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Cortwi911: Small bank story….I just left one of my banks BB&T at the drive thru I have never asked them about Currency but today I asked were they a Currency exchange …branch the teller got all excited to tell me that any branch could do it and that depending on the currency I would get provisional credit while the currency would be sent off to Central for further verification …anyhow the main point is how she kept going on about it and explaining thing to me ….I did not ask …something is going on… just thought I'd put in my two cents
Elmerf123456: I reported last night for the evening crew and I will repeat the same for the mid-day afternoon group Okie said to tell you that he loves you I talk to him yesterday. He is in great spirits and really likes the information of late. All smiles and he waits that moment with you!
AgentSnowball: I'd like to state a few other bits from my memory in this over the past seven years now. I have pondered how far back I should go in the timeline here.
So we invade Iraq like what seems a hundred years ago now. This may or may not have been due to some agitation from Saddam and he also wanting to settle his oil payments in Euro and not Pertodollar (which is basically USD).
Any Petrodollar used in the transaction of oil allows The United States to count that money velocity in the domestic economy and help set a value figure to the USD, too. I'll stop there on that one. There are probably a few other good reasons why we invaded them, but I don't want too many rabbit holes here.
So we go to war and print new currency on purpose and for a purpose. The old currency has the face of Saddam on it. That currency can't be used. Then the (old and new) currency was placed under sanction (almost like being de-valued).
This forced other legitimate countries to honor the lowered, legitimate exchange rate so Iraq couldn't purchase items to fight back (man I'd love to talk about the special Hawaiian dollar). This was also accompanied by basically blacklisting (which didn't last long) and eventually grey-listing the currency (which is still going on today and hopefully not for long).
This severely limited what could and couldn't enter the economy and why dollars also became so popular over in Iraq (think of it as a bypass mechanism). We flushed their system with USD because of native preference at the time and because it was easier to not deal in their New IQD.
The USD was basically a donor currency to help jump-start the economy because said USD has always been a popular exchange option and alternative, in-country currency.
Because the economy was so limited, currency auctions and oil sales have been basically the only thing keeping the country afloat.
Think of the currency auctions like the recycle logo on the bottom of a plastic bottle. I genuinely don't think that Iraq intends to have a high-zero exchange rate like other oil countries and Japan do. It all goes back to the sanctions for me.
The Goon Squad (otherwise known as the three-headed beast per Frank) manually adjusted the exchange rate via sanctions. The currency wasn't de-valued because of instability (And yes I do know about the insane spread from the official and street rates during the Saddam era).You lift the sanctions and the value goes back, but only if you have economic activity and stability to support it.
I think the value has always been there. Print a load of notes and the value goes down. Become stable, get good economic activity and retract (decrease physical volume of notes) the money supply and the value should go up.
It's like cutting a pie into the smallest pieces possible and then baking a new pie with larger chunks. The pie is the same. Everything is the same. Just larger chunks. Now what happens when you basically evaporate a native currency (forget MCP for a moment)? The pie is still there, the value has gone up but the sanction still says it's only worth so much -- like 1,166.
Lift the sanction and the true value may be revealed because the physical IQD supply has contracted. This is why I think the value has always been there. There has always been a set amount of notes printed and it hasn't deviated much (physical supply of IQD has always contracted and not expanded).
Remove those thee zero's with how the exchange currently is and you'll have a rate of 1.16. That's so close to the 1.2 we saw last summer on the new CBI website.
I also remarked weeks ago that my math only supported this 1.2 rate we saw purely on the gram-cost of gold when tied to USD (do the math and you'll see that). Basing a currency on gold, even partly, is upstart banking 101. New BASEL requirements require countries to have more diversity in their currency and we're seeing that now in Iraq.
Now the value [in theory] would have increased enough so that there is no need for higher denomination notes and lower notes become a necessity to reflect the exchange rate based on the theoretical value increase.
This last bit will be about the people fretting over how their currency will handle the exchange process after the newer notes arrive. The currency will co-exist for ten years while being phased out.
Why ten years? Because circulated notes hardly last that long and will need to be destroyed anyway. The United States does the same thing.
This is why our USD changes some every several years. The only benefit with us is that [almost] all our notes are still valid (no you cant exchange Confederate Dollars). I can exchange almost any annular print/circulation for a newer note at a bank. Hopefully this helps. I'm ready to be excoriated.
Samson: Four arrested with 100 million fake dinars in Baghdad
17th February, 2018
The Center for Security Information, Saturday, arrested four people with 100 million dinars fake in Baghdad.
The center said in a statement received by "Al-Ghad Press" a copy of it, "The National Security Service managed to arrest four people in possession of 100 million dinars fake."
He added that "the arrest was carried out while trying to discharge in a local market in the capital Baghdad." LINK
Don961: IMF: gold reserves exceeded 33 thousand tons globally
18/2/2018 12:00 am
Capitals / follow-up
The World Gold Council published in early February a report of 98 countries that revealed the share of these countries of the total gold reserves in the world. World gold reserves, according to the International Monetary Fund, reached 33,790.8 tons, of which 10,782.1 tons
Euro-zone. Top reserve topped the list of countries the United States reserves of 8,133.5 tons, followed by Germany B3,373.6 tons, and Italy B2,451.8 tons. Russia, which last year increased the purchase of gold, ranked sixth in the world with a reserve of 1,388.8 tons on February 1, leaving China's fifth position with a reserve of 1,842.6 tons.
Gold is Arab and Arab, Saudi Arabia topped the list with 322.9 tons of gold, and the Arab countries ranked in tons, as follows: Saudi Arabia 322.9, Lebanon 286.8, Algeria 173, Libya 166.6, Iraq 89.8, Kuwait 79, Egypt 76.6, Jordan 43.5, Qatar 29.7, Syria 25.8, Morocco 22, UAE 7.5 International reserves Gold is considered to be part of international reserves normally composed of foreign exchange, SDRs, and reserves in the IMF
International. Gold prices are also down, but this week ends with gains as the dollar recovers from a three-year low and investors are concerned about possible increases in US inflation. Lowest pace faltering US currency rose from the lowest level in three years against a basket of major currencies, but tend to record the biggest weekly loss in nine months. Spot gold fell 0.5 percent to $ 1346.05 an ounce late in the US session after hitting a three-week high of $ 1361.76 an ounce in early trade. But the yellow metal ended the week with gains of 2.2 percent in the best weekly performance since October 2017. Nissan delivery US gold futures rose 0.1 percent to settle at $ 1,356.20 an ounce.
Among other precious metals, silver fell 1.33 percent in spot trade to 16.65 an ounce, but ended the week on gains
of 2 percent. Precious Metals Platinum rose 0.2 percent to $ 1003.24 an ounce after hitting its highest level since Jan. 29 at $ 1012.70. The week ends with gains of 4.3 percent. Palladium rose 2.36 percent to $ 1041.80 an ounce, ending the week with gains of about 7 percent, the biggest weekly gain since October. link
The End Of The Petrodollar? China Unveils Oil-Futures Launch Date
After decades of dollar-hegemonic control, the world’s biggest oil buyer is finally getting its own crude-futures contract - the so-called 'petro-yuan' is born.
The start of trading, open to foreigners, will mark the end of years of delays and setbacks since China’s first attempt at a domestic contract in 1993.
Following December's final successful test, in a challenge to the world’s dollar-denominated oil benchmarks Brent and West Texas Intermediate, China will list local-currency crude futures in Shanghai on March 26, according to the nation’s securities regulator.
While some details of the contract such as the size (1,000 barrels per lot) and grades have been released, other information like the delivery depots for the crude are yet to be announced
“The intention is to release more details as the launch date approaches,” Meidan said on Friday. “If the date has been settled, then it is pretty close to a finalized contract, because at this point, both Beijing and the Shanghai Futures Exchange can’t afford for the start-up to go wrong.”
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