Austin-Powers-For-PM February 8, 2015 Ok, before anybody jumps on me and accuses me of throwing gasoline on a fire I created about a week ago, I wanted to get feedback on the "Delete the Zero's" topic. Some individuals believe that inside Iraq a 25 K note will will become a 25 Dinar note, but at the RV'd rate. I said that was an in-country LOP and I got roasted for it. Here is what I found on Recaps which I believe to be accurate:
GET: [wushock92] I may be wrong, but my impression of the 'delete the zeros' project didn't actually mean turning a 25k IQD into a 25 IQD but to remove the 25k note from circulation.
Kinda like our $1000 bill. We may have printed some, but they aren't practical is everyday use so they aren't circulated.
After the RI/RV, the 25k IQD will be similarly cumbersome
Is this on target, or will a 25k note actually turn into a 25 Dinar note inside of Iraq only? Polite feedback appreciated.
Mellon > Austin, I have seen your comments. You are correct. It is insane to think there would be two rates in and out of country. That is what going international is all about, making currency worth same all over. If they were releasing a 25 that is equal to 25K that would be a loop. 25 will be 25 and 25k will be 25k two different values. Don't let anyone tell you otherwise.
Sqwatchy > Austin-Powers-For-PM READ WHAT YOU JUST WROTE. IT IS THE SAME THING.....IN COUNTRY......OUT IF COUNTRY, IT STILL CARRIES THE 25000 VALUE. THE GOAL, IS TO CALL THEM ALL BACK TO THE UST AND TO CHINA...TO BE USED WHEN EVER THEY LIKE FOR OIL, AND THAT IS WHERE THE MONEY IS COMING FOR EXCHANGE-LAND......
THEY HAVE BEEN DELETING THE ZEROES FOR ALMOST 2 YEARS NOW. THEY HAVE DRAWN AS MUCH IQD OUT OF THE STREETS AS POSSIBLE. THEY WILL REISSUE LOWER DENOMS WHEN THE PROJECT IS COMPLETED.
AT THAT TIME, THEY WILL HAVE A NEW RATE, AND AT THAT TIME, ANY EXISTING NOTES OUT OF COUNTRY..WILL CO-EXIST...UNTILL EXCHANGED AND REDEEM THEIR PRINTED VALUE..........
WE ARE WAITING FOR IRAQ TO DE-PEG FROM THE USD, TO FINISH THE PROJECT OF DELETING THE ZEROES, AND TO ANNOUNCE THE NEW BASKET OF CURRENCIES THEY WILL BE USING TO VALUE THEIR DINAR.
THERE ARE MANY POINTS OF VIEW ON THE RATE.....JUST WAIT FOR TO HAPPEN, AND THEN MAKE YOUR DECISIONS. IF IT COMES OUT LOW....EXCHANGE VERY LITTLE, AND WAIT FOR THE MOMENT IT RAISES.
IF YOU ARE IN THE GENERALS GROUP...YOU WILL NOT CARE WHAT THE RATE IS.....IF YOUHAVE DONG...SAME THING, COMES OUT LOW...WAIT...DO NOT BE THE FIRST MOUSE.
BY ALL MEANS...EXCHANGE WHAT YOU HAVE TO AND RELIEVE THE PRESSURE...BUT BE SMART. IFTHEY ARE GOING TO TAX YOU LIKE AN INVESTOR...THEN ACT LIKE ONE, AND HAVE NO MERCY....POUND ON IT!
FRV: 2-8-2015 sczin11 THE CAREFULLY PLANNED PROCESS CONTINUES... METHODICALLY, PRIME MINISTER ABADI, IS WEEDING OUT THE FORMER REGIME, FROM INTERIOR AND DEFENSE, TO JUDICIAL AND FINANCIAL...
THE CBI IS DOING THEIR THING, REDUCING THE US DOLLARS AVAILABILITY, AND SETTING UP THEIR ELECTRONIC BANKING INFRASTRUCTURE...THE BUDGET...HISTORIC IN NATURE...READY TO FUND ECONOMIC AND MONETARY REFORM!
IN TRANSIT TO THE PRESIDENT FOR RATIFICATION...BY SNAIL MAIL, WITH SO MUCH EMPHASIS OVER LAST WEEK ABOUT THE 15 DAY LIMIT, AFTER RECEIPT BY THE PRESIDENT...ALL THE RUSHING BY THE GOI AND HOR, AND NOW A SLOWDOWN...
ABADIS SPEECH IN DAVOS AND THEN MOST RECENTLY GERMANY, IMPLYING SOME SORT OF IMPLEMENTATION NEXT WEEK, MEANING THIS WEEK...
MaJOR COMPANIES COMING INTO IRAQ, MONEY BEING SENT AND LOANED FROM ALL OVER THE WORLD...WHAT ARE THEY GETTING READY FOR?
PartyTime1 :I suspect it will be a very short life If they come out with this low rate it is on purpose for a purpose. I believe that purpose is to put out a sucker rate before releasing the new lower denoms so they can try to suck in as much dinar being held by those who invested in it. Then release the new currency with the new real rate.
IMO....They cannot release the new currency without a bare minimum rate of 1 new dinar to .86 cents USD which is required just to maintain the same value of 1166 based on this current currency we hold. Once the new currency is released any rate below .86 cents USD will result in a devalue of their currency that is at 1166 now based on the current currency.
IMO....They certainly have no intention to devalue their currency and I doubt they will keep it at the same value and will want to increase its value, which will require a rate above .86 cents USD against their new lower denom currency.
The only question now is if they do this sucker rate, how long will they do it for? A week, two weeks, a month, longer?
CSHessman: I agree PartyTime. So, along the lines of PartyTime's thoughts, first I"m thinking, from what Abadi said in his speech, are we truly seeing the removal of the "THREE" zeros. IMO...NO! .088 is only a move of two zeros.
Albeit this is a giant leap of 2000% increase in their currency, I don't see it as a full on removal of the THREE zeros. Right. Ok, so it's a gigantic move from where they have been. IMO it's only a first preliminary move even if this is what we come to see very soon.
Now, in another spark, I saw them say recently that this process that would take place in STAGES over a period of time determined by the CBI. There was mention of the process being 4 yrs.
Now, IMO, two of those years, have perhaps passed. But worst case scenario, we may still have 4 to go. I don't want to scare folks, but for me personally I always prepare my mind for worst case scenario but I hope and pray for the Best case scenario.
Now, to further, speculate, and again referring back to PartyTime's thoughts, we have to at least see .86 cents or a 1:1 in order for "COINS" to make .... well ... ($)cents! lol But then I recall they would bring out the coins slowly a few at a time perhaps. Not sure exactly how that works or will be done, but what I also recall was they would have up to 6 coins or was it 5 ?
Think I need some help here. Either way, I just recall that in order to support those number of coins they currency would need be A LOT higher than 1:1 to support and make sense of having that many coins.
As Frank has noted, data is still cooking and information is coming out, but it's all looking very positive for us all. So, keep yourselves on an even keel and perhaps start reaffirming your thoughts and ideas about your plans, and approach to one day soon exchanging some dinar for USD.
Just some quick wisdom. One of the best and biggest pay raises you can give yourself and or your families, is to remove yourself out from under your debt. Do, this first and foremost, as all other future income becomes a GAIN.
So, let's keep our eyes peels and our ears perked and our minds steeled and on even keel for what looks soon to be coming! Amen C$
Sluggo:at that rate, I glady let them exchange 100,000 dinars right this minute...
Frank26: Friend ...... Sadly ...... This is what they are calculating.
backdoc » February 8th, 2015, 7:17 pm IMO
JUST A THOUGHT ON THE RATE ISSUE FRANK, THE RATE COULD BE 1.14 TODAY BEHIND THE CURTAIN BUT WHEN OZ PULLS THE CURTAIN BACK IT MIGHT BE WHAT F26 AND BACKDOC THINK!
WITH THE AMOUNT IN THE PUBLIC FLOAT I CAN'T BELIEVE THEY WOULD HAVE A RATE TOO LOW SINCE IT WOULD DAMAGE ALL THE YEARS WORK BY THE GOOD DOCTOR! DOC IMO
walkongstick:Central: Iraqi dinar hard currency
Despite the slight rise in the dollar exchange rate
BAGHDAD Mostafa Hashemi
caused Article 50 of the Budget Law for 2015, confusion evident in the dollar's exchange rate against the dinar, while the Governor of the Central Bank economist counting this article to intervene in the work of an independent institution.
He said the central bank governor Acting Dr. Ali Keywords that this article surprised us and we will seek to cancel the legal process.
He said in a statement the "morning" that there are efforts to create monetary stability would return check for investment and increased purchasing power, stressing the central measures will keep the Iraqi currency is difficult in every sense currency.
He noted that the identification of the Central Bank and shall be obligated to sell $ 75 million a day in the auction is not possible, stressing the quest for the issuance of treasury bonds in dollars and for a definite period, as it will contribute to the achievement of stability.
He pointed relationship to the Central take new procedures through the opening between him and the concerned banks and at all levels to get to some of the methods that aim to create instability.
For his part, economist Dr. Hilal Taan: Article 50 of the Budget Law contributed to the rise in the dollar exchange rate in the home to more than 125 thousand after it was 122 000 dinars per hundred dollars.
The in Article 50 of the Budget Law for 2015, "the central bank is committed to identifying sales of foreign currency (dollar) in daily auction ceiling does not exceed $ 75 million a day with the exercise of justice in the sales process."
He added, Taan told the "morning" that this material can be necessarily be considered as interference in the work of the Central Bank, which is an independent institution under the Bank 56 Act of 2004, where he was the central selling daily amount between 250 to 300 million dollars to keep pace with the open market policy, which represents one of the instruments of monetary policy.
He said that after that ensures the budget law materials; fifty-bind the central bank sold $ 75 million just in the day led to a lack of supply with an increase in demand which led to a rise in the dollar price.
On the possibility of appeal in this article explained Taan it after it became effective the law has no right except for the presidency challenged Almaldh 50 of the Budget Law because the sale of $ 75 million in a market that accommodates 300 to $ 400 million would definitely lack in the supply and increase the growing demand for bringing the dollar exchange rate, describing it as a procedure is not true.
He pointed out that forcing the bank to sell a fixed amount per day without taking into account the demand in the the domestic market, leading to exchange rate fluctuations.
He explained that the sales problem is not foreign remittances, but at home, where the local currency bloc too big of 35 trillion dinars in circulation, a haunt of $ 75 million, and for us to imagine the rise in the dollar's exchange rate.
saw Taan that The only action is to increase the amount of supply to 150 million, as well as to tighten control over smuggling ports that may be through government banks or civil control over foreign exchange and not reduce the quantities sold to the interior.
The central bank's shares to reduce the dollar exchange rate to acceptable rates ranged between 115 and 120 000 dinars after the dollar corresponds to about 4000 dinars before 2003.
Aggiedad77: Here are some thoughts and opinions that got provoked with the reading of this article
The governor of the CBI did not like what came out in Article 50 of the budget....it more than ties their hands if it is implemented
He convinces the Economic Committee to raise issue with Article 50 and it eventually is thrown to the Federal Court this past week
Meanwhile President Masum temporarily loses his esteemed pen reserved for the signing of such monumental documents....seems he wants this remedied before he puts his pen to this historic document recognizing the full ramifications it will have for all of Iraq and he world
If Masum has signed this then the other details have been worked out....worked out to the satisfaction of the CBI.....don't go messing where the 12 do not want your interference to start with....thus the independence set up for all central banks
Can't blame the Finance Committee for trying though, they didn't know any better
So much for thoughts and opinions Aloha Randy