Butifldrm: Ok, For one I would expect these type of articles (propaganda, these words from Shabibi himself) to come out prior to a positive change in the value of any countries currencies, which under an electron microscope.
Never before has a country ever been under so much scrutiny about currency reform. I would never expect a country that is about to raise the value or put in place the mechanisms to increase the value of it's currency to come out with articles that directly state " We are going to increase the value of our currency".
One more thing, why would a country go to such great lengths to (de-Dinarize) their country? Why would they lose Billions of dollars in the process to do so for a neutral event? Think about it.
What would it matter if they/Iraq had 30T in Dinar in the market and they were going to LOP. As we speak, Liquidity is a problem right now in Iraqi banks.
Read More Link On Right
I looked back at the history of Turkey, I have not seen anywhere in the data available where Turkey (De-Liraized) their economy. They just basically dropped the 6 zeros.
Another major factor, which sets apart the scenario between Turkey and Iraq, is that Iraq has (dollarized) their economy to enable the sterilization of the Dinar from their economy. ( which by the way did not happen in Turkey)
So, just changing the face on the IQD notes and not giving value to the Dinar, would never achieve (De-dollarization). If, Iraq chooses to (de-dollarize) IMO they are going to have to increase the value of their currency, that's a given. Also, Iraq must choose their exchange rate regime.
To move into article VIII, they must choose the currency as by which to do international business, and also this rule should apply under the WTO.
STRYKER: I thought your article Butifldrm pointed to the fact that they were not going to do it like the rest of those countries, they start off talking lop but as I tried to point out, the other parts of the article say NO they don't!!!!
They want HIGH VALUE to their currency to combat inflation. Maybe I wasn't clear enough with my break down but thanks for adding your thoughts , it's obvious you were more understood ... spot on from what I have been saying. So with that, thanks also for the confirmation.
ARTICLE REFERENCED ABOVE :
*** will begin in the current year by deleting three zeros from the local currency,
*** in other words, that the unit of currency category thousand dinars from the old currency will be replaced dinar and only one of the new currency, and so on.
THAT PART SURE SPELLS LOP BUT WHEN A COUNTRY LOPS OR DELETES THE ZEROS IT HAS ALWAYS CAUSED HIGH INFLATION AND NO GAIN IN VALUE, SEE HERE;
*** which leads to a decline in the rate Exchange rates and lower purchasing power of the dinar in a big way.
*** With every lift in the denomination as the economy enters in the midst of inflation.
BUT THEY SAY TO CHANGE THE MONETARY REFORM AT THE SAME TIME:
*** One way to control high inflation is a monetary reform,
*** combined with a change in monetary policy by replacing the old currency Pfiadtha (WITH) high new currency classes (THAT HAS HIGH VALUE) even lower prices tend to decline.
*** But does he have on inflation? The answer is no, because the elimination of inflation required to follow the state moderate monetary policy.
YOU HAVE TO KNOW HOW TO READ THESE