kaperoni: As well, I try to present from time to time, an accurate, unbiased account of the information supplied in the site. To form these opinions, I often look at older articles to see if anything was missed or did not make sense at the time released. This chat covers an older article from 9/24/2011.
kaperoni: All quotes tonight are from the following…
kaperoni: The project to delete the zeros of the Iraqi local currency between the timing and feasibility Baghdad 09.24.2011 12:26:29
kaperoni: Here is a quote…
kaperoni: “announced by the Central Bank of Iraq on June 22”
kaperoni: That is telling us, the CBI is ready to delete the 3 zeros…or in other words, change the exchange rate of the New Iraqi Dinar and start the introduction of the new lower denominations.
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kaperoni: That is the official date
kaperoni: Here is another quote…
kaperoni: “He added: When we want to buy dollars in 1200 dinars, we buy at one dinar and 200 fils, “
kaperoni: Folks, this is the initial exchange rate…like it or not, they are saying 1.2 New Iraqi Dinars to 1 Usd.
kaperoni: That is .86 exchange rate. Or 1 million dinar =$860,000 Usd.
kaperoni: Another quote…
kaperoni: “noted citizen Hassan Hamid that the approval of a project that aims to raise the value of Iraqi dinar to its former value to return is equal to $ 3.33 U.s., through several measures, including a review of import proposal because it drains excess foreign currency and deposited with the Central Bank of Iraq as well as reducing public spending to the state and its departments with regard to imports of furniture can be expensive obtained through the local market.”
kaperoni: This is a telling quote…yes, it says they want to return the Dinar to the former value of 1 dinar to $3.33, but look closer….just before that is this statement… “that aims to raise the value” That clearly tells me that the rate will not be that initially. This rate will come over time. How long I have no idea, but I would expect at least a year or more.
kaperoni: The next quote…
kaperoni: “taan: to delete the zeros that the project is a project proposed by former Finance Minister Bayan Jabr, and can be applied and studied as a medium or long term, and can be applied only after the stability of the economic situation improves and Iraqi dinar exchange rate .. He Taan: The project has several requirements that the most important needs to be a stable economy in some respects, and needs substantial financial resources in addition to supporting the Iraqi dinar, foreign stocks, and it could be applied during the last period but for the effects of the global financial crisis on the Iraqi economy .. “
kaperoni: So we need to know what is the hold up?
kaperoni: Clearly here we see that…“can be applied only after the stability of the economic situation improves”
kaperoni: and this one “most important needs to be a stable economy in some respects”
kaperoni: and needs “substantial financial resources in addition to supporting the Iraqi dinar, foreign stocks, and it could be applied during the last period but for the effects of the global financial crisis on the Iraqi economy .. “
kaperoni: They are telling you, this could have been done last period…but we didn’t because…they need substantial financial resources which are not there due to lack of foreign stocks (or investment) and the global financial crisis.
kaperoni: Now my chat Saturday night told you all what? The ISX is key to this RV. And the Custodian banking is what will open up investment capital internationally. So they are waiting until this is up and working. That is the hold up.
kaperoni: As well we see this quote…
kaperoni: “so we need a tight security along with significant economic gains can be switched the dinar from local currency to a global currency”
kaperoni: Great quote.,,good security, economic gains, and they will switch the dinar from worthless crap to a global currency!
kaperoni: And to close this chat…this quote…
kaperoni: “adding that the bank has fully prepared to delete the zeros of the Iraqi dinar and the deletion of zeros is a national issue and may need to special legislation, although the Central Bank of Iraq is the reform of management system of currency from the heart of his work and that the deletion of zeros is one of the strategic functions of the Central Bank of Iraq, noting : that the Bank was able during the last period to reduce the level of inflation to the level of one decimal place after the passage of more than twenty years .. Indicating: that Iraq was able for the first time to reduce inflation to 2%, which reflects the success of Iraq's monetary policy.”
kaperoni: Again, good quote…they are ready to do this, but they want the GOI (parliament) to ok it.
kaperoni: And we know now from above, even though Parliament fully supports the project (and a later article told us this), they want a few other things done first such as the ISX, the Iraqi Forex, Custodian banking, and more than likely, the selling of owned businesses/companies which will open the door to the capital they mention. As well, to combat corruption, they have set up a commission to monitor exchanges. Subsequent articles have confirmed all of this.
kaperoni: So here is my opinion. It is very close to happening (by the end of the year). Forget the rumors of a higher rate and take them at their word of a .86 rate. Plan your future accordingly for that rate. If the articles are wrong, then you will be pleasantly surprised.