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December 8, 2017 Mnt Goat News Brief
Special Edition – History of the Iraqi Dinar
In this Special Edition of the Mnt Goat Newsletter today, I wanted to take this first section to give all of you an accurate history lesson of the Iraqi dinar. I am so sick and tired of all these rumors of $3.22 and other stuff…on and on and on about the Kuwait dinar revaluation and how it made everyone so rich. This is often used as the justification for getting into the Iraqi dinar investment. My advice is to stop dreaming and learn what the real risks are in your investment. Get out of this “get rich quick” fantasy.
So now let’s get the story straight. We all should know by now investing in the Iraqi dinar was not an overnight, get rich quick scheme, as perhaps many of you were told when you decided to buy the Iraqi dinar currency. Sorry folks they were wrong! But go figure who was telling you this crap?
So first here is what really happened in Kuwait.
When Iraq invaded Kuwait in August of 1990, the value of the Kuwaiti dinar dropped to about 5 cents. In other words, it took 20 Kuwaiti dinars to buy one dollar. This was a temporary measure to prevent Saddam Hussein forces from using the Kuwaiti dinar to fund their army and invasion of Kuwait.
In February of 1991 Iraq was expelled from Kuwait, and ONLY a month later, the banks revalued their currency to $3.47, the highest valued currency in the world.
So what’s different about this picture? And I mean VERY different!
1. Kuwait never had a back-to-back 13 years of embargo and serious Chapter VII sanctions by the UN that destroyed their economy like in Iraq;
2. Kuwait never had hyperinflation like Iraq prior to the invasion by Irsaq;
3. Kuwaiti dinar was very stable up to the Iraq invasion in 1990;
4. Kuwait was never destroyed in 1990 and had to be rebuilt like most Iraqi cities during the 2003 war;
5. the infrastructure of Kuwait (water, sewage, electrical, hospitals, etc…) were never torn apart like in Iraq when it was invaded;
6. Kuwait never has a long term occupation like Iraq (2003-2011)
7. Kuwait never had serious UN Chapter VII financial sanctions like was put on Iraq in 2003.
8. Kuwaiti never issued a “temporary” hyperinflation currency to replace the existing currency of the overthrown county like they did with Iraq;
9. Kuwait never has a “program rate” to their currency;
10.Kuwait never was forced, under sanctions, to trade with the outside world exclusively with US Dollars having to convert dinar to dollars thru a currency auction (thus lending itself to massive corruption)
11. Kuwait never had a political takeover of its Central Bank by the government, even though it was supposed to be an INDEPENDENT entity
So how can anyone possibly then compare what happened in the Kuwait dinar reinstatement to what was going to happen to Iraq dinar revaluation?
These are two very, very different circumstances. Don’t believe me? Look as the FACTS. Oh- go ahead and stick you head in the sand again and bash Mnt Goat for telling the TRUTH once again. I really don’t care. All you so-called intel “gurus” and your fantasies does not change the FACTS and will not get you the Iraqi dinar to revalue any faster. Sorry!
I am puzzled as to why they would even think about using the Kuwaiti reinstatement as any justification to investing in the Iraqi dinar.
Maybe this has been the problem all along with everyone expecting this RV to happen any day / every day. Many of you simply do not get the FACTS straight, don’t want to know the FACTS and do not want to accept the TRUTH about this investment. You don’t want to accept the LONG road to bringing back the Iraq dinar because you are ignorant of the past history and were told a VERY unfair and bias comparison with the Kuwaiti dinar.
Many of you just complain over and over again – Why has it not revalued yet?
If nothing else from this newsletter today, I hope everyone will take away the notion that the “project to delete the zeros” has been VERY dynamic and the process of getting the Iraqi currency stable and back on track has been a great effort with lots of pain and steps along the way.
It is not as simple as “flipping” a switch to RV, as I hear many say on these intel conference calls.
We also all should be familiar with the past rates of the Iraqi dinar and know that it was very high in the past but not at $3.22 at the time when they invaded Iraq in 2003. This is total rubbish and like the other false comparisons to the Kuwaiti reinstatement this rumor is simply NOT TRUE. I will prove it to you today too.
But most importantly, we see that the dinar was already at a major decline and hyper-inflation in 2003 due the 13 year embargo from 1990-2003. So this notion that the rate was “intentionally” devalued for the 2003 war so Saddam Hussein could not use it to fight the coalition forces is a bunch of horseshit and just simply not true. The FACT is the dinar has already tanked. Get it? It was the 13 year embargo that did it and not some intentional plot or plan (conspiracy) to downgrade the currency and them later quickly upgrade the currency and let everyone get filthy rich.
You can clearly see by reading the FACTUAL history of the dinar that the declining value over the upcoming years since 2003 was real and the currency was actually SAVED from a major meltdown by issuing the newer 3 zero notes and replacing the older Saddam Hussein notes. When they did issue the 3 zero notes, the IMF placed a value them making them worth exactly what they should have been worth. It was not some plot to undervalue them. Ge it? We see that it was not until overtime that they declined to yet even a lower level once the invasion too place and it was not until mid October of 2003 that the new 3 zero notes in FACT met the toilet paper rates, we are now experiencing today. So the inception rate was not actually too bad.
My point is this – All this comparison to the Kuwaiti dinar and making becoming a quick millionaire or even billionaire of the Iraqi is not true. It was a huge scam to get you to buy the Iraqi dinar. This was perpetrated on you by these dinar pumpers (dealers). Get it?
Can you make money off the Iraqi dinar?
Will you make money off the Iraqi dinar?
Yes and yes to both questions but you must learn the truth and the truth WILL SET YOU FREE.
FREE of what?
FREE from anxiety and stress that many of you are encountering. I can hear in your voices on these intel calls and I can see the frustration in the forums.
So who is telling you this any day / every day RV rumor anyhow?
So my point is, if you haven’t realized it yet, is that the dinar was not intentionally, initially brought down to this toilet paper rate, like so many of these ignorant, idiotic so called intel “gurus” are telling you. This should not be your motivation to get into this investment. This is one of the false pretenses that many buy into this investment. They then expect to make millions overnight. Instead the low program rare reflects instead the INSTABILITY and SECURITY faults of the country. Basically, the country was in ruins and now after the war on ISIS it is even in worst condition!
So now we all know why it is taking so long to get the RV. Get it now?
Yes, it’s now late 2017 already. The IMF, CBI and the Finance Ministry know they must complete this project to delete the zeros very soon. They get it. Do you? But let’s not get ahead of them and make up these lies about the RV when we can clearly see that Iraq is still in the process, but just not yet.
Please, please, please everyone reading this newsletter today to take the time to SLOWLY and CAREFULLY read it in its entirety. I now it is long since I wrote it…lol…lo…. However you will learn so much and then be on the same mindset and wavelength as Mnt Goat.
But first take off that stupid RV hat and put on the hat of reality. Sit down in your comfortable arm chair, grab a nice warn cup of tea and your reading glasses. Enjoy reality!
HISTORY OF THE IRAQI DINAR
Pre- WWII Iraq was occupied by the British Empire. They occupied it mainly to secure the oil resources and keep them out of the hands of future trouble makers (since the horrors of WWI still lingered). I can only suggest that someone in the British parliament had enough foresight to think that perhaps there would soon be trouble in Europe once again in the near future and they would need the oil reserves of the middle east. You want to know more you might want to research this interesting story for yourself. But let’s fast forward.
When the Iraqi dinar officially introduced at the end of the British mandate (1932), the dinar [consisting of 1,000 fils or 20 dirhams] was equal to, and was linked to, the British pound sterling, which at that time was equal to US$4.86.
Iraqi dinar (ID) equaled US$4.86 between 1932 and 1949 and after devaluation in 1949, equaled US$2.80 between 1949 and 1971. Iraq officially uncoupled the dinar from the pound sterling as a gesture of independence in 1959, but the dinar remained at parity with the pound until the British unit of currency was again devalued in 1967.
One Iraqi dinar remained equal to US$2.80 until December 1971, when major realignments of world currencies began. Upon the devaluation of the United States dollar in 1973, the Iraqi dinar appreciated to US$3.39. It remained at this level until the outbreak of the Iran-Iraq War in 1980. In 1982 Iraq devalued the dinar by 5 percent, to a value equal to US$3.22, and sustained this official exchange rate without additional devaluation despite mounting debt. In early 1988, the official dinar-dollar exchange rate was still ID1 to US$3.22; however, with estimates of the nation's inflation rate ranging from 25 percent to 50 percent per year in 1985 and 1986, the dinar's real transaction value, or black market exchange rate, was far lower-- only about half the 1986 official rate.
The Iraqi dinar was worth $US 3.20 before the United Nations embargo that followed Iraq's 1990 invasion of Kuwait. By August 2002 it was trading at just below 2000 to the US dollar, and by mid-April 2003 it had slipped to anywhere between 3500 and 4000 against the dollar. In July 2003 one US dollar equaled about 1,500 Iraqi dinars. Nearly all the bank notes issued after the 1991 Gulf War were without watermark or metal line due to technical difficulties, which is why so many forgeries took place.
In April 2003, following the end of major combat operations, the Iraqi economy was in distress because of closure of oil sales, imposition of UN sanctions. At that time, United States officials said that a new currency was needed, to introduce some stability. Without a proper currency in circulation there was a fear of inflation. The US decided to distribute $20 bills to the civil servents to boost the economy. This was not an issue of "dollarizing" the economy, but to get money that had real value into people's hands.
As Brad Setser, former acting director of the US Treasury Office of International Monetary Policy, noted, "A currency that is TIGHTLY LINKED TO THE DOLLAR would ... make it harder for the government of Iraq to manage its dependence on oil revenues. The dollar revenue from oil sales is highly volatile, so the government would have trouble paying the same dollar salary when oil is at $10 a barrel and when oil is at $30 a barrel.
Rather than matching expenses and revenues by paying dollar salaries that vary in line with global oil prices, it is far easier to pay salaries in a local currency and let the value of the local currency fluctuate against the dollar."
(Mnt Goat – this is why they restricted the dinar to in country use only during the sanctions of 2003)
By the end of April 2003 the economic life and conditions in Kirkuk city were becoming increasingly difficult due to the severe shortage of fuel, the increase in market prices and the non-payment of salaries to the civil servants in Kirkuk. The produce in the market had become increasingly expensive due to the significant rise in the number of people from Erbil and Sulaymaniyah who traveled to Kirkuk for shopping purposes. These shopping trips by people from the northern governorates were a result of the more attractive prices at which products were available in Kirkuk compared to the north, DUE TO THE LOW VALUE OF THE 'NEW' IRAQI DINAR USED IN GOVERNMENT OF IRAQ [GOI] AREAS AS AGAINST THE 'OLD' IRAQI DINAR IN USE IN THE NORTH.
In the long run, Washington wanted a new Iraqi government to pick its own currency, much as Afghanistan adopted a new one after the fall of the Taliban. As of May 2003 the US REPORTEDLY ESTIMATED THAT IT WAS UNLIKELY THAT A NEW GOVERNMENT WOULD BE FORMED IN IRAQ IN LESS THAN A YEAR, AND IT WOULD TAKE AT LEAST THREE MONTHS AFTER THAT TO DESIGN A NEW CURRENCY.
Until then, the Iraqis would have to use the various currencies floating in the market.
In June 2003 the Iraqi central bank once again began printing Dinars, with fallen leader Saddam Hussein's image on them. The 250 dinar denominated banknotes were printed by the Baghdad mint, under the supervision of the manager of the central bank. This was an effort to overcome a severe shortage of Iraqi dinars and to offset fears of counterfeit currency. The new 250-dinar bills -- worth less than US$0.20 each, were issued because of a shortage that caused a liquidity crisis in the country.
(Mnt Goat – So you didn’t know that after the invasion the newly established CBI actually began printing more of the old Saddam Hussien notes, did you? But we know this was finally stopped when in October of 2003 they began to issue the new 3 zero notes)
The administrator for the Coalition Provisional Authority in Iraq, Paul Bremer, outlined in an address to the Iraqi people 07 July 2003 the key spending priorities for the Iraqi national budget over the coming six months. These included commitments to improve the water, electrical, public health and telecommunications systems.
BREMER ANNOUNCED THAT THE COALITION WOULD PRINT AND DISTRIBUTE NEW BANKNOTES FOR IRAQ. (these were the new 3 zero notes). In response to this press announcement in Baghdad, De La Rue confirmed that it was in discussions to assist in the production of banknotes for Iraq. The Company led a consortium of global currency specialists to manufacture the banknotes. De La Rue is the world 's largest commercial security printer and papermaker, involved in the production of over 150 national currencies and a wide range of security documents such as travellers cheques and vouchers. Thomas de la Rue began printing British postage stamps in 1855, and obtained the contract for all Indian postal requirements.
Banknote Corporation of America, Inc. (BCA) is the largest high security printer in the United States, with headquarters in New York City and a manufacturing plant in North Carolina. Banknote Corporation specializes in intaglio printing, producing stamps for the United States Postal Service as well as for foreign postal administrations.
American Banknote Corporation (formerly United States Banknote Corporation) is primarily concerned with the engraving and printing of corporate and government securities and other secure documents, including the production of holograms. The American Bank Note Company, the first security printing company in the United States, can trace it origin over 200 years ago to the father of security printing, Paul Revere. The American Bank Note Company traces its beginning back to 1795, with the formal creation of the American Bank Note Company in 1858. On August 8, 2003, a jury found that Morris Weissman, former chairman and CEO of American Banknote, had inflated his company's earnings in 1996 and 1997. Based on the false numbers, the 1998 public offering of the company's subsidiary, American Banknote Holographics, was a success, netting the company $115 million. When the accounting fraud was uncovered in early 1999, the spinoff's shares dropped from about $16 a share to $1.80 a share. The stock was delisted in August 1999. American Bank Note Holographics ("ABNH") is in many ways a new company today, with new management that started in 1999.
Bremer stated that the so-called "print" dinars in circulation in most of Iraq, nor the formal national currency (or "Swiss" dinar) still used in some parts of the Kurdish North were suitable for the new Iraq. "Print dinars" were poor quality, and in practice circulated widely in only two denominations -- the 250 dinar note, and the 10,000 dinar note [and no coins].
This made Saddam dinar notes very inconvenient to use. The "Swiss" dinars, while of higher quality, were so old that they were literally falling apart in people's hands. The former national ("Swiss") dinar notes were used throughout Iraq until the early 1990's, and this national currency still circulated in the Kurdish north. The bills nicknamed "Swiss dinar" either because of their relative stability and strength or because it was made in Europe, depending on the account. THE SWISS DINAR WAS TRADING AT ABOUT 6.7 TO THE DOLLAR IN EARLY JULY 2003.
Bremer stated that a new currency had not been designed by the United States AS ONLY A SOVEREIGN IRAQI GOVERNMENT COULD TAKE THAT DECISION. The new currency would NOT DEPICT SADDAM HUSSEIN. The design for the new currency, which was not been released in advance to the public, was taken from the designs of the "Swiss" dinar, though the new notes had different colors and denominations.
-The new dinars were printed in a full range of denominations: in 50s; 250s; 1,000s; 5,000s; 10,000s; and 25,000s. The new banknotes were much better protected against counterfeiting, they were much more durable and suffer less "wear and tear".
THE NEW CURRENCY WAS MADE AVAILABLE TO THE IRAQI PEOPLE ON 15 OCTOBER 2003. They replaced the existing Iraqi "print" dinars at parity: one new Iraqi dinar was worth the same as one "print" dinar. The new dinar replaced the "Swiss" dinar at the rate of 150 new dinars to one Swiss dinar. These different rates reflected the different prices, expressed in local currency, in different parts of the country.
Currency could be exchanged at branches of the Rafidain and Rasheed banks, and IRAQIS HAD THREE MONTHS IN WHICH TO MAKE THE EXCHANGES.
On 18 August 2003 the Central Bank of Iraq advised Iraqis TO DEPOSIT ALL THEIR DINARS IN LOCAL BANKS TO FACILITATE THEIR CHANGE INTO THE NEW CURRENCY. The Bank's governor, Faleh Dawood Salman, said the UK firm charged with printing the new Iraqi money intended to ferry the first shipments to the country in a few days. "The process of changing the money has started and I call on all Iraqis to open accounts in both government and private banks and deposit the amounts they are willing to swap," Salman said.
On 01 October 2003 it was disclosed that agents from the Defense Criminal Investigative Service (DCIS) and the 812th Military Police Company assisted by Iraqi police and the Ministry of Finance had broken a counterfeit printing operation in Baghdad and seized counterfeit currency worth 100 billion dinars. DCIS agents and Military Police raided two locations, seized printing presses and arrested Amar Fadil Ramadan Al-Kayse, an Iraqi national who was subsequently released to Iraqi Ministry of Interior officials for prosecutorial action by the Iraqi Ministry of Justice and Courts. The investigation leading to the arrest of Al-Kayse revealed that Al-Kayse was printing and attempting to pass counterfeit 250 Iraqi dinar notes to the Central Bank of Iraq (CBI), which is funded and operated by the Coalition Provisional Authority (CPA). Al-Kayse owned and operated the Sarmad Company for Printing, a local Baghdad printing shop and worked as editor of Nuktat Dhaw ("Spot Light"), a newspaper in Baghdad.
Stephen Cecchetti, Professor of International Economics and Finance at Brandeis University, noted in June 2003 that "Cultural legitimacy is the final and most important issue to confront in designing the new Central Bank of Iraqi. What any of foreigners write or say is irrelevant unless the people of Iraq are involved. Most importantly, we cannot go into Iraq and build a set of institutions that reflect American and Western European values. This will not work. The new Central Bank of Iraqi will belong to the Iraqis and so they have to set it up. While I might think it would be fitting to start printing new Iraqi currency with an image of King Hammurabi on it, I'm not going to use the currency."
THE NEW CURRENCY WAS UNVEILED DURING A PRESS CONFERENCE IN THE CAPITAL OF BAGHDAD, OCTOBER 4, 2003. The new Iraqi dinar is a sturdy and secure currency, imprinted with traditional Iraqi symbols -- altogether a great improvement over the flimsy bills with Saddam's face. Iraq's new banknotes include pictures of an ancient Babylonian ruler and a 10th century mathematician in place of the face of Saddam Hussein. An ancient Islamic compass, patterned on the an Astrolabe from Baghdad dated 1131 AD, on the new Iraqi 250 dinar banknote replaced the face of Saddam Hussein on the old note. This is the same Arabic Astrolabe that was used on the ½ dinar note of the 1980s issue and the 1000 Dinar note of the 2002 issue.
THE ORIGINAL ORDER OF 2 BILLION NOTES FILLED MORE THAN TWENTY-FIVE 747 AIRPLANES.
At the time that the new dinar was introduced, the Central Bank of Iraq (CBI) was made independent of the Finance Ministry, which had been under the control of the Baathist Party. The CBI had suffered from a long period of domination by the Baathist regime and isolation from the international community, and needed much assistance to rebuild. THE CBI'S MONETARY POLICY FUNCTION REQUIRED SPECIAL ATTENTION. IT LACKED A MODERN STATUTE TO FACILITATE MONETARY STABILITY, A COHERENT FRAMEWORK FOR CONDUCTING MONETARY POLICY AIMED AT ACHIEVING PRICE STABILITY, AND CORRESPONDING INSTRUMENTS FOR IMPLEMENTING MONETARY POLICY.
The exchange rate of the new dinar appreciated about 25 percent in the months following its introduction in late 2003, while prices were stable and inflation low. The exchange value of the dinar was quite stable, despite further growth in quantity. The earlier strength in the dinar helped hold down prices over the first several months of this year, and it seems quite likely that inflation will end up low this year, especially compared to the double-digit or higher rates that had characterized the Saddam era. This stability provided the basis for much-needed public confidence in the management of its currency.
COALITION CONTRACTORS DID NOT HAVE TO BE IN COUNTRY LONG TO DISCOVER THAT THERE WAS NO ABILITY TO USE CREDIT OR ATM CARDS, AND FINDING AVAILABLE BANK RELATED SERVICES WAS CHALLENGING GIVEN THE SECURITY situation near many work sites.
In order to make payments to local suppliers, vendors and sub-contractors, some resorted to carrying luggage bags of USD across borders themselves while others paid fees to international banks for the risk associated with making a physical money movement on their behalf. Nearly all contractors have had a different experience and story to share on how they have wired around the difficulties and challenges posed to them to get the currency they need when they need it, and where they need it.
Once acquired however, payments in cash continue to be problematic for the payee. For example, Iraqi persons in their role as contractors, suppliers and employees can become easy targets for criminals and insurgents when paid in cash. There have been instances when Iraqi's have left a coalition base with a cash payment and been robbed, often resulting in injury and at times death. Payments made in the form of a check drawn on a local bank branch and denominated in Dinar is perhaps the safest way to pay Iraqi firms and persons.
Please also see link: https://www.globalsecurity.org/…/w…/iraq/currency-reform.htm
2017 UPDATE SINCE ABOVE ARTICLE WRITTEN:
CBI: HIGHLIGHTS THE ACHIEVEMENTS AND SUCCESS STORIES ACHIEVED DESPITE ALL THE CHALLENGES
(Mnt Goat – I took this article and cleaned it up so we can all read it clearly and study it. Yes, I said too “study” it. Are you sincere in wanting to know just where Iraq is in all their efforts to move to a new level economically and financially in the world’s eye? This is why I like this article so much. It is a summary of all the efforts we have been reading about for the last 3 years that is moving Iraq towards this goal of being an economic giant. When this happens we go to the bank too. Get it? This is all moving Iraq towards an INTERNATIONAL economy.)
Here are some of the ongoing challenges/goals of the CBI:
1.To maintain the inflation rate of not more than 2% and
2. the level of foreign reserves within the acceptable rates in accordance with international standards, where the foreign reserves of Iraq up to $ 47 billion and stimulate the banking sector regulatory (this one is now in jeopardy, as per recent news from IMF and finance ministry)
3. supervisory and regulatory and establish new units within the regulatory structures of banks such as compliance and combating money laundering and financing of terrorism and credit risk management. (We read recent article on arrest for counterfeiting ring)
Here are some of the accomplishments of the Finance Ministry and Parliament working with the CBI:
1. the issuance of the Money Laundering Law No. 39 of 2017,
2. the development of payment systems such as the application of all retail and mobile payments,
3. the establishment of the national division and
4. the application of international standards in financial reporting in
5. harmony with the principle of transparency and disclosure
6. the efforts of the bank daily to stimulate financial inclusion and
7. focus on the initiative to settle the salaries of employees for the purpose of raising the financial coverage of the population who do not have accounts in the banking system and for the purpose of restoring confidence in the banking sector, and
8. to measure the efficiency of performance as well as
9. the establishment of the deposit guarantee company in order to raise the percentage of savings in banks and reduce the proportion of housing in the economy thus activate the economy through the activation of investment and bank financing initiative to finance small and medium projects and supervision and leadership of community initiatives funded by Iraqi banks.
10. supporting the Iraqi Drama Fund and establishing two companies for national financing of large projects,
11. establishing a fund for social and humanitarian benefits,
12. taking organizational and structural measures and
13. developing a depository center in the Iraqi market for Financial Iraq and 14. the establishment of a national center to inquire credit.
Here are some accomplishments at the level of international banking relations, the Central Bank, with exceptional efforts:
1. managed to restore relations with Arab and foreign central banks and
2. to deliver the achievements achieved during the last three years to the international financial institutions such as the Financial Action Organization, which contributed to the transition of Iraq classification from gray to white.
3.The visit of the governor last month to the UN Security Council and presented the achievements and development of organizational, structural and technical and compliance with international standards in financial reporting and enhance the confidence in the Iraqi economy and
4.the ability of Iraq to comply with international credit benefits and the World Bank and the International Monetary Fund has had a clear impact in the promotion of economic steadfastness and financial victory and a steady pace towards financial sustainability.
That all the above achievements make the Central Bank of Iraq and the province of contacts and his team deserve praise and recognition, which is a call to the Iraqi Council of Representatives and the Secretariat of the Council of Ministers to support these efforts and the designation of Professor Mohsen Alalak distinctive economic personality for the year 2017 I also call the Iraqi national media visual and read and heard to promote extraordinary efforts
The sincere efforts of the Iraqi fathers fighting terrorism and building the new Iraq, one that highlights the achievements and success stories achieved despite all the challenges and that the most prominent of these successes and crises are successes J The Central Bank of Iraq and his team who deserve the right word service neutral for our national economy and our sector of the Iraqi banking.
THE CENTRAL BANK HAS ANNOUNCED A TENDER FOR THE PRINTING OF NEW BANKNOTES (SMALL CATEGORIES) AT THE INTERNATIONAL PRINTING COMPANIES."
Baghdad / Al-Ghad Press:
The Central Bank of Iraq called for the need to preserve the local currency, pointing to the strengthening of local banks IN LOCAL CURRENCIES OF SMALL GROUPS.
(Mnt Goat – those that do not know that to “tender an offer” means an offer to purchase. But we know they made this offer in 2015 and so the newly printed notes were delivered and they are now telling they distributed them to the banks (in exchange for banks assets) from Nov 2016 thru Nov 2017 and this effort has now concluded. I quote from articel– “HAVE BEEN DISTRIBUTED AMOUNTS given to banks during the month of November last year )
A source from the Central Bank of "Al-Ghad Press", said on Tuesday that "the bank calls for the preservation of the local currency and the strengthening of banks WITH SMALL GROUPS OF LOCAL CURRENCY," pointing out that "the printing of the Iraqi currency and replace them cost large amounts of money," calling on citizens to maintain bank notes when trading ".
He revealed that "THE CENTRAL BANK HAS ANNOUNCED A TENDER FOR THE PRINTING OF NEW BANKNOTES (SMALL CATEGORIES) AT THE INTERNATIONAL PRINTING COMPANIES."
The source said that "the Central Bank TO SHIP CASH FROM SMALL GROUPS TO GOVERNMENT BANKS AND PRIVATE BANKS HAVE BEEN DISTRIBUTED AMOUNTS given to banks during the month of November last year of the current (554,000,000) dinars (one hundred and fifty-four million dinars) category 1000 dinars and the amount of (202,500,000) Dinars (two hundred and two million five hundred thousand dinars) category of 500 dinars, "adding that" the Central Bank of Iraq pays to the Rafidain and Rashid Bank an amount of not less than (200 million) dinars (two hundred million dinars to change) in almost every withdrawal of its own assets.
(Mnt Goat – This is a WOW article. Do you comprehend exactly what the CBI is telling here? Amazing, amazing, amazing…! They are telling us they are launching these new notes to the banks now and have been loading the banks with them since last November. They even gave us the amounts they sold to the banks. Note they did not distribute any 10,000 (10K) or 25,000 (25k) three zero notes (the ones they want to delete) and this is very significant.
Now I know some of you are going to bash me for my explanation of this article, but that is only because you do not understand the entire plan and the process they are following. So let me explain it to you then. Then maybe you too can see it.
And this last sentence to the last paragraph to the article is VERY important. I quote from the article– “The source said that "the Central Bank TO SHIP CASH FROM SMALL GROUPS TO GOVERNMENT BANKS AND PRIVATE BANKS HAVE BEEN DISTRIBUTED AMOUNTS given to banks during the month of November last year of the current”.
So for over a year now the CBI has been stocking up the banks with these new currencies. What the CBI is saying is they distributed nearly 200 million dinars monthly to the banks over this last year in exchange for other assets (remember the CBI is not handing out FREE money when they launch these newer notes…lol..lol…)
This is their way of distributing these newer notes. By lessening the distribution of the 10k and 25k notes by converting to electronic banking the CBI is able to slowly slow down the need for the 10k and 25k notes, thus they are slowly phasing them out.
So what do the people then use for currency?
First – they lessening the need for any currency by the implementation of the new electronic banking practices we have been reading about;
Second – they are launching other notes to use as they told us in this article namely the 1,000, 500 and 250 dinar categories.
Third – We know from past articles (presented below) new currency will be issued in denominations of 5, 10, 25, 50, 100, and 200 dinars for banknotes and 25, 50, 100, 250, and 500 fils, plus 1 and 2 dinars for coins. The designs have been already chosen for banknotes and coins and they are printed and minted:
5 dinars: Beck waterfall and palm tree
10 dinars: dinar coin minted in the reign of the Umayyad dynasty and lighthouse Hadba in Mosul
25 dinars: King Hammurabi receiving the law and farming of Iraqi Kurdistan
50 dinars: King Codaa and Fort Ukhaydir
100 dinars: Central Bank building in Azwaip area in Baghdad and ziggurat
200 dinars: bridge and school
All of these categories, mentioned in this article that are printed, are denominations that are in the final set of currencies that will REMAIN as permanent currency post RV. Do you remember the final set of Iraq currency. Note in the article it did not talk about the 10k, 25k, 50k or the 100k being printed. Why? Because they are being deleted? Get it? This is the project to delete the zeros. Going forward only the newer lower denominations I listed above will be the new currency of Iraq. Yes – the CBI also told us that the older 3 zero notes will coincide and be in circulation with the newer 2017 notes for up to 10 years, but these notes will be mainly for inter-banking transactions and not intended for the general public use.
So which ones do we hold for our investment?
We hold of course the notes already launched such as the 10k, 25k, 50k and 100k but mostly the 10k and 25k notes. However we can also hold many of the notes of the newer denomination categories because many of these they already issued in the past, preparing for the RV. Remember if you read the history of the dinar since the invasion of 2003, you can see that the plan was never to go very long without replacing the currency and value. This is evident and proof by the 50 and 1000 banknotes and 250 and 500 fils already in circulation.
Formal Articles are below. Due to FACEBOOK limitations they do not print my RED colored fonts or italics, so my comments are in brackets ( ) throughout the articles. I will preface my comments with “mnt Goat” so you know I am jumping in with observations. Also, I separated the articles with asterisks.
BLAST FROM THE PAST 2010-2017
Do you remember?
So what happened to the “project to delete the zeros”?
IRAQ TO REDENOMINATE NOTES BY END OF 2010
Feb 07, 2010 08:30 AM Category: Middle East
According to a report on Radio Free Iraq dated 6 February 2010, the Central Bank of Iraq “is planning to redenominate the national currency in an effort to ease transactions and allow people to carry less paper money.
(Mnt Goat – This 2010 announcement was the real attempt to redenominate and it was to be done in December 2010- January of 2011. Note that in all other attempts such as in 2012-2013 and again in 2015-2016 they always use the same verbiage and say “PLAN HAS BEEN MADE TO REMOVE THREE ZEROS FROM THE CURRENCY AND PHASE OUT THE CURRENT BANKNOTES LATE THIS YEAR”. But we have not yet heard this from the CBI recently. We are now in December and January is just around the corner. Why? Do you think they might follow this same pattern? Why not?
It was also this announcement in the news in 2010 that launched the buying frenzy of the dinar by us small time investors. Do you remember at this time the intel conference calls began and now they are out of hand as many charlatans are using this to make enormous amounts of money on falsified intel)
Mudhhir Muhammad Salih, a member of a Central Bank advisory panel, told RFI that A PLAN HAS BEEN MADE TO REMOVE THREE ZEROS FROM THE CURRENCY AND PHASE OUT THE CURRENT BANKNOTES LATE THIS YEAR.
Salih said BY THE END OF 2010 THE NEW BANKNOTES WILL BE FULLY INTRODUCED WHILE THE OLD BANKNOTES WILL BE GRADUALLY REMOVED FROM CIRCULATION. He did not specify when the new notes would be issued. Both will be legal tender in Iraq until the old notes are completely withdrawn.”
IRAQ TO REVALUE DINAR AND INTRODUCE NEW NOTES IN SEPTEMBER 2012
Feb 25, 2012 07:26 AM Category: Middle East
According to an artilce in The Kurdish Globe dated 25 February 2012, the Central Bank of Iraq has agreed with the Economic Committee of the Iraqi parliament to introduce new banknotes in September 2012, and withdrawal old notes within a year of that date.
(Mnt Goat – So here we have it again. Did you read the above statement? The CBI in 2012 was to begin launching the lower denominations and they would coincide with the 3 zero notes and they a year later the CBI would begin withdrawal of the old 3 zero notes. But we know this did not happen and we also know the plan has now changed somewhat. We know they are collecting the older notes (by not reissuing the banknotes for payroll) by the mandated electronic deposit and POS technology.)
The new notes will be denominated in dinars, which will have three zeros REMOVED TO REVALUE THEM 1:1000 COMPARED TO THE EXISTING NOTES. The new 50-, 100-, and 200-dinar notes will be printed in Europe and feature Arabic, English, and Kurdish text.
IRAQ DISCLOSES DESIGNS FOR REDENOMINATED BANKNOTES SLATED FOR JULY 2013
Jul 21, 2012 08:17 AM Category: Middle East
(Mnt Goat – doesn’t this article strike you as strange since in 2012 they told us they would use the newer notes and issue them in September of that year, yet in 2013 they then tell us they are printing the newer notes?
This is actually not strange as one of the reasons for holding back the 2012 actions was the need to print newer, more secured currency banknotes and the polymer was chosen. We also know that POLITICAL instability namely Nori al-Maliki’s run on the CBI takeover helped also to cancel the RV at that time. In fact some say that Maliki actually did the CBI a favor in holding back the RV at that time. He is a hero…go figure! But if you truly look at the history and FACT maybe he is?)
According to Iraq's semi-official Alsabaah newspaper, the finance committee received specimens of the new Iraq banknotes from the Central Bank of Iraq. The specimens were of the 25, 50, 100, and 200 dinars. THE COMMITTEE URGED THE CENTRAL BANK TO DELAY THE INTRODUCTION OF THE NEW CURRENCY FROM JANUARY 2013 TO JULY 2013 TO STUDY ALL THE ASPECTS OF THE PROCESS.
(Mnt Goat – did you read this last statement above? What does it say? It says the Central Bank committee urged the CBI to delay the new currency from Jan 2013 to July 2013 for further study. So this is proof that the Maliki takeover did in FACT halt the RV at that time and it probably was due to the need for more secure banknotes)
Other Iraqi media reports state that the new currency will be issued in denominations of 5, 10, 25, 50, 100, and 200 dinars for banknotes and 25, 50, 100, 250, and 500 fils, plus 1 and 2 dinars for coins. The designs have been already chosen for banknotes and coins:
5 dinars: Beck waterfall and palm tree
10 dinars: dinar coin minted in the reign of the Umayyad dynasty and lighthouse Hadba in Mosul
25 dinars: King Hammurabi receiving the law and farming of Iraqi Kurdistan
50 dinars: King Codaa and Fort Ukhaydir
100 dinars: Central Bank building in Azwaip area in Baghdad and ziggurat
200 dinars: bridge and school
Courtesy of Mosab K. Ibrahim.
SHABIBI ANNOUNCE THE SELECTION OF BRITISH AND GERMAN COMPANIES FOR THE PRINTING OF THE CURRENCY TO ISSUE AFTER YOU DELETE THE ZEROS
Shabibi announce the selection of British and German companies for the printing of the currency after you delete the zeros.
Baghdad : Euphrates said Central Bank Governor Sinan Shabibi for the selection of a British company and the other a German for the printing of the new process to delete the zeros after it.
Shabibi said during a meeting with members of the Parliamentary Finance Committee, according to a statement of the Commission that the bank Central chose a British company and the other a German among the many international companies TO COMPLETE THE PROCESS OF PRINTING THE NEW CURRENCY being the about 75% of the currencies in the world.
He noted that THE CENTRAL BANK HAS RESERVES OF THE CURRENCY, INCLUDING CAN IN THE PROCESS OF DELETION OF ZEROS AND COVERAGE SIGNIFICANTLY.
SHABIBI AND EXPLAINED THAT THE MAIN REASON IN THE PROCESS OF DELETION OF ZEROS DUE TO THE ECONOMIC STABILITY EXPERIENCED BY THE COUNTRY AND THE ABILITY OF THE LARGE CASH AT THE BANK CENTRAL.
(Mnt Goat – Ok so here it is in black and white. This is not me saying this. The CBI DOES in fact need a strong reserve amount in order to RV. Do they now have it? We know recently the IMF has come down on the CBI for having less than 3 months of reserves on-hand to pay the countries bills. Did you read the recent article I presented in my past newsletter?)
And on the currency auction Shabibi between the operation as a window to enter the Foreign currency AND RAISE THE VALUE OF IRAQI DINAR.
The parliamentary delegation included Deputy Yasiri Hussain, Ibrahim al-Mutlaq, MP, and MP Magda al-Tamimi.
During the meeting, discuss the latest Developments reached by the Central Bank in the subject to delete the zeros and replacing the national currency The policy followed in the completion of this process.
The meeting also discussed the issue of Controls adopted in the auction currency and the volume of the money supply.
(Mnt Goat – So we also know that the currency auctions continue to be problematic and are a source of drawdown (via corruption) of the CBI reserves. Funny how Dr Shabibi noted this and said it had to be controlled way before the new proxy governor realized the problem. Remember also all those past articles by the MP Tamami on this subject matter?)
UPGRADING OF IRAQI CURRENCY TO POLYMER
(Mnt Goat – Okay so here it is. We now know that in 2013 the CBI conducted a study to determine the best and most secure banknotes. So we know by this article they had to trash all the newer banknotes already printed by the DR Shabibi era and print newer ones. Could this be one of the holdups to the RV? We also know by an article in 2015, that they decided on a German company to print the newer polymer banknotes. By the article I presented today I showed you that these banknotes were ready and delivered to the CBI in 2016 and in November of 2016 the CBI began selling them to the banks throughout Iraq and stockpiling them. Of course they did not just give the banks FREE money and the banks had to pay for the newer notes, thus the banks have all this capital tied up in these newer banknotes and can’t do a thing with them until allowed to. The banks also invested large amounts of capital in the new ATM machines and they too sit there out of use. When are the banks going to get their return on investment? We know the banks have been complaining to the CBI for taking so long with this redenomination process for these very reasons. But on the flip side the CBI, thru the mandated electronic banking practices, have done the banks a huge favor too since they are infusing large amounts of capital directly into the banks for meeting mandatory liquidity guidelines. The banks are going to make ton of money off this money on housing and auto loans. The banks are also assured they will manage a part of the reconstruction money once it becomes available and so they stop complaining so much…lol…lol….The bottom line is we hear all these complaints from the banking industry but the Iraqi banks are about to become FILTHY RICH!)
Written by Economic news editor
Date: July 9, 2016
Author - Ahmad Salami
- Dinar plastic (polymer)
- Restructuring of the Iraqi currency
- Re-evaluate the value of the dinar
- Iraqi dinar (polymer):
1.the use of plastic money and made of material plastic polymer high-efficiency rather than paper made from cotton material and paper used in the money industry today and that are exposed to rapid deterioration use life short and the movement of disease transition and endemic and infectious bunches bacterial with it and move on to people when you touch Kalmndel infested.
2. plastic money out lives most of its peers paper twice a number of years and do not affect the high temperatures and humidity, water, dyes, crushing and does not allow the formation of clusters of bacterial
3. plastic money security features very high degree forgery make it almost impossible to 99.9%.
4. plastic money can be recycled after it is damaged and the use of new raw materials reduces costs to a very high percentage Unlike paper that lose parts and comes with stickers or dyes, which burned and then buried. Nor used as the raw material.
5.plastic as far as being the most evolved its industry costs less than the cost of paper-based counterparts.
6.world began a gradual transition to plastic money instead of paper and the first Arab state of Kuwait is applied to the new currency system.
- Of Iraqi cash reserves of $ 53 billion for the year 2016
- Iraq has reserves of 90 tons of gold
.. This is the cover of the Iraqi dinar.
Their words not mine…..No Rumors, No Hype, No Opinions ,,,,,
Just the FACTS!
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