(Thank you George for emailing this to Dinar Recaps.)
UU6840 – "The CBI Halted the 50k Note Distribution- Why?" by Mnt Goat
Sorry everyone. Today’s news letter is VERY long once again. Really I am trying to shorten them. It is all very interesting especially about two very controversial articles from the CBI as of lately. These articles seem to be contradicting all the efforts made in the last month on the project to “delete the zeros”. It can get confusing.
I am only reporting on these articles and trying to make sense of them just like you are. So let’s work together and see if we can make any sense of this latest news and what it means to our investment and this ongoing RV saga.
Today is Friday November 27th and still no RV. Hope everyone had a super fantastic Thanksgiving in USA?
This is the only “super fantastic” news you are going to get today….lol…lol…
I still feel we are very close to the ultimate RV but now the process is stalled again. So today let us take a look at truly why it is stalled and when we can expect to see more progress. Are there still needed laws that may have stalled it? Could it be they need Maliki and his goons dealt with?
Update: Currency Reform
This week there is BIG news again only we are very surprised to see these kind of announcements and it may not be so bad after all.
But before we jump to conclusions we must take a hard look at the articles and remember what is going on. First please read the article below and read it carefully. It is full of information and ties together many of the smaller articles we have been reading in the past couple days. I will attempt to make sense of it.
I will comment on the article afterwards.
CENTRAL BANK «POSTPONED» THE LAUNCH OF THE «50 ALPHA» UNTIL NEXT YEAR
Baghdad, Mohammed Hadi
Is heading the Iraqi Central Bank to postpone the launch of the 50th class thousand dinars for reasons organizational according to informed sources.
The central bank announced earlier this month issued a new banknote category fifty thousand dinars, attributing this to the completion of the Iraqi banknotes structure and the development of high-class value in the trading.
and told Informed sources from within the central bank correspondent "the world", said on Monday that "the central bank for the release of a class of 50 thousand dinars until early next year for special reasons the process of issuing new currency in the local market organization."
The sources added, that "the central had intended his staff the distribution of salaries for this month in the new currency, but the wait the decision came as a surprise to prevent that.
"The effects of the announcement of the new monetary Category sensation in economic circles, as counted specialists in financial affairs gateway to the heights chronic inflation and the beginning of a great weakness in the local currency value , while others say it will contribute to facilitating business transactions and pave the way for the process of deleting the zeros and the withdrawal of the small coins.
The governor of the Central Bank on the Keywords during a press conference yesterday that "the Central Bank is facing different pressures."
Keywords and added that "print currency fifty thousand dinars do not lead to inflation or raise prices, "pointing out that" the currency came against the currencies damaged that it was printed as well as to respond to the requests of the Iraqis in terms of trading and transfer money the fact that the recent currency category 25 thousand low compared to the existing monetary mass."
First let us look at the FACTS about the 50k notes and take a step back to many of the recent and past articles. Remember these are FACTS and not rumors, Iraq told us this information. Remember all those GOLDEN NUGGETS I presented to you?
1. We know from at least three articles that came from the CBI and the Ministry of Finance that in fact they did launch the 50k notes already. I have friends in Iraq too that have them. They even released pictures of them to me. We are even seeing the 50k for sale on ebay.
2. We were outright told by the CBI that the 50k notes were being used to draw in the 10k and 25 notes out of circulation.
I quote from the article itself – “that a new class is issued by the central bank in return will withdraw the class 25 000 or 10 000. Little, the central bank announced in November 11, 2015 for issuing banknotes category 50 000 dinars.”
3. We also know the ultimate purposes of these notes: (told us these FACTS. I am not speculating)
I quote from the article itself – “to issue more secure currency and a note that the citizens needed to conduct business higher than the 25k note”.
4. We know the 10k and 25 notes (the most widely used notes) are old, torn and damaged. Many you can’t even make out the face on the notes. The citizens are complaining and want replacements currency. But they do not want more of the same. They want instead lower denominations and to get out of this inflated currency with these 3 zeros. They want value to their currency again.
I quote from the article – “the currency came against the currencies damaged that it was printed as well as to respond to the requests of the Iraqis in terms of trading and transfer money the fact that the recent currency category 25 thousand low compared to the existing monetary mass. "
5. We know that the 50k and the 250 dinar notes will remain in circulation and become part of the Iraqi permanent currency (along with the smaller lower denominations) post RV. I personally have seen pictures of stock piles of the newer lower denominations paper notes and coins in the banks ready for release soon after they launched the 50k notes. So they told us currency less than the $250 notes would soon be distributed. They also told us another new note the 500 dinar would also be launched soon. We know this note too is part of the permanent currency going forward along with the 250 and the 50k notes.
I quote from the article itself – “A commission of economy and investment plans for new parliamentary Central Bank intends to implement is to issue less cash currency of category 250 dinars, and a new edition to the category of 500 dinars.”
I quote from the article below – “'new banknote to the category of 50 thousand dinars WILL COMPLETE THE BANKNOTES IN CIRCULATION SERIES CURRENTLY and will increase its ability to meet the public requirements, and that the issuance of this class or any other class will not be accompanied by the withdrawal of any class of trading” .
But days later they announced a new 500 notes so how can the 50k them complete the banknotes when they have not yet launched the new 500 notes? Maybe they mean the 3 zero notes.
Knowing all this information now lets take a close look at the article from above. The article that has everyone so painfully worried and upset.
First I want to tell you there is a problem with the translation from Arabic to English. The article is really telling us the 50k project has been temporarily halted and will not resume again until early next year. Halted got translated to “postponed”. How do I know this? How can I be so sure?
THINK, THINK and THINK again folks back to what I keep telling you. When you read any article you must remember the FACTS that you already know as FACTS and be ready to apply them. So since we have FACTUAL evidence they already launched the 50k notes then how in hell can they now be just “postponing” the launching till early next year? Does not make any sense and so it does not make any sense.
Wow! Now that we got that settled we must look at the WHY they are temporarily HALTING this effort to continue with the 50k notes. Remember too they first told us they would not even be launched until early December but they instead pulled a fast one on us and launched them in early November. So we know some hanky panky is going on here too. Let us not forget this also.
So why would they suddenly HALT the 50k notes? Let us look at the reasons they are telling us in the article I presented above.
1. Sounds to me like they wanted to launch yet more 50k notes to pay the salaries for the month of December but instead there were a lot of arguments over why not use the SMART cards. So they decided to use the SMART cards again to pay these salaries for December.
I quote from the article below – “the central had intended his staff the distribution of salaries for this month in the new currency, but the wait the decision came as a surprise to prevent that”.
3.The political stance on these new 50k notes is just too controversial right now? Many may still believe they will bring hyper- inflation and there are a lot of citizens and politicians against this move. Again I tell you the people don’t want more of these 3 zero notes. What they want are the lower denominations and to have added value to them.
I quote from the article below– “The governor of the Central Bank on the Keywords during a press conference yesterday that "the Central Bank is facing different pressures."
I quote from the article – “Keywords and added that "print currency fifty thousand dinars do not lead to inflation or raise prices, "pointing out that" the currency came against the currencies damaged that it was printed as well as to respond to the requests of the Iraqis in terms of trading and transfer money the fact that the recent currency category 25 thousand low compared to the existing monetary mass. "
So another CBI Announcement late Wednesday – article below:
(Statement) received the CBI gratefully public remarks and some professionals, politicians and the media for banknote which intends to issuance of a class (fifty thousand Dinars) We were pleased with all their content to our belief that this paper captured the attention it deserves and care, and gave us more opportunities to identify the trends of public opinion and to provide appropriate clarifications and the bank would like to recall follows
So are they now telling us they are recalling these 50k notes. It appears they are very confused about what to do about these notes. Instead of sticking to a plan they cave into political pressures and spoil their plan. We just have to watch and see how this all plays out. But one thing we do know for sure is their plan and how they began to execute it. It also appears there is some timeline lurking on the 2016 horizon that Iraq knows it must face if they do not get this currency issue straight and fix it before. The time bomb is ticking….tic, toc, tic, toc…
DRAG TO ANY CATEGORY OF CASH IN EXCHANGE FOR THE NEW CURRENCY
BAGHDAD / Obelisk:
The Central Bank of Iraq, on Wednesday, that the issuance of 50 thousand dinars category will not be accompanied by the withdrawal of any other category of trade, pointing out that the issuance of this class or any other class does not affect the inflation and deflation.
The bank said in a statement seen by 'Obelisk', The 'new banknote to the category of 50 thousand dinars will complete the banknotes in circulation series currently and will increase its ability to meet the public requirements, and that the issuance of this class or any other class will not be accompanied by the withdrawal of any class of trading' .
He said the bank, that the 'Print banknote and put it in the trading process (released) are not related to the topic of public spending and not unrelated to state resources or to strengthen their capacity in spending', adding 'there is a link between what is marked by the Central Bank of banknotes, and between the cash version achieved as a result of withdrawals from banks balances has'.
He continued, that 'the issuance of this paper or any paper higher or lower value is not connected with nor impact on the economic situation, or in inflation or deflation'.
The Central Bank of Iraq, on Wednesday (November 11, 2015) for issuing a new banknote fifty thousand Dinars category, attributing this to the completion of the Iraqi Securities monetary structure and the development of high value in the trading category.
Link to PART 2