Tlar's long analysis is in Part 3
Tlar & Member Discussion On "Will Delete Zeros 2015"
DreamWeaver The article is from Ralph's site: www.search4dinar.wordpress.com Thank you, Walter
There is so much good information in this article, it should be read slowly—especially, the red parts--for full impact. I've added my thoughts in green (no color sorry italic instead) and my previous post on CC in maroon (underlined) . Blessings ~ DW
Claims to delete the zeros through 2015
02/07/2015 15:16 BAGHDAD / Obelisk: new number of experts and MPs specialists in financial and economic affairs requiring them to begin proceedings preliminary implementation of the project to delete the three zeroes from the currency this year,
because of its great importance to the Iraqi economy and the currency of the local, as well as to reduce the large digital accounts burden treasurers, and facilitate Accountants work in the transfer count numbers.
DreamWeaver Comments: (They are saying it's important to economy, and the currency (new small denoms) and to decrease the digits from trillions to billions for easy in accounting.
Continued: Their current system only goes 14 digits, so calculations for 119 trillion dinar budget is impossible as 119 trillion = 15 digits. DTZ project will involve ReValuation.)
He says the parliamentary finance committee member Abdul Qader Mohammed, said the project to delete the three zeroes from the currency is one of the important projects and necessary that need to be implemented,
what ails the Iraqi currency from inflation figures, which prompted traders and owners of capital Iltjon to the dollar in the deal instead of the dinar and this is harmful The last of the national currency.
He said Mohammed, said the central bank must take initial steps to implement this major strategic project starting this year and will be applied in accordance with the stages and specific period of time, to support the national currency and the Iraqi economy.
He pointed out: that the Finance Committee and the House of Representatives supporting the President of the Central Bank and his work, stressing that the Finance Committee prepared that provide all the help and advice of the Central Bank in order to ensure the success of the implementation of this project, and strengthen the Iraqi currency's strength and restore its prestige in front of the region's currencies.
DW Comments: (For those of us who believe DTZ (RV) requires cooperation between Parliament and GOI, this confirms it, which is further validated by last paragraph of article wherein no implementation occurred in 2013 due to GOI. Great news here, guys, because now, in 2015, GOI is on board this RV train.)
(What isn't to love about STRENGTHEN currency and RESTORE its PRESTIGE in FRONT of region's currencies, which means Iraq intends for dinar to eventually be restored as the highest-valued currency in region, surpassing (in front of) Kuwait dinar, which I believe is most valuable one now.)
For its part, renewed member of the Committee on Economy and Investment parliamentary Nora Albjara, claim the central bank determine the timeframe for the implementation of the project to delete the zeros from the currency,
DW Comments: (Here again, for those of us who believe CBI determines WHEN the RV occurs, this is verification of same. CBI controls when to pull the trigger, with cooperation of GOI.)
the fact that the project is one of the important projects the long-awaited years ago because of the security situation.
She Albjara the committee had met with the governor of the central bank earlier and I discussed with him about the project to delete the three zeroes, noting that the central bank governor said that the project will be implemented over the next four years.
She added that the ground suited the current climate and appropriate to implement the project, for the central bank to start Bouktoath preliminary implementation of the project through the promotion and printing currency and to identify and establish a mechanism for how the issuance of the new currency and old pull.
DW Comments: (Preacher Man, can I have a BAM! :D . Guys, not only are they saying foundation and climate appropriate for implementing DLZ, but they are telling us the mechanism: issue new currency (small denoms) and pull the old. Can we all say "DE-DOLLARIZATION" together. Wow moment for me when reading.)
(Going to add this here to save people from searching. Something I posted in a thread a few days back--sharing my thoughts on basically what "mechanisms" will be used.
Highly recommend reading entire thread as there were great contributions by many CC members: Currency Chatter: General Discussion & Announcement posts. Central Bank decides to support banks five trillion dinars and finance the budget six trillion dinars.
DW Comments: "When framed in that light, it is easy to see how all of the following can be smoothly achieved—not only for monetary reform but also for stimulation of the Iraq economy:
1) CBI would loan banks Iraqi dinar
2) banks would exchange US dollars brought into bank for Iraqi dinars
3) dinars exchanged would be new small denominations and coins
4) bankers could set up new bank accounts for Iraqis exchanging dollars for dinar
5) bankers could activate new bank clients’ Smart cards for receipt of monthly retirement or government salaries
6) new dinars (small denoms) wouldn't flood market with new money--as it's just orderly exchange of money already circulating in marketplace
7) banks loaning money (dinar) to new bank clients for automobiles and businesses will stimulate the economy rather than, as OWHN pointed out in his excellent posts yesterday: “ .. drive down the value of the currency” because “... more dollars chasing the same amount of goods” with “ … inflation stimulated (meaning a “cheaper” currency).”
Thus, the positives OWHN pointed out would occur: “… a secondary benefit (and maybe the primary reason for doing this), is it signals the targeted financial stimulus into a given situation and encourages others to follow. The astute investor types will see this support and follow suit.”
8 ) process is smooth, centralized way of helping to rapidly de-dollarize Iraq in compliance with Article VIII, as exchanged dollars will be sent to CBI as repayment for loan
9) process allows banks and CBI to profit through fees 10) these loans could be temporary measure as discussed by OWHN: “… taking our clues from other Central Banks in other countries, those countries support liquidity in their private banks by lending to them on a “temporary” basis." Of course, these points goe hand-in-hand with RV. I'll definitely be watching articles. Sure is exciting stuff. Blessings ~ DW"
DW Comments: (Is Abadi announcing the start of these steps next week? Who knows, but the "initiative" of which Abadi speaks may be in relation to implementation of DTZ project.)
The economic expert on behalf of Jamil has confirmed that the deletion of zeros from the currency is a restructuring of the coin, and to alleviate the large digital accounts burden treasurers, and alleviate the burden of accountants in counting the transfer of numbers,
DW Comments: (IMO, they are saying DTZ project is a restructuring of the coin (changing from trillions to billions) to alleviate large digital accounts that burden treasuers and impede tallying numbers--due to only having 14 digit system. Just how do you "unburden" decimal places? By (freeing up) deleting the 3 leading zeros in the rate, which decreases the number of digits by 3 places. VIOLA. RV.)
"but he pointed out that" this is not the time to replace the currency, and that the lack of security and economic stability in the country, but must be a mechanism to start the procedures for the initial implementation of the project.
Jamil said that the project is important and necessary and must be implemented in the country while creating a conducive environment appropriate to the situation and in order to support the local currency and the national economy.
The central bank has decided to implement the project to delete three zeros from the currency in early 2013, but the previous government refused to implement it and asked to wait to implement it until further notice.
DW Comments: (No doubt this RV could have happened in 2013 if Maliki wasn't a world class turdbird (grandmother's term). But Maliki is gone and Abadi is at the helm and it is sure looking like they are just about ready to me. :D Blessings all ~ DW
Rissas dad Thanks DW. Lets see what Abadi announces.
DreamWeaver Rissas, wish Abadi would have used the word "mechanisms" instead of "initiative." If he'd used that word, my husband wouldn't be able to handle me bouncing off the walls until announcement. LOL.
Initiative could be in relation to delete the zeros program, without saying it exactly, as a way of informing citizens or it may not be anything to do with DTZ, but in relation to investments to stimulate economy. We'll see. Either way, it is looking excellent for them being nearly completed with all needed for RV for us to see this kind of an article. Best ~ DW
Gijane DW - just go buy a couple rolls of bubble-wrap, and bounce away!!! :lol:
DreamWeaver LOL. COUPLE of rolls? GIJane, not into being arrested for indecent exposure. Now that I think of it, bubble wrap is clear. Two rolls will be just fine for the hubby. :lol:
Mcduff82 Thank you DW you made my night Hopefully next wee we will all be wall bouncing
skylimitIf I had a dollar for every article I've read about removing the zeros over the past several years, I could start a camel ranch. The acid test is what they do next week with the budget, do they move ahead or delay again?
DreamWeaver Uh, Mcduff82, I've already been boucing for a few weeks. Maybe when this thing finally happens I can come back down from my high. I've been obnoxiously happy ... but I just can't help myself. Best ~ DW
hi-five Thanks DW! Great analysis!
Rockstar Thank you so much DW for taking the time and effort that you put into analyzing and giving all of us that well thought out synopsis!!!
Hi-Five Slylimit, has the article that came out yeaterday claiming that the President hasn't yet received the budget been debunked? If not, then the back wall has been pushed out to 15 days after the President receives the budget, or whenever he signs it whichever is first.
I think it is odd that the article said the Pres hadn't received the budget after the other articles led us to believe that he had.
So, we may not see anything next week. I'm hoping they get this done next week-- but who knows, maybe they will wait until the court rules on the CBI auction limit.
HandOverFist A fellow on Dinar Alert posted this. What do you guys think?
Or it could do like Abadi just said in Germany . Skip to the 29 min . mark where he mentions their budget . Listen to the numbers he gives in the budget . He says 5 billion which is equal to 440 million .
That is a rate of .08 cents to 1 dinar. I doubt if he misspoke from what I understand he gave that same rate in Switzerland a few days ago as well.
HandOverFist And then, he posted this:
I'll even do ya'll one better check out this site from Sulimaniyah , Iraq airport . Pay close attention to the rate . This is up to date:
According to the general letter No. 5160 issued by Baghdad Custom-IRAQ
1. Iraqi Citizens
2. Foreign Citizens
3. Due to the decision No. 54 of Coalition Authority
4. First Article
5. Second Article
A- Person Settled in Iraq
B- Person not settled in Iraq
6. Prohibited items
7. Eported items
8. Prohibited items
9. Instruction for passengers
First - According to the general letter No. 5160 issued by Baghdad Custom -IRAQ
Any Iraqi people who are over 18 years of age are permitted to take out:
>Currency not exceeding ($10000 US).
> Iraqi currency not exceeding (100000 ID).
> To carry their own jewellry of no more than (20 grains).
That is a rate of .10 . http://www.sul-airport.com/allowance.php . Please tell me this is just a misprint too , I doubt it. However ya'll can still call it a float if you want as long as we get paid I don't really care what it's called.....
Rockstar You're killing me HOF, I never budgeted for a rate that low....I am going to have to buy more now thanks...lol
DreamWeaver HOF, you lurk and lurk ... and POUNCE. LOL. I feel like I'm in school and I just got some homework. Lots of homework ... and I have to admit, I was a weird kid. I LOVED homework. Thanks, HOF. Will check it out. Blessings and very good to see you back on the board. Missed you and your posts. ~ DW
DreamWeaver Thanks for all the nice comments, y'all. I was SO excited when I read the article--as it is packed with goodies--wanted to help break it down. Of course, that's just my take and it could be off. Sure feels like I need to start packing ... just don't know where the heck I'm going yet, but I'm going some place peaceful to decompress for a while.
HOF, I just read your posts again. Got goose bumps. Can hardly wait to check out the hyperlinks--but needs to be tomorrow, as my husband just told our dogs he's going shopping for a new mom for them tomorrow. LOL. Fat chance. Good night, guys. Great day. (Warned you I'm exceedingly happy.) ~ DW
HandOverFist Sorry, Rockstar. LOL Thanks for your kind words, DreamWeaver. That fellow's 2 posts make sense, don't they? Especially since Abadi said it (twice)?
I have to admit, I thought they would at least match the 4 other MidEast countries that have a 27 cent rate. I guess we just have to wait and see.
DreamWeaver Iraq implies they will eventually bring "power" back to the dinar, which is pre-war rate over $3. Personally, I'll be shocked if it doesn't stage at $1.00 - $1.17. Anything less just doesn't make sense. Hope we don't have long to wait, HOF.
Valid point, Skylimit--though alpacas would be better choice than camels. Mean buggers. Agree as far as what they DO. Personally, I'd rather see articles like this in the news once in a while than no articles at all. At least it shows they're giving subject attention--for whatever reason. Best ~ DW
HandOverFist Upon further reflection, and in light of Abadi's comments that 5 billion dinars equal 440,000,000 US dollars, could removing the 3 zeros from .00086 mean an RV at 8.6 cents? (Thinking out loud and hoping I'm wrong.)
Gijane HOF - .00086 minus the preceeding zero's is .86. IMO this would be a staging rate for at least a 1:1 reality rate. Remember, they have to stop using the USD, and the folks will be hesitant to give up their USD 'buying power' of .13.....
DreamWeaver That is so wild. HOF. Just told my husband that I wouldn't be surprised if what Abadi said equals $.86 and not $.08--as there is no way this is going to RV for less than that. Signed back on to CC to listen to Abadi. Thankfully, I saw this post and it can wait until tomorrow. Rockstar, heard that big sigh of relief.
HandOverFist Just trying to figure out how Abadi can say twice that 5 billion dinars equals $440,000,000.
Nope, that's not what he said. I listened to it over and over again. He said, very plainly, 5 billion dinars is 440 million US dollars. (And that's 8.8 cents.)
DreamWeaver Realize now I read your post wrong, HOF, so I'll check it out tomorrow as I can't imagine it will be less than 1-to-1. If he's speaking English, probably not translation error. A mystery--but one that will have to wait until tomorrow. Fuzzy eyes and brain right now.
".......our government has set aside 5 billion dinars, which is amount to 440 million US dollars to rebuild the devastated areas....."
Aaanth at this rate, (8 cents) any one of the over 1 million BILLIONARIES in the workd (including maliki) could just outright buy iraq. ain't gonna happen!
if i'm an iraqi and all of a sudden 1 dinar is only worth .86 cents USD, it's not rocket science to figure out what's going to buy me more. they would need to do AT LEAST this in order to "dedollarize".
going from .00086 to .86 wiuld do that job in a brush stroke, so i personally agree with that IF dedollarizing is their main target. on the other hand, if they really want to establish iraq as a international WORLD PLAYER then it's got to go back to pre war $3. plus.
we don't really know nor have we ever known what they are really trying to do. what's seems like logical explanations and objectives to us might be something they care little about
as far as abadi's comments, politicians make mistakes in speeches all the time. look at Biden. Lol - There is no higher reality than the truth...
DreamWeaver Aaanth, not understanding why at $.08 billionaires in world can buy Iraq, but target $.86 hits their objective, implying billionaires wouldn't be able to buy Iraq. Would you mind clarifying as I just might be misreading it. Best ~ DW
RDiddy I've read dozens (maybe hundreds) of statements in dinarland to the effect that Iraqis won't turn in their USD unless the dinar is close to equaling a dollar. I don't think that's the case.
The Iraqis are tired of carrying around flimsy, torn, dirty IQD that merchants and cab drivers won't accept because it's falling apart, and there are too many bills to count and verify for the average purchase.
But if you tell the Iraqis that this shiny new 10 dinar note will buy them the same Coke that costs them 1 USD, they will be more than happy to turn in IQD and USD to be able to use their own country's new currency.
I wish I could run out and buy more, but that's not in the cards. At least I can put a dent in my debt at 10 cents to the dinar :) -mrs d
KJWayne For what it is worth, in 2008 or 09, the suposed plan was to remove the three leeding zeros off the nominal rate of .00086. Now no one knows for sure what the rate will come out at but there has been a ton of discussion on $.86. This $.86 is what got me in this wild ride and ,I hope , it will get me out of this ride. Its only my belief but $.10 won't help Iraq do ONE THING! I'm going to flush it! :D
Gijane i agree KJ. you cant delete 000's, and end up at less than .86, and i don't think Abadi would announce a rate anyway. English or not in the speech, this dog dont hunt.....
G-Lin GM HOF and all. I think what is the most telling about your post is the fact they will let you take $10,000 USD out of country or even province to province, but you can only take about $86 worth of IQD.
That's based on current CBI rate. It could even be less if they go off the street rate which is considerably higher. And we are making the assumption that $10,000 USD is the same as 100,000 IQD. That's not what it says to me. Sounds like they are being very stingy with IQD. Thanks for bringing this in
HandOverFist tobyboy at February 7, 2015 at 11:34 PM Kap Just finished reading this I can not believe there are 30 to 40 Trillion dinars out in circulation at the present time.
If that is case would take several years to remove most of the dinar off street out of circulation.
If you remember we had articles out stating the people didn't have much dinars and the ones they had was torn mutulated & merchants refused them. Also we had discussed this few months ago & the people had traded in dinars for dollars of which they had dollarized heavily in Iraq.
I think we have figured 65% to 70% of money was in dollars in country. So most of the dinars were in the CBI or Banks& Banks were not giving out the dinars.
Also in 2012 Shabibi had pulled in a hugh amount of dinars off the street believe it was 12 Trillion Dinars.
I was under impression the CBI is still puling dinars off the street so they must have quite a few Trillion in vaults at CBI waiting to be burned when the time comes as they dedollarize pulling the dollar back out of circulation for the FF or RV ------------------------------------
TB, I created my own spreadsheet a few weeks ago with a bunch of logical parameters to see just how plausible the 30-40 trillion IQD in circulation reports jive with the purported 4 billion note count, and it doesn't jive at all.
The 4 billion note count was easily, within minutes, reconciled with 5 trillion IQD in circulation. And, even toying with the note count & denomination distributions to get to 30-40 trillion dinar was very difficult.
When doubling the note count to 8 billion notes, the best that I could come up with was about 18 trillion IQD in circulation, and the difficulties did not end there.
One has to consider the operational issues, as well. When I started to estimate how many people are working in Iraq based on the unemployment
figures that have been reported in the news articles, I made an eye opening discovery.
Using conservative estimates for number of people employed, and assuming that the majority of the dinar they handle are the 1000 dinar notes and lower, and assuming few people had bank accounts (cash society) I estimate that the avg Iraqi would have to handle 180 notes per week per paycheck. And, the 180 notes/wk figure is based on the 4 billion notes count.
Even if we were going to the strip club, when have any of us ever walked around with 180 notes in our pockets? The operational PIA factor for everyday dealings with the dinar is already very high, and that's with 4 billion notes.
It is no wonder that Iraqis want the dollar, just for the every day operational ease of use. So, as far as I am concerned, the 30-40 trillion in circulation is unlikely.
HandOverFist In case anyone might be interested in comparing Abadi's Germany speech to his speech in Davos, Switzerland, here is the pertinent 3 minute excerpt from the Davos speech:
Comments may be made at the end of Part 3 Thank You Part 2