* Enorrste: The Documented History of the Pending RV of the IQD

 

In an effort to allow us all to have the same information from which to arrive at our own conclusions regarding the pending RV of the IQD I thought it would be helpful to place here, in one place, all documentation regarding the RV in chronological order. In doing so we will be able to see how the “action plan” has a long history and how to interpret the term “redenomination” today.

1. September 2005

http://www.talkgold.com/forum/showth…=28719&page=44

Official statement:

The value of the Iraqi dinar for monetary policy, such a policy is the responsibility of the Iraqi Central Bank, the Ministry of Finance is responsible for fiscal policy. He added, but suggested that Mr. Governor of the Central Bank Dr. Sinan Shabibi need to raise the value of the Iraqi dinar and return to normal through the lifting of three zeroes. Voadeni Mr. Governor well to hold an expanded meeting next month to study the proposal by experts in this area of the Iraqi Central Bank, Ministry of Finance and Commercial Bank, namely, the proposals to get the value of the Iraqi dinar equivalent of [to] the American dollar, this goal we will strive to achieve, God willing, during the four years Llahkom e due to the new Iraqi dinar healthy stand of the other currencies. Lastly Zubaidi corresponding reference to the International Monetary Fund to support the resolution Iraqi dinar remarkable considering that the Central Bank of Iraq financially cover $ 11 billion dollars to support the value of the Iraqi dinar and the cover is rarely found in the third world.

2. June 29, 2006

http://www.iraqdirectory.com/DisplayNews.aspx?id=1593

Baker Jaber AL Zubaidi: Iraqi Dinar Value should be Raised

Al-Sabah – [6/29/2006]

The Ministry of Finance together with the Central Bank are studying a proposal to raise the value of the Iraqi dinar in order to return it to previous levels where one Iraqi dinar was valued at 3.33 US dollars. This was pre 1980 before Iraq became involved in three destructive wars that at one time led to the currency’s value dropping to a level of 3,000 Iraqi dinars to one US dollar. The proposal has the support and approval of the World Bank.

A statement by B.J. AL Zubaidi, the Minister of Finance, in which he said that he had suggested to the Chairman of the Central Bank, Dr. Sinan AL Shibibi, that three zeros be taken from the Iraqi Dinar in order to raise its value so that one Dinar be equal to a Dollar. He explained that the financial authorities were set on holding a meeting next month to discuss the matter. The meeting is to be attended by experts and specialists from the Ministry of Finance, the Iraqi Central Bank and the Commercial Bank .

The new Minister confirmed that 2007 would see the preparation of a qualitative budget, the first of its kind in Iraq history, and that the new program would pinpoint economic indicators.

3. January 21, 2007

http://www.iraqdirectory.com/DisplayNews.aspx?id=2994

Minister of Finance: support of oil derivatives continuous

Salary increases are calculated from this month, the dollar worth 1260 dinar this year and will drop to one thousand dinar soon

Translated by IRAQdirectory.com – [1/21/2007]

The Minister of Finance denied that the 2007 budget had lifted support for oil derivatives, and confirmed that his ministry had allocated the funds required for the new salary scale which will be implemented this month, but the Parliament did not approve the plan of implementation so far, pointing out that the value of the Iraqi dinar against the dollar will be 1260 dinar for this year with putting a fiscal policy to restore the strength of the Iraqi dinar.

Minister of Finance, Baqer Azzubaidi, said that: the value of crude oil pumped from Iraqi oil fields to the refineries that belong to the Iraqi Oil Ministry worth seven billion dollars, which represent the government support for petroleum products; also, three billion dollars have been allocated from the financial budget to cover the expenses of constructing new refineries and maintaining the current ones, with a further $ 300 million to buy kerosene.

Azzubaidi explained that the revenues of selling petroleum products would remain in possession of the Ministry of Oil to be used for sustaining and developing other oil projects, pointing out that lifting the support on oil derivatives has only included the high-quality imported gasoline which is used in modern cars.

He also explained that the Ministry of Oil can purchase the necessary materials used in improving the derivatives from its own budget.

As for the salaries of government employees, the Minister of Finance said that: his ministry had issued directives to pay the salaries according to the new salary scale, but the Parliament has delayed the ratification on implementing the plan due to the lack of quorum which caused the delay in preparing the Parliament’s own budget, approving the budget of the Supreme Judiciary Council and delaying the government from presenting the budget to the Parliament.

He pointed out that the new applications of Kurdistan government; including the deduction of its imports directly from the various imports, added another reason to delay the presentation of the budget.

He explained that the Ministry of Finance has put figures for the budget of the Ministry of Defense, considering it as a sovereign Ministry to settle its issue among the parties which called for considering it as a non-sovereign one.

Al Zubaidi emphasized that the Ministry of Finance and in consultation with the Central Bank seeks to identify the exchange rate of the dollar at 1260 dinar during the this year. It also laid down a plan to restore the Iraqi dinar to its former era during the coming three years expressing his hope to stabilize its exchange rate at 1000 dinar for the dollar during the coming period. He pointing out that the inflation is not a fixed situation but a temporary one, and that one of its causes is the crisis of leaking goods into the Iraqi depths from the ports because of the terrorist operations; also, the rise of the prices of oil derivatives during crises forms another cause for inflation.

Regarding the current year budget, Azzubaidi described it as ambitious; eight billion dollars have been allocated for security for the first time, despite the allocation of large amounts for investment that will contribute to solve the crisis of unemployment and increase economic growth by 8-10%, so as to ensure the completion of service projects in all governorates.

He said the remaining funds from the final account of last years amounted to eight billion dollars, and that the government would provide final budget to the Parliament during the first quarter of this year.

4. August 2008

http://translate.google.com/translat…ogle.com&twu=1

From Forat News

Plan to increase the value of the dinar against the dollar and the deletion of three zeroes

”Finance Ministry has prepared a plan to increase the value of the dinar against the dollar and then delete the three zeroes from the dinar’s value to contribute to the advancement of the Iraqi economy during the coming period with the Iraqi central bank denied the rumors making the dollar worth 1000 dinars and said in a statement issued by the Ministry of Finance:, the Minister Baqir Jabr said During his recent visit to the Jordanian capital Amman, said the CBI chagrin financially estimated $22 billion and three tons of gold intended to support the Iraqi dinar. He said that successful fiscal policy pursued in Iraq have contributed to increasing the value of the Iraqi dinar against the dollar, noting that the dollar exchange rate dropped significantly during the current year, stressing that all efforts will be channeled to the deletion of three zeros from the value of the dinar.

“On the other hand denied the authoritative source in the Iraqi Central Bank rumors making the dollar worth 1000 dinars, or a change denominations or raise zeros from the current currency.”

“He said in a press statement that the bank has been following with great interest the phenomenon of low demand for the dollar in the local exchange markets, stressing that such information or rumors surrounding the aim of achieving commercial gain emergency for some users at the expense of the public.”

5. February 6, 2010

http://www.rferl.org/content/Iraq_Pl…n/1950504.html

“News / From Our Bureaus
Iraq Planning Currency Redenomination

”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.

”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.

”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.

”Both will be legal tender in Iraq until the old notes are completely withdrawn.

”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.

”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.

”Salih added that in 1990 the value of banknotes in circulation was about 25 billion Iraqi dinars but is currently some 25 trillion dinars.

”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.

”The current exchange rate is 1,167 Iraqi dinars to the U.S. dollar.”

6. February 10, 2010

http://articlesofinterest-kelley.blo…ether-and.html

February 10, 2010

Two currencies coexist together and gradual replacement

Central Bank (time): Delete the zeros start end of the year

BAGHDAD – Ahmed Saleh Khyoun

CBI begins the end of the year and gradually replace the currency now in circulation a new currency which zeroes deleted within the strategy to reform the monetary system started in 2005.

Bank consultant and announced the appearance of Mohammed Saleh told (time) on that (the bank has completed 50 percent of a strategy switch in and out, delete the zeros of the nominal value of the new currency while retaining the cash value and purchasing power), said that (the replacement process will be gradually and spontaneously high and without fanfare, as will be There are two currencies to trade at the same time go hand in hand), but (that the purchasing power of the new currency will remain fixed).

Saleh said (there are multiple advantages of this strategy, including ease of trading between the citizens and facilitate the work of banks, counting, sorting, and stand on the counterfeit currency and to facilitate transactions of the citizens with the banks on the deposits and withdrawals in addition to facilitating the process of monetary reform after hitting a currency issued in circulation now 25 trillion dinars, while in 1990 was about 25 billion dinars and this in itself calls for the deletion of zeros).

In the answer to a question by (time) whether the Central Bank has set a deadline for the replacement of the currency said (we did not define this ceiling until now that the matter is still under study and the reality of work at that time will decide how long the replacement process).

Responding to another question about the Iraqi currency held abroad and how to replace it “(The right of a citizen is to remove the $ 200 thousand dinars and he could only replace it like any ordinary citizen here in Iraq, either from abroad, the banks in the States would be responsible to us of the assets of our currency), He pointed out that (a media campaign will precede and guide the process in order to raise public awareness of the importance of this and that our banks and our will all be ready to provide all facilities to the citizens and emphasize once again that the process does not affect absolute quiet in the market also note that many countries replaced their currency and benefit from their experiences in this area, including Turkey, Russia, Brazil and others).

7. February 11, 2010

From Al-Iraq News.com

Conscious / Baghdad / G. E
11/2/2010 3:51 pm
Finance Minister Bayan Jabr said the lifting of the zeroes of the Iraqi currency will support the currency against the dollar.

Zubaidi, in remarks quoted by reporter (news agency, Iraqi Information / conscious) that this proposal by the Ministry of Finance to the Central Bank of Iraq was not affected increase or decrease but it is just delete the zeros vocation not only the case in many countries Noting that the Iraqi dinar would be offset dollar or slightly more than after the application of this proposal.

According to an official source at the ministry The proposal to raise three zeroes from the currency will be in accordance with the right monetary policy is not gradual, as happened in Turkey and this policy will raise the monetary value of the Iraqi currency and will of the Iraqi dinar Strength of cash against all currencies.

Summary

The following summarizes the seven articles above.

1. September 2005

but suggested that Mr. Governor of the Central Bank Dr. Sinan Shabibi need to raise the value of the Iraqi dinar and return to normal through the lifting of three zeroes.

the proposals to get the value of the Iraqi dinar equivalent of [to] the American dollar, this goal we will strive to achieve.

2. June 29, 2006

The Ministry of Finance together with the Central Bank are studying a proposal to raise the value of the Iraqi dinar in order to return it to previous levels where one Iraqi dinar was valued at 3.33 US dollars.
A statement by B.J. AL Zubaidi, the Minister of Finance, in which he said that he had suggested to the Chairman of the Central Bank, Dr. Sinan AL Shibibi, that three zeros be taken from the Iraqi Dinar in order to raise its value so that one Dinar be equal to a Dollar.

3. January 21, 2007

Al Zubaidi emphasized that the Ministry of Finance and in consultation with the Central Bank seeks to identify the exchange rate of the dollar at 1260 dinar during the this year. It also laid down a plan to restore the Iraqi dinar to its former era during the coming three years expressing his hope to stabilize its exchange rate at 1000 dinar for the dollar during the coming period.

4. August 2008

Finance Ministry has prepared a plan to increase the value of the dinar against the dollar and then delete the three zeroes from the dinar’s value to contribute to the advancement of the Iraqi economy during the coming period
On the other hand denied the authoritative source in the Iraqi Central Bank rumors making the dollar worth 1000 dinars, or a change denominations or raise zeros from the current currency

5. February 6, 2010

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
that a plan has been made to remove three zeros from the currency and phase out the current banknotes late this year.

”Salih said by the end of 2010 the new banknotes will be fully introduced while the old banknotes will be gradually removed from circulation.
Both will be legal tender in Iraq until the old notes are completely withdrawn.

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

6. February 10, 2010

CBI begins the end of the year and gradually replace the currency now in circulation a new currency which zeroes deleted within the strategy to reform the monetary system started in 2005.

7. February 11, 2010

this proposal by the Ministry of Finance to the Central Bank of Iraq was not affected increase or decrease but it is just delete the zeros vocation not only the case in many countries Noting that the Iraqi dinar would be offset dollar or slightly more than after the application of this proposal.
The proposal to raise three zeroes from the currency will be in accordance with the right monetary policy is not gradual, as happened in Turkey and this policy will raise the monetary value of the Iraqi currency and will of the Iraqi dinar Strength of cash against all currencies.

This short summary of actual quotes from reputable sources gives us a clear indication of the on-going plan of the CBI to revalue the IQD to at least $1.00 in the near future and then to removed gradually the larger denominated notes as they become unusable in the market place. This summary further totally eliminates any possible interpretation of a lopping of zeros such as happened in Venezuela.

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