Kaperoni’s Arabic translator looks at 3 recent articles 8/30/2011 DinarAlert site
I sent 3 recent articles to my Arabic translator. These article are listed below and his interpretation/translation. Good stuff and give us a clearer picture of what is happening..
CBI calls for the government to protect the local currency of the “mafias” fraud 8/26/2011
This article is basically saying that there are groups of criminals/terrorists who are trying to hamper the development of the Iraqi economy and are against removing the 3 zeros from the currency. As a result, the article states that they are trying to interfere with the 3 zeros process by flooding the market with millions of counterfeit dinar bills. This causes great difficulty because people don’t really know the difference between the real dinars and the counterfeit ones and the counterfeit ones are being used as legitimate currency and vendors are accepting them and so it is as if the big bills were never really pulled from the market in the first place.
From an economic standpoint, this messes with all of CBI’s plans because they (the criminals) are effectively manipulating the money supply and all the numbers with respect to how many dinars are in circulation and this fake money is not backed by anything and is still being honored and used, and so this severely decreases the purchasing power of the dinar, etc. Saleh in the article goes on to say that CBI is extremely upset about the situation and although it is troubling for them, it is not their job to police the nation’s currency. They are calling on the GOI to investigate and root out these criminals who are responsible and to use their security forces to prevent this production and release of unauthorized currency.
From an economic standpoint, this messes with all of CBI’s plans because they (the criminals) are effectively manipulating the money supply and all the numbers with respect to how many dinars are in circulation and this fake money is not backed by anything and is still being honored and used, and so this severely decreases the purchasing power of the dinar, etc. Saleh in the article goes on to say that CBI is extremely upset about the situation and although it is troubling for them, it is not their job to police the nation’s currency. They are calling on the GOI to investigate and root out these criminals who are responsible and to use their security forces to prevent this production and release of unauthorized currency.
CBI states that they make economic decisions only and are not an enforcement agency and that it’s the government’s job to ensure that things like this don’t happen. The article then talks about all the things that we know, stating that they plan to remove the 3 zeros and decided that on June 22 (the CBI decided) but that the GOI has not confirmed that there will be a change to remove the 3 zeros.
When I step back to think about it, this truly could be one of the reasons for the delay in the RV because, as I am sure an economist would be able to better explain, the availability of so much counterfeit currency would like cause so many negative economic problems and damage a country’s currency.
In that case, CBI might be waiting until the GOI takes action and gets all of this counterfeit currency off the streets and apprehends the people that are responsible. It wouldn’t make sense to release the lower denoms when there is a whole bunch of fake money floating around.
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Here is the next article…
Shabibi and valid .. The consequences of the dollar crisis of the Iraqi currency 2011-08-27
This article is basically discussing all of the reasons why the 3 zeros need to be removed. The articles discusses the heavy involvement of the US Dollar in the countries of the world as well as in Iraq. The article details how the US Dollar is being widely used in Iraq and that the decrease in the value of the dollar causes prices to increase along with the already inflated prices and causes a surge in inflation. In addition, it discusses how a large majority of Iraq’s earning are in US Dollar because of oil being transacted in US Dollars.
As a result, Iraq is heavily involved in the dollar and this causes a weaking of the Dinar’s strength and so removing the 3 zeros and restructuring in will decrease the US Dollar’s presence in Iraq and will give more purchasing power to people and will have many benefits for the Iraqi economy. The beginning part of the article (the way I understood is) is stating that the CBI has been talking about removing the 3 zeros for the past few days and that they hoped that this would help strenghten the dinar, but it hasn’t really caused a major shift in the rate.
I am thinking that they are referring to the usual daily Forex rates for the Dinar, that they would expect to see the rate go from 1170 to 1151 or something like that, giving some strength to the Dinar and the person writing the article doesn’t believe that removing the 3 zeros will help curb inflation.
Overall, a standard article talking about things that we already know. Maybe the good thing about it is that CBI is addressing yet again the rate of inflation and pushing for the 3 zeros to be removed, so it confirms that the RV is still in the works.—————————————-
Here is the next article…
Ship and the Sea of the central authorities 8/28/2011
Ship and the Sea of the central authorities 8/28/2011
This article is more of an opinion piece by the journalist who wrote it.
They are basically stating that they feel the removal of the 3 zeros will be soon because of all the activity that CBI has been doing with the Finance Committee and the Council of Ministers and how the CBI’s relationship (in his opinion) is still very good and productive with the Finance Committee (FC) and the Council of Ministers (COM). The journalist sees their recent meetings and work as the final steps in implementing the plan, and also states that this demonstrates the rocky relationship that the CBI and the GOI have had because the CBI is not dealing directly with all of the GOI, but just the FC and COM. He goes on to mention the supreme court ruling about trying to take away power from the CBI and other such issues that the CBI has had with the GOI. He goes on to mention the issue with the counterfeit currency that the CBI is upset about and says that the CBI feels that the GOI is not doing enough to take care of that issue.
He finishes by stating that he hopes that the plan to remove the 3 zeros can be implemented successfully before too much damage is done to the country and to the economy by not having a new restructured currency.
