_Where we stand with the Iraqi Dinar as of today, Jan 11/12
Today we are in “phase two” of a three-phase project that tells us the CBI will introduce the new currency sometime in 2012. We know the CBI is ready, we know they have all necessary materials and we also know that they have been given the go ahead from the government. We also know that the CBI is waiting for the completion of the Government of Iraq to complete the process of releasing the Lower Denoms and raising the exchange rate.
Here are two CBI articles from June 22, and June 23rd respectively that state they have begun the process to restructure the currency
the appearance of Mohammed Saleh told the Kurdish news agency (Rn) that “the Central Bank of Iraq has decided to start the execution of the strategic and long-term specialized restructuring of the local currency to the development of the payments system in Iraq.”
http://tiny.cc/vjwoj” The Iraqi Central Bank Governor Sinan Shabibi said at a meeting of independent bodies with Prime Minister Nuri al-Maliki, which took place, In the 19 of June, and, ready to create all the supplies to replace the Iraqi currency.
http://tiny.cc/46c2sJan 7/12 Iraqi Council of Representatives on Saturday for the end of the first phase of the project to delete the zeros of the Iraqi currency, which included the purchase of equipment for the implementation of the project.
This article is HUGE!
Read More Link on Right _Key points from this article to consider;
➢ How could the first phase be complete if they haven’t already approved this entire process!
➢ The notes themselves would be considered equipment, as they too must be purchased before they are released into circulation
➢ This quote speaks for itself “it is hoped that the project is completed within the next year to present the new currency in the market and is then gradually withdraw the old. “ →This means we are looking at sometime during 2012 the new currency notes will be released into circulation!
➢ The following snip is a biggie folks as it’s straight from the CBI;
➢ The CBI had announced earlier that the new Iraqi currency will increase by three zeros, indicating that he had conducted an extensive study concluded that the lifting of the zeroes will strengthen the value of the Iraqi currency
The Lower Denominations are on their way! Obviously this will go hand in hand with the change in the exchange rate to increase buying power. Just as they can’t release the LD’s and NOT change the rate, they can’t change the rate and NOT release the LD’s. AND ACCORDING TO THIS, IT WILL HAPPEN IN 2012!!!
http://tiny.cc/khkkzThis short video is an interview with De La Rue regarding the process and time lines that go into creating a new currency. This fellow states state’s the shortest time frame was six months and was for a tiny country, while typically it takes two years to create a new currency. Clearly as stated in the previous link, as the CBI has a goal to release the new currency in 2012, the new notes must already be printed!
http://tiny.cc/e6ljkNow what could be the hold up you ask? Well the CBI has already told us they’re waiting on a complete GOI.
“The Central Bank of Iraq has affirmed its readiness to delete the zeros from the currency after the formation of the government directly, pointing at the same time that those zeros that are added to the Iraqi currency during the past formed a cluster of large cash amounted to 27 trillion Iraqi dinars.”
***This article is from Sept 14/2010… think they’re ready now!***
http://tiny.cc/vlwfjBUDGET article from Sept 24/11 which states the new budget would incorporate the new currency, and we are on the verge of seeing the 2012 budget voted into law!
He said the Bank’s Deputy Governor Mohammad Saleh said in an appearance “llsomret news”, “the Central Bank’s strategy of deleting three zeros and currency switch would be at the beginning of new year and a new budget for the State of Iraq”, predicting that “the currency is switched in the new fiscal year to 2013″.
http://tiny.cc/4k8meFrom Nov 15/11 this gem!
The chancellor said the government peace Quraishi, told the Kurdish news agency (Rn) that "the Council of Ministers will discuss in the 15 of this month's budget in 2012," noting that "the government will adopt the budget in line with the aspirations of Iraq's economic and enhance the value of Iraqi dinar."
http://tiny.cc/tbse6It has been my long standing belief that the “delete the three zeros” referred to the physical notes with three zeros. This is further backed up by the fact the CBI has been reducing the money supply. Also, if it were anything to do with the rate and removing the zeros in the rate, this would be done with the stroke of a pen and would be instantaneous and would not require a reduction in the money supply. Also, any change in the actual exchange rate would take care of the removal of the three zeros in the rate, thus that concept holds no water. It would appear the cash block in Iraq sits at under three trillion dinar. In order to completely de-dollarize Iraq the new rate must be above $1usd, and there are a plethora of articles out stating the dinar would be the strongest in the region, but the rate deserves a thread of it’s very own.
In the following articles we see the CBI has been actively working to reduce the money supply.
This article states the cash block in Iraq is down to four trillion Dinar! “He fit to be “current Iraqi currency formed large cash block arrived 30 trillion dinars, while the number of securities traded in the market to four trillion after paper money supply are 25 billion dinars in 1980,” he said, adding that “the greatest currency in Iraq at present equal $ 21 and are not able to cover large payments.”
http://tiny.cc/y4c53and this one;
“The trading bloc cash exporting more than 30 trillion Iraqi dinars to the various groups and reflected by the number of securities traded $ 4 trillion paper money is the product of a long period of inflation and economic decline”
http://tiny.cc/hwxoqThis article from Dec 26 / 2011 shows they have just removed a further trillion Dinar, reducing the cash block below three trillion Dinar.
“and revealed that the «central» sold in two days more than $ 400 million through the daily auction, which helped to absorb a trillion dinars from the local market,”
http://tiny.cc/f4ntb“We withdrew in one single day about one quarter of a trillion dinars, thereby bringing stability to the currency,” Saleh said.”
http://tiny.cc/wpvpfThe speculation of the Iraqi Dinar requires a combination of watching the news and policy as a whole, reading between the lines, and a good deal of deductive reasoning. Of course this post, as well as all of my other posts are my opinion and take on this speculation on the Dinar.
It is time to start making your post rv plans now, for most they would not have had this kind of money before and if we’re not careful we could end up like many lottery winners that come into money, they lose it! The good news for those that have not been in a position to purchas as many IQD as you’d have liked, the good news is there may be other emerging market currencies and legacy currencies worth considering, stay tuned!
What to watch for? Watch for the completion of the GOI and the announcement of the passing of the budget, the RV should follow closely behind. These aren’t my words, I’m going on what the CBI has stated.
Here is a link to a November 15th article that clearly states the new rate will be in the budget
The chancellor said the government peace Quraishi, told the Kurdish news agency (Rn) that "the Council of Ministers will discuss in the 15 of this month's budget in 2012," noting that "the government will adopt the budget in line with the aspirations of Iraq's economic and enhance the value of Iraqi dinar."
http://tiny.cc/cacxz~nIceman
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