Millionday News 12/21/14 Part 2
Welcome to dinarupdates.com for news time with Millionday!
Millionday: The single most important price in any economy is the price of its currency vis-à-vis other currencies. Countries that assign non-market-based exchange rates for different goods or services—or for imports versus exports—tend to have significant distortions in their economy.
Over time, this usually leads to slower growth overall. Eventually, the general public, the business community, and politicians may start pressing for currency reform and the introduction of a new currency.
Millionday: NOTE -- THE REASONING HERE WITH WAR AND ALSO THE ASSIGNED NON-MARKET BASED PRICE FOR THE DINAR IS VERY CLEAR
Millionday: Currency reforms are typically complex and risky: global experience confirms that a successful outcome is never guaranteed.
The main ingredient in the successful introduction of a new currency is a strong commitment by the central bank together with the government to take the steps needed to ensure that the new currency is perceived as stable by companies, the general public, and the international community.
Millionday: SO HERE IS THE STEPS
Millionday: Introduction of a new currency comprises four phases. First, the necessary preconditions—sound macroeconomic policies and strong financial sector legislation—should ideally be in place or under way.
Next, careful preparation is required, setting up the policies and processes behind the reform and drafting a detailed budget for the entire currency reform (including the cost of printing and minting the new cash currency). Then comes production of the new currency, and finally the most challenging phase: implementation.
Millionday: NOTE -- THE BUDGET WOULD HAVE THE ENTIRE CURRENCY REFORM ( SO NECESSARY)
AND ALSO THE LEGISLATION AS WE HAVE SEEN, THE PRINTING AND DESIGNS OF THE COINS AND BILLS WE HAVE SEEN -- AND THEN >>>>>>IMPLEMENTATION<<<<<<<<< WHOOOPOW
Millionday: SO THE FACT THAT THEY HAVE STATED THEY ARE WORKING AROUND THE CLOCK TO HAVE THE BUDGET IN PLACE BEFORE THE END OF THE YEAR--
WOULD SAY TO ME THAT IS THE ONLY THING OTHER THAN IMPLEMENTATION ACCORDING TO THIS AND THIS IS A FORMAL DOCUMENT FROM THE IMF DIRECTLY
Millionday: BRB WITH MORE LOL
B_Dee: Have they passed a budget in the past 10 -11 years ? What makes this one different ?
If they have why wasnt it in there before now ?
Millionday: BECAUSE THEY NEED IT TO MOVE FORWARD WITH THE ECONOMIC REFORM THEY ARE ACTIVATING AND ALSO CBI WILL NOT FUND WITHOUT IT PROVINCES AND ALSO BECAUSE IRAQ HAS COMPLETLY CHANGED FROM THEIR PREVIOUS CONDITION
reps1: if implementation does not happen by mid jan then we can be looking at another year wait. What are your thoughts?
Millionday: MY THOUGHTS ARE THERE IS NO POSSIBLE WAY AT ALL
Millionday: THERE IS MORE OF THE REPORT AND I HAVE MORE TO BRING TO YOU ALL
jd: What month did Kuwait RV their currency?
Millionday: I BELIEVE FEB
Millionday: I WILL HAVE TO CHECK
Millionday: A government facing currency reform often has limited ability to pursue macroeconomic policy. If the country is suffering from hyperinflation, its macroeconomic policies to date by definition were unsound. In some cases,
a currency reform must be implemented despite a difficult macroeconomic situation. Currency reform alone is unlikely to resolve such problems and will yield its benefits only if underpinned by fiscal and monetary action.
But psychologically, introducing a new currency can itself facilitate the stabilization of an economy. It is sometimes combined with exchange rate unification—to eliminate the complications of both an official exchange rate and unofficial market rate.
Millionday: NOTE -- IN IRAQ`S CONDITION THEY ARE NOT JUST INTRODUCING THE NEW CURRENCY (DENOMINATIONS) BUT ARE ALSO INTRODUCING THE REALITY RATE (OFFICIAL EXCHANGE RATE)
Millionday: HERE COMES MORE
Millionday: NOTE -- WE HAVE CHECKED OFF EVERY BOX UP UNTIL NOW SO LETS CONTINUE
Millionday: A currency reform must be supported by financial sector legislation. Existing legislation—including the law establishing the central bank and regulation of banks and other financial institutions—should be reviewed to ensure consistency with international best practices.
A law and regulations on the specific currency reform are also necessary, and other legislation—for example, governing accounting and financial reporting—may require updating.
This work can be supported by technical advice from the IMF and other countries’ central banks.
Such technical assistance includes initial general guidance as well as detailed recommendations based on currency reforms in other countries.
Millionday: NOTE -- ALL INTERNATIONAL ACCOUNTING REPORTING AND COMPLIANCE IS IN PLACE AND COMPLETE
Millionday: THERE IS MORE FOR OUR CHECK BOXES BRB
reps1: Doesnt Iraq have to move into article 8 before they can show a reality rate?
Millionday: IT IS A RESULT
Millionday: HERE WE GO STILL SHOWING YOU ALL THIS
Millionday: In a crisis situation, the government has little, if any, control over the circulation of different currencies. For that reason, the economy tends to be highly dollarized—that is, many transactions are made with a foreign currency, often the U.S. dollar.
Moving forward, the government should favor a currency regime that supports open trade and free markets—one that allows international competition and is not overly protectionist.
Millionday: NOTE -- THE COUNTRY WAS IN CRISIS (WAR) (SANCTIONS) AND THEY HAVE REMOVED US DOLLARS SO ANOTHER CHECK BOX
Millionday: HERE COMES MORE
Millionday: The central bank is the arm of the state responsible for introducing a new currency, but it is not necessarily in a position to do so.
It may lack staff with relevant experience, or sufficient branches throughout the country from which to operate, or even the funds necessary to finance a reform.
Strengthening the institutional capacity of the central bank and ensuring it has the resources needed are critical preconditions for currency reform.
Millionday: NOTE -- CHECK BOX -- THIS IS THE TRAINING AND WORKSHOPS THAT WERE DONE AND WE READ ABOUT IN INK ALONG WITH THE EXPERTS THAT WERE THERE
Millionday: Private banks also play a key role in currency reform. But the banking sector may be weak or, in some cases, virtually nonexistent.
In some parts of the world, informal funds transfer systems such as hawala and hundi are more vibrant or have nationwide networks that surpass those of banks.
In such cases, collaboration between the central bank and these payment system operators is critical to the success of the reform.
The central bank must assess the extent to which counterfeit banknotes circulate.
Together with the ministry of finance and the commercial banks, it should formulate a strategy to avoid an increase in counterfeit currency during the critical implementation stages of the currency reform.
Millionday: NOTE -- THE ELECTRONIC BANKING AND E-GOVERNMENT IS COMPLETE AND THE PRIVATE BANKS HAVE BEEN ISSUED LICESNING AND TRAINED –
THEY HAVE ALSO ACCOUNTED FOR AND CREATED THE LAWS FOR THE COUNTERFEIT CURRENCY ---- CHECK BOX ---
Millionday: The central bank should prepare a budget for the entire currency reform early on and revise it as necessary over time. The IMF can offer technical advice on preparing such a budget.
Introducing a new national currency is a highly complex project, which requires a well-functioning accounting system.
Throughout the various stages, tested systems must be in place for independent auditors to safeguard the integrity of the currency reform, by ensuring correct reporting and accounting of the currency exchange. Failure in this area is not only costly but also potentially devastating to the currency reform’s reputation.
Millionday: NOTE -- THE AUDITORS ARE IN PLACE FOR THE REFORM AND ALSO THE CHECK POINTS AND COMMITTEES THAT ARE BEING DISCUSSED HERE SO -- CHECK BOX
Millionday: Important as all these preparations are, the success of a currency reform depends just as much on a successful public education campaign.
The central bank needs to coordinate this campaign with other agencies, financial sector representatives, merchants, and the general public.
A delicate balance must be struck between providing sufficient public information and the need for confidentiality to avoid releasing clues to counterfeiters that could be used to undermine the integrity of the new currency.
The information campaign should encourage people to deposit their cash currency in accounts at banks. The campaign must make it clear that once the currency reform is initiated, account holders can withdraw their money in the form of new banknotes.
A second important point for the public education campaign is timely information on the stages of the currency reform to discourage a run on banks with temporary liquidity problems.
Millionday: NOTE -- THEY HAVE DEVELOPMENT BUILDINGS BUILT AND ALSO HAVE SENT SMART CARD AND BANKING INFORMATION TO ALL CITIZENS ---
NEXT THEY MUST MAKE IT VERY CLEAR THAT THE CURRENCY REFORM IS ACTIVE SO THE CITIZENS KNOW THEY CAN WITHDRAW THE NEW CURRENCY FROM THEIR ACCOUNTS
Millionday: NOTE -- CHECK MARK
Millionday: I HOPE YOU ALL ARE LOVING IT AS MUCH AS I AM
Millionday: BRB WITH MORE
Millionday: NOTE -- REMEMEBER THAT THEY HAVE TALKED ALOT ABOUT THE TURKS AND FOLLOWING THEIR STEPS
Millionday: In Turkmenistan, the central bank conducted a proactive public communications strategy that began early in the currency reform. The terms of the redenomination were carefully defined and announced in advance. An awareness campaign was carried out throughout the country.
Booklets, illustrating the new banknotes to be distributed, were published in national and local newspapers along with explanatory articles.
In addition, pocket-size cards comparing the denomination of old and new manat were distributed to the public. And the Central Bank of Turkmenistan set up a phone hotline to answer questions from businesses and the public.
Millionday: NOTE -- UNDERSTAND THIS IS PRINTED -- WHOOOPOW
Millionday: BRB WITH MORE ON THIS
Millionday: A new currency’s name is a psychologically important decision for the government. One option is to emphasize continuity with the old currency by retaining the old name or adding “new” to it.
Alternatively, the government may choose to underscore a break with the past by giving a completely new name to the currency to mark the start of a new monetary era.
In Turkmenistan, the government decided to keep the name “manat” for the redenominated currency.
However, in line with an international convention among countries and central banks, the International Standards Organization changed the three-digit ISO 4217 code from TMM for the pre-2007 manat to TMT for the new Turkmen manat.
Millionday: NOTE -- THIS HAS BEEN ANNOUNCED AND IS BEING DONE
Millionday: NOTE -- AND SO HAS THIS
Millionday: The banknote printer and the minter of coins should be selected competitively and in the international market.
Even if domestic producers are available, they should be required to compete for the contract. It is not uncommon, by the way, for various banknote denominations to be produced by different international firms.
Turkmenistan’s banknotes were printed by the British firm De La Rue, and the coins were minted by another U.K. company, the Royal Mint.
De La Rue is now testing production of the banknotes from paper produced with local raw materials—Turkmen cotton, renowned since ancient times for its high quality.
Millionday: NOTE -- THEY USED THREE COMPANIES I BELIEVE AND ALSO THE COINS HAVE BEEN MINTED ACCORDING TO THE REPORTS WE HAVE READ
Millionday: BRB WITH MORE ON THIS
Millionday: At the beginning of June 2008, the Turkmen government issued new foreign exchange regulations under which the Central Bank of Turkmenistan began providing banks and authorized currency changers ready access to foreign exchange, which in turn became available to the market-oriented private sector.
Previously the central bank had been propping up the official, unrealistically low, exchange rate by restricting access to dollars. The provision of sufficient foreign exchange to an extensive network of exchange bureaus across the country eliminated the black market rate.
Millionday: NOTE -- THIS IS NOT EXACT BECAUSE IT IS IRAQ BUT THEY HAVE ALREADY REMOVED THE DOLLAR SO PART OF THE TURKS DID NOT APPLY BUT HERE COMES MORE OF WHERE WE ARE NOW
Millionday: After the successful exchange rate unification, the authorities moved forward with the introduction of the new manat, revaluing the currency by a factor of 1 to 5,000.
The pegged exchange rate of 14,250 manat per dollar resulted in an exchange rate of 2.85 new Turkmen manat to the dollar.
A presidential decree issued August 27, 2008, announced the introduction of the redenominated manat on January 1, 2009.
Millionday: NOTE -- IT WENT THROUGH DECISIONS MADE ALREADY AND THE CHOICE OF CURRENCY PRINTERS ETC
Millionday: THEN THIS
Millionday: The next phase of currency reform is the conversion from old cash currency to new. The authorities must decide—at first privately—when the currency exchange will begin, when it will end, and whether or not to cap, in absolute terms, the amount to be exchanged.
Then, decisions on the announcement of and publicity for the currency exchange must be made.
Other essential decisions include the conversion rate and how financial assets, resident/nonresident accounts, and existing currency contracts will be treated in the currency exchange.
In addition to the guidance of the central bank and the ministry of finance, the views of the ministries of justice, commerce, and defense; the police force; the chamber of commerce; bank representatives and representatives of the informal payment system (if it plays an important role in the country); the general public; nongovernmental organizations; and key media outlets should be considered.
Millionday: NOTE -- THE FIRST PART IS THE PRICE INDEX WE HAVE HEARD ABOUT AND IS THE CHANGE AS THEY WERE SAYING ON THE CARD ISSUED MAYBE IN THIS CASE TOO
BUT WE DID READ ABOUT A PAPER THAT WOULD BE GIVEN OUT TO CITIZENS AND BUSINESSES TO KEEP IT RIGHT ABOUT THE CHANGES IN PRICES WITH THE NEW RATE-VALUE- AND BILLS-- BANKING REFORM AND REGULATIONS
Millionday: NOTE -- I AM JUST GOING TO BRING THE REST WITH NO COMMENTS
Millionday: The key stakeholders, under the leadership of the central bank, should develop a detailed plan for distribution of the new currency.
They must identify exchange points (places where the public can exchange the old money for new and where cash currency can be stored temporarily); establish facilities for more permanent storage of currency, such as vaults and strongboxes; and address various logistic issues, including exchange point staffing.
Millionday: NOTE -- THEY HAVE LICENSED THE EXCHANGE COMPANIES ALREADY --
Millionday: In its plan for the currency reform, the central bank must decide how to handle the soon obsolete cash currency.
Old banknotes that have been exchanged for new currency should be immediately invalidated via ink markings or holes drilled in the currency.
After a second counting, the then invalidated banknotes should be destroyed by shredding or burning. Routines should also be established for the collection and transportation of old coins, which may be sold by the central bank for s**** metal and ultimately melted down.
Millionday: NOTE -- THEY HAVE ALREADY MADE THE BURN UNITS PER REPORTS FOR DESTROYING THE OLD -- WE READ THIS A LONG TIME AGO WHEN THEY DISCUSSED THE EXCHANGE TO BEGIN WITH
Millionday: In line with common international practices, the Turkmen central bank allowed the two sets of banknotes to be circulated during 2009. By 2010, all banks were expected to exchange the old currency for new manat. And after that, the old currency was demonetized and retained only numismatic value.
Millionday: NOTE -- NOW UNDERSTAND WHAT THIS SAYS –
IT SAYS ALL BANKS WERE TO EXCHANGE FOR A WHILE AND AFTER THAT THE OLD WAS DEMONETIZED (NOT WORTH ANYTHING) AND RETAINED FOR NUMISMATIC VALUE ( NOT FOR PURCHASING USE)
Millionday: SO THIS WAS A VERY SPECIAL NEWSTIME THAT WE WILL NOT DO AGAIN UNTIL WE HAVE HUGE NEWS TO REPORT –
I HOPE YOU ALL UNDERSTAND WHERE WE ARE IN THIS AND HOW SIMILIAR THIS IS TO WHAT WE HAVE GOING ON WITH THE DINAR AND WHAT THEY HAVE STATED IN MANY REPORTS –
THIS IS VERY EXCOURAGING !!!! WHOOOPOW