Three Zeros to be cancelled from the Iraqi currency, says MP

From my good friend Phil.

This is the article of the day....yet another deleting the three zeros article. Notice what the article is telling us "it will happen by this as the Central Bank of Iraq is taking all necessary steps to convert this plan into reality." This article also seems to indicate that the CBI hasn't started the process of removing the triple zero notes from circulation, which we know is a lie. The CBI has been removing the triple zero notes from the marketplace for almost two-years. IMO, there is less than 5 trillion dinars left in the Iraqi economy, the dinars outside of Iraq really doesn't matter as I believe foreign countries will hold the dinars against their own central bank reserves to meet the Basel III requirements of having an asset backed currency. IMHO, we are waiting on political stability with the Iraq government (meaning replacing or removing Maliki) and the return of Dr. Shabibi to run the CBI before the PTB authorize any change in the value of the Iraqi Dinar.


Phil

Three zeros to be cancelled from Iraqi currency, says MP

16 Apr 2013

Parliamentary Finance Commission MP stated that the Central Bank of Iraq will soon cancel the zeros from the Iraqi currency. MP Abdul Hussein al-Yassiri revealed that it will happen by this as the Central Bank of Iraq is taking all necessary steps to convert this plan into reality.

He adds that the commission is in favor of Central Bank of Iraq with this decision as this will bring significant changes in the Iraqi economy. It is to be noted that earlier Central Bank reported that cancelling out zeros from Iraqi currency is under planning of the Bank.

The prime difficulty will be - is withdrawing 30 trillion dinars from the Iraqi market at the present time which will be replaced by new currency.

Previously the decision of eliminating zeros from Iraqi currency was not ratified by ministry of finance as the budget was done with the present currency.

http://www.iraqdirec...cy-says-mp.aspx

I hope SHABIBI comes back in May...and M leaves in May as well.

Come rv!

punisher wrote:I hope SHABIBI comes back in May...and M leaves in May as well.

Come rv!

In my opinion its an old article being regurgitated from a few years back! They have already removed 30 trillion.

Good article, although I question the whole BASIL III regulation thing. I just have never found anything that ties the Basil rules to national currencies. As near as I have been able to determine, Basil III applies to commercial banks only, and has to do with asset liquidity and risk ratios. In fact currency has a higher value being counted at 100% as opposed to 50% for most hard asset items. I am no financial wiz so maybe I missed something, but the more I study them the less sense these claims make to me.

AJAnderson wrote:

punisher wrote:I hope SHABIBI comes back in May...and M leaves in May as well.

Come rv!

In my opinion its an old article being regurgitated from a few years back! They have already removed 30 trillion.

Those darn old articles lol.

Kevin,

Here is an opinion piece from Felix Salmon - Reuters News Agency

"What’s more, the Basel committee didn’t just delay the implementation of the liquidity requirements: they changed the requirements themselves. Liquidity is not a completely well-defined term, but it basically means money, or something very very close to it. But the Basel committee has now given up on saying that you need cash, or government bonds, to count against your liquidity requirement. Now, you can even use mortgage-backed securities, if you have enough of them: the rule is that $100 of mortgage-backed securities provide the same amount of liquidity as $50 of cash." end quote

I had read at one time that Gold use to be in the same category as mortgage backed securities 2 to 1, but under the new agreement Gold is now 1 to 1 making it a much more coveted asset for banks to hold. It helps with Liquidity and Leverage requirements. This is why banks and countries have been buying up gold lately. And if Gold is considered money why not Oil If the central banks control the world currency then as we become more global they will definately need a better system than the current fiat currency in place. But I can not find the article talking about gold being 1 to 1 but I did read it a few months back.

I did not get my info from an article, but from the BIS site. The last I checked, it still showed gold in the 50% category along with several kinds of securities.

Keep in mind, when we are talking Basil III we are not talking currencies, or central banks, that is guru speak. Basil III applies to commercial banks.