A Finance Committee member of the Kurdistan Alliance MP, Ahmed Hassan Faidhullah could be right in his statement that describes printing new banknotes as a “waste of time ". In this short article he continues: "The current currency is suitable and there is no need to be replaced.”
Let's take a look at both these points of his, is it a waste of time and is the current Iraqi currency suitable but keeping logic as our guide:
The CBI is spending millions of dollars to do a face lift on the same old currency, with the same old value, doesn't make sense?
The CBI is adding even higher security measures to their currency that is way undervalued compared to international standards, that doesn't make sense!
The CBI has continued to hold down the value of the dinar even though the Iraqi GDP is growing at double digits every year, which for sure doesn't make sense!
The CBI has purchased 60 TONS of GOLD in the last TWO MONTHS with not a single bump in the value of the dinar, does that make sense? Of course not!
The CBI is preparing to take control of ALL Iraqis ASSETS, some that has been frozen for as long as 24 years but yet they are printing the same old current series of banknotes, REALLY? That doesn’t make sense!
FYI: I found over $105 billion USD worth of documented frozen assets in just a short few minutes of searching for it on the net, between Saddam’s personal conservative estimated funds, the estimated hidden loot by others, to the Saddam family pension fund, valued at $41.6 billion in 1990: LINK There is more out there than this and I will continue to research for it but I think you get my point.
The CBI has contracted a company to mint into gold ingots 11 TONS of GOLD to be sold to the Iraqi citizens that only make a per capita income of around $6,000 per year. Again, does that make sense?
FYI: As I talked about on our roundtable discussions last night gold ingots are marketed to the middle and upper middle class which Iraq just recently reached a worldwide lower middle class status with their per capita income level. Is there more to this story and are they about to reach a higher level soon that can afford Iraqis to buy these ingots through a pending revaluation of the Iraqi dinar? That would make sense and the CBI would know because they are the ones in charge of Iraqis monetary future but I would say the answer is yes, there is more to the story. By the way, the rich buy bullions or gold futures not ingots and all you really have in Iraq right now are poor, low international standard middle class that are barely getting by and rich billionaires! One only needs to watch the many TV commercials pushing gold and silver here in the states that are targeted to the U.S. middle class too know this and the middle class Iraqi are sure not comparable to our middle class, or are they about to be? No that makes sense!
The CBI continues with these daily auctions that orchestrate two exchange rates: the de facto fix of 1166 : $1 USD and a market rate of 1192-1292 : $1 USD when only countries that have inflationary issues, high debt, trade deficits and low foreign reserves work dual or multiple exchange rates to combat these issues. Iraq has very low inflation at 3.1 percent, very low debt compared to the rest of the world and that is being paid off fast, a trade surplus (not a deficit) and the highest foreign reserves in the history of their country and larger than most countries of the world but yet the CBI continues to keep a very low value to the dinar. That just doesn't make sense!! As Expert Mark DeWeaver puts it: “One exchange rate should be enough.”
The CBI spent $10,000,000.00 on 10 high speed DeLaRue machines to count, sort, detect fraud, bundle and/or destroy their currency, does printing new versions of the currency and just adding them to what’s already out there put these high dollar machine’s to work? No it doesn’t and it doesn’t make sense either!
So why are they printing an improved version of the same bills? Is it because the 250, 500 and 1,000 dinar notes are worn out? The news and complaints from the Iraqi citizens tell us this, the low liquidity (dinars) statements by the Iraqi bankers themselves tell us this, so that part makes sense. It even makes sense that these would be the highest in the lower denominated food chain once the CBI prints the 5, 10, 25, 50 and 100 dinar banknotes which have been approved and designed in 2012. But printing higher banknotes with three zeros on them when years of studies by Dr. Shabibi himself and the GOI Economic Committee assigned to reforming Iraqis economy and currency says that Iraq is and has been ready by easing in transactions through deleting the zeros and improving the purchasing power of the dinar.
Approved banknotes and designs:
5 dinars: Beck waterfall and palm tree
10 dinars: dinar coin minted in the reign of the Umayyad dynasty and lighthouse Hadba in Mosul
25 dinars: King Hammurabi receiving the law and farming of Iraqi Kurdistan
50 dinars: King Codaa and Fort Ukhaydir
100 dinars: Central Bank building in Azwaip area in Baghdad and ziggurat
200 dinars: bridge and school
Ahmed Hassan Faidhullah brought up some good points but the real question should be, does the CBI have a bigger plan in mind?
The answer to that is yes they do, by common sense alone the printing of the 250, 500 and even the 1,000 fits right in with the real plan, IMO! Today most of the articles are only talking about these bills anyway.
So why print higher three zero banknotes? Because these will be used for commercial transactions, just yesterday in one of the Kurdistan newspapers this was quoted: On November 2013, the CBI announced intention to put into circulation higher banknotes of 50,000 dinars in Arabic and Kurdish languages. Will with these new 25,000 notes they sure don’t need a 50,000. A few years back they wanted to print 100,000 and 250,000 banknotes for commercial transactions so I look at this as a great sign that the real value of the dinar when reform is implemented may have these new 25,000 notes worth as much as the those 250,000 notes would have had by lifting the value by three zeros. We have seen that terminology used many times over the years, lifting the value by three zeros is just one of terms used when they refer to the zero project.
Listen to my friend Mr. Khoury translate the CBI Press Release Documents I sent him concerning this subject of re-printing the current series of banknotes. He joined us on our roundtable discussions unexpectedly last night, so you need to hear what he had to say. After the intro I forgot to turn my mic on, but I figured it out; just be patient for a few minutes and the audio will start.
CLICK THIS ON DEMAND
So in conclusion, it does make sense and is well worth spending millions on a new generation of the current series of currency in the CBI’s big picture. But does my points make sense to you? I would like to hear our member’s thoughts on this, good or bad so go to this LINK and voice your own opinion on this subject.
You should be proud of yourselves for taking your valuable time to get more informed with facts!