(Thank you George for emailing this to Dinar Recaps.)
UU6845 –“ Project to Delete the Zeros – A New Target Date – WOW!“ by Mnt Goat
Today I bring you many articles which are very long but chock full of GOLDEN NUGGETS. This is all the news we expected to hear at this time and it points us to a new RV target. Finally they are telling us so much.
As I have said in the past I only bring you news when it is important and so today is no exception. If you want to really, really learn what is happening to the RV then relax and get ready for another long read. There is no other way I can explain all the good news to. You will have to sit back and read it for yourselves. I highly recommend printing each and every news letter and then put them in a binder. Refer back to them from time to time. Use a highlighter or underline important FACTS that I may call on you to reference later. NO hype, No rumors, just the FACTS.
I know this must seem weird as the CBI keeps moving the target on us. Some call this “moving the cheese”. So with this cheese or no cheese nonsense we see the RV being pushed out for reasons and we must understand that these reasons are VERY important for national security and for the over benefit of Iraq.
Could the target move again? It could, but for now this is what we have to go on and so let us focus on the new goals and where the CBI is pointing us. There is nothing else we know. This is not a conspiracy to hold up or hide the truth from us.
If you are smart you will ignore all this recent foolishness about anyone exchanging in Canada or that the RV has already occurred and “we are just waiting for our turn to exchange”. Really? This nonsense is the BIGGEST bunch of foolishness I have ever known.
Believe me I have called my contact in the CBI and the RV has NOT yet occurred (not last April 2015 or the Oct 2013) and I was told the CBI would guide the people through the entire process and there would be NO SHORTCUTS or misunderstandings. They seem to be doing just that as they have promised.
What could be better then this?
I surely hope after reading today’s news letter that all you Mnt Goat bashers will take your Billy Goat jokes, snide remarks and sick humor and do with it what you normally do with toilet paper. For in the long run we will see who is really on your side to bring accurate and precise news to you. I might add there is NO cost, NO membership fees or NO donations for all this information is totally FREE ….lol…lol…
Today is Monday December 14th and yes we are now in the second week of December already and still no RV.
Many events seem to converge on the month of December and now January , and in particular mid December close at hand, so let’s pay close attention to what is happening these next couple months. I believe in retrospect we will say this was a very significant time.
In my news letter I also told you that it has been suggested to me to refocus my attention (thus you should also) to mainly the currency reform efforts by the CBI and what is now happening there. So can we do that?
Update: Currency Reform
I want to keep all of us focused on currency reform. Right now this is exactly what we should be watching in expectation of the launching of the lower denominations. Many sources have told me the plan of the CBI is to launch the lower denominations sometime around early February 2016. Will it occur? We can only wait and watch. So now I bring you yet more recent news on this topic.
Can I scream it any louder, again and again watch for ….CURRENCY REFORM…..CURRENCY REFORM !
Pay attention – CURRENCY REFORM !
In my last news letters dated 12/7 (LINK) and 12/9 (LINK), I presented to you articles about corruption and issues with the CBI. These issues were raised by a member of the Finance Committee in Parliament, Majida al-Tamimi. Today I bring you yet more of the same from Tamami. Is this important? You bet it is!
But today’s article from Tamami is yet even more informative. It is a GOLDEN NUGGET for us once again.
Let us look at it.
So she tells us the old rate of $3.30 is no longer used for any currency although it has not been officially cancelled. I think she means the old currency was downgraded due to the war and not down graded due to not being of value worth $3.30. This confirms what we already know that they fully intend to raise the value back to at least the $3.30 rate. Some say it’s $3.22 but it’s neither there nor here – who cares? You get the point.
So just as I have been told their target is to increase the demand for the Iraqi dinar over the US dollar by increasing the value of the dinar. This is the intial 1:1 par value I have mentioned many times.
This is not yet the RV…..remember this because it is important. The RV comes later and will be much more than this initial inflation busting adjustment. It will be $3.30+ and I am told around $4.20ish. Arguing over whether or not the rate is going to be 80 cents, a $1.00, $1.14 etc is also a mute point because everyone it correct. The only difference is those saying it will come out much lower do not understand the process and claim their low rate prediction is the RV and I am telling you it will come out initially at the low rate but this is NOT the RV. The intial rate of a 1:1 is NOT the RV and this is the confusion that many fall into thus we are all correct but in our own way.
Can the news get any better?
I quote from the article below –“ The Iraqi dinar’s exchange rate was equal to $3.3 before the outbreak of the Iran-Iraq War. Then $1 became equivalent to 3,000 dinars during the economic blockade from 1990 to 2003. Anyone who has followed the dinar will realize that the problem lies in the difference between the dollar’s supply and demand and the dinar’s supply and demand. It is a simple equation that controls not only the currency prices, but also the prices of all kinds of goods and services. So, for the state to control one side of the equation, it has to control the other side to ensure that the exchange rate will be stable”.
WILL DINAR EXCHANGE RATE IMPACT IRAQI FINANCIAL CRISIS?
In light of the suffocating financial crisis plaguing the Iraqi economy following the sharp decline in oil prices, experts and concerned parties are discussing the most appropriate option to fix the exchange rate.
In light of the decreasing oil prices that led to an economic crisis in Iraq, the Iraqi government has been discussing options to reduce the dinar-dollar exchange rate.
Author Zakaa Mokhles al-KhalidiPosted December 11, 2015
The Iraqi Parliament had discussed the possibility of reducing the dinar-dollar exchange rate by 10% to reach 1,300 dinars per dollar to supply the general budget with 5 trillion dinars ($4.2 billion), or by 20% to reach 1,400 dinars per dollar to supply it with 9 trillion dinars (about $8 billion).
There is no doubt that a reduction of the dinar exchange rate would provide additional resources for the general budget. It will increase the quantity of Iraqi dinars obtained by the Ministry of Finance in return for converting into the dinar its oil revenues or foreign loans it received through the Central Bank of Iraq in dollars.
However, this method increases government resources at the expense of citizens. The losing parties are ordinary citizens, especially those with limited incomes. The purchasing power of their income will drop, especially with the rise in prices of imported goods. The creditors in local currency will also be affected, including those holding Iraqi treasury bonds.
Moreover, Iraq’s almost total reliance on oil revenues, its poor resources such as goods and services other than oil, the existence of financial investments abroad and large foreign reserves and the high cost of external borrowing all indicate a lack of available options to address the current shortage of government foreign-exchange resources. This means that the only solutions are cutting spending, trying to increase some types of direct taxes and fees and issuing treasury bonds in the local market.
The Iraqi dinar’s exchange rate was equal to $3.3 before the outbreak of the Iran-Iraq War. Then $1 became equivalent to 3,000 dinars during the economic blockade from 1990 to 2003. Anyone who has followed the dinar will realize that the problem lies in the difference between the dollar’s supply and demand and the dinar’s supply and demand. It is a simple equation that controls not only the currency prices, but also the prices of all kinds of goods and services. So, for the state to control one side of the equation, it has to control the other side to ensure that the exchange rate will be stable.
When Iraq’s oil resources were limited before OPEC first raised prices in 1973, the country relied on the currency law, a remnant of the gold standard. This law necessitated that 70% of exported currency be backed with gold and foreign currencies to control the dinar supply through government spending. After the Iran-Iraq War, the currency law was abolished, disturbing the balance between the supply and demand of foreign currency with increased military and civilian government spending.
The government allowed the private sector to directly import goods from producers and sell them at prices that were not subject to its control. Thus, there were two exchange rates: an official rate that maintained the $3.3 price and was used for official expenses, and a parallel rate determined by the supply and demand of foreign currency. The difference between the two rates widened in the wake of the economic embargo on Iraq in 1990. As a result, the parallel exchange rate rose to 3,000 dinars at points.
After the occupation and after the export of Iraqi oil was allowed again and deposits were unfrozen, Iraq was expected to undergo monetary reform, whereby surplus banknotes would be withdrawn from circulation. However, it used the daily currency auction, in which specific amounts of dollars are sold to the banks and the private sector to meet the domestic demand for foreign currency, especially for the purposes of importation. The steady increase in oil revenues led to a gradual improvement in the exchange rate until it reached 1,220 dinars to the dollar.
Many politicians and analysts believe that the daily currency auction is a way to smuggle the dollar through private banks under the pretext of importation, and their criticism has increased in light of the current financial crisis.
The question asked by those concerned in Iraq is: Does the daily currency auction have to continue despite the claims made about it? Or should we abandon it and turn to other means so that the process of buying and selling the dollar is free, without restrictions, as some suggest?
Choosing the appropriate exchange rate for any state is a critical scientific process that depends on the state’s economic and financial situation as well as its economic ideology. The states that choose a free floating exchange rate for its currency and make its buying and selling a free process without restrictions are usually powerful, developed economies that have important and multiple foreign currency sources and currencies of importance in international trade and investment flows, as well as large reserves of international currencies.
To preserve the exchange rate, a country that pegged its currencies to a foreign currency such as the dollar or to a currency basket has two options. The first is to have large foreign currency and gold reserves to support the pegged exchange rate when necessary, as the GCC countries do. The second is to maintain the exchange rate through the management of the monetary authority, which influences the factors determining the demand for foreign currency. This is what Iraq was doing prior to the first oil boom.
Presently in Iraq, the government does not have an official Iraqi dinar to dollar exchange rate, or a currency basket. The $3.3 exchange rate is no longer used for any currency, although it has not been officially canceled.
Accordingly, in light of the limited foreign currency resources and difficulty to go beyond oil resources, it is imperative that the state manages the current exchange rate through the development of a foreign exchange budget by the Central Bank, which will determine the allocation of imported goods, services and transfers without charges.
This way, it is possible to maintain the current exchange rate's stability and to limit expenditures in foreign currency to the available resources until the circumstances are favorable for monetary reform and the adoption of an appropriate official exchange rate.
So let us look at what she is saying to the people of Iraq. Remember these articles are for the people of Iraq and we are only secondary beneficiaries of this information as investors.
I quote from the article below – “the lowest person of chairmen of the departments in some private banks taken advantage of currency auction of about 300 to 400 million dollars a month, "pointing out that" the reserve state continues to decline, as it was more than $ 80 billion and is now $ 59 billion as a result of the loss of money and she went into the pockets of corrupt . “
Do you now see the problem they are having with attempting to raise the value of the dinar at least to the point of a 1:1 par to the US dollar so they launch the lower denominations. Tamami has been telling us now in recent days in 3 separate articles the problems she has encountered. The CBI is biting at the bit to launch these lower denominations but are being held back. Why?
TAMAMI IS TELLING US WHY ! Did you read the article above and my other 2 articles from past news letters?
Remember the auctions are targeted to end at the end of 2015. So what does this tell us?
TAMIMI REVEAL SERIOUS CORRUPTION FILES OF MILLIONS OF DOLLARS IN THE CENTRAL BANK AUCTION
BAGHDAD - Iraq Press - December 9 said a member of the Finance Committee in Parliament, Majida al-Tamimi, said banks managers benefit from currency auction of the Central Bank between 300 to 400 million dollars a month. Said Tamimi, in a press release that" the lowest person of chairmen of the departments in some private banks taken advantage of currency auction of about 300 to 400 million dollars a month, "pointing out that" the reserve state continues to decline, as it was more than $ 80 billion and is now $ 59 billion as a result of the loss of money and she went into the pockets of corrupt .
Noted that the currency auction, which stress the cancellation of tours licenses destroyed Iraq's economy, because the money that is wasted in these two very large paragraphs and should be a serious review of the two size "indicating" the importance of a central bank governor and the first line in the administration of specialists in Economy and Finance, and those with advanced degrees, and have banking experience and Specialization financial side.
Tamimi said, The Finance Committee received a letter from the central bank is in the process study and answer them, and then will host the governor to put points on the characters and to reduce the size of large-scale corruption index our, the conservative claim by providing them with" a formal letter explaining in detail how much was the official reserve and how much was now, for the attention of the Iraqi people to the amount of money wasted. Revealed Tamimi for the one person to import materials worth two billion dollars and the capital of his company of 50 million dinars only, wondered" how the central bank to deal with such people.
The Governor of the Central Bank and the Agency on the Keywords announced in 20 of the month of November last that the bank reserves of foreign exchange of 60 billion dollars, he said, adding he was "sufficient to six months," noting "The central bank is working on the application of parallel policy to maintain the overall stability of prices and curb inflation and raised suspicions of corruption and money laundering operations through the Central Bank auction. Q ended
JAN LAUNCH THE 50 AND 100 THOUSAND NOTES PAVING WAY TO DELETE THE ZEROS.
Specialists are counting on the lifting of the operational costs of the bank in the management and organization of the currency Central to launch the first amount of the category of 50,00 notes in February next and is planning to issue the 100,00 notes.
Sunday-13 Dec 2015
Baghdad, Mohammed Hadi
Revealed informed sources in the Iraqi Central Bank that the latter intends to launch its first amount of a class of 50 thousand dinars, the end of next January, was attributed to postpone its launch last month to "organizational reasons", while in the House of Representatives Finance Committee confirmed that Bank is planning, within the future strategy, to issue a category of cash by 100 thousand dinars.
It was central to last month's launch of the new currency, though he had intended his employees' salaries, including distribution, attributed the experts in economic affairs reason the central lingered in the launch of the new currency to Aldaot suffered by After it announced, but the parliamentary Finance Committee confirms the absence of any problematic in the issuance of those cash category.
She informed sources from within the central bank in an interview with the correspondent of "the world" on Saturday that "the central bank of Iraq intends to launch its first amount of a class of 50 thousand dinars, the end of the month next January, after the completion of all procedures related to the issuance of the new currency, "pointing out" it will replace damaged currency shop ". The sources, who preferred not to reveal her identity, said that "the new currency printed to respond to Iraqi requests in terms of trading and transfer money, the fact that the recent currency category 25 thousand low compared to the monetary mass in," indicating that "the central for the release of 50 thousand dinars, last November regulatory reasons.
"The Central Bank of Iraq, in late October, issued a new banknote fifty thousand Dinars category, attributing this to the completion of the Iraqi Securities monetary structure and the development of high-value category in circulation, as he emphasized that it contains" structures against attempts at counterfeiting Balastantsak ".
and 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, 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.
Member of the Finance Committee in the House of Representatives Abdul Qader Mohammed, said in connection with "the world" on Saturday, as "there are no obstacles or problematic stand-off in front of the launch of the currency of 50 thousand dinars, the central order to launch over the past month for organizational reasons related to the local market "adding that he" knows the right time to launch those mass in order not to influence the market.
"He added that" the new currency that will expand the circle of dealing in Iraqi dinars, also encourages citizens to acquire and save the local currency instead of the dollar, "revealing at the same time "The central ambition in the future strategy of the issuance of a class of 100,000 dinars in order to complete the local currency structure."
For his part, attributed the name of Abdul Hadi, an economist, central to postpone the launch of the 50th class thousand dinars last month to some of the pressure and objections, which suffered after the announcement for the new currency.
The Governor of the Central Bank on the Keywords said earlier, "The central bank is facing different pressures," adding that "print currency fifty thousand dinars, do not lead to inflation or raise prices."
In connection with "the world", says Abdul Hadi, said that "political interference in the work of the bank and irresponsible statements could affect the nature of his work."
Not reliable economic expert on the issue of 50 000 dinars, in the stability of the market, because "big deals covered through the dollar."
Refers Abdul Hadi said "There are changes in the economic facts on the ground, and a contraction in economic reality of the country."
But Abdul Hadi believes that the 50 thousand "would raise imposed on a bank in the management of operational costs and the organization of the currency."
Presumably the writer star Badri Mohannad that accompanied "the issuance of currency great value, an increase in the gross national product of the state, of the quantity of goods produced and services rendered in a prosperous economy, and this did not happen in Iraq, "explaining that" the government after it exhausted sale securities proceeded to coin a new paper version to fill part of the deficit Treasury, which is known to funding through the (currency printing - additional).
Badri is that "one of the most dangerous ways to cover the deficit." He adds that "this step will end by reducing the purchasing power of the Iraqi currency, with the gradual disappearance of small monetary categories, which means plug at the expense of the Iraqi citizen simple and standard of living low already, "pointing out that" it dripped saliva counterfeiters who Atvennon in the tradition of forging currency, and backed by states using all means of technology in the fraud.
"The central bank said the issuance of banknotes category 50,000 thousand dinars dimensions of 65 mm width, and 156 mm length, which is dominated by light brown except Framework decorations that took bold color, "adding that" the purpose of the issuance is to complete the Iraqi Securities monetary structure and the development of high-value category in circulation. "
He said that the banknote was printed using the quality of high-quality printing paper with a number of security and technical marks where, noting that "the face of the paper includes a schematic picture of a paddle wheel Euphrates and palm trees in the middle and a picture of a Kurdistan Falls."
He said the bank "The paper also includes security signs printed magnetic ink, in addition to the structures against attempts at counterfeiting cloning, "pointing out that" paper contains the signs to serve blind people to know it in the form of a four horizontal straight lines, in addition to the watermark (horse's head) with a Palm Assyrian half imprinted in the face of the paper and the other half in the back.
"He said the bank" back of the paper will include a graphical picture of the Iraqi Marshlands include reed house and a number of fishermen and a group of animals and a picture of a palm Iraq with Tigris and Euphrates rivers planning within the map of Iraq, "explaining that" the banknote has been repainted with paint markets in order to extend the life of the paper and protect it from dirt and dust.
"The central bank announced in 2013 its intention to issue coins and small denominations of paper and other great categories written in Arabic and Kurdish.
Update: Needed Laws
Link to PART 2