wmawhite The current 50 IQD notes are forever gone by at midnight tomorrow.
At mid night tomorrow they do not exist...and this is where it gets good for us...
Three weeks ago the cbi told everbody to expect a 50 and 100 IQD note with the like value of 50,000 IQD and 100,000 IQD.
How can a 50 IQD note that today is valued at $0.045 become worth $43.00...or a 100 IQD note that today would be valued at $0.09 become worth $86.00?
this is what the CBI is telling the citizens of Iraq. They remove a 50 IQD note because it is not used/no security and it is not used because its value is only $0.045 but then say look for these new notes worth 1,000s of times more value.
tman23 The investment law is KEY. Recall back in early November right after Jabouri hosted Moshen (CBI Gov) the investment law was set to be read and voted on...at the 11th hour Abadi asked Jabouri to table it until further notice.
When the investment law goes IT ALL GOES... And it has to be done before the 2nd semester of financials (July).
The question is will they begin the second half of the year with 3 zeros? Logic says you open up the economy with new accounting in place AND not months after investors flush a ton of money in banks.
The investors will bring liquidity...The investors that have been sidelined for the past year have been unable to withdraw total funds because of "lack of liquidity". They are waiting on this investment law...
AND remember Barzani said that Kurdistan will not open it's economy dealing in 3 zeros...And it has been said continuously that sidelined investors won't wait another 6 months on the sidelines.
[arizona49] 4/29/2015 Aggiedad77
Article: "Najiba Najib: World Bank loan is not enough to fill the budget deficit"
The intent of the IMF loan(s) was always meant to simply tide the Iraqi government "over" for a short period of time, giving PM Abadi time to take action...has he done that...is he in the process of doing that...he's certainly made some bold announcements this week, or his staff of ministers have made bold statements...
The opening of the remainder of the budget (the "other" 70%)...the "full" payment to the Kurds for the month of April...economic promises to Basra...how can that be that he expects each of these to happen...
Where will the money come from...he does not have an IMF tree, or a World Bank tree from which to harvest as he chooses...he must be looking at what he promised in America would happen...release the RI and shake loose the shackles that bind Iraq today.
[arizona49] This is the article that Aggiedad77 is referring to >>>>> 4/29/2015 Najiba Najib: World Bank loan is not enough to fill the budget deficit
Highlights from DC on TNT CC Via Adept1 Today:
DC: I wish my right-hand lady’s family the best because her father passed away last night. The bottom line in Iraq is that I am VERY excited. In this call we will be nice to everyone, and if you need to gripe about any politicians, I am going to cut you off.
We are in a very good place, and I’m pleased and happy with the situation. Despite the challenges this morning, it is a dang good day regardless.
I don’t know what we can say without revealing too much of the process and plan, so we will stay generic, and if you don’t like that, get off the line.
Iraq is prepared, with actions in the banks, CBI, all the ministries, Abadi’s office, the Council of Ministers, Federation Council, etc., and we are just pumped about their actions. I will not give details because it’s not the right thing to do. I’m excited!
DC: We are really excited about what actions have happened, what’s taking place, and we’re happy to be a part of it.
In the USA, they have been preparing for the last 3-4 days, with bankers on call and in place for self-evident reasons. It’s frustrating for the bankers, but it’s worth it to be there.
Everybody is prepared for this throughout the world, bankers, security staff and all the rest. Don’t go nuts over this, because it could take another five days, so we’ll wait and see how it turns out.
The actions taken are hard to refute, and we have had some stellar sources who have helped us get here.
lady says it’s One-Question Wednesday, and please keep it positive.
Hawaii caller: On behalf of my friend, if the dinar will be a recognized currency why do we need receipts?
DC: You don’t need receipts to exchange, but when the tax man cometh, it matters when you bought the currency. Some banks may be asking for receipts so that they know where the currency came from.
530 caller: My question is about Shabibi. I’ve been following this for years, and I always through that once Shabibi returned, a quick release would take place. I know the economic leaders of the world have faith in Shabibi. So he is back and I get the impression that he has been given the green light, but now he is running scared. Maybe he has cold feet; any thoughts on that?
DC: Once they realized Shabibi is independent, they recovered their faith in him. He’s been on task and active in the process for quite some time. He never really left the process, he was orchestrating it from abroad.
Yes, he wants everything to be right, but I think he is reasonable and there are a lot of tough calls he needs to make about whether the economy and the government can stand this process. That’s a large part of his reticence, and also he is in charge of herding cats into alignment.
He’s been highly involved for more than a decade, he’s doing a good job, and he’s not going to back off.
617 caller: Will we know from you what the limits are, or do we wait until the exchange?
DC: Those limits are what we said – 20 million each dinar and dong, US$500 million for zim. As for the actual rates, we will not know for sure until it’s released, but all banks are supposed to be the same.
636 caller: Are there any pitfalls in the exchange process that you can talk to us about?
DC: We can talk about that a little bit. The biggest thing is to use the word EXCHANGE, because other words like ‘cash in’ or ‘investment’ trigger other venues.
We hear the exchange process is very straightforward. People who want contract rates have to sign NDAs, but those seem to be very simple. The spouse has to sign as well.
The actual exchange process involves the bank agreeing to the rate, they count your currency or run it through a DelaRue machine to verify it. If they have to send it off to their currency place, they will bundle it up with witnesses, and send it off, and give you a receipt.
347 caller: DC said on Monday that actions were taken to get this RV process in motion; how does that affect the five-day window?
DC: The actions I believe we needed to take were taken, and we are just giving a general idea of the window. We are not calling it, but we know what they are working under. That five days would be from now, and those actions did occur.
Caller: Any update on the zim?
DC: So far as we know, it’s 15 cents and six zeroes, and it goes at the same time as the Iraqi dinar, [in the first basket].
770 caller: [chitchat] [Appreciation] Re: the exchange moment, which I know will be very soon, when they say they will do a background check… how does that relate to the person who is going to exchange?
DC: In essence, they will run a quick background check to make sure this isn’t going to bad people. If you have a LOT of money, you have to show where you got the money to invest – savings, inheritance, whatever. They want to follow the money to make sure it’s all legit and make sure you aren’t helping another bad guy. Everyone’s family has a skeleton or two in the closet, and they are not looking for minor stuff, just connections to organized crime or terrorist groups. All families have issues, and if there are outstanding warrants, they will look more deeply. As long as the money is legitimate and is going to a legit direction, you should be okay.
410 caller: I’m so happy that this is happening; I have this amazing energy today, so it must be real! What kind of advance notice do they give Sterling to stop selling dinar? There have been riots in this area, like there might be in Iraq. Also, when are they planning their celebration? I hope they can feel it will happen this time. We want to be careful for older people, because stress causes shingles…
DC: The UST licenses dealers who are then on a call list or update list. They typically get 24 hours’ notice, or high-alert message. They will be called when or just after it happens, and the dealers can shut down whenever they want to. Sterling and other dealers have prepared for this many times in the last 18 months, so they have done this drill until it’s old hat for them.
803 caller: I had to take off my oxygen so you could hear me today! I woke up early this morning feeling super-super-fantastic, so you guys are carrying on the feeling. I have a question about the Multi Currency Account (MCA). Is there any way we can use that account as a tool for holding funds?
DC: Sure. The MCA is an account where you put money in and have access to many different currencies at the same time. It’s usually for international businesses that don’t want to change money back and forth all the time. It’s rarely used for investment, more often for foreign companies and sometimes for traveling. Each bank has a different set of rules to follow. However, you can set on up.
DC: You can set up an LLC just to run that account; it doesn’t cost much.
Caller: Don’t your foundations or trusts count as businesses?
DC: If my company has a branch in London, say, I might want to accept pounds sterling and keep them in that currency. It depends on how your company is structured. You need to have a purpose to have an MCA because it’s complicated and expensive to run.
951 caller: You think this is happening within five days? Really?
DC: I think we are in very good shape. We’ve been very close before and things didn’t work out. But we do have a timeline. Nobody should go out and buy more dinar; we are just reporting what we are getting. Everyone is eager to get this done, and the actions taken are pretty permanent.