Central: Print thousand paper of class 25 thousand does not cost $ 60
G-Lin May 16, 2015 Author: Laith Mohammad Reza on: May 16, 2015 In: BAGHDAD / Center Brief for the Iraqi Media Network (IMN) said Manager version in the Central Bank Ihsan al-Yasiri, the central Iraqi prints thousand paper of class 25 000 dinars in Arsn international companies at a cost of less than $ 60, noting that the bank will not spend significant financial liquidity for the printing of the new denominations because the cost of a few.
The Yasiri's (IMN) that "the central bank is serious about printing new cash categories that will be one of the two categories of 50 and 100 000 dinars, which is in the process of selecting designs and corporate printer."
He continued that "copyright decision of the powers of the Central Bank exclusively because it is part of the monetary policy, which can not interfere by any party,
"stressing that" printed currency project is necessary to modify the Iraqi banknotes structure in preparation for the implementation of the project to delete the zeros. "
He pointed out that "the Iraqi dinar is very strong currency but restructuring banknote weak because the largest coin is a class of 25 dinars, equivalent to $ 22, and this weak structure makes the citizen prefer to deal instead of the dinar to the dollar. "
said Prime Minister for Economic Affairs Adviser appearance of Mohammed Saleh, earlier, that the draft Print Central Bank of Iraq large cash categories, an important step on the road to monetary reform,
which supports the country's economy, Mbenaaon Iraq is suffering a contraction in liquidity, whether in dollars or dinars as a monetary bloc in Iraq size of about 40 trillion dinars.
HandOverFist For anyone who is able to do so, please go to ** **. I can't get the pictures to print. I wish I could, instead of asking people to jump through hoops. Sorry.
They show the same article as above, but with a picture of a 25,000 note. I looked up what the Arabic numbers mean. The 3 diamond shapes after the number signify zeros.
Then, there is another article called " Economist: deletion of zeros from the dinar is necessary but it is premature". In this article, they show 1/2 of a 25,000 note with the the zeros crossed out.
So here we have an economist who believes that they will do what they have said all along they will do - delete the zeros from the currency.
So, this guy doesn't think "delete the zeros" means take the zeros off the exchange rate. Also, he doesn't think "delete the zeros means retire the bill bills once they float the dinar and distribute the lower denoms, as most on ** ** think.
So, my questions are - How many Iraqi's are taking "delete the zeros" articles literally, as this economist is? AND - What do you guys make of this development?
G-Lin Hey HOF. That's a very interesting catch on the pics. I cant get them to post on this site either. I just went to**and I see what you mean. To be honest Im very confused by the numerous currency arts. this month. There are several different interpretations and I don't think anyone knows what is coming.
But IMO something is coming very soon. Not sure what, but they have flooded us with arts. pretaining to a change in their currency. And today all the international arts. makes me feel even stronger about a change.
And I just can't see how Iraq will be in the global market with an artificially imposed rate. I don't believe there is another country trading in the international market with an artificial rate. It just would not be recognized. All JMO.
HandOverFist I agree with you G-Lin. It does seem that something is coming soon. I truly hope it's what we want and not what the newspaper is showing.
Greg We all know a LOP is a possibility and I give it almost a 50/50. But the risk reward in this case is a no brainer!!! Let's just see an RV very soon...
This Dinar investment is psychologically complex dealing with parallel theories of ambiguity and disjunction.... translation - "It's all jacked up!" :D
Frank Handove... I always hesitate to add anything to the conversation even though I am invested and have been in this thing for several years. The articles out of Iraq (economists, CBI ) have been very consistent for years. I think that if everyone were to simply refer to these articles and not all of the spin and opinions that are out there, a more realistic appraisal of what is happening would be appreciated.
Brule China trades with an artificial rate.
Buzzsaw G-lin and HOF, if the picture goes through, this might be the one.
Rocko ”China trades with an artificial rate.”
That's not completely accurate. This explains it better than I could.
Countries generally weaken their currency by printing lots of it and using this new money to buy foreign currencies (or other assets). In the case of China, all the FX transactions go through their bank (PBoC) at the rate the PBoC chooses.
Since they've chosen a rate below the natural rate, more USD are converted to CNY than the other way around. They print more CNY to convert these excess USD, then go store their USD reserves in treasuries and other assets.
Each USD buys more CNY at the lower rate. This makes Chinese goods cheaper for Americans, so they buy more. It makes Americans goods more expensive for Chinese consumers, so they focus their consumption on domestic goods.
At the aggregate country level, the US is receiving goods in exchange for treasuries. The US is buying those goods at a cheaper price than it would without manipulation and China is receiving fewer treasuries than it would at the natural exchange rate.
This sounds bad for China, why bother? By doing more business with the US they build up more machinery, skills, knowledge, etc to increase their productivity. This is a common path for developing countries to follow when they industrialize.
Why are Americans upset about it? Among Americans the gains are spread out over the whole population that benefits from lower prices, but the losses are concentrated in a small number involved in production who are unable to compete with Chinese prices.
In these types of situations, the small group with stronger interest ends up more politically vocal. In China, the opposite situation occurs where gains are concentrated in a small group of producers while the entire population suffers reduced purchasing power with their inflated currency.
HandOverFist That's the one! Thanks, Buzzsaw.