Source: CBI / Research & Statistics Dept. / Monetary & Financial statistics Division

[DinarBot]

Yota,

Good morning, have you found anywhere that shows that the indicator (Billion ID) they are talking about has a note that indicates that actual numbers are in Trillions? I'm not finding it, not saying its not there but I'm black and white when it comes to financials and I need to see it before I believe it. Some one show me so I can just move on to something else. They are right tho it should be in Trillions according to the articles that refer to what is in the Iraq market, 27T or 30T. I am good with Balance Sheets, P & L and full Financials because I have been in business for myself all my working life. Every month we did a close out from the month before and go over every number in the financials as every well run company should do to make sure we are on track. Never tho above the billion mark so that is why I keep asking the questions, am I over looking something here. I'm staying with the CBI info before looking at the IMF numbers just to keep straight. I want to believe them because it makes since but until I see it, l don't understand it.

Here, I pulled this in from CBI this morning;

Key Financial Indicators Documentation

5. Money Supply (M2)

Monthly: Reported by Research & Statistics Department (as at the end of the month,

in billions of Dinar) from the monthly regulatory reports of all commercial banks.

Currency in Circulation outside of banks (see 4.a above)

Deposits in Commercial Banks, excluding central government deposits, interbank

accounts, and accounts of a current nature.

Weekly: Reported by Research and Statistics Department as at the end of every

Thursday.

Currency in Circulation outside of banks is currency put into circulation as

reported weekly by Issuing Dept. less dinar cash in vaults of banks as reported by banks in the

“Monthly Reserve Calculation Period Report of Deposits and Vault Cash” .

Deposits in Commercial Banks, excluding central government deposits, interbank

accounts, and accounts of a current nature as reported by banks in the “Monthly Reserve

Calculation Period Report of Deposits and Vault Cash”

Now this is where we should find the description that refers to the indicator (Billion ID) meaning Trillions they refer to but its not there.

I understand exactly what tigerstripe and the other guys are talking about but where is it?

I am also trying to find where the CBI differentiates the USD and the IQD that is in circulation in their accounting but I have had no luck. To me this is a way they could hide the real numbers, thru the exchange rate.

Anyway more food for thought..

A 1000 Billion is a Trillion. Have not looked. Is the info posted in 1000's. Count the zeroes. DinarBot team believes money supply numbers not factual anyway or every 2-bit economist would be able to figure out factual rate of IQD ... and start a Desert Avalanche of IQD speculation. 1170:1 IMF "programmed" rate derived before Paris Club Debt relief / Infrastructure rebuild/proven Oil reserves increase/Cash reserve increase etc. etc.

For Now. Numbers Lie. Go Iraq.

Edited December 24, 2011 by DinarBot

[Carrello]

I'm done, everyone enjoy your Holidays.........anyone that wants my input Carrello knows how to get a hold of me.

Thank you, Stryker, for all of the work and analysis that you share with us. You are very much appreciated.

Merry Christmas to you and your family.

[zigmeister]

They say it is in the billions. Okay.....I agree with stryker, they don't feel like adding the zero's so why don't they say the dinar is in trillions instead of billions?

[Stryker365]

A 1000 Billion is a Trillion. Have not looked. Is the info posted in 1000's. Count the zeroes. DinarBot team believes money supply numbers not factual anyway or every 2-bit economist would be able to figure out factual rate of IQD ... and start a Desert Avalanche of IQD speculation. 1170:1 IMF "programmed" rate derived before Paris Club Debt relief / Infrastructure rebuild/proven Oil reserves increase/Cash reserve increase etc. etc.

For Now. Numbers Lie. Go Iraq.

I agree DinarBot, the trick would be out of the bag, so they only show what they want to show, to throw us off, standard business practice in world finance. Here's what got me really thinking about this, an article or two stated the CBI wants to bring down the money supply from 30T to 15B, now how is that going to work but deception in the accounting, IMO.

Here is some more food for thought;

US supplies USD in 2003 to stabilize the Iraqi market thru the CBI, taking out the Saddam Dinar then CBI accounts for USD in the money supply in value of IQD. US prints new ID for the market then exchanging it for USD............sorry, just got a call, I've got to go for now but will pick this up when I get back,..........cliff hanger. ..........I'll be back!!!

[keepmwlknfny]

Keepm, I believe this is what you were trying to point me to. So the 65T or the 55T is what they have printed?

The 60+ trillion as the M2 is the TOTAL money supply which is physical money printed AND digital.....

I believe the number is still around 25 trillion for physical currency in circulation....

[tigerstripes]

Yota,

Good morning, have you found anywhere that shows that the indicator (Billion ID) they are talking about has a note that indicates that actual numbers are in Trillions? I'm not finding it, not saying its not there but I'm black and white when it comes to financials and I need to see it before I believe it. Some one show me so I can just move on to something else. They are right tho it should be in Trillions according to the articles that refer to what is in the Iraq market, 27T or 30T. I am good with Balance Sheets, P & L and full Financials because I have been in business for myself all my working life. Every month we did a close out from the month before and go over every number in the financials as every well run company should do to make sure we are on track. Never tho above the billion mark so that is why I keep asking the questions, am I over looking something here. I'm staying with the CBI info before looking at the IMF numbers just to keep straight. I want to believe them because it makes since but until I see it, l don't understand it.

Here, I pulled this in from CBI this morning;

Key Financial Indicators Documentation

5. Money Supply (M2)

Monthly: Reported by Research & Statistics Department (as at the end of the month,

in billions of Dinar) from the monthly regulatory reports of all commercial banks.

Currency in Circulation outside of banks (see 4.a above)

Deposits in Commercial Banks, excluding central government deposits, interbank

accounts, and accounts of a current nature.

Weekly: Reported by Research and Statistics Department as at the end of every

Thursday.

Currency in Circulation outside of banks is currency put into circulation as

reported weekly by Issuing Dept. less dinar cash in vaults of banks as reported by banks in the

“Monthly Reserve Calculation Period Report of Deposits and Vault Cash” .

Deposits in Commercial Banks, excluding central government deposits, interbank

accounts, and accounts of a current nature as reported by banks in the “Monthly Reserve

Calculation Period Report of Deposits and Vault Cash”

Now this is where we should find the description that refers to the indicator (Billion ID) meaning Trillions they refer to but its not there.

I understand exactly what tigerstripe and the other guys are talking about but where is it?

I am also trying to find where the CBI differentiates the USD and the IQD that is in circulation in their accounting but I have had no luck. To me this is a way they could hide the real numbers, thru the exchange rate.

Anyway more food for thought..

Hi Stryker,

They do state the numbers in billions of dinars. In the case of M2 it's around 65 thousand billion, which is, of course 65 trillion.

Whether or not the numbers themselves are accurate is a whole other kettle of fish.

I think that the CBI gets statements every week from the state and commercial banks regarding how much dinar they have in their vaults (vault cash value on CBI Financial Indicators - line 83). I can only assume that the ID Current Account Value (line 81) is the dinar reserves at the CBI.

Now, if you look at the total reserves (Vault cash + ID Current Account) compared to their required reserves, they do seem to have a lot more dinars in their reserves than is required. (See Excess Current Account - line 94)

I haven't delved too deeply into the statements of State and Commercial Banks, you could maybe find them on the web somewhere, but I would doubt that each bank carries a webpage with all of their updated financials, but maybe they do.

The Annual Report, link below, contains a lot of information regarding the yearly financials of what each commercial and state bank is holding in terms of both dinars and foreign exchange. The foreign exchange figures that are reported for each bank doesn't seem to marry up anywhere on the CBI Financial Indicator Spreadsheet though. At least not that I can find.

Maybe have a look through the annual report when you get a chance and see if you can pick wholes in that. I'm working on it at the moment too. Might be interesting to see if we can come up with anything.

For now though, Christmas is calling.

I hope all of you guys and girls have a wonderful time with family and friends and really enjoy the spirit of the season.

Merry Christmas to all.

http://www.cbi.iq/documents/Annual_2010f.pdf

[MrFnHappy]

The 60+ trillion as the M2 is the TOTAL money supply which is physical money printed AND digital.....

I believe the number is still around 25 trillion for physical currency in circulation....

Updated KFI reports 26.75T outside of banks as of 12/14.

Happy holidays bro!

[yota691]

OK you say 25 trillion were is the article about turning 25 trillion into 15 trillion, i can't find it but I have seen it. Think that may be helpful.

[teresa43]

don't understand it . to many numbers.

[GotSix]

Yota,

Good morning, have you found anywhere that shows that the indicator (Billion ID) they are talking about has a note that indicates that actual numbers are in Trillions? I'm not finding it, not saying its not there but I'm black and white when it comes to financials and I need to see it before I believe it. Some one show me so I can just move on to something else. They are right tho it should be in Trillions according to the articles that refer to what is in the Iraq market, 27T or 30T. I am good with Balance Sheets, P & L and full Financials because I have been in business for myself all my working life. Every month we did a close out from the month before and go over every number in the financials as every well run company should do to make sure we are on track. Never tho above the billion mark so that is why I keep asking the questions, am I over looking something here. I'm staying with the CBI info before looking at the IMF numbers just to keep straight. I want to believe them because it makes since but until I see it, l don't understand it.

I do commend you for your own personal diligence...however, I respectfully disgree with your statement regarding the CBI financials....trust me ...did you have to provide your financials to banks???...to investors???? under SEC requirements???..cause if the CBI had to....well...they would be starving

[keepmwlknfny]

Updated KFI reports 26.75T outside of banks as of 12/14.

Happy holidays bro!

Well thats just awesome lol but what can you expect? Thats all they have been doing.....

Happy holidays to you too!! Another year at 1170 but hey, its a work in progress right? LOL I think the troops pulling out will be THE biggest test for Iraq and which way this investment is going.....

[skitealwedrop]

Stryker, apparently Ski has some type of accounting in her background. I don't recall any analysis from her, but I do see a wish list. Maybe you can work on putting some of that information together for her. Why don't you start, in your spare time (6 children is no excuse), to pull that CBI P&L together for her? Make sure it is accurate. Get to work!

Remember: Christmas time is for giving.

PS

I am sure that next time there will be a' thank you' in there somewhere for you.

Merry Christmas to you and all of the little elves.

Thanks for the post Carrello. I'm an accountant and work in the trenches. An audited Balance Sheet and P&L would be most meaningful to all of us. I seriously doubt that we will find such reports on the internet though I will take a look around and see what I can find.

Merry Christmas and peace everyone.

GoRV/RI!

[MrFnHappy]

Well thats just awesome lol but what can you expect? Thats all they have been doing.....

Happy holidays to you too!! Another year at 1170 but hey, its a work in progress right? LOL I think the troops pulling out will be THE biggest test for Iraq and which way this investment is going.....

Baghdad (news) .. Suggested an economic expert peace Sumaisem lower rates of inflation in the Iraqi economy in the coming period, explaining the reasons for rise in the current period to pump large amounts of cash to the Iraqi market.

The Sumaisem in a statement to the Agency (news) on Saturday: that the reasons for increased rates of inflation in Iraq during the current period due to pump large amounts of cash into local markets through the distribution of loans and advances and salary increases, and continued: in addition to a deficiency in the production local, ie, there is great demand for the goods against the limited offer in the market, this leads to increased rates of inflation in the Iraqi market.

She: The citizens appeared to them new modes of consumption as a result of trade liberalization around the world, so it becomes the amount of goods and services sold in the domestic market is less income available to the individual that is what also lead to inflation in the Iraqi market.

She economic expert: that inflation will fall during the coming period as a result of the Iraqi dinar exchange rate, which fell long ago, and now returned almost to its price, they followed the differences between the exchange rate of Iraq will be low rates of inflation in the Iraqi economy.

Earlier, the Ministry of Planning and Development Cooperation for registered a slight increase indexed to inflation in Iraq for the month of October last rose 0.3% compared with September the previous year.

The earlier statement of the ministry received the Agency (news) a copy of the inflation indices for the period from October 2010 until October 2011 saw were higher by 5

http://www.ikhnews.com/news.php?action=view&id=27997

This is already posted on the forum.

OK, so at least one other person believes circulation is increasing as stated by the CBI.

[MrFnHappy]

Thanks for the post Carrello. I'm an accountant and work in the trenches. An audited Balance Sheet and P&L would be most meaningful to all of us. I seriously doubt that we will find such reports on the internet though I will take a look around and see what I can find.

Merry Christmas and peace everyone.

GoRV/RI!

Hey ski, good to know we have an accountant on board.

Personally I believe the published financials are accurate, or at the very least close if for no other reason than the fact that if you take the published M2 and convert to USD in value, we see there is approx 56B USD. In a country of 32 million people, this equates to $1750 per person. I dunno......but it appears reasonable to me.

Based on the information available to us (audited or not), what do you believe would be the likely outcome? If you were Shabibi, what would you do?

Happy Holidays and Peace to all!!

[skitealwedrop]

Hey ski, good to know we have an accountant on board.

Personally I believe the published financials are accurate, or at the very least close if for no other reason than the fact that if you take the published M2 and convert to USD in value, we see there is approx 56B USD. In a country of 32 million people, this equates to $1750 per person. I dunno......but it appears reasonable to me.

Based on the information available to us (audited or not), what do you believe would be the likely outcome? If you were Shabibi, what would you do?

Happy Holidays and Peace to all!!

First of all I do not purport to be expert by any means with regard to Iraq and their current finances. My thought is that a 1 to 1 RV based on the reserves would be a good start. Iraq has enormous potential from a financial standpoint. Shabibi knows that. Of course an RI would work for me.

[speculatorsRIDE]

Money Supply (End of period , in billions of Iraqi dinars)

M1 ..................................................55,505,000,000,000

M2 ..................................................65,111,000,000,000

Of which: Deposits component of M2 ..................39,262,000,000,000

65,111,000,000,000

-39,262,000,000,000

=25,849,000,000,000 supposedly in circulation. (horse pucky)

PS I added the zero's for those who can't figure out how to read numbers when expressed in billions without them.

Edited December 25, 2011 by speculatorsRIDE

[Shick]

THANKS GOOD POST, THE NUMBERS ARE CONFUSING BUT I SEE A LOT OF EFFORT WAS PUT INTO THIS POST AND I COMMEND YOU. PEACE! GO RV!

[DinarDana]

OK you say 25 trillion were is the article about turning 25 trillion into 15 trillion, i can't find it but I have seen it. Think that may be helpful.

Iraq working to reduce the mass of cash through the deletion of zeros

16/11/2011 14:31

Baghdad, November 16 (Rn) -

The Central Bank of Iraq on Wednesday that seeks to reduce the monetary mass of 25 trillion dinars to 15 billion dinars over the deletion of zeros to facilitate cash transactions in the financial markets and banks.

The appearance in favor of Bank vice-president, told the Kurdish news agency (Rn) that "Iraq today is dealing lump cash of $ 25 trillion Iraqi dinars, while the largest currency which does not exceed 25 thousand Iraqi dinars, and the purchasing power it does not exceed $ 23."He pointed out that "in cash transactions in the Iraqi market needs a large amount of banknotes and thus there is a difficulty in the transfer of funds in the form of bags in case of large transactions."

Saleh pointed out that "the Iraqi banks do not accept deposits, sometimes due to problems in number and the account for such large amounts of money."

The vice president of the bank "We want to usurped the money supply of 25 trillion to 15 billion dinars," adding that "the central bank fixes the payments system in Iraq and the policy of the monetary authority." He stressed, saying "monetary mass will be reduced soon, through the issuance of new currency by three zeros are canceled." Salih stressed that "this action is an important part of the reform process will facilitate the management of currency and payment system and the elimination of the vestiges of past inflation through the mass of strong cash handling and easy." From: Sam and dry. Open: Abdullah Sabri

My link

http://bit.ly/vOQa1y

[seetrader1]

bump

[yota691]

Iraq working to reduce the mass of cash through the deletion of zeros

16/11/2011 14:31

Baghdad, November 16 (Rn) -

The Central Bank of Iraq on Wednesday that seeks to reduce the monetary mass of 25 trillion dinars to 15 billion dinars over the deletion of zeros to facilitate cash transactions in the financial markets and banks.

The appearance in favor of Bank vice-president, told the Kurdish news agency (Rn) that "Iraq today is dealing lump cash of $ 25 trillion Iraqi dinars, while the largest currency which does not exceed 25 thousand Iraqi dinars, and the purchasing power it does not exceed $ 23."He pointed out that "in cash transactions in the Iraqi market needs a large amount of banknotes and thus there is a difficulty in the transfer of funds in the form of bags in case of large transactions."

Saleh pointed out that "the Iraqi banks do not accept deposits, sometimes due to problems in number and the account for such large amounts of money."

The vice president of the bank "We want to usurped the money supply of 25 trillion to 15 billion dinars," adding that "the central bank fixes the payments system in Iraq and the policy of the monetary authority." He stressed, saying "monetary mass will be reduced soon, through the issuance of new currency by three zeros are canceled." Salih stressed that "this action is an important part of the reform process will facilitate the management of currency and payment system and the elimination of the vestiges of past inflation through the mass of strong cash handling and easy." From: Sam and dry. Open: Abdullah Sabri

My link

http://bit.ly/vOQa1y

Thank You

[DinarDana]

You are welcome - Now I am hoping those who started this discussion will come back and revisit this. PLeeeze

So I have a different understanding of this article than some here on DV. The way I see how this will work is for every (2) 25,000 notes in country the CBI will issue a 50 dinar valued at 43.00 - 43.00 divided by 50 equals .86. For every 50,000 dinar taken off the streets will contribute to the reduction of the 000's from trillions eventually to billions.

If the CBI changes the exchange rate at the same time we are looking at .86 as the exchange rate. Now, my belief is the foreign holders will exchange at this rate. WARNING: This is my opinion and appears logical to me.

[yota691]

Tools of Fiscal and Monetary Policy

International Central banks monetary conversion system

Currency is just paper today. It is of psychological nature and relies only on confidence.

Monetary policy is therefore easy and very complex at the same time.

The basic equation of monetary policy in a close economy is:

(Flow of currency) = (Flow of goods and services)

(Flow of currency) = (monetary mass) * (velocity of circulation of money)

(Flow of goods and services) = (Prices index) * (Production SOLD)

This equation may be of interest in an open economy if fiscal measures are taken, such as variable VAT, to make domestic production more competitive. Without such fiscal measures, all your monetary or budgetary strategies will benefit a more competitive foreign country, just as the United States budgetary policy now benefits more to Chinese than to US firms and workers.

A. If the flow of currency is increasing (too much money or too much velocity of circulation), and if at the same time there is the same flow of goods and services, then the average price of goods and services will rise: it's inflation.

To curb inflation, the possibilities are:

1. to decrease the monetary mass: by monetary destruction or by higher rates (it is Mr. Greenspan's apparent strategy to curb inflation, a major goal of the monetary authority)

2. to decrease the velocity of circulation of money: by immobilizing large amounts of money: it is Mr. Greenspan's real strategy to curb inflation by immobilizing hundreds of billions dollars in Asiatic central banks:

Bank of Japan reserves in Billions of dollars

(Note that Asiatic countries benefit this strategy because inflation in the US would make dollar weaker and US firms more competitive: As a consequence, Asiatic exportations in the US would decrease, making their economy grow slowly... That's the reason why Asiatic countries support this policy by buying huge amounts of T-bonds with their dollars, until their economy and production process become stronger than the American ones).

3. to increase the Production sold:

a) if there is too few Goods and Services available, one should increasing production, importations, and research to create new innovative products;

if there is enough Goods and Services available one should give or lend money to the people who lack (welfare state) to stimulate the economy.

B. If the flow of currency is decreasing (lack of money or lack of velocity of circulation), and if at the same time there is the same flow of goods and services, then the average price of goods and services will decrease: it's deflation.

To curb deflation, the possibilities are:

1. to increase the monetary mass: by monetary creation (simple creation, special bounds creation, creation guaranteed by gold, foreign currencies reserves or domestic assets, ...) or by debt and ordinary bounds emission.

2. to increase the velocity of circulation of money: by exceptional fiscal measures, each during 2 or 3 months, to induce people into spending their money

3. to decrease the production sold: in taxing unnecessary goods or services, taxing unnecessary importations, regulating lending, ...

The more comfortable situation is at the same time a growth in the flow of currency and of the production sold. Then prices remain stable:

These are basic monetary rules.

Let's talk about key public monetary choices:

Usually, sold production increases since the society develops. Therefore, if the flow of currency does not increase, there is a risk of deflation.

To curb that risk, as we explained, the state can decrease the production sold, but it is unpopular and abnormal, as society should constantly expands.

It is also possible to increase the velocity of circulation of money, but there is a limit.

The efficient solution is to increase the monetary mass: not too much (inflation risk), but enough to allow a regular increase in sold production (higher living standards)

The crucial choice is: should the state increase the monetary mass by creation of money or by debt ???

Of course, it is better for the state to create its own money (it's easy, it's just paper), but banks prefer creating the money (it's easy, just paper), and lending it to the state.

So it depends on the relative strength between public authorities and private banking.

Note that the vast majority of countries use only debt for decades... For example, the huge American deficit with Asiatic countries means China, Japan, India, ... actually lend hundreds of billions dollars to the US government for the war in Iraq.

Yet, even a strong state should not always create its own money: it's too easy and will hide poor productivity, old production process.

A quick growth in monetary mass with no attention paid to the quality and productivity of domestic firms is inefficient. And speculators will use the international monetary exchange to attack this currency.

In my opinion, a better way to proceed is to create money to help financing recurrent social expenses (welfare) and reliable public infrastructures.

Other economic investments should be financed by public or private lending, with rates 1 or 2 percentage points above inflation rise, so as to make sure they are not wasted money, but generate enough productivity and profit to refund loans.

.

I was looking up Monetary Mass an I found this.

Which was in this article.

Iraq working to reduce the mass of cash through the deletion of zeros

16/11/2011 14:31

Baghdad, November 16 (Rn) -

The Central Bank of Iraq on Wednesday that seeks to reduce the monetary mass of 25 trillion dinars to 15 billion dinars over the deletion of zeros to facilitate cash transactions in the financial markets and banks.

The appearance in favor of Bank vice-president, told the Kurdish news agency (Rn) that "Iraq today is dealing lump cash of $ 25 trillion Iraqi dinars, while the largest currency which does not exceed 25 thousand Iraqi dinars, and the purchasing power it does not exceed $ 23."He pointed out that "in cash transactions in the Iraqi market needs a large amount of banknotes and thus there is a difficulty in the transfer of funds in the form of bags in case of large transactions."

Saleh pointed out that "the Iraqi banks do not accept deposits, sometimes due to problems in number and the account for such large amounts of money."

The vice president of the bank "We want to usurped the money supply of 25 trillion to 15 billion dinars," adding that "the central bank fixes the payments system in Iraq and the policy of the monetary authority." He stressed, saying "monetary mass will be reduced soon, through the issuance of new currency by three zeros are canceled." Salih stressed that "this action is an important part of the reform process will facilitate the management of currency and payment system and the elimination of the vestiges of past inflation through the mass of strong cash handling and easy." From: Sam and dry. Open: Abdullah Sabri

My link

http://bit.ly/vOQa1y

[keepmwlknfny]

You are welcome - Now I am hoping those who started this discussion will come back and revisit this. PLeeeze

So I have a different understanding of this article than some here on DV. The way I see how this will work is for every (2) 25,000 notes in country the CBI will issue a 50 dinar valued at 43.00 - 43.00 divided by 50 equals .86. For every 50,000 dinar taken off the streets will contribute to the reduction of the 000's from trillions eventually to billions.

If the CBI changes the exchange rate at the same time we are looking at .86 as the exchange rate. Now, my belief is the foreign holders will exchange at this rate. WARNING: This is my opinion and appears logical to me.

You are 100% correct in your thinking of what the article is saying.....the only sucky part is that the currency that we hold now would never see that 86 cent rate if they approve this idea to remove th zeros......only the new currency would carry the higher exchange rate but other then that you are spot on!

[yota691]

Then you had this Article the following Day

17-12-2011 | (Voice of Iraq) -

Add a comment - Sumerian News / Baghdad

The Ministry of Finance of Iraq, Saturday, to advance percent salary for state employees not covered by dropping interest rates, while ruling out replacing Iraqi currency during the next two years.

The Finance Minister Rafie al-Issawi said in an interview for "Alsumaria News", "advance percent salary for State employees will not be covered by dropping the interest is of 8%," attributing the cause to "link the Rafidain and Rasheed Man stirring advance is Baidaat the public."

Issawi said that "banks are pushing the benefits of 6% of the citizens of depositors have and therefore, they are not able to lend to employees without the benefit of," noting that "the loans covered by dropping the interest is included loans of Agricultural Bank and Mortgage and Housing Fund and retroactively."

He said al-Issawi that "the Iraqi budget for next year 2012, and developed a material that exempting all borrowers from the bank and agricultural real estate and housing fund of interest in order to encourage construction of housing units and the elimination of the housing crisis in Iraq."

And approved the Iraqi Council of Ministers on the eighth of December the current budget next year 2012, of 117 trillion dinars and a deficit of 14 trillion dinars, while the operating budget 80 trillion dinars and 37 dinars trillion as investment budget.

The Ministry of Finance has decided since 2008, and through the Rafidain and Rasheed, in coordination with the ministries and government departments grant advances and loans to staff different, but less than the staff member for five years in accordance with the conditions and controls specific to that, that does not exceed the loan of 50 million and an interest rate of 8 percent on the repayable over ten years.

In another context, the Secretary of Finance "to replace the current Iraqi currency with new ones during the next two years because of the Economic Commission not to adopt the draft of the new currency provided by the Central Bank of Iraq to delete the zeros and issuing forms for the new currency."

The Deputy Governor of the Central Bank of Iraq predicted the appearance of Mohammed Saleh in an interview for "Alsumaria News", in September of this year, that is the currency exchange in the new fiscal year for the year 2013.

The Iraqi Central Bank Governor Sinan Shabibi confirmed at a meeting of independent bodies with Prime Minister Nuri al-Maliki, in the 19 of June, ready to create all the supplies to replace the Iraqi currency

Read more: http://translate.goo...g#ixzz1goovqGNV

This post has been edited by Markinsa: 17 December 2011 - 02:29 PM

Reason for edit: Removed Arabic Text

6

And then they had a meeting in which convinced this guy Secretary of Finance to go along. And in all these article they say It will help the Iraq people.

[DinarDana]

You are 100% correct in your thinking of what the article is saying.....the only sucky part is that the currency that we hold now would never see that 86 cent rate if they approve this idea to remove th zeros......only the new currency would carry the higher exchange rate but other then that you are spot on!

Well Keep, I think I may understand differently, because in order for the value of the dinar to be more valuable to the Iraqi citizens they will need more purchasing power, so if the foreign exchange rate increases to .86 then their 50 dinar is more valuable, because Iraq can import more from foreign countries for less, because their currency is worth more, therefore the price index will decrease and confidence will rise in the dinar. Certainly, if Iraq can import for example materials to build more homes the cost of buying a home will decrease. The average citizen will make the same salary, however instead of purchasing a home for 1,000,000.00 dinars it will now cost 1,000.00 dinars. They cannot possibly decrease the price of goods and services until they raise the value of the foreign exchange rate.

Well this is my understanding, however Yota just posted a very interesting article regarding the US monetary policies and it is quite interesting.