AdminBob Site Owner: Financial: wait for the claim of Central Bank of Iraq to discuss with us the subject delete zeros 15/07/13
She is a member of the parliamentary Finance Committee, najeeba Najib, said that the Committee was discussing with the Iraqi Central Bank subject to delete zeros from the local currency, after taking his Abdul Basit Turki, the parliamentary Finance Committee pending the CBI claim to discuss with him.
Najib said that "previous administrative body of the Central Bank presented a study on the preparation of the project to delete zeros, noting that the study was scientific and professional companies that have been included with the agreement for the implementation of the project".
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And Financial Committee Member representative stressed that "Iraq needs some salt to delete zeros from its currency, because the size of the money supply in circulation of great magnitude. LINK
Art: good post bob thanks
Tlar; She as others continue to reference the scientific study to delete the zeros. The only study that was done on this subject was done in 2008 to my knowledge.
In that study it explored the subject thoroughly with the goal of trying to find out at what rate the CBI could support the currency and what's its value should be.
The conclusions were that the rate should be $1.13 and that the CBI should defend that rate for two years before allowing the rate to float. In other words a controlled value much like we see today.
This lady is on the finance committee and is therefore most likely to be ":in the know" after having just sat with Turki. This sentence I've copied below, is very telling to me.
It indicates that to me Turki, is meeting with individual members of both the finance and the economic committees, selling the "scientific study" that was done in 2008 under Shabibi's watch.
"Najib said that "previous administrative body of the Central Bank presented a study on the preparation of the project to delete zeros," .
Dr. Nan: Well, at least we know, rather it appears we know, that things are going on over there. They are not sitting around doing nothing. "Life is a series of new beginnings!"
Punisher: Tlar, ....and that makes me happy if they are contemplating that :) Supporting $1.13 out of tha gate until it eventually reaches $3 over a few years sounds great to me!
Kaperoni: I love when we get a translated word that means something..in this case...
"Iraq needs some salt to delete zeros from its currency,..."
In other words, some "perseverance," "hardiness," "resilience,” “ambition,” lol
Tlar: Punisher, the rate today may be different than the rate suggest in 2008. Since 2008 a lot more currency had hit the streets even though we know they have been buying and retiring as much as possible through the auctions.
Also the reserves and the new monies coming to the reserves (80 billion + 82 billion + 3 billion) are significantly higher than they were in 2008. I think based on the slip up from the finance guy in his interview while talking about the 2014 budget and the parts that go into making it up, tells us more about the new rate than the 2008 study.
He slipped up and told us that each dollar will equal 1.16 dinars which is 86 cents. That is exactly what we would expect if they drop the leading zeros of the exchange rate. .00086 to .86.
I think Turki is using the study as a proof source when selling the deletion of the zeros, but he most likely updates the rate to conform to the conditions today.
Punisher: Either way Tlar...I will be a happy camper :) Anything over .86 at starting point is solid in my book...I am not a greedy person.