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#1 Tlar:The decision of what to do has been determined a long time ago by the CBI. They are going to "delete the zeros" and depending on your view, whether "delete the zeros" is an event or whether it a concept starting as a float from 1166 is not important.
Right or wrong, the author of this article suggests it is an event by stating that 2 not 3 zeros should be deleted. In a pure float a country cannot determine that its currency should stop at any given point.
A float goes up or down at the whim of the market buffered by the central bank. The only question unanswered is " what's the best time to implement it?"
Truly looking at what all that is happening in January, it is the best month to implement "delete the zeros" or Iraq could suffer consequences of inflation, continued smuggling, counterfeiting, and continued stagnation of their economy.
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It is the beginning of the fiscal year and it only comes around once a year.
It is the month that the tariffs will come into being which without value added to the currency, is inflationary.
It is the month Iraq switches from a recipient country to a donor nation.
It is the month the BIS will accept dinar on deposit.
It is the month the CBI had told the EC and FC that they were going to delete the zeros and release the new currency.
It is the first month of the new economy that is supposed to be robust in 2014.
If they don't do it in January they will have missed a tremendous opportunity.
Personally, I still think January is a go and all articles of denial are a ruse to throw Iraqi's off the track. If I'm wrong, so be it.
#2 Tlar: I'm curious as to why we don't want it to happen now? If this is what they do, I fully expect them to switch to article VIII at the same time.
Shabibi was ready to do this at least three times and was stopped by the government. He appeared to want to do this without the HCL, Article 140 or the Security and Interior Ministries being in place.
He was going to do it without the economic laws that we feel must be in place before this can happen.
He was going to do it even though the rates were not at the 2% spread toward the end of his governorship of the CBI.
We know, if we are to believe what the member of the FC that leaked the date to the press told us, they are ready and that they had plans to delete the zeros in January and release the smalls.
We know that they are now saying they are not ready ever since the leak, but we know they had good reason for the denials because they had a run on the banks.
We know we can't trust the CBI, EC, FC or COM now about a release date because they lied to us when they announced earlier that they were postponing this until after the elections but then the CBI held secret meetings telling the concerned Ministries they had plans to do it in January.
We know now that they will give us no accurate heads up. They will just spring it on us. So why would this be something we don't want now?