BLC Admin tlm724 Chat Deletion of the Zero's 02/06/2015 Part 2
[tlm724] Currency Damaged become a problem suffered by citizens in general, and especially employee and working in sections III accounts.
[tlm724] Who is responsible for this currency is damaged ?
[tlm724] this is a really long and in depth article describing the difficulties of dealing with the dinar, I'll pull out a few key points for us
Before we enter into the details of my investigation I learned that Egypt burns three times a week about 1.5 million banknotes are corrupted from various categories, as I learned that Algeria (grated) daily 10 million dinars corrupted by machine hole, and the question what about the currency damaged in Iraq?
Why do not burn or grated? Let know the reasons for this through our reading of this investigation.
In the beginning we say that the CBI carry responsibility for the management of banks trading in the currency markets damaged, warning of fines for non-cooperative banks up to a stop, as we whispered one of the workers in the bank that is being replaced from the currency damaged in the bank does not exceed 30% of the damaged actual pointing to the failure and mismanagement of some banks,
especially the big ones, often re-Currency damaged to citizens without converted to the Iraqi Central Bank to replace them, and this is a big problem, especially if we know that about 90% of the currency is, however, the citizens and not the banks only 10% of them.
[tlm724] and the question what about the currency damaged in Iraq?
[tlm724] he is questioning why is there so much damaged currency in Iraq
[tlm724] we say that the CBI carry responsibility for the management of banks trading in the currency markets damaged
[tlm724] , often re-Currency damaged to citizens without converted to the Iraqi Central Bank to replace them, and this is a big problem, especially if we know that about 90% of the currency is, however, the citizens and not the banks only 10% of them.
[tlm724] that right there shows us that 90% of the currency is in the hands of the people and the shop owners, taxi drivers, grocery stores, banks etc...
[tlm724] the GOI employee's go to the bank to cash their paychecks and get shorted because their pay is presented from the banks in stacks of wrapped dinars and they aren't allowed to count it while at the teller because it would take forever and there is always a line !
[tlm724] they get their money home and inside the wrapped stacks there is damaged and torn dinars that they can't even use because the shops and merchants won't take them !
[dogznova] what a rip off
[tlm724] yes it is dogz !
[tlm724] To find out the real reasons for the lack of breadth phenomenon bundles of money received from the government and private banks, but it came to an employee who receives a salary incomplete.
[tlm724] A technical problem rather than a case of corruption Executive Director of the Association of private banks Abdul Aziz Hassoun pointed out in an interview (range) that the breadth of the phenomenon of shortage in the categories of cash withdrawals from banks is a technical problem rather than a case of corruption due to the failure of the central bank to inject new coins.
[tlm724] so the CBI is not replacing as much dinar in the street as they should
that the central bank does from time to time to issue cash instead of modern deposited has withdrawn from all banks, as they are damaging amounts ended because of torn or use a lot and pumped amounts of new release, according to market needs.
Hassoun pointed out that the process of counting banknotes and packaged them the rules of the fixed and are applying those rules to all banks and is the process of counting and packing and seal those packets, and that what is happening now is a classic because of the reluctance of citizens to use the instruments and money orders, and the failure of the Bank issued a recent currency traded in the market.
[tlm724] Hassoun pointed out that the process of counting banknotes and packaged them the rules of the fixed and are applying those rules to all banks and is the process of counting and packing and seal those packets
[tlm724] okay now remember what we just talked about above , the new instructions from from the CBI ?
[tlm724] let me show you
the Central Bank of Iraq expanded meeting with representatives of the banks to inform them on how to deal with banknotes in accordance with modern techniques in counting and testing in addition to the definition of modern mechanization used by the Central Bank of Iraq, and the mechanism of action in the counting and checking, sorting and bundles of banknotes as well Technology to fake and damaged automatically excluded.
[tlm724] that was from yesterday, you see where this is going ? Let me try to explain this because it's important
[tlm724]I'll show you one more art from Oct 2014then we will pull all this together Wink
Central Bank cancels meet the fine on the damaged money for the purpose of replacing Tuesday, 28 October 2014 13:03 - + Alsumaria News / Baghdad said the Iraqi Central Bank, on Tuesday, the abolition of interpolation fine damaged coins for the purpose of replacing with new ones,
adding that he seeks to trading cleaning of banknotes damaged. The bank said in a statement, "Alsumaria News" received a copy of it, he was "for the purpose of encourage banks and financial institutions on the securities and cash received damaged and damaged and burnt from the public has been decided to cancel the fine imposed on the damaged leaves of the currency,
which was free in the banks received from the public under the pretext of imposing these fines are met. " Bank restores Iraqi Banknote Printing "pictures of new and more protection."
The central bank allows the companies to participate remittance currency auction The bank added that it "seeks to clean up the trading of banknotes damaged and burnt and damaged in the markets." and still most of the Iraqi banks and financial institutions, as well as most traders refuse to handle financial damaged banknotes and often refuse received from citizens.
[tlm724] the CBI is abolitioning the fines and that will help get the old notes in and destroyed, in other words they will do everything possible to get back in the damaged notes
[tlm724] do you all remeber what Shabibi said ?That if they could get the dinar in circulation down to about 2 trillion then that would be a good time to increase the value and replace the currency
[tlm724] how do you bring in trillions of dinar off the street so you can move forward with the currency reform ?
[tlm724] well first thing you do is get it out of the banks and shops , if Kurdistan has billions sitting there then there must be much more throughout Iraq in all the provinces and little towns, it's everywhere
[tlm724] how to you encourage them to make deposits in the banks ? You insure the deposits that's how ! You create an FDIC like ours and they have done that .
[tlm724] next you must show them how to work and use modern technology to sort, count, bundle etc... get the dinars bundled up and sent back to the CBI, they have done that.
[tlm724] on Oct 22nd 2014 this was said :
House of Representatives: Delete the zeros from the dinar begins next year News Source: Ali Abd al-SalmanSection: Page economicOctober 22, 2014 6:08 The Commission on Economy and Investment in the House of Representatives that the deletion of zeros from the Iraqi currency will enter into force next year, noting at the same time it will be discussed during the coming period,
the laws pertaining to banks, and the central bank, and the fight against money laundering. A member of the committee of economy and investment, Jawad al-Bolani, said that 'the deletion of zeros from the Iraqi currency will be it next year', according to agency Anatolia.
The Iraqi government project about deleting three zeros from the Iraqi currency to reduce inflation is winning the currency had been postponed. http://burathanews.com/news/250791.html
[tlm724] The Commission on Economy and Investment in the House of Representatives that the deletion of zeros from the Iraqi currency will enter into force next year, noting at the same time it will be discussed during the coming period, the laws pertaining to banks, and the central bank, and the fight against money laundering.
[tlm724] ah ha ! It's next year friends and the laws are being presented and the dinar is being brought in ! The CBI has done it's job , theyare putting in place the necessary safe guards required to protect the wealth of Iraq !
[tlm724] Is this the time ?
[spklerman] Hope so tlm724
[tlm724] I believe there is a very good chance that it is and BondLady concurs ! We have shown you that the right things are happening at this time
[tlm724] one last thought, if you wanted the people to bring in their dinars so you could decrease the amount in circulation what better way to get them to do it than to allow the market rate to plummet ! They will trade those dinars in because they will have greater purchasing power with the dollar, yes ?
[cstacy] wow yes
[tlm724] ah yes
[cstacy] thats why the market rate the way it is 1250, 1260
[tlm724] cstacy that would be my thought yes
[tlm724] We hope this helps you all understand the steps that are being taken by the CBI and how it sure looks like the change is upon us all !
Thank you for your patience and attention
Emmaduke: tlm724] one last thought, if you wanted the people to bring in their dinars so you could decrease the amount in circulation what better way to get them to do it than to allow the market rate to plummet ! They will trade those dinars in because they will have greater purchasing power with the dollar, yes ?
emmaduke wrote: Wouldn't that be a problem with the restriction on the amount of dollar being sold?
[tlm724] Indeed, it will create a currency vacumm, perfect time to introduce new currrency or add value to the existing, if ya ask me Wink
tlm724: Thanks emmaduke , just amazing ! I will add that to the chat as a reply !
3. Economic Consequences
I fully agree with the analysis d. Mirza economic consequences of the application of Article (50), particularly the imbalance markets and increase the rate of inflation and the cost of economic transactions and increasing corruption.
But the high cost of imports will stimulate the national industrial production, which relies on local ingredients and limit the competition of imported agricultural products for domestic agricultural production, which is almost wipe out any hope for the development of national agriculture. This will reduce the trend to import and demand for the dollar.