TrixieDinar Finance parliamentary suggest the application of the project to delete the zeros early next year
05/10/2014 BAGHDAD / JD / .. tipped the parliamentary Finance Committee, the application of the project to delete the three zeroes from the currency early next year, saying that the current situation is appropriate to implement the project.
A member of the Committee Deputy Abdul Hussain al-Yasiri told / JD /: "The central bank has vowed in the past years the application of the project to delete the zeros early in 2014, but reversed his decision and announced to wait to implement it, without knowing the reasons."
He added: "The project is one of the economic projects important to the country, being the reduced mass of the large cash and facilitates the process of transfer and calculated, noting that the implementation of the project is not linked to the economic situation and political situation in the country, the fact that the central bank Prepare all supplies for its Application and the project is now ready for implementation.
He pointed out: that the date of implementation of the project is still not fixed by the central bank, but it is probably during the next eight months or early 2015.
The central bank said earlier that the implementation of the project to delete the three zeroes from the Iraqi currency depends on the political and economic situation in the country. / End / 8 /
Dare 2 Dream wrote:
-Maybe the reason Turki delayed the project from early 2014 was because of loose lips within Bobble Heads government which caused a run on the Iraqi banks.
I guess during the next 8 months, early 2015, 2016, 2017... would cover today, tomorrow, next week, next month, or when the newly effect official are in place sometime around the middle of this year as Turki himself stated. :)
I wonder what it cost to print the new 1000 note with the new security features pumping them into the economy to use as change and to combat counterfeiting by Iran.
Secondly, if you have a truckload of 1000 counterfeit notes that do not have the new security features on them, what are you going to do with them?
I assume when the people bring their old and worn out 1000 notes to the bank. The people are encouraged to open a new bank account, receive the new debit card and the many advantages of carrying a debit card rather than cash.
You might also receive a free 25 dinar savings bond by opening a new account and receiving your new debit card today. You will need one to receive your HCL money anyway.
Better to get it now than wait until until the day the government is ready to load 3 years HCL back pay to your card. The lines could be very long as 10 million people converge on the bank and take considerable processing time to receive their debit card and HCL money.
By setting up your account today. Your debit card is active today and the government will automatically load your HCL money onto your card with no waiting time involved. Not to mention the savings the CBI will incur by not having to print physical currency.
For those who choose to take the new physical currency with them. Do you think the bank teller might point out the new security features on the notes to protect their customers from being swindled by the counterfeiters?
The people have already been told not to deface or write on the new notes. Probably makes it easier for the people and the merchants to decipher the legitimate notes from the counterfeit notes.
Lastly, if the CBI is now allowing everyone to come to the bank and exchange the old worn out 1000 notes for the new 1000 notes with new security features. Would the CBI benefit by transitioning on to the new lower denoms ASAP or would it be better to wait until sometime in 2015 to allow Iran time to generate new plates and restart counterfeiting the 1000 notes?
Does it seem like this might possibly be a transition period set up by the CBI to clean up counterfeiting, encourage people to open new bank accounts while at the same time receiving their new debit card, the people can see, feel and recognize the new security features on the crisp new notes as the CBI moves closer to adding value to the dinar and the introduction of the new lower denoms? ~ D2D
Ralph Here's the important line-
" the fact that the central bank Prepare all supplies for its Application and the project is now ready for implementation."
BlueyesinLevis I like it , Ralph. INTERESTING D2D, THIS WAS ALSO SUPPOSED TO GO DOWN EARLIER. I CONTINUE TO WATCH THESE TWO THINGS WITH THE POSSIBILITY OF THEM EVENTUALLY BEING LINKED. ~ Rec Vehicle
-GCC customs union set for January 1
GCC ministers agree to resolve roadblocks, particularly on revenue sharing
(Agencies) / 8 May 2014
Obaid Humaid Al Tayer, UAE Minister of State for Financial Affairs, at the meeting of CCC finance ministers in Kuwait City on Wednesday. — AFP
The energy-rich Gulf states agreed on Wednesday to resolve hurdles obstructing implementation of a long-delayed customs union, particularly revenue sharing, Kuwait’s finance minister said.
Leaders of the six-nation GCC have set January 1 to implement the customs union, first launched in 2003 and delayed on several occasions to resolve hurdles.
Anas Al Saleh said after a day-long meeting of finance ministers that there had been agreement on all points of the agenda, including on the mechanism for distributing customs revenues, which has been the biggest hurdle.
-He told reporters the GCC secretariat has been asked to “conduct studies to make the mechanism clearer”.
-Those studies and related issues will be reviewed by the ministers at a meeting in Kuwait City in September, added Al Saleh, whose country currently holds the GCC’s rotating presidency.
The Gulf states unified their customs tariff at five per cent over a decade ago, but their steps toward union have been very slow.
Ministers also discussed completing requirements for their common market and monetary union, both of which have been rescheduled a number of times.
-At the meeting’s opening, Al Saleh called on members to make concessions “in order to reach an agreed formula that guarantees the rights of all [Gulf] states”.
-The GCC countries “should unite their views and give concessions to eliminate things which hinder Gulf economic work,” Al Saleh told the meeting.
-He urged the completion of requirements for the customs union, “particularly... distribution of customs revenues, protection of local agents and protectionism for some goods”.
-For his part, GCC secretary-general Abdullatif Al Zayani urged members to facilitate free movement of national and foreign goods to allow the January deadline to be met.
When the customs union was launched at the start of 2003, full implementation was envisaged within three years. But questions over revenues, dumping and protectionism have caused repeated delays.
-A 2010 deadline came and went when the energy-rich bloc failed to agree on the sharing of tariff revenues and experienced difficulties in meeting World Trade Organisation rules.
HandOverFist: Exactly, Ralph. It won't be in 2015. It will be now. :) Kudos to Tlar.
jackt They will never show us their hand, they may be crazy but crazy like a fox.... (and it has been surmised recently that Turki is now under the mentoring of old Shabibi) ...its all good, pray it forward and buckle up.
DreamWeaver CBI, FC, Parliament, etc have all told the people that the dinar will INCREASE in value and eventually rise to its former value over $3+. If they LOP, the people will surely riot as a LOP is a neutral event and the people have been pushed, pulled, stretched, abused, manipulated, and lied to about as much as I expect they will take.
Heck, I'll go over to Iraq and start the dang riot myself if it LOPs. Will bring all my old shoes to throw at officials ... 3" heels ... ouch. LOL
Tlar Iraq has stated their desire to join the GCC early on. The GCC wants to have a common currecy. If Iraq goes into the GCC basket of currencies there will be restrictions as to how much a currency can rise or fall over a given period of time.
The object of the basket is to level the playing field within trade between the member countries. Stablization is the purpose of the basket.
Iraq would never want to join the GCC at 1166 per US dollar. It would geatly disadvantage them in trade and restrict them if their intention is to return to there former value quickly.
So we can pretty much assume that when Iraq does fully join the GCC and they have shown a desire to do so at some point, that the value of their currency will be much higher than it is at present.
The GCC consists of a collection of agreements and will function much like the European Union.
It opens trade across borders without restrictions and duty. But it does much more than that. It is multi-facited working agreement between countries that join.
Citizens can come and go between countries. Borders between members will be transparent for the citizens who come from member countries.
There will also eventually be a common currency which will be usable in all member countries as well as a security pact based on the defense of its members.
The common currency is achieved and is where each member country will be assigned a value to their currency based on its current exchange rate when they become a member of the GCC.
When the GCC has its own currency, There will be a new Common Bank which will be located to start with in Saudi Arabia's capital city that will print the GCC currency. Banks in all member countries will be able to buy the common currency modeled after the way the Euro is done today.
Then citizens in the member countries can buy and use this currency in any member state including their own country for trade, or as a common currency when traveling in another member state.
The value of the common currency is the same in each country, only the prices may be higher or lower in a given country, making it easy to understand costs without having to do any complicated computations from one currency to another.
At least at first an an item will be priced both in the GCC currency and in the local currency.
Iraq must change the value of their currency before they seek full membership because there will be restrictions on growth of a single member currency and an individual currency in the basket will not be allowed to have large swings in value in a given year.
That would mess with valuation of the basket and the common currency itself. All these currencies in the basket will be paired together so as to discurrage large flutuations in any one member currency that is often seen with a single currency floating on its own.
The basket is a stablizing force. If the GCC wants to finally activate this agreement in January 2015 and Iraq wants to be a member which they do, this bodes well for our investment. Tlar
HandOverFist Thanks for this great explanation, Tlar. I'm thinking that since Iraq will have to change their currency before they join the GCC in January, 2015, they will need enough time to get used to the new currency. So they should do something right about now. Am I right?
tlar Don't know. They may wait to join the GCC.
BlueyesinLevis: Ralph at May 10, 2014 at 10:04 AM Here's the important line-
" the fact that the central bank Prepare all supplies for its Application and the project is now ready for implementation."
D2D wrote: -the fact that the central bank Prepare all supplies for its Application = lower denoms JMO :) noting that the implementation of the project is not linked to the economic situation and political situation
It's certainly not surprising that the CBI would give a small window of less than a year. I will email Turki Head and see if he will give us a shorter time frame. Maybe less than 10 days .. :)
Here is Turki's quote from a week ago: "The central bank will proceed without hesitation to apply the project raise zeros from the local currency in case settled political and economic situation of the country."
Tlar: And that's without the currency being at a 2% spread or any laws being passed. Set the government Iraq. I'm ready. Tlar
HandOverFist Yes, and all of it has nothing whatsoever to do with the "Balassa-Samuelson effect".
Gorwell Thank you TLAR. I thought the GCC was something important but did not really understand what it was. Thanks for explaining. Do you think the IQD will be used as the common currency in the GCC or would it be some totally new and different currency? Gorwell
just a guy So Tlar, is your 60 day window still in effect? Or are we now pushing it out once again. Just asking??
Tlar: Just a Guy - Yes, I think the 60 days is still intact although I don't like the word window. To me it sounds like one of the guru guys.
I will leave it as a belief we are on track to see a monetary change in or before July of this year. I hope everything we have read and heard comes to pass and at least this time I still believe it will.
Gorwell - The GCC curency will be a new currency printed by the bank in Saudi Arabia. It will be exchanged for its member country currencies much like the Euro is today.
Eventually it is hoped to be used in all countries that belong to the GCC on a daily basis.
The common currency will have its own basket which probably will include the dollar and all member country currencies. That basket will determine the price of the new common currency.
A Kuwaiti will pay less for one unit of the new common currency because their currency, the dinar is valued at over three dollars while a Saudi will pay a whole lot more that the Kuwaiti citizen for one unit of the new common currency, because Saudi's currency is less than 30 cents.
Schiz: imo this is an attempt by the finance c to instead of letting the cat out of the bag like they always do, try to cover up how close we really are. They are a bunch of oafs at this kind of thing as wer have seen. They have been pressing hard for a long time for the cbi to act.
Now the cbi say they are moving forward without delay after the goi is in and a few days later these numptys come out and say it's happening Jan 1 2015.
I'm sorry but I just don't believe it, they have said too much and pressed to hard. If this was true they would be doing what they were doing all year and last year....whinge and moan at the cbi about the time being right now for currency reform and why don't they act etc etc bla bla.
I find it hard to believe anything they say with a timeline in it now. They would serve iraq best by sucking on a flipflop and saying nothing when its date related.
Lets not forget what Turki said just the other day, it was a bit odd to hear it but it was said none the less. Makes sense for him to do it before imo :) Jan 1 2015 would suck but its only 7 months away (only) huff
KJWayne IF the new government can be seated by June.15th, then all of the new in group should be all smiles with no one to stop the CBI from pushing the RV button by July 1,2014. It's a big "IF" but it can be done
tlar Schiz, I am in agreement with you and thought it was odd for Turki to say he was going to do it once the elections were decided by the middle of this year.
And to even go further to and that they are ready and would do it now if the government was settled is wierd in light of the fact because the last time it was mentioned there was a run on the banks.
And now to have the FC say a day or two later it has been postponed until the end of this year or 2016 without the CBI giving a reason also makes no sense. Something is a foot.
Mixed signals from folks on the same team for sure and are working closely together. I am paying no attention to this article because it could be a ruse to keep the population from getting excited and changing their behavior in order to take advantage ofTurki's declaration.
This is another one of those things that we will probably never understand the motivations or intent of either statement. There was no reason for either.
Turki's statement could be as simple as a large company or country looking to invest wanted some kind of a statement or assurances as to approximately when the CBI will undergo monetary change, and the FC was asked to cover it.
Again neither statement, either the one by Turki a day or two ago, or the one that quickly followed by the FC were necessary to make.