On 1 December, I held a webinar conference to discuss the deletion of the zero’s and other Iraq topics. I mentioned that the Central Bank of Iraq would not be printing new currency until after the April national elections. Today, the Central Bank made the announcement that it would be delaying and postponing the deletion of the zero’s or printing of the new Iraq dinar. The announcements were made in the local Baghdad media. One of the main reasons for the delay is the security situation in Iraq. As stated in my 1 December webinar, the security situation in Iraq must be halted before the Iraq government can move forth & proceed with printing the new currency.
The Iraqi people continue to suffer from daily hostile acts committed by criminals and terrorist groups operating in Iraq. Other issues are the logistics to be able to handle the distribution of the new Iraq currency. Currently, there is no viable plan to facilitate the change of the currency operation like they did in October 2003. The Central Bank and the Iraqi government have held ongoing financial meetings for the past 5 years to devise a plan on how they are going to go about changing the Iraq currency. No plan has been currently made or settled upon. These are crucial steps in moving ahead. The Iraq government has shifted the responsibility to change out the Iraq dinar to the incoming Iraq government. There is a rumor that in 2014, the Central Bank Governor will be stepping down from the position of the head of bank. We shall see.
On another note, I continue to receive comments & questions from many of my subscribers. Today, I received a few emails asking about “how does one go about trading stocks with al-Warka Bank?” I guess these individuals were unable to do so but yet were told others were. The answer to that question is that, Al-Warka bank has been suspended from all trading on the Iraq stock Exchange. If someone is reporting that they are currently trading with al-Warka Bank, it is not true. If they have, that is in the past.
The Central Bank money supply is continuing at the same pace as it did in the year 2012. The Central Bank has been unable to reduce the money supply in order to keep inflation under control. If you look at the documents being published by the Central Bank it appears the money supply has actually increased since 2012. Hope this covers the questions for today.
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