Post From Currency Chatter 11-27-15
News & Links With Member Discussion
Brule: Economic parliamentary: the currency of the 50 000 dinars does not affect the value of the Iraqi dinar
Direction Press / Agenciesn Reduced member of the parliamentary Economic Committee Najiba Najib, on Friday, of the importance of the printed 50 000 dinar coin being ineffective on the value of the currency in general.
Najib said in a press statement that "the printed 50 000 dinars category soon and put on the market will not affect the value of the Iraqi currency at all."
"The goal of printed at the present time in order to avoid carrying large amounts always Mataatard to steal," adding that "the value of the Iraqi currency remained the same and no need to fear."
She noted that "probably put a small metal coins Kmeskukat as is the case in all countries of the world." :eyebrows:
Najib and showed that "the rumors about the effect on the economic situation because of the new currency groundless his health," asserting that "the Iraqi dinar still maintains its position despite the difficult economic conditions experienced by the country.
G-Lin: Thanks Brule. I read this a little earlier and my first thought was we know an increase in value will not have much effect in Iraq so that's old news. It will affect us but not them has been the way I always understood it. However, I'm waiting on those small metal coins
Schizz: Unfortunately for the Iraqi's they will be ,ade to exchange the old currency for new, whatever its new equilelant is...I can actually back it up with proof for once lol :P
Here's some recent info about what would have happened in Greece if the euro got binned.
This should help us all understand the process :)
"A new government would have to produce enough new notes to replace those currently in use in Greece while also doing their best to prevent a run on the banks.
It would have to be introduced over a public holiday and there would be an interim phase between currencies.
If Greece were to introduce a new currency, they would have to impose some capital controls once the change had been announced. This would mean that people would only be able to withdraw a certain amount of money from their accounts, which would be necessary to keep things orderly and avoid a run on the banks.
Then there would be some sort of public holiday during which banks and financial markets would be closed. In an interim period before the new currency is introduced, people could pay for things electronically or with small denominations of euros until the new currency became available."
The new currency would then be introduced on a one-to-one exchange with the old, he says, but at some point the capital controls would be lifted and the new currency would sharply devalue."
Mile: Unless, they take their dinars, hop on the family camel and hop to Turkey or Jordan to exchange their dinars into dollars.
Schizz: Thats what i would do lol....i expect rules will fall into place after rate adjustment, like they have here, only allowed to carry to certain amount of money here when flying....heck i wouldn't be surprised if they completely shut the borders in iraq lol..... or who knows
Brule: ...another reason for customs to be implemented soon at every entry and departure point. I believe the law states you can only take 5k out of the country.
G-Lin: Hey mike. I ask POSE about this. His explanation to me was what I thought it meant. He said if there is an increase in value, that doesn't mean there would be 35 million millionaires in Itaq, In fact it would be a non-event in Iraq.
Using the USD/cad for example, it changes all the time but until we cross the border we have no idea the USD value increases or decreases. So relative to the dinar, if the value changed, it would suck for us to go to Kurdistan on vacation because you would give the exchange $3.00 and only get $0.33 in return. Thats where the purchasing power comes in. Think of large bulk items exchanged.
Aanth: This is a great exanple of the 'nits and bolts" logistics of how it would actually go down 'in country'. thanks...
Mike: I don't know, G-lin. I'll say this, if Canada increased their currency's value by a 1,000%, you can bet we'd notice it. A dinar is a dinar, no matter if you live in Iraq or Ottumwa, Iowa.
Tlar and I used to debate the "digital lop" theory, where the Iraqi banks would take a million dinars and move the zero's to the left and leave a 1,000 in its place, but it won't work. The first thing that jumps out would be the instant distrust of the financial institutions in Iraq, they would be punished for putting their money in the bank and those that kept it in their mattresses or coffee cans would be rewarded.
No one would ever put their money in the banks again for fear that the CBI would do the same thing some time down the road. Shabibi was clear, he wanted Iraqi's to take their largesse to the banks to help capitalize them and create the economic engine necessary for open market economic investment.
Instead, those who held their cash would go to Jordan or Turkey and exchange it to dollars, they rightfully would trust that currency over the dinar because of it's stability.
I'll wager this, I bet there's fewer than a million Iraqi's who have a million dinars ;put to the side, the majority are living hand to mouth, most make less than 400,000 dinars a month. This event will create millionaires out of everyone who invested in the dinar, here or in Iraq.
What Pose is forgetting is the rapid appreciation of the currency, he's comparing it to established currencies that are already established and in Article VIII compliance.
I don't see the dinar coming out at $3.00 from the bell either, everything I've read from Salah, the SIGIR and the MoP have said it would be slightly less than a dollar, those who travel to Kurdistan or anywhere in Iraq won't feel a pinch at the airport when converting, the dinar will be worth slightly less than the dollar itself, unless Kap's float theory is the way they go.
Do I think they'll float from 1166? No, I think they'll add value and then let it float like most currencies do, but in the end, a dinar is a dinar no matter where you live. IMO
G-Lin: Mike it is a good argument. Hopefully we won't have long to see which theory pans out. :) I do feel as though tariffs implemented may be the instrument we are looking for.
One art. stated that will occur the middle of next month. I will believe it when I see it. Ha. Many disappointments regarding the implementation of tariffs.
And as far as Kap's theory on the sllooww beginning with the float, I just simply disagree. I respect him, but disagree. I'm not expecting that $3.00 rate to begin with either.
One thing is for sure, we will not know what they will do regarding the value until it just appears. I have always felt that way. All the tea leave reading tells us nothing. It is just fun to hear different opinions even if I agree or not. Because in the end they are all just that, opinions.