News & Comments with Tlm724 & Shredd 11-12-16
tlm724 ADMINISTRATOR Central Bank: the deletion of zeros in early 2017
1.adraj Iraqi dinar within the global currency basket and handle it officially the world 's stock exchanges and financial markets.
2.amkanah held economic agreements to handle the national currency as Iraq could hold Order dollar instead dinar when the contract to build two production lines deals agreements or transactions Stirad goods this will cover a very large part of the foreign remittances that are squandering of national wealth from foreign exchange.
3.illt trading allows dealing in Iraqi dinar in the Iraqi market and not rely on foreign and squandered currencies and Bosrtha transfer abroad by the private and public sector, which is the sovereign wealth dissipated abroad a small, non - essential positions and luxury in Iraq at the time need this wealth of storage as a reserve.
4.seetm rid of manipulating market currency exchange and finish the so - called auction sell the currency , "" burning oven dollar ""
5.satoagaf work corrupt suspicious of banks and their agents and Smaserthm "" contractor and investor cartoons "
6.seetm capping the highest amounts transferred abroad of currency the dollar and the euro and the yen sterling and the yuan exchange - active and other pound to ensure that no smuggling the vast majority of trades of currency smuggling.
and the Iraqi Central Bank Governor said the project to delete the zeros will be implemented in the beginning of 2017, indicating that the bank began to develop the first steps of the project.
and he said: " the purpose of deleting three zeros from the Iraqi currency is to support the Iraqi dinar and make it a competitor of foreign currency", returned him as "this strategic project will serve the country 's economy if will be inclusion of the Iraqi dinar in the global basket of currencies in the vital world stock markets. "
He added that" the Bank is working on mechanisms for the implementation of this project is expected to start at the beginning of 2017 , "noting that" the central bank began the first steps of the project through the selection of the designs , companies and the country that will be the currency printing. "
He pointed out that" the new currency entry does not mean the destruction of ancient coins, but will continue to trade for about ten years , "pointing out that" this period will enable the central bank to withdraw the old currency in accordance with the dynamics and mechanics in order to preserve liquidity In the market "
RCS1947 Very Happy thank you timmie!
Herb62 Thats a nice little nugget
Vaquero THEY ARE READY!!!! WISH OUR LADY WAS HERE !! Sad Sad Sad Sad Sad
tlm724 ADMINISTRATOR Cool I am loving seeing this back in the news, BL always said it's VERY good when they are talking about it ! I do wish there were more articles about the project and it wouldn't surprise me to see some come soon. If it is at all possible I am sure our Lady is buzzing around over there watching, slapping etc ... lol. She does have a way about her !
I have great hope for the new year. Shabs always said he needed stability and with the ongoing offensive in Mosul there will be stability in all of Iraq in a matter of months.
There was a great article today about the CBI and the US Treasury. It reinforces our belief in this investment and that Iraq does have so much help ! Lets help each other stay strong and stay the course, better days are coming for sure Wink
Central Bank of Iraq signed an agreement with the US Treasury to stop funding the organization Daesh
Ali Abdul Salman 32 07/11/2016 Chief financial officer at the US Embassy in Iraq , John Sullivan yesterday stressed that the cooperation between Washington and Baghdad to stop the financing «Daesh» come a long way, and that the organization , which «reproduced style Mafia» is going through a financial crisis «undermined preparations for the battle of Mosul and Stnhia in its current form in the event of losing the city.»
he said in a telephone interview from Baghdad, said that « the first agreement of its kind between the Federal reserve and the Treasury Department on the one hand, and the Central Bank of Iraq , on the other hand to monitor the dollar shipments and ensure the prevention of the arrival of these funds to illicit destinations, is successfully applied, a shift in the point profile ».
He added that « the Iraqi central leadership on the Keywords and through close cooperation with the US side blacklist to prevent funds from reaching the territory controlled by Daesh mode, and has more than 150 companies.
Among the most important achievements of the agreement« dramatically reduce the dollar shipments to Iraq and replace Dinars ».
he said that since before the signing of the agreement« the militants Daesh deal in dollars, and this stopped today », adding that« the senior leadership of the organization arrested in dollars », spoke about the financial crisis afflicting« Daesh »
and added that« normal armed salary dropped more than 50 percent, as well as to their dealings Dinars prevents them from making international transactions ». He pointed out that Iraq «was one of the countries that buy the dollar for years and there are a radical change.
He praised Sullivan Iraq 's efforts to reform the central bank, has« done during the year more than what has been achieved in the past 13 years ». He added that Washington and Baghdad « will exchange intelligence, financial, security information required to stop for Daesh transfers.»
He added that the organization «was formerly dependent on oil prices and after the decline began trying to swap oil with goods or services». He revealed that the campaign against Mosul found a lot of cache cash.
Shredd First of all, apologies for the delayed response...I've been away and very busy but am on vacation today!
This IS a great article and aligns/confirms the plan we've been watching regarding removing the zeros. So what does this mean? Well, to remind us all of chats we've done in the past, this means removing the large three zero notes from circulation.
Now, that does not mean retiring them...they are legal tender. I mean, they just recently released the 50k and 100k notes. So, this is an effort to reduce the large note count in circulation.
This will also encourage usage of the electronic banking structure that has been in construction for the past few years...balance protection, rate lock windows, etc. Watch the news...you will start seeing evidence of the reduction of US Dollar in Iraq.
I'm happy to be wrong, but the "gradual" increase in the value of the dinar that we've been reading about for the past few years may very well start off as a continued managed float before it moves to a full market-driven float to maintain stability.
The 2% rate fluctuation stability requirement makes me wonder if that will be the case...to mitigate market reactions to large "steps" or tranching of the rate. We'll have to wait to see.
Anyways, this is great news in what I've felt is a bit of a lag or drought of news we can hang our hats on. How will the notes be removed? If not by law, then by incentive and if the latter is the case, how can you incentivize the Iraqi people to bring in their large notes?
Add value to the artificially held down dinar! Reduce the availability of the Dollar and release into circulation the medium notes and eventually the small notes. I believe 2017 is going to be an exciting year in this regard.
Thank you Ms Timmy for posting the news. Much love to you and our die hard members here. Stay close, read the news and watch for indicators of the tide changing with the dinar. Iraq's back is against the wall and you should be excited. If you will read the news posted here and watch the continued growth of Iraq, you'll see this all come together.
Lastly, just as a reminder which I've often said...this is currency folks, not some penny stock we are stupidly hoping on. Currency which will represent the true value of Iraq's economy...oil, gold reserves, growing infrastructure, gaining diversification of goods and services and investment faith. Not IF, WHEN...and we are getting closer!
Geofitness Shredd, as always you disseminate the news for the lay. I am going to speak logically which may not be truth, but there is a question that will come of it.
for Iraqi's to bring their larger notes in, the value would have to equal or be greater than the (MCP's) dollar.
So question is, am I correct? And what is the incentive for the Iraqi people to bring the larger notes in if the value does not exceed the dollar?
Shredd As Timmy highlighted in red, the plan is to reduce the supply of the dollar. This is huge. If they were flooding the market with the dollar, it would satisfy the need for lower denoms.
BUT, since they are reducing the dollar supply and replacing with the dinar, think of the practicality of that at the rate today....ridiculous, right? So, this situation, the supply and then the corresponding necessary increase in the value to make the ease of carry, the incentive is there to use the dinar.
RCS1947 Bump Very Happy
Geofitness Shredd, thank you as always,but still a little confused about the "rate." not asking you for a rate but what would the lowest rate need to be to incentivize the Iraq to use the Dinar and/or bring in large demons to be exhanged
Herb62 Not to try and speak for Shredd ,
But if I understand it correct the theory is limit (remove) the dollar and release the lower denoms forcing the use of the dinar ( if thats the only currencies you have..... You have no choice ). But you also increasing the rate so the lower denoms can be used easily . Thats where the debate starts........ slow increase or rate jump.
I may be totally wrong so maybe ignore everything you just read. scratch Laughing
Geofitness I wondered that to Herb. If the rate dose not jump to let's say $1.00 then what is the lowest is "may" start out to be that allows them to release the low demons.
I may be messing all of this up, excuse me fi I am. Just trying to get a handle on this and see if it's likely for them to begin at let's say .10, (just an example) and creep up from there. Or would it "have to be? higher?
Herb62 Honestly, I don't think anybody knows for sure.
Shredd Herb, you are right on target.
Think of it this way...with iraq being a dual currency country, they essentially have both to comprise their usable set of currency for now.
So, as the strength gains in the dinar, the dollar can fill their need for lower denoms. Now, as I said here and many times before, with the project to remove the zeros and reducing dollar supply, the demand for supply of the full set of usable currency will add value to the dinar.
Jumping the rate to a dollar straight away would give par purchasing power but not enough incentive to leave the dollar as much as limited supply will. Don't forget the progress in electronic banking, balance protection, and investment safeguards.
I'm not saying the cbi won't use a continued managed float during a transition period to the market-driven free float but we just gotta watch the news carefully and see how this unfolds.
Change is coming with this project moving forward. Be excited and review your exit strategy and your own investment approach once you exchange your dinar back to the dollar.
brown sugar Thank you ! Shredd