Southbound (KTF) Comments on “Redenomination” Article from Earlier Today

February 6, 2010 · Posted in CHATS / POSTS
Originally Posted by southbound
News / From Our Bureaus
Iraq Planning Currency Redenomination

Iraqi dinars are stacked at a teller’s window in a Najaf bank.

does not state what denoms….. and you have to assume they are not the lower ones for all to see
February 06, 2010
BAGHDAD — The Iraqi Central Bank is planning to redenominate the national currency in an effort to ease transactions and allow people to carry less paper money, RFE/RL’s Radio Free Iraq (RFI) reports.

we have been seeing this and knowing this for quite awhile…the only need for them to do this is to re-value their currency

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.
this guy is an advisor but is making the cbi’s plan public and states the end game
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.
i read this as they will not dump all the lower denoms on the market at the same time…they have to install them as the triple zeros come back to them
Both will be legal tender in Iraq until the old notes are completely withdrawn.
this states what it states so the question would be what about outside of iraq

Iraqi officials have had a long-running plan to redenominate the Iraqi dinar. In 2006, the Finance Ministry recommended to the Central Bank that it carry out such a plan.
the plan has been set all along right out of the gate when the new dinar was printed
Salih pointed out that banks are having a hard time accepting cash savings and deposits, but by dropping the zeros it will make it easier for both the banks to deal with their customers and for the general public to carry money. He said some 80 percent of Iraq’s money supply is cash in circulation.
This tells us an approximation of what they know they have to cover upon rv
Salih added that in 1990 the value of banknotes in circulation was about 25 billion Iraqi dinars but is currently some 25 trillion dinars.
this was saddams mug money and not realistic on the world market..they printed the new money with the knowledge of inflation

Economic analyst Hilal al-Tahhan told RFI that the bank’s move is overdue. He said he expects the currency change to go smoothly because of the decision to allow both the old and new banknotes to coexist, leading to less turbulence in the economy.

overdue is an understatement…they will co-exist but the total amount in circulation will remain the same…big notes in, lower notes out
The current exchange rate is 1,167 Iraqi dinars to the U.S. dollar.