Thread: Zubaidi's reference to "deleted 3 zeros"

I thought this might generate some good discussion. I'm hoping it hasn't been posted already. I'm not sure what to make of the "deleted 3 zeroes" reference. Thoughts?

-Ken

Zubaidi: Iraqi's commitment to provide Jordan with oil at preferential prices

http://translate.google.com/translat...&hl=en&ie=UTF8

Amman-Constitution-Ahmad Fayyad Nader met with the Prime Minister in his office headed by Golden Minister, yesterday, Iraqi Finance Minister, Baqir Jabr Zubaidi and discussed with him bilateral mechanisms to enhance cooperation between the two fraternal countries in various fields, especially economic them.

The premier said that the Jordanian firm position in support of brotherly Iraq, pointing to the guidance Royal Commissioner to provide all possible means, to alleviate the suffering faced by the Iraqi people.
He expressed his government's interest in promoting the Golden investments and commercial traffic between the two sister countries, stressing the government's keenness to provide all facilities and investment incentives that would contribute to enhancing economic opportunities and serve the interests of the two fraternal peoples and increase competitive private sector in the two countries.

The Premier pointed out the importance of taking the necessary actions and measures to stimulate traffic between the port of Aqaba and the Iraqi port of Umm Qasr and especially since the port of Aqaba has many competitive advantages Tohlh to serve the commercial and industrial sector of Iraq.

Also during the meeting, which was attended by Finance Minister Dr. Hamad Alexasabh discuss and review issues related to file financial relations between the two countries are to be studied by the committee of financial and banking comp****t in the two countries, especially file financial dues of the Central Bank of Jordan to the Central Bank of Iraq.
On the other hand, and the Iraqi Ziralamalih Baqir Jabr Zubaidi determination of the Iraqi government to strengthen the ties of bilateral economic and commercial relations with Jordan and the removal of all impediments to the development and upgrading.

Zubaidi said in a meeting with the Ministers of Finance Dr. Hamad Alexasabh, Industry and Trade Ameralhdede the presence of representatives from economic sectors in Jordan Chamber of Commerce, that the Iraqi government will work to establish a joint Jordanian-Iraqi bank to facilitate financial transactions and trade exchanges, he said, adding that the Jordanian and Iraqi sides agreed to discuss and resolve the debt problem of the sector Special conventions outside the Jordanian Trade Protocol earlier, which would be on top of the agenda of the economic talks held by Jordanian and Iraqi sides after Eid Al-Fitr, as the two sides will discuss concluding an agreement on free trade between the two countries.

He said the Iraqi government was committed to provide oil to Jordan at preferential rates of less than 18 to 22 dollars a barrel on world prices, as the problem is not the flow of oil to Jordan, formerly of the dividend comes and security conditions for the shipment of oil through confirming the demise of all impediments that prevented supply Jordan with oil Iraqi, pointing out that he discussed with Prime Minister Eng rare golden importance of establishing pipeline project to transport oil from the Iraqi city of modern access to the port of Aqaba, which it described as the breath of lung Iraq, was also discussed with the Syrian side reform of the next Iraqi oil pipeline from Kirkuk through territory Republic.

He called Zubaidi businessmen, investors, traders, industrialists and entrepreneurs Jordanians to seize the opportunities offered by the Iraqi market, where the Iraqi government will deal with the Jordanian private sector on an equal footing with figures and economic sectors Iraqi and other nationals, without bias in projects and tenders of Iraq, calling on Jordanian contractors to progress towards infrastructure projects and reconstruction in Iraq needs to be 1.5 million housing units currently number will double in the coming years, pointing to the existence of Jordanian contractors in Iraq awarded tenders to construction in Basra and other Iraqi cities.

Reviewed Zubaidi reality the Iraqi economy and said: that the Iraqi government was able to extinguish the 90 billion dollars of Iraqi debt stock of $ 140 billion dollars, and has worked to reduce the size of inflation from 66 per cent to Between 16 - 18 per cent, and that the Central Bank of Iraq 22 billion dollars , 3 tons of gold specifically to support the Iraqi dinar, rising value of the Iraqi dinar against the dollar from 3 thousand dinars in 2004 to between 1200 1000, the dinar this year, stressing that every effort will focus on Iraqi deleted 3 zeroes of the value of the Iraqi dinar, leading to ID one for every dollar ...

He noted in this context that the budget Iraqi in 2008, which will be in ages will be 53.5 billion dollars, including 15.5 billion dollars for reconstruction and development governorates, 23, billion dollar investment expenditure.
For his part, Minister of Industry and Trade Amer railway that Jordan would work to strengthen and develop economic relations and trade between the two sides and the removal of all obstacles aimed at facilitating cruise goods and trade exchanges between the two sides, the Jordanian government confirmed its commitment to present all it can in the reconstruction of Iraq, and providing expertise to the Iraqi side in the areas of membership of the World Trade Organization.

Ferro said that the Prime Minister Nadir Al Golden has stressed the need for all concerned to facilitate the establishment of Iraqi businessmen and action to solve the problems and obstacles facing them. The railway said in press statements that the development of the industrial sector and raise competitive and to attract more investments will be on the top priorities of the next stage.

Date : 29-11-2007 Date: 29-11-2007

Dealorbuydinar, thanks for bringing this over, I don't like to take information from another forum without permission - but I don't usually ask as I don't really know many people - lol.

What are your opinions and thoughts about how you read this members. Is this good or bad news?

Here is a thought. Let's compare the two articles. Both of them released on Friday, the 29th on November.

Here is a statement from Friday's article released on the Dow Jones newswire:

Dow Jones Newswires: Global Financial news and commentary

"The Central Bank will take a decision in three months time from now, taking off three zeros from the current Iraqi dinar value," Bayan Jabor said in an exclusive interview with Dow Jones Newswires in Amman."

Here is the statement from Friday's article released by the Amman-Constitution to a Jordanian audience:

"...stressing that every effort will focus on Iraqi deleted 3 zeroes of the value of the Iraqi dinar, leading to ID one for every dollar ...

If they were talking about a lop I would think they would use the word denomination. But they say value which would refer to the exchange rate. Would it not?

Originally Posted by dealorbuydinar

Here is a thought. Let's compare the two articles. Both of them released on Friday, the 29th on November.

Here is a statement from Friday's article released on the Dow Jones newswire:

Dow Jones Newswires: Global Financial news and commentary

"The Central Bank will take a decision in three months time from now, taking off three zeros from the current Iraqi dinar value," Bayan Jabor said in an exclusive interview with Dow Jones Newswires in Amman."

Here is the statement from Friday's article released by the Amman-Constitution to a Jordanian audience:

"...stressing that every effort will focus on Iraqi deleted 3 zeroes of the value of the Iraqi dinar, leading to ID one for every dollar ...

If they were talking about a lop I would think they would use the word denomination. But they say value which would refer to the exchange rate. Would it not?

Hello everyone.

IMHO if Iraq or any country was planning to do a country wide currency exchange to replace existing currency with newer, maybe lower denominations, with NO resulting change in relative value, then they would announce the exchange in advance so as to complete the process quickly. Since there would be no real change in exchange value, then there would be no need to reduce speculation or no need to be secret about the plan. A "lopp" just to replace the higher denoms woth lower ones would need to be acomplished as soon as possible and would be conducted out in the open with much advanced notice so as to alert the population and remove the old notes. IMHO, this is not the case for Iraq. If they intended to conduct a "lopp" i.e. exchange, then they would not be reducing the rate as they have and would not be removing dinar from inside and outside of Iraq in such a dramatic, almost frantic rate and amount. They would simply have announced the exchange and made plans to acomplish the plan. Now if they intend to raise the value of the current currency by removing zeros from the existing value, then the dynamics are completely different. The second option is more consistent with their behavior over the past year. The only miscalculation we have made was to underestimate how long it was going to take to reduce the debt and how much money was actually out there, which resulted in inflation and a much longer time to reduce the base money supply. Since inflation by many accounts ranges from 11.5 to 16 percent, currently, in economic terms this equals an overnight intervention. Remarkable. So we have not been wrong in our evaluation of the process as to what the CBI was doing, we only underestimated the time and the size of the problems they were having to solve. There were reliable reports last summer that their foreign currency reserves were at 28B. A recent article reports them at 22B. Still a respectable amount. This might imply that they have been using their reserves to remove additional dinar. Which is what I feel they have done/are doing and is exactly what you would expect a Central Bank to do under the Inflationary circumstances of last summer with a 77% infaltionary rate, who has theforeign currency reserves to act. Many in economic understand how to reduce inflation but few countries have the reserves to intervene. Since 7/23 they are approaching around 6B in removing foreign transfers. This week almost all of the auctions has been from outside. Good! However, this process is winding down. There is only a finite amount of money out there and they can only continue this process for so long. IMHO not much longer. So its all good for us and as my friend Socata 850 says, "the more they take the more we make". Thank You

Originally Posted by Wm.Knowles

Hello everyone.

IMHO if Iraq or any country was planning to do a country wide currency exchange to replace existing currency with newer, maybe lower denominations, with NO resulting change in relative value, then they would announce the exchange in advance so as to complete the process quickly. Since there would be no real change in exchange value, then there would be no need to reduce speculation or no need to be secret about the plan. A "lopp" just to replace the higher denoms woth lower ones would need to be acomplished as soon as possible and would be conducted out in the open with much advanced notice so as to alert the population and remove the old notes. IMHO, this is not the case for Iraq. If they intended to conduct a "lopp" i.e. exchange, then they would not be reducing the rate as they have and would not be removing dinar from inside and outside of Iraq in such a dramatic, almost frantic rate and amount. They would simply have announced the exchange and made plans to acomplish the plan. Now if they intend to raise the value of the current currency by removing zeros from the existing value, then the dynamics are completely different. The second option is more consistent with their behavior over the past year. The only miscalculation we have made was to underestimate how long it was going to take to reduce the debt and how much money was actually out there, which resulted in inflation and a much longer time to reduce the base money supply. Since inflation by many accounts ranges from 11.5 to 16 percent, currently, in economic terms this equals an overnight intervention. Remarkable. So we have not been wrong in our evaluation of the process as to what the CBI was doing, we only underestimated the time and the size of the problems they were having to solve. There were reliable reports last summer that their foreign currency reserves were at 28B. A recent article reports them at 22B. Still a respectable amount. This might imply that they have been using their reserves to remove additional dinar. Which is what I feel they have done/are doing and is exactly what you would expect a Central Bank to do under the Inflationary circumstances of last summer with a 77% infaltionary rate, who has theforeign currency reserves to act. Many in economic understand how to reduce inflation but few countries have the reserves to intervene. Since 7/23 they are approaching around 6B in removing foreign transfers. This week almost all of the auctions has been from outside. Good! However, this process is winding down. There is only a finite amount of money out there and they can only continue this process for so long. IMHO not much longer. So its all good for us and as my friend Socata 850 says, "the more they take the more we make". Thank You

Wm. Wm. Wm.....

Once again, thank you for your reasoned, logical analysis of this news, and the current state of monetary policy over there. I must admit though, with my dinar-addled brain, you almost lost me at "Hello". I DO understand what you're saying, and do agree that some of our past thoughts were based on estimations, as we certainly are not privy to the facts regarding M2, etc.

While any one piece of news, or any one post does not bring that excited feeling as they did a year ago, enlightened posts such as yours.. keep me damn interested.. Thank you Wm.

Wm...you HAD me at hello!!!! Good to 'see' you again!

Wm. Good to see you stopped by. Thanks for the enlightenment.. I was asking Socata about you today. Seems that with all the GREAT news coming out of Iraq, something has to happen (good or bad for investors) in the near future. Stay well, evening all.

Im not sure but wasnt there an article almost word for word of the highlighted part last year sometime.Forgive me if Im wrong but it sounds like I heard this before...not dissin anyone just thought I heard it before...

I thought that, too. I can't say for sure but it looks like the same article, not just the same story. There have been so many articles from the "loppites" over the years and, on many occasions, they have been repeats. In fact, many articles of all sorts have been repeated - they do seem to be avid news recyclers. It gets to where everything looks familiar!

Originally Posted by dinarmad

Im not sure but wasnt there an article almost word for word of the highlighted part last year sometime.Forgive me if Im wrong but it sounds like I heard this before...not dissin anyone just thought I heard it before...

I think your right. I think the CBI has come out with a statement like this about 3 times in the last two years.