ALL -> Please READ
I agree with this view
Thoughts on recent developments/ Dinar in Circulation/
From 12/20/08 on still another Forum
Well, I have been an investor for 4 1/2 years and have followed the ups and downs of the roller coaster ride of the rumor mill, but 2008 has been very different with a lot of things changing in Iraq.
First in January 08 the announcement by the CBI that they were going to only accept the 3 zero bills in the auctions of dollars.
I found this a little strange so I started charting the auction sales and about July I noted a major trend as there were fewer and fewer Dinars being sold but the dollar sales were bringing in close to or over a trillion Dinar on a weekly basis and none was being returned by Dinar sales.
Al Shabibi during this time posted a news release that the CBI wanted to shrink the currency in circulation down to 60 billion when they originally had printed 32 trillion.
The call came to raise 3 zeros which many people thought meant a lop.
Yet no lop would be indicated because inflation was under control and raise in Arabic means different than lop like raising the value to eliminate the 3 zeros and that is what they are doing by shrinking the amount of currency by witholding the 3 zero notes from re entering the market.
Now the timing is right for a re evaluation as this is the first auction in the New Islamic year.
arco: Welcome GenerationX , I find your theory intersting, what is there that can interfere with the RV, if anything ??
dinarhopeful: i like that thinking
jubilee: Sunday's auction should show the new value?
GenX... thank you for comin here to share .. we appriecate it!!
dinarhopeful: i to have watched them pull the notes not knowing how many go back in circulation
AK49: thanks genx
pball: I thought Iraqs fiscal year started in Jan 09
General-C: I know I have read some of your posts but can't remember right now ....do you think we are looking at 2 RV's
xman: GenX If the banks trade out 25K notes for 25 one K note how does that reduce the currency supply. You are saying the reduction is from the CBI not reintroducing the currency byt retiring the notes?
xman: Reduction of the supply at the interbank level
BrabusSV12S: xman - They will destroy the 000 notes
arco: pball, he said New Islamic year, not Iraqs fiscal year, I think they are different.
doni: Don't get your hopes for tomarrow, Monday or Tuesday at best
kritter: Gen X thank you for that info.... welcome to our forum!
BrabusSV12S: If there is 1T dinar in circulation and 500 B are in high 000 notes they are not going to destroy the lower denominations. They will exchange the lower denoms for the higher 000 denoms and then pull them out of circulation and destroy them literally leaving only the smaller denoms in circulation.
xman: Brabus That would not reduce the total currency from circulation
BrabusSV12S: As GenX was saying this is what they meant by the terms lifting the 3 zeros.. And all along we thought they meant lifting it off of the value of the dinar.
arco: xman, it would if the lower denominations were already counted in the total currency in circulation
BrabusSV12S: Yes it would xman. Why not? They know how much dinar is in circulation (total) including the lower denoms. They aren't just printing lower denoms to replace the higher ones as though the lower denoms are a second thought. This has been the plan all along and the lower denoms are all calulcated in their total amount in circulation.
In November I started posting what I had charted and started looking at how much had been retained and what need to be done to accomplish a revalue. Chapter 7 had to be complied with, requreing Sofa to be signed all this has been done.
The Dinar in Iraq will be exchanged for smaller denoms.
The outstanding 3 zeros will be bought.
The formula I use is this. the factor during this freeze in value is .000854 removing the 3 zero bills has effectively changed this factor to .854.
The tie to the dollar has effectively raised the value by 42% which has not been reflected in the daily pip.
Add this into the factor .854 X 1.42 = 1.31+ change round to 1.22 to ease factoring/ The Islamic new year was Thurday with the auction on Sunday as the first auction their 2009 year so it just makes sense to sart the new year with a new value.
xman: Being printed and being in circulation is not the same thing.
diane: do you think there will be another RV a few months down the road?
[uT]here is a huge amount of dollars available now for the exchange, with the announcement of the 7.9 trillion dollars of gold they have had stashed off balance sheet from the CBI holding. this alone will cover the cost of reval at this time. [/I]