5-12-2015 Intel Guru Frank26 Do you know anyone who is going to buy BONDS at the 1166 rate? (No!) ...these BONDS are about to go up in value from 1166 up to 1 to 1 (like the USD) but they’re going to go past the American Dollar over time probably within the next 5 years for sure. That’s why the DOMESTIC and INTERNATIONAL BONDS must be sold in IQD because they are going to go up in value. The value will only continue to go up... 1, 2 or 3 times its value in 1 or 2 years or overnight...It depends on the whales and the sharks. It depends on the international investors coming into Iraq. It depends on the people outside that are willing to buy these bonds. The World Bank has a huge delegation over there right now. I think it for the final touches for the introduction of the new rate. They got a new credit rating. They got the bonds set up. And all of this BEFORE Ramadan? (Yea...before Ramadan). [post 2 of 2]
5-12-2015 Intel Guru Frank26 [via FrostyTheSnowman] Going forward with the monetary reform, the budget, the salaries, the private sector...everything that is in line. First of all we need an credit update...a credit rating for the banking systems in Iraq. Did Iraq get it? YES! ...it is one of the first steps REQUIRED in order for a country to establish its own BONDS. Here’s the key...these BONDS are about ready to be released. The “GREEN-LIGHT” was not just to remove the 3 zeros...it was given to do the monetary reform process...basically to COMPLETE ARTICLE 8! The green light allowed them to do what they are doing finding ways that they can FULFILL their budget and explode the private sector, economy, bring in INTERNATIONAL trade. This is VERY BIG! There are TWO types of BONDS: 1- DOMESTIC BOND 2- INTERNATIONAL BOND (yeah!). These are not being sold in USD but IQD’s! [post 1 of 2....stay tuned]
5-12-2015 Intel/Newshound Guru tman23 if the CBI releases a 50,000 note that has those 3 zeros to the street... it is not a good thing...there is no way to spin it as being positive...and those who buy into the spin of it being positive are in denial. WE will have to wait and see what the CBI releases...A 50 note with a solid block to the edge of the note after the #50 keeps us in the game ...a 50,000 note that has the 3 zeros on the note is not good. ...we make payments electronic... On the receipt does it say 20 note in 50k 10 notes in 25k...etc. NOPE...and if a bank for internal pay receives cash they need it for liquidity to use in daily transactions... I'm not buying into use for internal banking.
5-12-2015 Newshound Guru Enorrste The number of pieces of paper, on the other hand, is a cumbersome problem that they simply WANT to correct prior to initiating the float...doing so will allow a larger bill with better security to come into play and will bring in millions of smaller notes than can be destroyed PRIOR to the intiation of the float. The result is that the float may well be announced shortly after the introduction of the 50k notes because they can destroy the smaller 3 zero notes that are turned in. Then, as the value of the dinar rises, even more 3 zero notes can be destroyed to lower the overall money supply, as they wish. [post 2 of 2]
5-12-2015 Newshound Guru Enorrste [...why is the CBI more concerned with reducing the number on notes rather the amount of curency in the market.] The CBI has stated two things: first, that the money in circulation is well supported by the reserves on hand, making the current dinar one of the strongest currencies in the world (in terms of backing); and second, that as the value of the dinar is allowed to rise the 3 zero notes will be gradually withdrawn until the money supply falls from its current 38 trillion dinars to about 25 billion dinars. At that time the dinar will STILL be the strongest in the world because they have $67 billion in reserves, or nearly 275% coverage of their money at $1 per dinar. Therefore, to answer your question, the "amount of currency" in terms of its current value, is not a problem and won't be as they destroy the large notes with the rise in the value of the dinar.
