Debating If & When Deleting Zeros - Post From Dinar Alert

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Debating If & When Deleting Zeros - Post From Dinar Alert


04/23/2013





Delete the zeros .. Vital project collides with the lack of economic stability Published 22/04/2013

Most professionals in the financial and banking Affairs to delete the three zeros from the local currency is very important, however this process at the present time

A decision is not correct, and may lead to negative results.

The official said the Ministry of finance the Crescent altaian "delete zeros from the current currency will bring negative consequences for the economic and financial conditions in the country."

The altaian extent "it cannot embark on this project at the moment because it may enter the country added to the list of operational difficulties and obstacles and problems."

"Altaian" was a panel discussion by experts and specialists before dismissing the Iraqi Central Bank Governor led to the inability to delete the zeros at the moment. "

Miller suggested postponement to 2015 for the political and security situation and the economic instability. Read Full Article LINK
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Read More Link On Right

Kaperoni: Ahhh, I was waiting for these to start. All the Maliki clan to chime in and say no...lol Who are these people? They don't open up the economy and start raising the value this year, IMO it going to get messy over there.

Tlar: Kap, I beg your difference. We have heard from both the CBI and the COM. The CBI has announced they are independent and they are preceding with the deletion of the zeros. The COM is looking into the best ways to implement the Tariff and Taxes law based on 2 articles that came yesterday and today.

IMO there would be no reason to be trying to find a way to implement this law if in fact they were not on board with the CBI on deletion of the zeros. We know that last year the COM postponed the deletion of the zeros saying that they should be started on July 1st.

There has been no article from the COM saying that they wish to postpone it again. To me this is all positive news. So until the COM comes out against the deletion of the zeros, wishing to postpone it again, I assume that their last word on this subject still stands.

At the point such an article postponing the deletion of the zeros surfaces from the COM, I will see this differently. Until then, I think its a go.

Kap, I would think less of Maliki if he did not try to muster the troops to stop this. He has done it for 3 years straight. The difference to me is that the CBI, through on site international urging is moving ahead this time. We know the scare tactics of Maliki. Smuggling, counterfeiting, government stability.

He has worn out these excuse and these problems will be aided by the currency. It will not add to the problem++. The bank in my opinion has given up trying to appease, get agreement or approval from the government. They also have been methodically working to get this done.

They appear not to want to argue this anymore as there has been few articles that have come out where they are trying to defend the decision to go. I think they will all but ignore all the noise coming from the Maliki camp because it is not in their best interest to engage these goons because that will give them a platform and enable them to argue.

Kap we are both speculating but I think the bank is in the open throttle position. It is their decision to make and I believe they have made it. I have not seen a definitive article from the COM retracting their suggested start date of July of this year.

I expect to see more articles like the one above as we get closer to the date but Maliki has fired his accusation of theft toward Turki only to have it miss him entirely. We also remember this shot was fired on the back of the Integrity Commissions findings on Shabibi.

Maliki cannot throw more charges against Turki because those too will be seen as politically motivated. Also these election results might help defang Maliki because he has just become a lame duck PM in my opinion. All these things bode well for the deletion of the zeros to go forward.

The article below from April shows the CBI is fully behind the deletion of the zeros. *** those torpedoes, full steam ahead. IMHO we won't see much coming out of the bank this time as we have seen in the past. We will see little discussion from them.

They have already argued their position over 3 years. I think the bank will spring this on the government when they feel the time is right. IMHO

Start procedures to delete 3 zeros from currency 12:32 2013-04-17

Follow-up - public opinion

Said parliamentary Finance Committee in Iraq, said the central bank, according to the communications of the official start of this year procedures deleting three zeros from the local currency, saying that it would lead to the development of cash transactions and international economic, in a new development at the level of the Iraqi currency, which has suffered large waves of inflation and the decline exchange rates.

A member of the Finance Committee, Abdul Hussein al-Yasiri, it is supposed to begin preparations necessary to delete the three zeroes from the local currency, adding that the local currency "will reduce from four billion units to one billion units, which will make a smooth flow in the process of transfer of currency." Between Yasiri that Finance Committee "to make changes to support the local currency because of the economic importance of the country."

The central bank says that the deletion of zeros is part of a plan to develop its monetary policy and currency management reform.

The CBI had said in August / August last year that it plans to delete the zeros from the Iraqi dinar to facilitate financial transactions carried out through cash in most cases. Among the difficulties faced by Iraq if they wanted to embark on the deletion of zeros from the dinar is pulling about 30 trillion dinars in circulation in the Iraqi market now, then get rid of them and replace them with a new currency.

http://translate.google.com/translat...ed=0CG0Q7gEwCA

Kaperoni: An exchange regime is an international way to manage your currency..such as fixed rate, floating or pegged. Iraq needs to transition from the closed monetary policy they have been in for the past 10 years under Article 14 and accept Article 8 of the IMF and chose a regime. They have stated 'floating orbit of exchange" but until it happens, it could be any one of the three.

Kaperoni: Delete the zeros .. Vital project collides with the lack of economic stability

Published 22/04/2013 10:37 AM Neighbors - Agencies:

Most specialists agree that in the financial and banking affairs to delete the three zeroes from the local currency is very important, but to perform this operation at the present time

The decision is the right one may lead to negative results.

The official said the Ministry of Finance Hilal Taan that "the deletion of zeros from the currency at the present time will bring negative results, the proportion of the economic and financial situation is stable in the country."

Taan added to the extent "that he can not be embarking on this project at the moment because it may enter the country to bump added to the list of difficulties and obstacles and problems faced by them."

He Taan "was held a panel discussion by experts and specialists before dismissing Governor of the Central Bank of Iraq which led to the inability to delete the zeros at the present time."

Miller suggested to postpone the project to 2015 because of the political situation and economic security and unstable. READ FULL ARTICLE LINK

Lopster tank can fill up with info quickly - ouch !! "The CBI had said in August / August last year that it plans to delete the zeros from the Iraqi dinar to facilitate financial transactions carried out through cash in most cases. Among the difficulties faced by Iraq if they wanted to embark on the deletion of zeros from the dinar is pulling about 30 trillion dinars in circulation in the Iraqi market now, then get rid of them and replace them with a new currency"

I do not think you will find 30 trillion dinar circulating inside Iraq at this time. I have the impression that most of that is outside Iraq sitting in various reserve banks. I may be wrong, but that is my impression from reading many articles over the last few years. It's not easy to separate the wheat from the chaff, especially with all the smoke around here lately ... but I have the impression that most of Iraq is operating on the USD.

Kevin, i hope you are right but i have read otherwise...but who knows. On a semi-postive note since i'm a lobster, I believe the only thing possibly that "could" or "might" or "wishful thinking" is if The Marshall plan better know as International compact for Iraq could absorb the money supply like Germany did "somehow". This is only way i see them doing this or unless the "books are totally cooked"...The info on the CBI probably isn't just for show so that's why it's not looking real good in my view of a decent return in this...hope i'm wrong..i need the money.

Part of the problem is we are only seeing what we are wanted to see, so it is hard to be sure of what is real and what is Memorex. As I understand it all of the press in Iraq is pretty much controlled, either by the government or by some faction. All we can do is look at what the various outlets say and try to draw some sort of conclusion.

Face it, there is a lot going on that does not make sense ... for instance the currency auctions, they continue to dinar for an asking price of 1166/USD when the street price is around 1265/USD. So then who the heck is buying it? I can't imagine it's hitting the streets, the banks would be loosing money on each transaction. Maybe I am missing something, but ....