistent with the tenets of the public going forward in 2010 where they added an important and sensitive issues, including one dollar on every barrel produced in any province, and this includes the governorates of Basra, Maysan and Dhi Qar, Wasit and Nineveh, Kirkuk any oil-producing provinces will also be Add one dollar per barrel of oil derivatives are extracted from it, and this would also include Baiji, Basra, Baghdad and Najaf, and a number of other provinces that have oil refineries, this comes because of these counties bear the burden of large and strenuous efforts, in addition to damage in environmental health in the provinces.

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Among other changes with regard to the reduction of social benefits for the three presidencies, this undoubtedly hurt the budget in the interest of all the points that was held in support of the provinces and give broader financial powers to the provinces this positive issue that will accelerate the implementation of the provinces to the merits of the budget.

Q: How do you evaluate the investment orientation of the government and Maigablha the return of inflation to the previous level?

Government has so far not succeeded in activating the investment file, to the downfall of reasons, some security such as the bombings Wednesday and Sunday and Monday, and large explosions in Karbala and the blasts that took place in Anbar, as well as the deteriorating conditions in Mosul and Diyala, all of this is undoubtedly having an impact on the investment process as all conferences held in London and Washington and Cairo and Dubai did not succeed in making the investment process, where there is an imbalance in the performance of the investment, and there are limitations in the laws it needs to change in the old laws, whether Bremer's laws or the laws of the former regime, and from my point of view There is another mechanism that can be followed in making investment and attract investors into Iraq, specifically to the safe areas by dealing directly contracts the partnership between the Iraqis and foreign private sector, and also there are other mechanism we believe it sets a new policy for the investment then the trend is to activate the file investment and this will reflect positively on the country which will contribute to the elimination of problems of unemployment.

Q: What about what we read in the media about the intention of the Ministry in the deletion of zeros from the Iraqi dinar?

This is not like the ministry, but the jurisdiction of the Central Bank independent of the ministry's proposal but it is the proposal I submitted to me three years ago, by deleting three zeros and the Central Bank studied this proposal and the bank's board finally approved by the end of this year we will see Ammeltian the current Iraqi dinar and the new Iraqi dinar, which is no different for The same amount will not be affected employee's salary and standard of living of the citizen with the survival of the dinar in the same Altdlol.

؟* Light of economic laws approved by the House of Representatives recently, what about customs tax?

- By the customs fees will soon apply the law of customs tariffs, a new law prepared by the Ministry of Finance and approved by the Council of Ministers as well as after addition of amendments passed by the House of Representatives would raise state revenue from income and protect the national industry and agriculture, I expect the next few months.

*

* Is there a vision of the Ministry towards the support and update their general form, banking system, and what about the private banking sector? . - For Rafidain working system called universal banking system, a sophisticated system that works for a major international banks it has completed nearly 60%, at the end of this year will be completed in full, The Trade Bank of Iraq is now working as a business and is considered one of the best banks in the region and works according to the banking system and comprehensive smart card and Visa card, and the open credits for the public and private sectors.

The Agricultural Bank thereby acting actively submitted last year 81 thousand means an agricultural loan of 81 thousand agricultural project and the Bank of Iraq during the past two years after it was turned off and started to work provided 45 thousand real estate loan in the past two years.

The private banks are operating with modern technology and the government has supported through the granting of government funds, opening the way for banks that have capital of fifty million dollars we are giving them all the credit of $ million or less tens of appropriations That implied either bank has a capital of a hundred million dollars give them a credit of $ four million dollars, that's an important source of government support for private sector banks.

* Alabarmwjara we read that the ministry will go to support soft loans to employees and other segments, how Talqon on this news?

ـIn fact, I was given a directive to open the file with soft loans for staff and citizens and even mixed-sector employees and the board made a decision and agreed to our proposal, or direct us, but we have noticed that the interest rate of 8% demanded downwards to 6% and I think that the proposal had been examined by the governing bodies and the fact that the Board of Directors is which sets guidelines for the protection of public funds and all are covered by the police and the army, staff and citizens, and will be launched on loans and advances for all categories of staff and concessional interest rates in order to support these important segments.

*

* What about Iraq's debts arising from his trust for the benefit of both Kuwait and Saudi Arabia and $ 21 billion?

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I think this debt has become a political and debts will be resolved later in the political dialogue where you installed the figures remained the guarantor of political dialogue to resolve this dilemma, a debt since 1981 is outdated and obsolete was not claimed by Kuwait and Saudi Arabia so far, God willing, will be resolved in a timely manner.

Q: Is there coordination between the financial and monetary policies, and how do you evaluate the paths of monetary policy pursued by the Central Bank of Iraq?

We endorse and support the monetary policy, which operates the Central Bank and with them we form a working group and one in our relationship with the IMF and the World Bank and all international economic institutions in the world and even in the shared file processing debt the central bank in this matter, and we believe that there is a continuous coordination between the financial and monetary policies towards supporting each other.

* Is there any new agreements with the International Monetary Fund, and the ministry effort in this direction?

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- Yes, there is a new agreement should be signed soon between us and the International Monetary Fund is called the Convention chock this agreement will allow Iraq to receive five to six and a half billion dollars in soft loans for 15 years at low interest and will allow Iraq to receive experience and training and technology.

http://translate.google.com/translat...%26tbs%3Dqdr:d

[lancer22]

very interesting interview. Nice post.

[Octet]

Q: The deletion of zeros from the Iraqi dinar?

if the amount changes (zero's lopped off) but the purchasing power is unchanged eg. "The same amount will not be affected employee's salary and standard of living" then doesn't this eliminate the possibility of expected gain as a consequence of revaluation?

[Nance]

Great info...and great news!! Go RV!

[john1025]

You are not getting this, there is going to be no change in value! they will redenominate first and then rv probably at 1.17 which will mean no change in value. this isn't that hard

[terr]

This is an informative post, sounds good, hope it is good. We all can make predictions of the rate and the date, BUT NOONE KNOWS UNTILL IT HAS RVED!

[Enorrste]

This is a great find, John1025. I had noticed it earlier on another site’s Tidbits and was hoping that someone would bring it here. It turns out that you apparently got it first and that DD took if from here!

Obviously there are two important quotes in this article. Here is the first:

“Finance Minister Baqir Jabr Al-Zubaidi: At the end of this year will see the current Iraqi dinar currency pair and the new Iraqi dinar, which is no different for the same amount, noting that the employee's salary is not affected by the standard of living , adding that Iraq's debt to Kuwait and Saudi Arabia is a political debt will be resolved in the near future after installed the figures, saying Rafidain working system called universal banking system, a sophisticated system that works for a major international banks so far completed 60% at the end of this year will be completed in full.”

We see that Zubaidi is consistent with what we have seen building in the Chronological post from a couple of days ago, and we can add this to that group as well with a date of 2/22/2010. What we see here is a confirmation that the analysis we have presented thus far is accurate. Two currencies will co-exist later in the year, one the original dinars with the 3 zeros (large denom notes) and then the newer smaller denominated notes. Second we see that they will be “no different for the same amount” which means that a 25,000 note will have the same value as a 25 dinar note. Finally we see that the standard of living of he Iraqis will not be affected by this, as we have noted before.

I might note that the negotiations with Kuwait are also mentioned here and that they are progressing well, but as I have indicated before this will not hinder or affect the RV. Similarly the installation of the universal banking system is good news since it means that by the time the small denomination notes are circulating well in the economy this will be completed as well.

Next we have the specific question and Zubaidi’s answer:

“Q: What about what we read in the media about the intention of the Ministry in the deletion of zeros from the Iraqi dinar?

This is not like the ministry, but the jurisdiction of the Central Bank independent of the ministry's proposal but it is the proposal I submitted to me three years ago, by deleting three zeros and the Central Bank studied this proposal and the bank's board finally approved by the end of this year we will see Ammeltian the current Iraqi dinar and the new Iraqi dinar, which is no different for The same amount will not be affected employee's salary and standard of living of the citizen with the survival of the dinar in the same Altdlol .”

This nearly duplicates what we saw in the last paragraph but does add some minor tidbits of confirmation of what we already knew. First we see that it is the CBI and not the Ministry of Finance who has the final say on the RV. Second we see that Zubaidi’s proposal from 2007, which we have posted already, has been approved by the CBI. Next we see that there are two words that are not translated, which makes this awkward. The word “Ammeltian” could mean something like “finally” but it appears to not be a significant word in terms of understanding the meaning of the sentence. We know this because the sentence echos almost the same wording in the first quote. Then in the last line we see the word “Altdlol” without translation. Here also the word appears to be something like “sense” or some other word that would not affect the understanding of the full sentence.

Now here is the point: we can be confident that the RV will occur shortly followed later by the redenomination (removing of the large denom notes). Unfortunately john1025 got this backwards on his comment just above mine here. The RV must come first, and then the redenomination. Second, the RV will be at least at $1.00. This is obvious because it is stated that an employees standard of living will not be affected as the large notes are removed. It appears from this that the RV will be at $1.00 and no more initially until the large notes are gone. After that I would expect to see a managed float for a year or more until it finally reaches “equilibrium”. I would put that number somewhere in the $3 to $4 range. By that time Iraq will have grown substantially in oil output and the economy will have grown dramatically due to the RV. This will place Iraq in a great position to become a full fledged member of the GCC, something that they desire to do.

Now for the naysayers on the forum, this is not a lop. We have it clearly stated in the 7 previous documents that the “removing the 3 zeros” statements are in the context of removing large denominated notes for the convenience of people carrying less money. We also know that the large denominated notes will remain legal tender, something that could NOT happen with a lop. Finally we know that the RV occurs PRIOR to the removal of the large denominated notes, meaning that foreigners will receive the full benefit of the RV.

Steve

[jody2010]

another great analysis big E! what if we want to lag our conversions to take advantage of the upward float? if we are hold large denoms we will have to convert by end of 2010?

[mrref]

Thanks Steve for explaining and breaking it down makes sense. GO RVVVVVVVVVVVVVVVVV

[lancer22]

thanks Steve. appreciate the input as always.

[kdawg]

Thanks 4 the good post

[keylargo]

Are you saying that a 25,000 dinar if valued at 85 cents will be worth $21,250.00

Finally we know that the RV occurs PRIOR to the removal of the large denominated notes, meaning that foreigners will receive the full benefit of the RV.

[greebs]

Steve-I don't know if you sincerely believe what you print or have ulterior motives. But the article states there will be no change in value.

[beau777]

Thanks for being here Steve! I really needed to read something positive tonight ........I am so sick of the naaaaayy sayers

[jackdavis1364]

Thanks for the post and Steve's explanation. I would be happy with $1.00 but I would be three times happier with $3.00. Kinda makes me wonder though about the explanation that Steve gave before that would allow people outside Iraq to get more. I know, I know, that was just one scenario that he was presenting.

[lgraham]

Steve-I don't know if you sincerely believe what you print or have ulterior motives. But the article states there will be no change in value.

Hey greebs.. I have struggled with this no change in value language that we often read in these links. Seems to mean that the 25K would be the same as a 25 note. However, I think ther is an economic language barrier sometimes. I now believe that NO CHANGE IN VALUE actually means that 25K dinars is worth 25k dinars(no change in value). Consequently 25 dinars will be worth 25 dinars (no change in value). I would not question Steve's (Enorrste) motives however; as he provides an excellent analysis of previous quotes from CBI, GOI,IMF and many other offical comments and always with a link to back it up. No one does it as well as he does. He does not ask you to believe him. Simply, he is putting in writing what he thinks is happening and allows you to draw your own conclusions. Also, he welcomes the questions which on a couple of occassions has made him take another look at his own conclusions. Sometimes changing his conclusion in recognition of any valid point.

Lgraham

[super]

another great analysis big E! what if we want to lag our conversions to take advantage of the upward float? if we are hold large denoms we will have to convert by end of 2010?

I agree with you jody, about great analysis from Steve on this subject but as far as a time limit on cash-in, I will have to see it before believing a deadline on the large denoms cause I'll hold some as long as possible!

[eileen]

Thank you E for your interpretation, hard work--it is so much appreciated. I hope and pray you are right. You make perfect sense with the translation.

[WOCC]

Thanks for the hard work.......................

[outback7]

Thanks Steve great post......I dont know why people are freaking out........All is well!!!!!

[kamm]

Thanks for another great post steve. I always enjoy them. On another thing I gota know how much does the bass way in your avator. Was it caught on Lake Fork.

[homedaycare]

Thanks for the information