Mike Boy, I take a couple of days off and things start to really take off! I may stay gone for a bit longer...... :) Thanks for the article, Kap.
Iraqi Central Bank announced on Tuesday that he gave the green light to direct the implementation of the deletion of zeros from the currency, pointing out that it takes two years.
Alak said at a news conference, child "Light News," that "the file to delete the zeros of the Iraqi currency is put into effect, and the World Bank gave the green light to implement it."
He added that "the completion of administrative matters on this file will take two years," adding that "the Bank began creating models of the new currency." LINK
--" We are all born ignorant, but one must work hard to remain stupid " Benjamin Franklin
Rxxxx That's a new twist, mike. I wonder why the World Bank part didn't make it into the other articles. WB did tell them, a couple weeks ago, to drop the peg, and even though I got a feeling of imminence from the articles this morning, this makes it feel even more so. Brule, do you know this source? I've never seen alnoornews.net before.
Mike Rxxxx, Yep, I was thinking the same thing. There's been several articles out that spoke to the consultation's but nothing until today that indicated Iraq would move to unpeg from the dollar.
I've been catching up on the news and it sure appears like they're going to make the move, and soon! I would think we'd see movement from the CBI in the next week to 10 days on the outside, I guess we'll just watch and wait some more.
I can't recall reading anything from alnoor in the past, here's hoping it's not a chakooch wannabe. :)
Moonman1963 Mike, take another couple of days, lol. Kidding, kidding...
Any fool can criticize, condemn and complain and most fools do. Benjamin Franklin
Mike lol, right moomnan?
- " We are all born ignorant, but one must work hard to remain stupid " Benjamin Franklin
Aloha Alex ReVbo and others, thanks for trying to find source's validity. My biggest pet peeve for 7 years has been bogus articles sending us on spin cycle.
- You can preach a better sermon with your life than with your lips.
DreamWeaver Agree that imminence was definitely highlighted by addition of World Bank green light nod.
Rxxxx, what exactly happens when they unpeg from the dollar? Can it stand alone, unpegged to anything for a short time or must currency always need to be pegged to something? Appreciate your take on it as economics is the great abyss for me. Best ~ DW
NCtallguy Heres hoping we can all take a couple days off soon, or couple weeks, or months or years.
NCtallguy Is being unpegged from the dollar a good thing? I can'r wait to be unpegged from the dinar haha
Aaanth unpegging from the $$ would certainly give credence to RK's rematks about why Obama would be against the Rv and want to hold it up. it can't be good for the dollar, right?
DreamWeaver Amen to that NC ... amen to that. By the way, every time I see your name I think: North Carolina, tall guy, Michael Jordan. Do you play basketball by any chance? LOL.
Preacher Man Aaant, Revbo, DreamWeaver, Right
sweed61 The CBI has been pegging the dinar to the dollar and using a substitute open market operation of auctions to add stability to the dinar and control inflation. Until strong interbank demand for dinars and an open market opertion by the CBI, a free float would add too much instabilty. The IMF suggested to Iraq that a managed float is best for their emerging economy. Who knows what they will do.
Rockstar Wow Mike definitely like your confidence here, I know it takes a lot to get you excited about where things are in Iraq with all the turmoil there! Hopefully this is a good news source also, I don't know
DreamWeaver Mike, is my barometer. When Mike gets REALLY excited, I'm buying more dinar. LOL. anything about them either.
Aaanth i'm not trying to be "debbie downer" here but doesn't it seem odd to anyone that the CBI is ANNOUNCING an increase in thier currency? we have always thought for years that something like that would never happen. as it would cause an immediatr RISE IN DINAR SALES.
from all that's been guessed at and predicted and on and on, it seems as though Dinarians have all thought the opposite, that, in fact, the CBI was trying to pull in the dinat and lower the note count to (i guess) "de-dollarize".
neither will this move itaqi's to put their dinar in the bamks as they will, persumably, lose the value when it increases, right? hasn't that also been something that we all seem to see in these articles that the banking sector is trying to revitalize itself with loans and deposits and bonds etc.
again, it would seem that this announcement all goes contrary to that line of reasoning. i am the first one to smile when anyone uses the term "reasoning" and "iraq" in the same sentence but this seems even stranger that usual. and that's saying something... so what other agenda could the CBI have?
anyone have any thoughts on this because i am sure a whole lot of people went out and bought a lot more dinar today!!!
HandOverFist Good question Aaanth, and I have another question. If they are going to turn 37 trillion dinar into 37 billion dinar (as per articles)...........How do they do that without taking the zeros off our currency? Is there another way that I'm not thinking about?
Mike Yep, still grounded but this is great stuff.
Schiz Keywords: delete the zeros existing project and we have given the green light for its implementation March 3, 2015
Initials aaanth, In my opion that is why this is such big news. If they are announcing this, then they must have pulled in all that they believe they can reasonably get. There will always be the holdouts that will keep it under the mattress.
As far as the dinar held by us and the dealers in this country, that is accounted for and will be in the US reserve system and not impact them negatively. I took the announcement this morning that PM posted as a massive sign that we are about to see a signigicant change.
It also confirmed much of what tlar and many others have alluded to here for months now, that the project was happening and that we were nearing the end. We are in the home stretch. Initials
Schiz Guys they are not announcing it to the world, they are announcing it to the iraqi people, we are reading their iraqi news.
I don't think it's possible for the cbi to do it with out it being out in the open to the people. They have been at a devalued rate for like 25 years?.......they need to keep them informed every step of the way.
The cbi know what they are doing, have faith in that
Rxxxx It doesn't have to be pegged, and in the World Bank's opinion, it shouldn't be. When they drop the peg, there are various new regimes available to them, one of which is the managed float that is preferred here.
Most currencies that float have some level of central bank intervention involved at certain times, which, I think, may be where some of the confusion comes in. I think most folks here think that "float" guys like me think they're just going to turn it loose and then sit back and do nothing and watch wild fluctuations.
They can still intervene. Through open market operations, to keep the dinar in a reasonable trading range, and I believe that they will once the dinar levels out after the initial correction.
Aaanth yes, GREAT STUFF iF it's real. as always, i remain in "Jerry McGuire" mode... SHOW ME THE MONEY!!
DreamWeaver Schiz, And remember ... the Iraqi people already know about--and are expecting--the delete the zeros project to occur as extensive seminars, etc. were given a few years ago to educate the Iraqis on how, specifically, it would affect them. 1,000 dinars now buys 1 coke. Post RV, 1,000 dinars buys 1,000 cokes or some such.
Agree, Schiz, CBI knows what they're doing. But my faith is not in them ... keeping my eyes on and faith in Divinity . Best ~ DW
DreamWeaver Appreciate you posting a reply, Rxxxx. So, could they RV at, say a dollar, and then unpeg the dinar from the dollar and let it float, within the 2% cap allowed every 90 days--
if that's the way managed float works? Also, if they were to RV at a dollar, could they raise that rate to $3.00+ at their discretion at anytime if they were in a managed float--or are they locked into only being allowed to raise to cap limits?
Just wondering how they could stage at $1 and then get rate up to RI value over $3 in any type of regimes available to them.
We talk, on the board, about RV staging low and then jumping, Rxxxx, but is it even possible under guidelines they follow? Not saying it will or won't happen that way, just curious about how it could happen. Thanks, DW
Aaanth HandOverFist, well, technically speaking they can use whatever decimal they want. we are all hoping for more than just the removal of the zeros right? we will take that of course but they can make it .333 ($3.00) instead of .86, so at this point who knows what these ctazy people wil do next
JUST SO SOMETHNG!!!!!
Brule Yes, Rxxxx, I know the source, been around as long as I have been, and it is legit.
Rxxxx Sweet, Brule! Thanks. DW, that's a bridge too far for me here. I don't think what you're talking about has any precedent, so I couldn't speak to it.
DreamWeaver Appreciate it, Revbo. I sometimes forget about the no precendent aspect to all of this.
Livefree Sorry if this is already posted, BUT>>>> HOLY *HIT, THEY'VE GIVEN US A TIMELINE!!
Thanks jeff19 for sending me this: 3/3/15
Keywords: cash sales dollar continuously .. no ceilings on the withdrawal of funds
BAGHDAD / Amer Mohi
Denied the central bank, on Tuesday, he stopped selling the dollar, pointing out that the bank gave the green light to implement the project to delete the zeros from the currency,
while stressing taken new measures to trading in dollars, expect a decision parliamentary finance committee return dinar to his strength, returned central decisions to " good "because it is a challenge of smuggling currency out of the country.
The decision of the parliamentary finance committee Ahmed Hama Rashid in the "long", that "the central bank's plan to abolish the daily auction of the coin and determine the amount of $ 75 million a day, is a good step to prevent foreign currency smuggling out of the country," noting that "the decision returned good easily neutralized through this period. "
Rashid added by saying that "hard currency prices stabilized after a few days of taking the central bank's decision to cancel the daily auction, and that this contributed to the strengthening of the Iraqi dinar," expected "The coming days will witness the return of the dinar to strength again."
He stressed that "a meeting between the parliamentary Finance Committee and the Central Bank and has been discussed many issues, including the issue of the daily auction of the coin and the strengthening of the Iraqi currency,"
pointing to "the formation of a small committee temporarily inside the Finance Committee to discuss the latest developments with the Central Bank by hosting maintain the relationship." .
The governor of the bank on the Keywords during a press conference, held in the bank building area Jadiriya in Baghdad, said that "the central bank went to the new mechanisms on the sale of currency window after studying extensively formerly followed which affected one way or another on the market because they carry a lot of problems, including money laundering,
"pointing out that" the mechanism used currently maintain a market economy, as well as support for the dollar exchange rate against the dinar by linking foreign remittances through the financial deposit paid by the dealer before buying the goods are placed in banks abroad and thus not join inconsistencies in dollars, and the entry of the goods entirely according to invoices submitted. "
He added that the relationship "cash sales of dollars by selling the currency continuous window and there is no interruption, but it will be in a new way and there are no limits to the amounts for those wishing to obtain the dollar."
On the other hand pointed Keywords that "heading the bank is real and effective support of private banks in Iraq by persuading the government to develop a financial deposit in those banks as well as dealing with the outgoing ones in the state departments of all instruments",
noting that "the bank is considering now deposit law is now under preparation and if completed it during the next few days will pay to the House of Representatives for approval. "
Keywords that "revealed an ongoing process to delete the zeros of the currency has not canceled but is now in preparation and study the subject and to say the least over the next three years, largely will be worked out because this is an important administrative and financial operations can not rush it."
For his part, said an expert on economic affairs Majid picture in an interview for the "long", that "the abolition of currency auction came to the goal of the organization of the currency sale in the market, especially after the great smuggling currency out of the country after the opening of the auction on a daily basis,"
noting that "the basic problem is the development of paragraph in the federal budget to determine the dollar selling in the daily auction of the Central Bank, "stressing that" the CBI plans are good for organizing the sale of hard currency for the market. "
He added that the picture of "the existence of hard currency by more than 150% of the local currency exporting is good and indicates that Iraq will not suffer from a lack of hard currency,"
noting that "the presence of large amounts of dollar strengthens the dinar against the dollar and regulates the sale of currency process." The Central Bank of Iraq, denied, on Tuesday, closing window sell the currency, said "take new mechanisms to sell the dollar."
Parliamentary Finance Committee held (March 2, 2015) meeting with the Governor of the Central Bank and the Agency on the Keywords and director of TBI Hamdiya dry to discuss the financial situation and the issue of transfer of funds from the commercial bank to Kurdistan without collateral.
Confirmed the parliamentary finance committee member Majda al-Tamimi (February 2, 2015) that the rise in the dollar exchange rate "will not last long", and demanded that the central bank using monetary tools to control the market.
She added that "the Commission predicted rise in the dollar exchange rate against the dinar, when the roof identified 75 million dollars for the auction of the Central Bank, the General Budget Law, while not confirmed the continuation of the long rally, called for the central bank using monetary tools to control the market.
The MP Magda al-Tamimi said that "the Parliamentary Finance Committee predicted a rise in the dollar's exchange rate against the dinar, when identified ceiling 75 million dollars for the auction of the Central Bank, the General Budget Law," noting that "such a paragraph came because the Iraqi central bank sales were between 200 to 250 million dollars a day, which led to the depletion of the country's hard currency reserves and low of 77 to 67 billion dollars or less.
Livefree sorry, can't seem to get a good link to open up, but I did see it for myself on faceiraq news.
hi-five Great article, livefree! Keywords has been very vocal lately!
Livefree I know we're tired of seeing 'coming days' but it sure beats SOON, or 'coming period' or worse yet talk of 2016! I fully take their reference to 2 years or asin the above article 3 years, to mean the 2 currencies will co-exist for that amount of time as we've seen them state before.
Which of course is good news for us as we won't need to make hasty decisions should they come out low. However, they said 'return the dinar to its strength' which could either mean they'll come out with a high rate or that within a specified period of time it will reflect the true wealth of the country which should be well over $3.
Either way just to see any movement in the coming days will be a whoo hoo moment for all of us! And being given the Green Light surely means we won't have much longer to wait to receive our prize! I am THRILLED at this announcement!
Tlar It occurs to me that if they can get it done before March 31st, the end of the first quarter, their accounting system can still be made retroactive back to the first of the year.
For accounting purposes, I would think March 31st or any time before would be the best time to do this for the CBI as they themselves have stated a number of times.
There has been no intel other than the bond issue I reported on 2 weeks back.
It was reported back then that the bonds were being held up and that Iraq would be back and sign the agreement, providing a new rate before they would actually commence sales of these bonds.
Everything seems to be lining up nicely. Here's to hope. tlar
Livefree Thanks for the validation tlar. I've rarely allowed myself to get excited in recent months after so many disappointments but now it seems all the pieces are coming together and we may just very well be in the last few days of this! I know we're all ready!