Oldwazhisname DW, What you speculate on as to the motive and how it might work makes great sense. In fact, of all of the theories/reasons bantered about since yesterday, your's is proabably the most reasonable.
It could be as simple as they don't wan't/need the 50's because no change is in the works or something like this, which fits handin-glove with what we expect/hope. Thanks for your thoughts.
DreamWeaver Oldwazhisname, meant to thank you for all your comments of late, but I've been unable to connect easily to internet until late yesterday because of ice storms. So ... late than never ... thank you for all your posts regarding why CBI may be doing new mechanism, etc. Appreciate your posts.
I went to bed last night, posing the question to my higher conscious mind, "what in the heck is the CBI up to with these 50 notes being illegal tender?" LOL.
Upon awakening, these are the thoughts I had in that regard--which really makes sense to me. Tonight I plan to pose the question, "just when are they going to RV the Iraqi dinar?" Will keep you posted as to the answer. :P Best thoughts ~ DW
Rockstar Thanks Tlar and DW for the continued discussion down memory lane, it definitely makes total sense to me why they are doing this and I sure hope our reasoning is correct!
Oldwazhisname DW, That's one post I will definitely look forward to!
Slb Listen to the first 5 minutes of the most recent video for his take on this issue.
Mcduff82 Cannot wait. Thanks Tlar DW and Oldswazhisname
gsjr I am now nervous about my dinar being possibly counterfeit. My first batch of dinar was through a broker and delivered to Wells Fargo Bank. My next batches were bought through Ironstone Bank.
Some look uncirculated and some look well used. Is there a bank anywhere in Texas that has a de le rue machine that I could run my dinar through to check them?
sweed61 Thanks slb. It sounds like Breitling is now in the float and gradual rise camp.
hi-five Gene!! Nice to see you! Because you bought your dinar through a bank, I assume you are in possession of the real dinar. If you had purchased from ebay, for example, then I would be more concerned.
If you are really worried about it, you could call a major bank - - Wells Fargo, Chase or BOA, and ask if they have a machine, and if so, could you run some currency through to see if it's legit?
HandOverFist I believe Tlar is right about lower denoms being 1, 5, 10, 20 and 100. I remember reading this in an article, some time ago.
Oldwazhisname HOF, I'm thinking if we can get confirmation that the 50 IQD was not in sequence for the lower denoms, we may indeed be closer than not. Once the 50 is out of play, it could happen about then. Can anyone definitely confirm that there was never a 50 IQD in the intended roll-out?
Vision I have been around long enough to remember not that it matters reading all the art. Back when shabibi / Selah were putting out a lot of info the new nots were supposed to be of some type of Mylar for durability... Here's hoping
Diane Wow... thanks for the time put into all these replies. I do remember the Kurds insisting the new bills come out including their language & the redesigning due to that requirement. I believe my 25K notes have all three languages on them.
As to DW assessment: I think that within Iraq, the three zero notes will be exchanged as if it's a lop. The 5K will equal 5 dinars, the 10K will equal 10 dinars & the 25K will spend as 25 dinars. But due to new pricing, they will have more buying power. An Iraq citizen will not suddenly be rich.
Tlar, In order to keep my feet on the ground, I need to "see" the new LD's... hearing it from someone who heard it from someone else, just isn't enough for me to trust they are truly printed & out there ready for use.
In this day of instant electronic communications, there would be a picture of those bills floating around somewhere. Pallets & pallets?? Seeing is believing... & I haven't seen them.
It has nothing to do with your veracity... you are a smart, thinking man who is trying to make sense out of something that none of us knows for sure.
I've been in this long enough to have heard most everything at least twice... & much was concocted out of someone's desire for the RV to be right around the corner.
However, I've been fooled more than once, been on that damnable roller coaster, & have chosen to get off. Once again... thanks to all who replied.
GSJR Thanks Hi-Five !!!! It is so nice to have friends I can get answers from. I am leary of the broker my friend used for my first batch. Now to go de le rue shopping.
DreamWeaver If things have changed since 2012, insofar as they may be doing a higher RV, it only makes sense to me that what they are doing by making current 50 notes in circulation illegal tender is because CBI intends to roll out new 50s with rest of lower denoms when the RV.
Though they may still include a 100 dinar note, I won't be surprised to see that one missing when new lower denoms are introduced, as it would be over $300 with a $3+ RV.
We will not really know any of this until they do it, as all is speculation, but at least I've put my own mind at ease while simultaneously amping up my excitement as far as them definitely taking steps involved in pending RV.
What I don't want to see are any more announcements that additional dinar notes will be illegal tender after a certain date. That may make me push the panic button in this investment for the first time. Not expecting it to happen, but it would definitely not be easily rectified in my mind.
HandOverFist Good thought, Waz. I'm not at home and posting from my cell phone so I'm unable to check for back articles myself.
Tlar Don't get confused in the sequence of printings. It has no bearing on what they are doing today The last printing in 2012 was all the notes including the new 3 language 50.
You know it occurred to me that if Iran knows of this plan to drastically change the value of the dinar and I'm sure they do because of their close association with the Maliki government, Iran may have already printed millions of the present 50 dinar notes thinking they could quickly sell these in Iraq for US dollars in the days following Iraq changing the value of their currency.
The CBI may just be trying to stay one step ahead of the sewer of a state (Iran) having either heard something or thought about this possibility on their own.
Either way removing the existing easy to counterfeit 50 in advance of an RV is the prudent, cautionary, smart thing to do. Like I said before, I have no idea if this slows down or puts anything on hold until this is done. Tlar
DreamWeaver Diane, I don't agree with your thoughts that Iraqis will exchange 5,000 notes for 5 dinars. That's a LOP. Iraqis will be able to deposit their 5,000 dinar notes and get credit for 5,000 dinars in their bank accounts. Remember, a dinar is a dinar--so in country this RV will only INCREASE purchasing power. ‘
If our US dollar were to increase, overnight, in value to $1 = $3,000 as far as exchange rate, we would see no difference. We couldn't go into a bank and hand them a $1 bill expecting $3,000 dollars returned.
Just doesn't work that way. Took me a while to get my head around it and admit it might not be fully grasping all aspects of the concept, but I have finally understood that Iraqis won't be turned into "millionaires" overnight though some holding physical dinar will reaps some benefits in purchasing power. Best ~ DW
Diane I didn't include the deleting of the three zeroes in my last post. That has been in so many articles, I don't doubt that it is a possible scenario that is on the table.
As I'm thinking about how it might affect the Iraqis in country, I'm also wondering how it will affect those of us holding on tightly to our own dinars with high hopes of an RV that will change our lifestyles.
Say an RV comes out at 1:1.... am I really going to get paid $25,000 in exchange for my 25K dinar note?
Or going even further.... at 3:1, will I get $75,000 for it? That is an event that is "too good to be true"... & we all know what our mothers/fathers told us about those! Staying hopeful with both feet planted firmly on the ground.
Tlar Logically speaking Diane, if the scenario you presented of 5000 swapping for 5 in Iraq were to occur while the rest of the world sees an increase in value for the dinars they hold, there would be another even greater smuggling operation created than what we have already seen in Iraq as Iraqi's would try to get all there dinars accross the border. A currency is a currency.
They either LOP everyone everywhere, or whoever holds the currency both inside and out of Iraq will see their currency increased. You can't lop inside the border while RVing outside the country.
A dinar is a dinar. What determines its value is the exchange rate. When they change the rate, every paper dinar will have that new rate everywhere. Hope this helps. tlar
DreamWeaver I'm not going to assume that their plan, back in 2012, is still the same as far as rolling out lower denoms of: 1, 5, 10, 20 and 100.
If the plan has changed as far as RV value changing from $.86 to over $3, it's logical for me to assume that the denoms may have also changed to: 1, 5, 10, 20, 50 and possibly a 100.
I absolutely do not believe that this measure to make 50 notes illegal tender is just to prevent Iran from benefiting as I defintely see this as part of CBI's plan to introduce a new, counterfeit-proof 50 dinar note as part of small denoms and RV.
If I were to only see CBI taking this measure as part of thwarting Iran's counterfeiting, I would be concerned as it may mean they would eventually force Iraqis into bank to exchange their 250 and 500 dinar notes for electronic dinar, etc--also making them illegal tender after 60 days.
Why stop their? Why not have Iraqis come into the banks to exchange their 1,000, 5,000, 10,000, and 25,000 notes the same way?
No. I'm going to have to assume this step by the CBI has been taken in direct preparation of RV and rolling out new lower denoms, including new 50 dinar note--while also thwarting Iran's counterfeting schemes--otherwise, there aren't enough panic buttons on my desk to push.
JMO and my thoughts. Not expecting to push any panic buttons as I see this as connected as part of delete the zeros program and indication of forthcoming RV. :)
Experts: 50 dinars born "dead" .. and canceled due to fraud and the deletion of zeros
Range / Amer Mohi A source in the CBI revealed that the bank has decided to withdraw the currency of 50 dinars from circulation category because of fraud and conflict with other categories when deleting zeros from the currency, and while experts confirmed that the abolition of the small category guide to take prices upward trend, said the 50 dinars born "dead" because they are too small and can not be accepted compared to other groups.
The Central Bank of Iraq, the day before yesterday, the currency was withdrawn from the category of 50 dinars from circulation due to "low value and stop the audience from the circulation," according to a statement of the bank.
A source in the CBI told the "term" that "the Bank does not want a conflict between the currency category of 50 dinars and 500 dinars in case of deletion of zeros from the last,"
noting that "the central decided to cancel the deal with 50 dinars category formally instructed banks government and private bring this group to the bank in order to burn them. "
The source, who declined to be named, said "the Bank issued a decision not to deal with a class of 50 because of a major fraud after reprinted in 2003",
adding that "the citizen is no longer handles this category because of the small cluster of cash for this currency, and because the cheapest thing in the market to be sold for 250 dinars for it canceled the same. "
He pointed out that "the citizen who owns a coin 50 dinars category can replace it in the bank within a specific number, it is impossible to bring people billions of dinars in this category are demanding to replace them because they certainly false."
For his part, said an expert on economic affairs Maytham Laibi "long" that "the decision to cancel the coin 50 dinars very painful, because it shows that the presence of an upward trend of prices, so that Tfariv currency has become not used in daily use,"
noting that "after ten years of the 50 dinars coin presence and lack of circulation dramatically means that the Iraqi market tended to handle large groups rather than to deal with small groups, indicating the money supply expanded significantly. "
Laibi and pointed out that "most of the countries of the world do not put such a condition when you drag the currency market, but they can be non-acceptance of the currency in circulation at the same time be accepted in the banking system, especially as the term is too short, which is up to two months only,"
but he also said "The decision can not be considered wrong in its entirety, because it has become a reality if the result of the use of this currency, and to identify specific timeframe for ending the deal in this category is the only weak point in the resolution."
In turn, said economist Ahmed Sabih told the "term" that "this group of Iraqi currency issued in the light of expectations down price levels to be smaller class can be traded among the public,"
noting that "the category of 50 dinars stillborn because it is very small Currency and can not be accepted in circulation compared to other groups that make up some of the complications. "
He Sabih saying that "the 50 dinars as long as calculated on the Iraqi currency bloc, it is better to replace the category of other more acceptable as a class 250 dinars, which represents smaller currency accepted by the public in circulation",
adding that "this decision administrative true and does not reflect any economic effects is carried at liquidity or a reflection of the state of inflation, but it is a good procedure followed by many banks to get rid of the categories is acceptable in circulation. "
The bank said in a statement received "long", a copy of which, the day before yesterday, that "due to stop the public from trading cash paper category 50 dinars, he decided to withdraw this banknote from trading on the basis of the powers vested in Article 36 of the Bank Act No. 56 of 2004".
The statement added that "banks and branches will begin to replace these banknotes presented to it without fees or commission," he said, adding that "banks will be deposited at the bank and its branches for the purpose of being the equivalent value in the accounts we have."
Bank pointed out that "the term that will replace these banknotes will begin on the first of March to 30 of April next," noting, "Once the replacement period banknote will be null and void and will not be accepted in Iraq."
The 50 dinars category smaller paper currency from within the paper categories, which also include 250 dinars and 500 dinars and a thousand dinars and 5 thousand dinars and 10 thousand dinars and 25 thousand dinars. Iraq issued a new currency in 2003 in the wake of dropping the former regime.
Rockstar Diane also you will never see any of the lower denom notes until after the RV. If they actually showed them it would give everyone a heads up a huge change in value is getting ready to happen! Just by what they are doing now with this 50 note is showing you what they are doing because they cannot hide everything. This is part of the process they have to do before increasing the value in my opinion for what it's worth. Amargiot that is an awesome awesome article thanks for posting!!!
HiFive If Iraq is going to wait until the end of April to RV, how are they going to get through this liquidity problem?
Iraq is now monitoring very closely the flow of dollars through stopping the auctions and implementing the new mechanism. I interpret the CBI notice to say that those having 50 dinar notes need to open a bank account in Iraq, and they will credit the value electronically to their account.
IF that is correct (and I could be wrong) I don't think Iran can cash in the counterfeited 50 dinar notes.
The money changers on the street were dried up before the CBI announcement came out.
They don't have the dollars to buy the Iranian counterfeited notes. If I'm looking at this correctly, this was a great plan to thwart the counterfeit cash in.
And, all the legit 50 dinar deposits in the banks will help the banks lend money, through fractional banking, to customers wanting to start up their businesses under the new open market system. I hope I'm not channeling Pollyanna playing the Glad Game! haha
DreamWeaver Also, it is my understanding that a country, such as USA, typically makes a currency illegal tender in case of war, unrest, etc. For instance, Civil War, Confederate dollars illegal tender in this country. In Iraq, Saddam currency is illegal tender.
IMO this is a huge move--announcing a currency is no longer going to be legal tender in Iraq. My thoughts the past day have been WHY ON EARTH WOULD THEY BE DOING THIS NOW?
As I've previously posted in this thread, it seems to me to be all about pending RV--but in no way do I think this is no big deal.
CBI is MOVING ... and, IMO, it appears that movement is aggressively towards introducing small denoms, RV and de-dollarization. Parliament capping auctions may have forced CBI hand or maybe it was planned. Who knows. Just the way I see it so far. We should know more over the next two months. Hopefully, there is an RV occurring within that timeframe. Blessings ~ DW
Schiz OK thinking about it, this is all prolly because they simply have a new 50 they want to roll out with the security features etc, it will roll out when they rv.
They just removing the old 50's that aint used anyway out of circulation ready for the event.
The simplist answer is usually the correct one so i'm going with that. Also helps them save a bit of cash when the event does happen. Hope we find out in the coming minutes.....ha, see what i did there!
Diane tlar at February 27, 2015 at 2:15 PM Logically speaking Diane, if the scenario you presented of 5000 swapping for 5 in Iraq were to occur while the rest of the world sees an increase in value for the dinars they hold, there would be another even greater smuggling operation created than what we have already seen in Iraq as Iraqi's would try to get all there dinars accross the border.
A currency is a currency. They either LOP everyone everywhere, or whoever holds the currency both inside and out of Iraq will see their currency increased. You can't lop inside the border while RVing outside the country. A dinar is a dinar. What determines its value is the exchange rate. When they change the rate, every paper dinar will have that new rate everywhere. Hope this helps. tlar
Diane This post confuses me..... If the CBI introduces the LDs, the Iraqis in country will be exchanging the 3 zero notes for 1's, 5's, etc, & the buying power of the LDs will actually increase, so the LDs will buy the citizens more for their money.
So what happens to the 3 zero notes that we hold? What will they be worth?
I thought I had a pretty good understanding of this process, but now I'm not so sure... Hmmmmm.....Puzzled in the USA.
Schiz Hey Diane, there is another thread with an article of them explaining why they are removing the 50's. It's part of the remove the zero's plan. Huge news. I now think they may be removing them (and then the 250's) because they dont want 0.50 cent notes and a 2.50 note etc etc.
Just for them to even say its part of the remove the zeros is massive. We should all be seeing a light at the end of the tuneel today, yup we should