BNA13: Tlar, What was it that the CBI started doing in April 2011 that they were not doing before that date? And what was the purpose for the change? Thanks.
KAPERONI: Finance parliamentary: the central bank this year will begin procedures for the deletion of zeros from the currency 13/04/2013 LINK
KAPERONI: Parliamentary Finance: Central Bank begins procedures deletion of zeros from currency By: wab Date: Sunday 04/14/2013 12:59 AM LINK
ELLIE: Central Bank begins procedures deletion of zeros from currency
Sunday, April 14 / April 2013 Baghdad / Orr News LINK
Read More Link On Right
TLAR: BNA13, the CBI announced that it had been removing,collecting and retiring the 5000, 10000, 25000 notes starting in April of 2011.
They announced this toward the end of 2011 on or around the same time (Oct 2011) when they announced they were ready to remove the zeros. They have fought the government ever since.
As these notes came into the bank starting in April, they were replaced with the 1000, 500, 250 and the 50 dinar notes. At the time the CBI had decided to leave the 1000 note in circulation as a transitional note. They had no plans to print a new 1000 note with the smalls but announced they would leave it in circulation as legal tender..
I suspect that their intentions were to remove these 1000 dinar notes also following the removal of the zeros, because to walk around with a 1000 note in your pocket, once the dinar became 1 to 1, was both impractical and dangerous.
It was and still is the hope and goal of the CBI, that as Iraqi's traded in the 3 zero notes that the would open bank accounts and "juice" the banks. After Saddam had robbed the bank just before the war, Iraqi's have been reluctant to use the banks.
I would like to make one more observation.
Again they are referencing replacing the currency along side of removing the zeros. If you believe as I do that replacing the zeros is not getting rid of the 3 zero notes slowly over time, but rather it refers to an actual event that will have to happen all at once as in RV, then this statement in the above article makes sense:
"Among the difficulties faced by Iraq if they are to foot the deletion of zeros from the dinar is the withdrawal of about 30 trillion dinars in circulation in the Iraqi market, then discarded and replaced with a new currency".
I say this because unless they do this as a single event instead over an unknown period of time they will have to dollarize almost 100%. Liquidity is already a problem as with condition of the physical paper in circulation.
If you recall last year the CBI announced that they would try to replace the existing 250 dinar with a new 250, probably the 2 language already printed in 2003, They announced that by November of last year they would start the process to replace the 250 because they were in such bad shape that most government employees and street vendors would no longer accept them in transactions.
No more was heard about it after that. They never released a new 250. I believe that the sales of USD at the auctions and the banks made the bank change their mind, favoring instead tio completely dollarize as an interim way to achieve preparation to removal of the zeros. Iraqi's today are still turning in their tattered and torn dinars and racing to the dollar.
The CBI has announced a new in your face government attidude. They are going to do this inspite of an unrelenting government attacks. I realize that articles are still ending with the statement that the economy and the government issues need to be settled first as all articles have since 2010.
IMHO this statement is a dinosaur hold over. It is now just filler.
We have seen many articles where statements like this continue routinely appear in subjects across the board. I personally think it is now an add on to any article coming out about removing the zeros.
For the bank to boldly make the statement that "we are starting with implementing the removal of the zeros this year for the good of Iraq and the economy", then to go on and re-puppet the advantages to this as we have seen in many of the articles, and then finish the article with "we are waiting for the appropriate time when the government is settled and the economy is better", looks to me like only the first part is accurate.
The rest looks like filler to me. The same filler we have seen article after artice since 2010. I think the bank means what they say finally. There are implementing the removal of the zeros this year.
I think we will see many articles come out now with the new defiant bank who has finally come to the same conclusion as many of us have. The government does not want to see this happen for whatever their reasons are. I believe that the international community has said enough is enough and they are going to do this finally.
To use the excuse we are waiting until the economy is better seems a misnomer to me. The economy will get better faster if Iraq has an international currency with value. The government issue will not be resolved while Maliki is in office an d maybe for a while after that, and at least until December, it looks like he will still be in office. There is no more waiting.
JRD: I've always felt that if an RV/float is necessary for the re-booting of the Iraqi economy, which has THE major commodity that the world NEEDS, oil, then the international community would push, pull, demand, back-into-the corner, those who are in charge of making this happen inside Iraq.
My question is a simple one: If Turki at the CBI is Maliki's(M) hand-picked governor, and if Maliki does not want it to happen and appointed Turki so he could control the CBI, then why would Turki seemingly go against his boss(M) and plunge ahead? Couldn't M just as easily fire him and get a new puppet in the CBI?
SADIE: jrd.......Maliki didn't fire Shabibi....He had an arrest warrent issued..(not served) on Shabbs when he was out of country...Shabbs did not return, obviously to avoid arrest, like Saleh and the 30 women.
So with Shabbs a no show, Maliki simply filled his position....I believe like you that Turki was a Maliki man, but it appears, perhaps that the IMF, and maybe even Shabibi have had a talk with him, and he has had a change of heart, and has now decided to follow the CBI plan..
CARRELLO: Turki is on his way to New York and Washington DC, and I would bet that he is completely de-Malikiarized when he returns, although I believe he saw the writing on the wall immediately upon becoming CBI's head. He has not supported Maliki since then
CORNBREAD: tiar im with u i always said it will be a strait up revalue 86cents to $1.17. they have always talked about the currency has to be stable,and the cbi goal is to get back to $3.21 not up to a $1.00. the dollar is there starting point or there will be no reason to release the lower denoms but thats my opinion and im sticking with it. the RV is for the people of iraq,so they are going to put it where the people in iraq to understand and not us.