Continuing Discussion With News Articles From Part 1
Tlar & Members Discussing Iraqi 50 Dinar Note Being Canceled
Schiz Its impossible to free float from 1166 they would destroy the pegged economies pushing their rates. As low as Iraq goes up. If they unpeg they have nothing to trade to push them up.
Schiz Plus free float is based on supply and demand. A free float is counter productive as it would send their rate further down the charts as they supply nothing and demand everything. A free float will happen when their economy is thriving. Well after they are at a true value based on there current worth.
Mike lol, it's not just Kap who thinks it's going to float either.
TrinityeXChange: my friends, i have been steeped in a lot of economic research lately and have come fully and completely to believe that iraq is preparing to float the iqd. the shocks experienced by this country plus the current global currency war taking place where the united states is feverishly working to suppress the purchasing power of the dollar has forced iraq's hand.
TrinityeXChangeContinues: they must privatize the market, stabilize the country's security, and float the iqd. at this point i am fully convinced of a imminent float. this article would now lead me to believe that there will be no initial revaluation of the currency prior to the float but that iraq will simply unpeg from the dollar and allow it to naturally float up in value.
if an initial revaluation was coming first, the 50 note would definitely have value. to see it being removed leads me to believe the plan is already in place to come out with a float which means at least for a stretch of time the 50 note will have no significance and should be removed.
Kathy Has anyone who may live near a major international airport thought about taking their 50 dinars to the airport and exchanging? It is worth a try.
Revbo Kathy, I guess that would depend on how many you have any how close you live to the airport. You would need at least a hundred of them, or so, to justify the gas expense. Is this really a problem for anyone? I mean, $100 worth of 50s would be about 2500 notes, and I don't think they allow wheelbarrows in airports.
Livefree Rockstar, Even Breitling has come to the float conclusion but doesn't mention what he thinks will be the starting rate:
I have no opinion either way because it's obvious none of us can second guess this country... who the heck knows what's going on in secret, the same as it is with any country. As a self preservation mechanism I'm bracing myself for their next 'surprise'.
Skylimit Mike, A float from 1166 is not going to happen. It has no positive outcomes for any one and the risks are too high. It would be like selling your house for $1,000 when it's worth well over $1,000,000 to $3,000,000 because your family has gone through trama. The government would be hard pressed to apply tariffs or taxes which would create more hardships on the Iraq's
BigJohn No one can say for sure What is about to happen. However, it is interesting that in the article for this thread, it speaks of a conflict with the 50 and 500. If the CBI Did make an initial correction as Kap mentioned yesterday and a zero is removed (.00086 becomes .0086),’
then for the first few weeks (60 days?), the 50 could be confused with the 500. This move, it seems, would Jolt the poor Iraqi people into the banks for a few extra dinars for after 4/30/15 they will be worthless. RJMOO (really just my own opinion) At this point anything is possible.
Livefree Well the UN Operational Rates of Exchange have been updated showing Eqypt (who just depegged against the dollar) with a rate change as of March 1st. Unfortunately Iraq did not update: http://treasury.un.org/operationalrates/OperationalRates.aspx
Brule Livefree, there is a caveat to the UN rate updates and dates posted. The UN has a schedule for Operation Rates of Exchange and revisions, but the UN can recognize and update the rate changes at any time as required.
McDuff82 Breitling in his feb 8 th recording says he thinks it will com out about 35-40 c and then to $1
Livefree The latest MyLadies update here for Saturday morning in case you're interested in their perspective (they are highly optimistic):
NCtallguy Not that I want it but.....could Iraq go international at 1166 with a managed float? I know the OP article mentions the posibility of deleting 0s which a managed float would not work with deletion of 0s AND 1166. NCTallguy......confused with this investment as always.
Preacher Man If you think about it, they have spent years pulling the 25k notes out of circulation, to come out at 1166, they would literally need a wheel barrow to carry the lower denoms, in, to buy a few groceries.
I believe it has to come out at least one to one, and yes, I have several 50s, like maybe to un opened bricks, didnt give much for them, so one to one, on the other assortment of colorful bills, and Ill feed those 50s to a group of ducks, if I cant get them trade in,,
at this point Im, ready to see something, and I refuse to let Iraq and whoever else to mess with me over a few dollars. Im with Tlar, Im surprised we havent seen something by now, well tomorrow is Sunday, bring it on.
Schiz Mike, Yep, it is 100% going to float....just not free float from 1166
Schiz Do you know there isn't even an exchange rate system called 'free float'
Here are the 3 types, please pass on to kap lol
A floating exchange rate or fluctuating exchange rate is a type of exchange rate regime wherein a currency's value is allowed to freely fluctuate according to the foreign exchange market. (central baks always talk the currency up or down if there is too much movement in one direction.....
.this is not a free float.
It will most certainly have upper and lower trading bands...you could call this a managed float, when iraq go up the pegged currencies come down, Thats why too much movement is stopped.
A fixed exchange-rate system (also known as pegged exchange rate system) is a currency system in which governments try to maintain their currency value constant against a specific currency or good. (this is based on supply and demand, Iraq have nothing to supply, oil doesn't count. ‘
The rate can be talked up or down)....this is not a free float because if iraq goes up the other currency must come down. Thats why too much movement is stopped.
Pegged floating currencies are pegged to some band or value, either fixed or periodically adjusted. These are a hybrid of fixed and floating regimes. Upper and lower trading bands to keep it stable. The rate is moved or adjusted by the cbi to match their current value. This is a fixed exchange rate.
Seriously guys, there is no way iraq will be allowed to free float against another currency or good all the way up from 1166. You have to look at what that is doing to the pegged currencies or goods. Seriously.
The only way it is possible to free float is to unpeg but then I just don't know how they are going to move at all. What would drive the rate up? remember oil is traded differently, also gold, silver, etc etc
Maybe i've missed something or am just being thick again lol....i never put that past myself as i am by no means an expert on floats and what iraq can or can't do.
Just doesn't make sense to me, that's all i got and i'm sticking to it :P
Schiz Kaps free float is based on seeing the words written once in an article a long long time ago saying gradual appreciation.
Every single one of the exchange rate systems above could describe that, could it now? especially the last.
Gradual appreciation - Pegged floating currencies are pegged to some band or value, either fixed or periodically adjusted.
If anything I would say Iraq are soon to have a fixed exchange rate that will be adjusted as they open up their economy. That is the gradual appreciation
Gradual appreciation - periodically adjusted - Gradual appreciation - periodically adjusted - Gradual appreciation - periodically adjusted
Brule Central Bank pulls the coin 50 dinars class of trading
2/28/2015 BAGHDAD - morning, the CBI has decided to withdraw a paper currency in circulation and prevent Alarac.waodh Bank said in a statement received "morning," a copy of the bank decided to "pull the banknote category of 50 dinars from circulation," he said, adding that this was due to stop the public from trading by On the basis of the authority vested in the Article 36 of the Central Bank Law No. 56 of 2004, adding, "The duration of the replacement category above two months, starting from 03/01/2015 up to 04/30/2015." adding that he and "after the end of the replacement for the banknote become null and have no discharge power will not be accepted in the Republic of Iraq, "the central" banks and their branches .odaa to banknotes presented to it without a fee or commission a replacement, and the banks deposit with the central bank and its branches for the purpose of being the equivalent value in the accounts we have. "
Livefree Schiz, read Brule's post about them buying another 36 tonnes of gold to help with the increase of the value of the dinar. If this is in addition to the 48 tonnes they bought not too long ago, why would they need all this gold to back their currency if they were to start the float at 1166? Doesn't make sense does it?
Preacher Man I may be completely wrong, and that would be rare,,LOL, I was just comparing all of the dinar notes, the 50 and the 250 and a few other are about the same size and have the same integrity on the paper. Im thinking Im goin to hold on to these 50s, for at least 45 days after the re-value, just a feeling Im having..Thanks everyone for all of your articles we are now back in Nashville, hard to post on the Android, laying in the sun, having your wife rub tanning lotion on you, mixing Margarittas, wait a minute scrap that last one..
- (as always treat as rumor and due your own sound diligence)
Flyboy It maybe the same gold they bought some weeks ago, but a rehash of the old article...?
Livefree Flyboy, Rocko posted a link on the 36 tonnes Gold thread to Wikipedia that shows Iraq as having 89.8 tonnes of gold. That's almost 100 tons. The article states it's to support the value of the dinar. Take a look, it's a good read.
Rockstar Schiz Thanks for all those definitions maybe someone should pass them along to clueless Kap!!! Lol... As well as point out to him In the article that started this thread they say almost in the same sentence along with the delete the zero project... There is no reason to even have a delete the zero project if you were even able to free float the currency they don't go together!!!! When they delete the zeros from the nominal rate the currency is going to be worth atleast .86 cents. Dear lord please help some of these gurus to stop misleading people!!!
Schiz Nope and what do the cbi constantly harp on about....yup stability. They are anal about having a stable exchange rate. No way they go through all of this effort to back a currency with gold and the efforts to keep it stable to show they can just to open it up into an unpredictable unstable market.
That's just silly talk :P Yep rockstar i think someone needs to give kap a slap with the wet 'it aint gunna free float from 1166' flip flop
Kimberley Rockstar,....an article with those definitions came out about 18 months ago on DA.......And I did make a post addressed to Kap.... I was deleted......
Nwa Delete three zeros is a LOP. It is even referred to a 'monetary illusion' We don't want a LOP.
Mystic137 NWA, well that all depends on where the zeros are....and if it is the exchange rate versus removing the 3 zero notes themselves....etc..... 8)
i don't think anyone truy knows what 'delete' the zeros / 'lift' the zeros / 'raise' the zeros (all the terminology used in the last few years..though 'delete' is the most common).... really means...until this all goes down...
Diane Mystic, Amen to that... but it's interesting to read everyone's assessment of what it 'might' mean. Anything but a lop... please... anything but that.
And BTW.... how & when will the dinar become internationally tradeable? That's an important piece of this puzzle, too.
Livefree Thanks to Blue for sending this:
BREAKING! My Ladies and Nova Expose the CBI's Secret Plan
The main strategy is unveiled in the first 15 minutes of the recording. I’m sure you will want to listen to more.
In a nutshell, Iraq has a serious liquidity problem which is why they have not funded the budget. They have been working on this plan for the last 24 months
What they will be doing is loaning back the money that the banks have deposited with them, as well as accepting a 6 Trillion loan from the World Bank. According to the commentators (My ladies and Nova) this plan will provide the basis for funding Iraqi projects on the secondary market, as well as providing what everybody in dinarland wants.
They cite documents in which Iraq states that it intends to be a support currency and therefore will have to be stronger than the one that they are linked (check to see if I have interpreted this correctly).
You should see the details of this unfold between tonight and next Thursday.
Frank (who has his own website) has been in touch with My ladies and Nova, has taken notes, and will be publishing a transcript later.
I suggest if you are interested, you take the time to listen to at least the first 15 min of the recording to see why NOVA is jumping up and down. I am sure that this will be a much discussed call. ~ Willie
Mcduff82 Willie has the wrong dates ,this is a recorded call from 1-28 not today
NCtallguy So if he has the wrong dates does that make Sunday-Thursday window long passed and now that window has shut? Seems to be.
Dinarblowyourhorn Sometimes I check iqdcalls.com they have a link for Thursday night call....
Dog Gone Willie had the wrong link. Here is the Updated transcript he was talking about.
- My Ladies Update Saturday AM: "Many Signs of Iraq About to be Internationally Recognized"
2/28/2015 (Thank You My Ladies for allowing Recaps to share this today)
MY LADIES: GOOD SATURDAY MORNING EVERYONE, WE’RE STILL WAITING.
SO MANY THINGS ARE TAKING PLACE IN IRAQ BEGINNING TOMORROW AND MOST OF THEM POINT TO THE COUNTRY BEING INTERNATIONALLY RECOGNIZED.
WELL THE QI CARDS ARE GETTING READY TO REACH OUT AND TOUCH SOMEONE! THEY’RE SAYING THAT STARTING VERY SOON THE RETIREES LIVING OUTSIDE WILL RECEIVE THEIR PENSIONS ON THE CARD.
UP TO NOW THEY HAVE BEEN SENDING THEM PHYSICAL MONEY.
SO HERE IS ANOTHER SIGN THAT SPEAKS TO BEING INTERNATIONAL,
IT’S WORTH MENTIONING THAT THE ARE SENDING THESE CARDS TO 4 COUNTRIES TO START.
Rafidain Bank plans to issue smart cards for retirees in four Arab countries
Rafidain Bank, announced its intention to issue smart card, in the coming days for retirees in four Arab countries.
The general director of the bank on behalf of Kamal al-Hassani, Saturday, in a statement received by all of Iraq [where], a copy of the "most prominent Arab countries will be ready to use the smart card, the United Arab Emirates, Egypt, Lebanon, Jordan, where he will provide service to customers who rely on the card. "
He said he "has issued first smart card for retirees living in the United Arab Emirates, as the process can receive their pensions through easily and without suffering as it was in the past through the receipt manually and the case will be with the rest of the other Arab countries."
The Rafidain Bank announced on 24 January last, for issuing smart card Alki Card] Pferah in Abu Dhabi for adoption at the retired pay of there.
He said in a statement, "It has to issue the first smart cards for retirees living in the United Arab Emirates, where the process can receive their pensions and easily without suffering" .anthy
PARLIAMENT MET TODAY HERE IS THE RESULTS OF THAT SESSION
JP: ML, I know you have mentioned Iraq is preparing to be “operational” and “international” around Sunday. Although they carry a different emphasis and one implies timing, it seems Iraq is going to be both by crediting the 50 dinar notes to accounts on Sunday and sending the Qi cards abroad. Certainly this is a time of high expectation!!!!!
MY LADIES: JP THAT'S CORRECT AND HERE IS ANOTHER SIGN OF THEM BEING INTERNATIONAL
MY LADIES: I’M GETTING A NUMBER OF GOOD THINGS FROM THIS ARTICLE. (See Article Below)
FOR STARTERS THEY HAVE TOTALLY LIBERATED THE FOLLOWING AREAS FROM DAASH.
SECONDLY 11 ADDITIONAL SHIPS ARRIVED IN THE PORT OF UMM QASR BRING WITH THEM THE ITEMS FOR THE RATION CARDS.
SO THIS IS NOW 2 SHIPMENTS SINCE LAST MONTH WE ARE SEEING ON THE GOI BILL.
AND LASTLY THERE ARE OTHER SHIPS AT THE PORT WAITING TO UNLOAD.
THESE ITEMS CAME FROM OUTSIDE THE COUNTRY OBVIOUSLY AND ARE BELONGING TO THE GOVERNMENT NOT PRIVATE SHIPMENTS AND ARE CALCULATED IN THE BUDGET AND WILL NEED TO BE RECONCILED OUTSIDE THE BORDERS AS WELL.
SO WE HAVE ANOTHER SIGN OF INTERNATIONAL BUSINESS.
Trade believes ration materials to the liberated areas
2/28/2015 0:00 The minister instructed passed them within 24 hours of Baghdad morning secured the Ministry of Commerce of the ration card to the liberated areas vocabulary in the provinces of Anbar, Nineveh, Salahuddin and Diyala.
At a time when the minister Mlas Mohammed Abdul Karim instructed the finance companies in the ministry to deliver vocabulary to liberated areas within 24 hours, and reached 11 a ship carrying food to the southern port yesterday.
He said the administrative and financial department in the ministry director Hussain Farhan cream "morning": "The finance companies provided food items to areas drunken, Sinjar, Usefulness and Alqosh in the province of Nineveh, which was edited from terrorists" Daash "."
He noted that the minister Mlas Mohammed Abdul Karim instructed the finance companies to deliver food to the liberated areas within 24 hours.
As mentioned hilarious that the ministry is equipped with hand-Baghdadi meal the first of its food by air, and the second meal of material waiting to be shipped by air in collaboration with the security forces, noting that the areas of Anbar safe are processed smoothly through the company contracting with the ministry and there is no problem to remember in this aspect tanker.
For his part, the ministry coordinator at the port of Umm Qasr Jawad Darwish detect the arrival of 11 steamer loaded with (128) thousand tons of sugar in the United Arab Emirates and Bahrain and 150 thousand tons of rice Brazilian and US and (200) Turkish oil container and the amount of 5000 tons.
He pointed out that some of these ships were unloading the ministry's stores after the appearance of the test results that showed suitability and compliance with contractual specifications , noting that there were other ships in wait, as models of which have been withdrawn for laboratory tests on them.
AW: Parliamentary Finance for "direction Press": Work remittances system is designed to control the amount of money sent abroad… Parliamentary Finance for "direction Press": Work remittances system is designed to control the amount of money sent abroad http://aletejahtv.org/index.php/permalink/48463.html
LM: Ok I’m just gonna say this once. Keep the Faith Everyone
Many things pointing to Iraq becoming international:
Qi Cards giving retirees (cash) outside the country “in the coming days"...
Tarrifs and Taxes start tomorrow…
Over 11 cargo ships ready to unload and that will need to be settled in international payments...
Also, starting tomorrow, exchange of 50 dinar notes will be credited electronically into their accounts- Turning on the system...
All signs of international business (*)
And don’t forget... no auctions for almost 2 weeks and the de-dollarization that has been going on...
Parliament met today Saturday, nothing new and come back Monday.
My bet is then they will pass all the important laws in one basket, after they became international Sunday…
Keep Praying Everyone that this is actually it!
MY LADIES: THANKS LM GOOD SUMMARY...AW- THAT'S THE NEW MECHANISAM THEY'RE TALKING ABOUT, SAME SYSTEM LIKE US.
THERE REALLY IS NOTHING NEW OUT THERE, IT'S LIKE IRAQ IS SUSPENDED IN TIME
PAPERS ARE REHASHING OLD STUFF GO OUT EVERYONE AND ENJOY THE DAY...
WE HAVE DONE SEVERAL COUNTDOWNS OVER THE YEARS, LET'S HOPE THIS OUR LAST ONE
2dambeasy Delete the zeros is actually a mis translation on google's part. It actually mean retrieval of the 25k notes.
NCtallguy 2dambeasy, As in deleted from the system as they're doing with the 50s now?
Dog Gone Turning 30 trillion IQD into 30 billion IQD. How? 4-41-2013
Dog Gone Best I can do is quote the symposium article from two weeks ago...
Advantages deletion of zeros from the Iraqi currency first: the horizontal level: delete the three zeroes mean conversion (30) trillion dinars (30) billion dinars.-
Second: the vertical plane: restructuring and currency composition means reductase (4) trillion banknote currently in circulation (2.8) billion and banknotes. -
Kap What we care about is the physical paper currency..which appears to retain it's face value...as stated differently. It is not saying "conversion" in this case, but "reductase" (or reduce) (4) trillion banknote currently in circulation (2.8) billion and banknotes.
This supports the "collection of dinar" we have stated has been going on for some time and the "lack of liquidity" in banks, etc.
Therefore, the physical paper dinar will retain it's printed face value...25,000 dinar is 25,000 dinar.
BTW, this fully supports Dr. Bakri's research paper some months ago in the forums where he stated..1000 dinar would then buy 1000 packs of cigarettes (assuming you could purchase 1 pack for 1000 dinar before).-
Doc, let me try and make it simple. Iraq has about 34 trillion dinar in circulation in country. According to the above statements, 30 trillion of it may be in the form of emoney (or electronic money).
The rest is in paper money on the streets, under pillows or beds, etc. In total its about 34 trillion which must be reduced. Therefore, they will remove the zeros from bank accounts (reducing 30 trillion electronic money to 30 billion).
And collect as much of the 4 trillion paper on the streets that remains (because its worth its printed face value) to reduce the money supply of paper to 2.8 billion or less.
Then they can raise the value and give out new dinar such as 1, 5, 10, 20, etc. None of this really has anything to do with us other than they are honoring the "paper" dinar at it's printed face value..which is what we want so as the exchange rate rises, we can cash our dinar at that rate.
So the only way an Iraqi can profit from this is to retain the physical "paper" dinar. Which most do anyways since there is little faith in banking. ~ Kap
Revbo Just thinking out loud here, but isn't it from 4 billion pieces of paper to 1 billion pieces of paper? So, if every denomination gets removed equally, they would have 7.5 trillion dinars remaining after it's done, but I would imagine they would want to have removed primarily larger denominations and be left with a whole lot of 500s and 250s. 1 billion 250 notes would be worth $250B at 1:1. ~ ReVbo
Tlar Let me take a stab at this. I have to agree with RevBo. Iraq probably has 4 billion pieces of paper in circulation according to this article. Forget the denomination on the note. We are talking physical individual pieces of paper. Their goal is to reduce this 4 billion pieces of paper to 1 billion.
Assuming there is around 4 billion pieces of paper dinar, and 30 million Iraqi's, that means that per man, women and child, there is 133 pieces of paper. per person. Iraq is a cash society at present.
Most Iraqi's don't use the banks. They have their cash either on them or they hide it at home. The goal of the CBI is to reduce this enormous amount of paper down to 1 billion. Assuming once there is a change in the value, the hope is Iraqi's once again, will start to use the banks.
Either way if they are successful, the amount of paper per person will be reduced to 33 pieces per person whether they use the banks or not. Looking at the new denominations, the1, 5, 10 ,25, 50, the 100 coin, the 250 and the 500, it is conceivable that their 1 billion target will actually end up being be much less in total pieces of paper actually in circulation especially, if Iraqi's start to use their banks.
An example would be if an Iraqi came into the bank to change a 10,000 note. The bank according to what Shabibi intended to accomplish, would attempt to convince him to open a bank account, and only carry what he deemed necessary to operate that day or week.
Lets say he thought 3-4 hundred dinar walking around money was appropriate. That would leave him potentially depositing 9600 dinar in a new account which would not be paper, but rather an electronic number (account) at the bank in his name. Now back to the 400.
If he were to take this all in 50 dinar notes you would be talking 8 notes. There is any number of configurations but most likely his combinations would be made in 5, 10, 25, and 50's with a few 1 dinar notes thrown in.
The anticipated worst case if he did deposit 9600 dinar is that he would leave the bank with no more that 15-20 pieces of paper, far short of the 33 pieces that was what was available to him based on the 1 billion notes after the currency change.. 33 notes per person, if they can get the Iraq's to use the banks should be more than enough cash to be considered having enough liquidity.
Look at your own wallet. If you count the bills, forgeting the amounts or the individual denominations, how many pieces of paper do you operate with on a daily bases?-
30 trillion dinar does not mean 30 trillion pieces of paper because we know that the higher denominations scew this number. Iraq has been using mainly the higher numbers because the use of the 50 or 250 is valueless in day to day transactions.
So we know that if every note of the 4 billion out was a 25000 note, this would equal, 100,000,000,000,000 dinar or 100 trillion dinar. Even if Iraq still has out 30 trillion dinar (which they don't) it is easy to account the 4 billion pieces of paper.
If it were true that 30 trillion dinar is still out in circulation, and that equals 4 billion pieces of paper, that would mean that the average denomination on each piece of paper would only be 7500 dinar, far short of the 25000 note.
This means that it is a combination of notes of 250, 1000, 5000, 10000 and 25000 notes that comprise the 4 billion notes in circulation but mostly the higher 3 zero notes.
I don't know if I explained my thoughts on this clearly, but I hope this helps. Realize the CBI is targeting as a minimum a reduction 3 billion pieces of paper. They will only accomplish this one of two ways, keep dollarizing and then change the value of the currency, or just change the value of the currency. ~ Tlar
If they plan to reduce 4 billion "units" (which would mean a paper note) to 1 billion "units" they are telling us that they plan to collect 75% of all the dinar in country and replace it. That being said, they then would have decided 25% or about 7 trillion would remain.
So the definition of the horizontal and verticle plain would be a combination of reducing the value (30 trillion to 30 billion) and the quantity (4 billion paper to 1 billion paper). ~ Kap
Tlar Kap, ultimately they plan to replace 100% of the dinar and substitue it with the new smalls. The article to me says that included in this change that as a minumum goal, 75% of the physical paper will not be re-released. It will be retired and only 1 billion pieces of paper will replace it.
This will be accomplished by raising the value of the currency making it impractical for Iraqi's to carry it around. It also will be dangerous to carry that much around. While admittedly not every Iraqi will open accounts and deposite there excess cash, it was the hope of Shabibi that most would.
He issued orders to the banks to "take your time swapping old for new, and set up as many accounts for Iraqi's as you can". Shabibi was hopeful that through this transition the Iraqi's would begin to start using the banks again. This was a key in Shabibi's mind to add additional home grown capital to these banks.
If most Iraqi's actually opened accounts this would almost qualify as another recapitalization of the banks. This would happen as deposits started to flow in.
In the above article, to me it is implying just what you said. 75% of the dinar would go to the banks and would stay with the banks in depositors accounts.
The value of the currency, assuming 1 to 1 at some point would cause the currency to be to expensive too not use the banks. This was Shabibi's idea, not mine.
Saleh told us that in Iraq there was an estimated 4 trillion dinar. He told us this before Shabibi was removed and before they started to buy all the dinar in the Middle East, dollarizing Iraq. No one knows how much dinar is left but in reality, the 30 trillion number that is frequently used has to be much less.
The 30 trillion Iraq said was out must have included Central banks around the world and speculators. It was a statement that meant what was both in and out of Iraq. 75% of the 4 trillion dinar, after the dinar obtains a 1 to 1 equality with the dollar, means 3 trillion will go into the banks to recapitalize them.
Certainly that is not a lot for the bank to cover especially since once the dinar is international, the bank falls under the international banking laws. They must only cover 400 billion or 10% of the outstanding currency in Iraq.
What the IMF will accept in gold, foreign currency, and oil and gas is up to them but certainly 400 billion is easily covered if they allow some liberalization of the rules.
Recent articles have said the IMF has liberalized/relaxed the rules and now is allowing for countries to use assets such as oil and minerals to back their currencies. Lastly the bank has reserves of 70 plus billion.
In May we know that the funds will be released to Iraq. But as a hedge, if Iraq were to go to 1 to 1 and the Iraqi's started trading in their dollars for dinar, the bank would recapture the billions of US sold to Iraqi's over the last year. All of this would boost substantially their foreign currency reserves. ~ Tlar
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