Tlar: There are three different definitions going around in dinarland on what the definition of the removal of the zeros means. Albeit, it is confusing to most.
The first definition is removing the 3 zero notes.
The second definition is removing 3 zeros off the currency itself indicating a 1000 dinar note would now be equal to a new one dinar note.
The third is removing 3 zeros off the exchange rate.
The CBI in 2008 told us of their intentions early on when they mentioned in a few articles the the zeros would be removed of the "nominal rate". This is the exchange rate.
Again we get confirmation from the Finance Ministry on what the plan is when they told us in late 2013 that the "leading" zeros would be removed. There are no "leading zeros" on the currency.
And as Dog Gone has shown us again, Dr. Bakri, hired by the CBI, explained this program as a change in value of the currency, not a removal of the big notes. Once the value is changed the big notes will come in because of their unusabilty in day to day transactions.
I have brought forth the argument forward that removing the leading zeros from the nominal rate only tells us of their intentions, but is not indicative of an actual rate.
The reason is that it says to us that any value at 86 cents or above, the zeros will be gone. Meaning 1, 2 or 3 dollars is still deleting the zeros, so it is still an appropriate name for this project.
The CBI had been telling us as far back as 2012 that they wanted 1 dinar equal to 1 dollar.
Has not the conditions changed again since 2012? This is 2015. Both oil production and reserves are now much higher. Currency and gold reserves are also higher but unlike 2012 there exists now a BIS account with an unknown amount sitting in it that belongs to the CBI.
There is obviously many times less dinars circulating in Iraq and their debt has been reduced significantly since 2012. So how does that change the potential for the rate?
As Dog Gone has shown us in the articles above, the "delete the zeros" program is a real program. There was about a four month period in 2012 that Shabibi decided to change the program and we saw articles atesting to that decision.
The decision had been made by Shabibi to just release the currency at 1166 and "let the market decide its value". He had stated that he was going to do this whether or not the government was on board.
The float theory was not a theory but a real change in policy in late 2012. Shabibi had done this because every time he tried to implement the delete the zero program it was thwarted by Maliki.
As we know, Shabibi did not get a chance to just float the currency because he was charged with crimes and removed by Maliki before he could do it.
Maliki then promoted Turki to be the Governor of the CBI thinking he could control him. Turki did not play ball with Maliki and went right back to supporting removing the zeros program within 30 days.
IMO we know this because the articles that had been talking about deleting the zeros earlier under Shabibi had all but disappeared, having been replaced by articles stating the CBI intented to release the dinar at 1166 and float it up from there.
But when Turki took over, within a month articles started to resurface again talking about deleting the zeros and have continued since then using the name deleting the zeros.
Some very intelligent people IMO got stuck in the float theory and haven't ever come around that the program to delete the zeros is back on. All trhe safe guards in protecting the currency also support that the deleting the zeros program is back on.
It is very telling that the 50 is being removed, and the 250, 500, and the 1000 all are in the process of being replaced by expensive high security notes. All are less than a dollar and are not worth being counterfeited as witnessed by the fact they have never been counterfeited.
It is only in a situation that the rate changes significantly that these not would need to be protected. And IMO we are seeing just that. The precursor to the deletion of the zeros project being implemented. tlar