The Central Bank is talking about the deletion of zeros and currency exchange beginni
The Central Bank is talking about the deletion of zeros and currency exchange beginning of 2013, "a fantasy"
Alsumaria News / Baghdad
He CBI, Sunday, talking about the deletion of zeros and the replacement of the Iraqi currency early next year 2013, "a fantasy", as he emphasized the need to be replaced in the currency of a new financial.
The deputy governor of the Central Bank of the appearance of Mohammed Saleh in an interview for "Alsumaria News", "The draft restructuring currency and delete the zeros are still just proposals nor approved so far and remains a dead letter," noting that "the Finance Committee in the House of Representatives are still trading with Bank on it and the time at which it is replacing the currency. "
Saleh added that "any thought about replacing the new currency after deletion of zeros starts with the beginning of 2014 and up, if approved by the Council of Ministers on the project since the Council's decision to wait still continues until now," adding that "talking about the deletion of zeros and the replacement of the Iraqi currency beginning of the year next 2013 pure fantasy. "
He pointed out that in favor of "currency replacement must be with a new financial", adding that "private accounts, the Iraqi government can not be recorded in the same year two forms of financial values."
He was a member of the Finance Committee Haitham al-Jubouri announced (15 May 2012) in an interview for "Alsumaria News", that the month of January of the next year 2013 will witness deleting three zeros and the replacement of the currency, as will next September 2012, the direct printing of the new currency various categories.
And hosted the Finance Committee in the (26 June 2012), the deputy governor of the Central Bank of the appearance of Mohammed Saleh to discuss the mechanism that will be followed by the bank in the process of deletion of zeros and how long this process and the variables that will occur on the currency exchange.
And was a member of the Finance Committee parliamentary Nagia Najib announced in an interview for "Alsumaria News", in (3 July 2012) that the budget next year 2013 will be the new currency after deleting three zeros from the current currency, arguing that the reluctance of traders and companies from trading in the Iraqi currency behind the adoption of the bank Central project delete zeros.
He accused the central bank (12 September 2011) governmental bodies obstructing monetary reform and vowed persecuting, blaming the authorities responsible for exposing the financial interests of the country to danger.
What was seen as an adviser to Prime Minister for Economic Affairs in the (25 August 2011), that the lifting of the zeroes from the currency is the biggest corruption in Iraq if it was during this period, and fall under the name of tampering with the economic, warning of "mafias currency" is preparing to rig the trillions of Iraqi dinars to replace them in light of changes anticipated.
It is noteworthy that some economists believe that Iraq is not formatted for the time being to delete the zeros from its currency, noting that the deletion needs to stabilize the security and political as well as economic stability.
Kaperoni on this article -
Keep in mind the IMF probably has a pretty good idea on where they are in the process...and the extension was until Feb 2013. Sure they can extend it again, but my point is that I think they plan to get this done before the end of the year. Remember also, that the CBI has smaller bills ready for this event (not the new currency), in which they can issue and use for a several months until the new currency comes out. This article seems to imply they are talking about the new currency again.
Another thought is this is all just deception. Clearly, they cannot announce the event or give a timeline within days to avoid speculation. And with the end of the year getting closer, speculators are starting to perk up and take look to see if they are not ready.
Lastly, lets look at Iraqs economy, it is a fact without the new currency (and internationally traded and accepted rate), the country cannot prosper. The various sectors outside of oil cannot grow, investment will continue to stay away, and Iraq will continue to be reliant on oil and the dollar. As well, the banking sector will not become what Shabibi wants. The ISX is suppose to go international in Jan 2013 - what would be the purpose of preparing for all that, software, laws, equipment, custodial banking etc...with a currency that is not international?. Therefore, based on this list alone, I think the RV will come soon.
I will also add, based on articles, they apparently have removed 12-20 trillion in liquidity from Iraq in the last 7 months (12 trillion for sure from April-June). I don't see how they can opperate under that condition even with just the dollar. I don't see why they would have ramped up this process if they were literally months if not a year away from changing it.
KAP texted me this morning to request that I read this article and that I might "weigh in" after having done so.
While KAP presents a well-reasoned response I believe that he leaves the door open too wide. Let me explain.
This article involves an interview with the Deputy Director of the CBI, Mr. Saleh, and furthermore it quotes him quite clearly. The two key words are "fantasy" and "utopian", both of which refer to the same Arabic word used by Saleh.
Therefore, in order to understand just what is "utopian" or a "fantasy" we need to look at previous statements made by the CBI and specifically by Mr. Saleh himself. What is important here is that the CBI has been quite consistent over the last several years in laying out for the Iraqi people (and also for us) the plan of the CBI. So, let's review the plan.
Mr. Saleh has stated, as did Mr. Shabibi, that the new currency would be printed beginning September 2012. That position is repeated in one of the three articles above. Similarly, the CBI and parliament are on record that the new currency would be introduced in January of 2013. Saleh in fact stated that he could NOT delay the issuance of the new currency until July of 2013 because accounting changes MUST occur at the beginning of the fiscal year. Therefore, we have the clear statements of the CBI, and parliament, from which to understand this article.
However, there is more. In addition Saleh has stated that the two currencies (the existing and the new "3 language" currency) would co-exist into 2014, after which the existing currency would be removed from circulation, including the "remove the 3 zeros" currency, the large denominated notes.
We are now able to understand the terms "fantasy" and "utopian" within this context. Mr. Saleh is entirely consistent in his statement. He is stating that it would be a "fantasy" or "utopian" to expect the removal of the three zeros to be accomplished in January of 2013. After all, he is on record that the two currencies will co-exist into 2014. Furthermore, he has implied indirectly that the final removal of the 3 zeros will require some sort of legislation from parliament which he has not yet received.
So, we have another confirmation of the process as previously outlined: in September the new currency will be printed (although probably not circulated). In January the new currency will begin to be circulated. The two will co-exist for at least one year, after which the existing currency will be withdrawn.
Now, the "existing currency" will HAVE to include small denominated notes in order for it to co-exist with the new currency, each having the same value (1 dinar old = 1 dinar new). Furthermore, and this is what is important to us, the RV MUST TAKE PLACE prior to January 1, 2013, and most likely during the month of September in order for time to be had to issue the small denominated notes of the EXISTING currency. In Saleh's terms, then, it would be a "fantasy" or "utopian" to expect the "removal of the three zeros" to occur in January 2013 since the new currency will only have been issued in that month. Otherwise how could the two currencies co-exist, as he has stated they would?
So what happens in 2014 is the "removal of the three zeros".
The RV is not being delayed. The new currency printing is not being delayed (as noted in the article above). The new budget WILL be issued in January with the new rate. The new currency WILL be issued in January as well.
But the large denominated notes will be allowed to remain in the market until 2014. Any thought that they could be removed in January of 2013 is a "fantasy" and "utopian."
The process of removing the zeros from the currency and wealth Maaliha
B adenosis - Iraq News Network: Mark the appearance of Mohammed Salih, Deputy Governor of the Central Bank to talk about to delete the zeros and the replacement of the Iraqi currency early next year 2013 an act of imagination, but he stressed the need to replace the currency in the new financial year.
Saleh said that the re-structuring of the currency and delete zeros are still just proposals nor approved to date and remain a dead letter, noting that the Finance Committee in the House of Representatives is still deliberating on the matter with the bank and the time will be the replacement of the currency. He pointed out that the benefit of currency exchange must be with the new financial year, considering that the private accounts, the Iraqi government can not be recorded in the same year, two forms of financial values.
He was a member of the Finance Committee Haitham Jubouri announced last May that the month of January of next year will see the deletion of three zeros and the replacement of the currency, as of next September will see the direct printing of new currency in different categories. As announced by the Parliamentary Finance Committee Najia Najib last July that the 2013 budget next year will be the new currency after deleting three zeros from the current currency, arguing that the reluctance of traders and companies from trading in Iraqi currency behind the adoption of the Central Bank of the project to delete the zeros.
This has accused the Central Bank in September of last year to block government agencies vowed to reform the monetary and persecuting, blaming the authorities responsible for exposing the financial interests of the country to danger. What was seen as an adviser to Prime Minister for Economic Affairs in August of last year to raise zeros from the currency is the biggest corruption in Iraq if it was during this period, and fall under the name of tampering with the economic, warning of "mafias currency" is preparing to rig the trillions of Iraqi dinars to replace them in the light of changes anticipated. It is noteworthy that some economists believe that Iraq is ready for the time being to delete the zeros from its currency, noting that the deletion needs to be a security and political stability as well as economic stability.
__________________________ I have further explained what is happening here in my comments to the article preceding this one.. Please read that first.
Here I would like to add one small note which comes from this quote:
"As announced by the Parliamentary Finance Committee Najia Najib last July that the 2013 budget next year will be the new currency after deleting three zeros from the current currency,"
This is an important statement in that it clearly states that the new budget will be in the new currency AFTER deleting three zeros from the currency. Notice that this term "deleting three zeros from the currency" is NOT referring to the REMOVAL of the large notes! It is referring specifically to the RV itself, or, in other words, raising the value of the dinar by 1000 times.
It is extemely important to see this, because it is a clear statement that the RV MUST TAKE PLACE prior to January 2013 when the new currency is issued. Najib"s statement says specifically that point!
I hope this gives everyone a good deal of confidence. Taken with the previous article in this forum referring to Saleh's interview, we can see that both Saleh and Najib are confirming that the plan is still in place just as previously stated.
Last edited by BlueyesinLevis; 08-20-2012 at 09:15 AM.
Chattels, thank you for recognizing Blues effort, he works hard and digs deep into this quagmire and is very helpful. Believe it or not, there's one place in particular he is chastised, ridiculed and mocked. Hard to understand why someone would only log into a site to degrade someone like Blue. He has kept me upbeat without telling me it will happen tomorrow and I appreciate that. Thank you Blue! Go RV!!!