Thread: No Revalue? Word From Minister of Finance?

Originally Posted by wciappetta

I was thinking about that and awhile back I pondered if this rate adjustment was merely to put inflation in check and at the moment that goal is achieved launch to the former level. what do you think?

Well they have lowered inflation (less fuel and transportation in the figures) by slowly increasing the value but it can only be a short term goal. So it has worked to a degree by lowering inflation and increasing the value albeit by a small amount.

The CBI and IMF set the 1260 figure, why that figure? Who knows, not of importance but as we approach that figure maybe in 5-10 auctions we will see what they do. Could be something could be nothing. All we know is there is not enough physical currency anywhere in the world to cover the budget figure and they will run out within months, so yes they will have to do something about it eh?

Originally Posted by Adster

Welcome, agreed. We know there are 5 denominations unaccounted for FACT as 14 denominations were made. Could they be higher notes? Not likely, we already have 25k notes, would make no sense whatsoever.

So yes, one would say they would be lower denominations necessary for a reval.

This is not a fact...this is something that was said in an article i believe back in 2004. Fact is when i can go to the cbi site and see all 14 denoms....for all we know that number in the article could have been a typo. While its positive to speculate that there are 14...its not a fact yet...because its not concrete.

1260 thats an interesting speculation as were inching closer to that number.. ..Also that would be great adaster if you could come up with all the countries in the last 10 years that RV...also can you make a side note to the ones that didnt use a loop or a toatly different currency(reprint). I think what your gonna reasearch is a great idea...It would be great to see and compare...Tank

I am definately interested in reading about all the countries who did a RV in the last ten years

Originally Posted by dinartank

restucture can mean 2 things to use the existing to make better or tear down and start all over

true but if you read the part that specifically says "would NOT deteriorate"

These are all just words on a screen to me.

Fact remains they have stated long ago they wont devalue their currency by lopping it.

The only way to add value, like they are saying in that paragraph is to revalue it. you can't add value by taking away value. And that is what zero lop would do, besides cause 1000 times more chaos inside Iraq and piss off the whole world.

Not going to happen.

Originally Posted by Adster

No reprint, no lop, forget it.

Translated version of http://www.newsabah.com/paper.php?name=News&file=article&sid=22813


Baghdad : al-Basil



يواصل البنك المركزي العراقي القيام ببيع الدولار الاميركي مقابل الدينار العراقي من خلال المزاد اليومي الذي يقام فيه، اذ يعد هذا المزاد اداة لتحقيق الاستقرار في قيمة الدينار العراقي عن طريق الدفاع عن سعر صرف مستقر لمدة طويلة مما ينعكس على المستوى العام للاسعار.
The Iraqi Central Bank to sell the American dollar against the Iraqi dinar through a daily auction exhibit, which is an auction tool for achieving stability in the value of the Iraqi dinar by defending the exchange rate stable for a long period, which reflected the general level of prices.

ذكر ذلك مصدر مسؤول في البنك المركزي العراقي رداً عن سؤال لمندوب”الصباح الجديد“ واضاف المصدر: انه لا توجد نية في الوقت الحالي لتغيير العملة العراقية ومن المتوقع انه يتم اصدار فئات جديدة الى التداول وحسب مقتضيات الاقتصاد العراقي لمواجهة نفقات الدولة في المرحلة المقبلة.
According to an official source at the Central Bank of Iraq in response to a question from the representative of "the new morning," the source added : that there is no intention at this time to change the Iraqi currency is expected that the issuance of new categories of transactions, and according to the requirements of the Iraqi economy to meet the expenses of the state in the next stage.

وعن الخطط المستقبلية لمعالجة الديون العراقية ذكر المصدر ان العراق وقع اتفاقيات مع دول نادي باريس لمعالجة ديونه وذلك بتخفيض 80% من الدين.
Regarding future plans to address the debt Iraqi source said that Iraq signed agreements with the Paris Club countries to address its debts by reducing 80% of the debt.

اما فيما يخص استعادة العراق لموقعه المالي والاقتصادي بين دول العالم والمدة القانونية لذلك فقد اشار المصدر ان العراق بدأ باستعادة موقعه المالي والاقتصادي تدريجياً حيث ان هذا الامر مرهون بالاستقرار الداخلي للبلد وسيتعزز هذا الموقع بتفعيل قانون الاستثمار وتطور الوضع الامني.
As for the restoration of Iraq's financial position and economic cooperation between the countries of the world, the legal duration of the source indicated that Iraq started to restore its economic and financial gradually since that depends on the internal stability of the country and this site will be enhanced activation of the investment law, and the evolution of the security situation.



اما فيما يخص الاشراف على النشاط المصرفي المحلي في العراق من قبل البنك المركزي ووسائل اصلاحه فقد اشار المصدر الى ان البنك المركزي يقوم بالاشراف على النشاط المصرفي المحلي وكما جاء في المادة (40) من قانون البنك المركزي المرقم 56 لسنة 2004 وكذلك من خلال قانون المصارف المرقم 94 لسنة 2004 حيث ان هذا البنك على صلة بانشطة المصارف باتجاه تعزيز دورها في تنفيذ السياسة النقدية لا سيما من خلال توجيه المدخرات نحو شتى اوجه الاستثمار وبما يحقق النمو الاقتصادي.


As for the supervision of the domestic banking activity in Iraq by the Central Bank and reform of the source pointed out that the Central Bank is supervising the local banking activity and as stated in Article (40) of the Central Bank Act No. 56 of 2004 as well as through the Banking Act No. 94 for the year in 2004, as this related to the activities of the banks towards strengthening its role in the implementation of monetary policy in particular through channeling the savings to the various aspects of investment, so as to achieve economic growth.
من جهة اخرى ذكر المصدر ان البنك المركزي قام بمنح تراخيص مصرفية للعديد من المصارف العربية والاجنبية سواء كان الترخيص متضمناً فتح فرع له في العراق او تأسيس كيان مصرفي، كذلك تم فتح مكاتب تمثيل، وتعد هذه بداية التعاون والانفتاح نحو العالم باتجاه تنشيط حركة الاقتصاد في القطر.


On the other hand source said that the Central Bank had granted banking licenses of many Arab and foreign banks, whether licensing NTSB open a branch in Iraq or the establishment of a banking entity, as well as the opening of representative offices, and this is the beginning of cooperation and openness to the world towards the revitalization of the economy in the country.

I wasted my time on my last post. Just noticed this one.

Don't listen to what I posted. This one is more solid. A better explanation of why there will be no lop (for the millionth time) and supports a reval....that is raising the value, just as several other articles do.... and without taking zeros off.

(once again note it is impossible to raise the value of currency by taking away zeros)

Originally Posted by Adster

Exactly bro. I did some research a while back and found this great site showing all the old notes of Saddam days and before him. What was apparent was that when the rate was so much higher the lower denoms were 1/4, 1/2, 1, 5, and 10 which was repeated several times, 1973, 1993. Could well be they are the ones waiting to be unleashed!

Iraq - Iraqi Dinar Currency Bank Note Gallery - Banknotes of Iraq - Iraqi Dinars Bank Notes

Adam,
Was there any other news regarding money being flown to banks in the region? Was that ever confirmed? Is it still believed to be the smaller demoninations? Sorry for so many questions!!

I didn't read this entire thread, mainly because I don't have the time at the moment. So if the topic has veered away from what I say then feel free to ignore me.
2-3 years to reach a 1:1000 rate is completely ridiculous(not blaming you for the figure), a country in the condition that Iraq is in will not survive 2-3 years and still have a moderately stable government. Sure they may have raised the salaries of the civilians, but that doesn't take away from the fact that inflation is at a critical rate and there is only so much money in circulation. Not to mention that Iraq does not and would not having any buying power to support themselves. They would eventually end up where they were with Saddam, in debt with a large number of countries. At that point I think we'd just see history repeat itself (the past 3 years).
Also, we have been hearing a lot about the oil industry lately. It's not going to take it 3 years to get on its feet (unless it's the politicians who are doing the construction....procrastinators). If a reval hasn't occurred before the industry is on it's feet again, then I think we'll just start to see massive rate changes.

Originally Posted by The_Mad_Scot

true but if you read the part that specifically says "would NOT deteriorate"

These are all just words on a screen to me.

Fact remains they have stated long ago they wont devalue their currency by lopping it.

The only way to add value, like they are saying in that paragraph is to revalue it. you can't add value by taking away value. And that is what zero lop would do, besides cause 1000 times more chaos inside Iraq and piss off the whole world.

Not going to happen.

oh i agree they wont loop having the same currency.....but totaly changing the currency is not out of question if they choose too...they can do what ever they want....loop just shows weekness in an economy

Originally Posted by The_Mad_Scot

I wasted my time on my last post. Just noticed this one.

Don't listen to what I posted. This one is more solid. A better explanation of why there will be no lop (for the millionth time) and supports a reval....that is raising the value, just as several other articles do.... and without taking zeros off.

(once again note it is impossible to raise the value of currency by taking away zeros)

That is old news i believe this is back from 2006 and not current...how many times have we heard the iraqi say something and then dont follow through with what weve heard