(BondLadys Chat) 7/19/11 ON ANOTHER SITE

BondLady] July 18, 2011 Iraq’s Central Bank Considers New Currency Iraq’s Central Bank says the country is in need of a new currency in which the current zeros are removed to facilitate commercial transactions, according to Azzaman. The bank’s Governor, Sinan al-Shabibi, said he was in talks with the prime minister, Nouri al-Maliki, on how to go ahead with the bid to issue currency with a lower denomination and higher value. Shabibi said Iraqis were now relying a lot on the U.S. dollar, particularly in settling cash transactions that required a lot of money. The use of credit cards is still limited in Iraq and cash is still the main source in trade and commerce. Allocations even for small projects and to carry out simple commercial deals are in millions or billions of dinars. Three bundles of $10,000 require carrying or paying about 40 million dinars. The new arrangement, once implemented, will make transactions simpler and easier, the Central Bank governor said. Calculating and paying with the current currency makes trade deals rather “awkward and difficult” for a small country like Iraq, Shabibi said. Other countries, like Turkey and Brazil, successfully dealt with the same problem by removing zeros from their currency. In Turkey, people dealt with millions of liras for simple purchases and transactions. Today a dollar is worth about 1.6 new liras. Shabibi said there was a lot for Iraq to learn from Turkey.

[BondLady] The new arrangement, once implemented, will make transactions simpler and easier, the Central Bank governor said. Calculating and paying with the current currency makes trade deals rather “awkward and difficult” for a small country like Iraq, Shabibi said. Other countries, like Turkey and Brazil, successfully dealt with the same problem by removing zeros from their currency. In Turkey, people dealt with millions of liras for simple purchases and transactions. Today a dollar is worth about 1.6 new liras. Shabibi said there was a lot for Iraq to learn from Turkey. [You must be registered and logged in to see this link.]

[BondLady] see where it says about turkey?

[Smitty10] yes

[BondLady] turkey did drop i believe 6 zeros

[BondLady] and the imf told them how and what to do

[BondLady] but they didnt take the imf’s advise

[BondLady] the reason shabs says iraq can learn alot from turkey is

[BondLady] they almost bankrupted there own country by refusein to listen to the imf

[BondLady] like iraq they think they know it all

[BondLady] but was to long before turkey came beggin the imf to save them from there deeds

[BondLady] an the imf did come in an help them get there crap together

[BondLady] but it cost them a lot

[BondLady] so yes in dealing with iraq…iraq can learn a lot from turkeys mistakes an hopefully not repeat them

[Smitty10] Was it them that did a lop?

[BondLady] The bank’s Governor, Sinan al-Shabibi, said he was in talks with the prime minister, Nouri al-Maliki, oThe bank’s Governor, Sinan al-Shabibi, said he was in talks with the prime minister, Nouri al-Maliki, on how to go ahead with the bid to issue currency with a lower denomination and higher value. Shabibi said Iraqis were now relying a lot on the U.S. dollar, particularly in settling cash transactions that required a lot of money.

[BondLady] yes turkey did lop

[BondLady] bid to issue currency with a lower denomination and higher value.

[BondLady] that line says it all that wouldnt be a lop imo

[Shredd] agreed BL

[BondLady] anyways i just wanted to try an explain the turkey thing

[bye the sea] BondLady The line “awkward and difficult” tells me they are looking for a simple way for the mostly uneducated people. Still thinking 1:1 RV.

[BondLady] bts awkward an difficult was from usein 000 to pay for ev thing was diff to pay tons of money for a 1.00 item

[BondLady] basically

[BondLady] if u bought a car an it was 30,000.00 youd have to carry 30,000,000. dinar for it

[BondLady] thats what the awkward part was

[BondLady] to much money to use for purchases

[bye the sea] BondLady Right, and understand, but it may be easiest for the people to start off with a 1:1 , IMO.

[BondLady] yes true bts

[BondLady] they need to come close to the usd imo

[BondLady] or iraqis wont trade it back in for the new money imo

[bye the sea] Ok, thank you.

[BondLady] and thats what iraq needs to do

[bye the sea] Totally agree.

[BondLady] it dont matter what we hold

[BondLady] it matters the 000 get dried up in iraq tho

[BondLady] like the ld’s it wouldnt matter if we all held lower denoms in our hands if the iraqi people didnt have them in there hands it wouldnt matter

[BondLady] its all about iraq

[Shredd] BondLady the longer Iraq goes, transacting in USD, what risks exist for them?

[BondLady] they stagnate further an inflation will continue to rise an the rest of the world that wants to do buiss with them wont take them serious

[BondLady] imo

[BondLady] hard to take 1170 serious

[Smitty10] What do you think about the new inflation report

[BondLady] that it doesnt say the realitty of it

[lightingcslt] Smitty10 good question

[BondLady] that its clouded

[Smitty10] I agee

[BondLady] i believe there inflation is close to 8%

[BondLady] if not higher

[BondLady] set the goi

[bigpuller] BondLady maliki and allawi?

[bigpuller] lol

[BondLady] hope i helped some of yall today

[bigpuller] BondLady does it look like maliki trimmed the ministers and allawi prolly wont get his high position

[ohgesub] BondLady Sorry I missed most of this.. How do they get Dollars off the street

[BondLady] dedollarise

[BondLady] stop usein them give them there own currency thats worth something so theyll stop usein an dependin on the dollar

[bye the sea] Thank you Bond Lady for your time today.

[BondLady] pay for ev thing in dinar

[BondLady] thats the only way to dedollarise

[BondLady] parl agreed on the limbering bp

[BondLady] 30 people instead of 49

[bigpuller] BondLady that was my thought thank you for validating it

[BondLady] when maliki gets back from begjing then he will go talk to parl more on it

[tebtrade] BondLady, are you talking about an RV when you say dedollarise?

[BondLady] a cple days

[BondLady] yqw bts ty

[ponomo] BL – What if Iraq is saying “We have what the world can not do without and as such we will not be dictated to. We will dictate terms. If the world doesn’t find that agreeable they can pound sand…” Thoughts?

[BondLady] pono thats what sanctions are for

[BondLady] an they need us an the world to help them rebuild an be grown ups

[BondLady] they can cry an moan all they want

[BondLady] they want out of santions grow up

[Smitty10] Hands BL the mic to drop

[BondLady] drops it an walks off