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This is BIG News from the CBI.

By Muhammad Ali


The post below was on Dinar Recaps and I attached the link and the full intel for everyone's reference.  I was first alerted to this news by my friend, Mike The Dinarian.  He's always on top of all the Iraq news and usually sends me anything that stands out.  And this post definitely stands out.  I will continue my perspective on it, below the post.


Walkingstick:    the CBI has told us that all banks in Iraq are going to receive the 50,000 and the 100,000 freshly printed bills...The reason for it is because the CBI is now lessening the amount of 10k and 25k notes in the inventory of Iraqi banks.  They want to get more of the three zeros...the CBI is sending 50k and 100k notes only to be used from bank to a bank.  Each bank is getting a different specific amount.  Each bank must send to the CBI in return either 4 - 25K notes or 10 - 10K notes.  We [Walkingstick's firm] have not received them yet.  Some banks have.  We believe we will be next.  They are only to be used from bank to bank not for circulation.  The 50k and 100K are not to be introduced to the citizens.  They are to introduce the small category notes when told on their schedule.  This is being used to remove the three zeros notes from the banks not to draw them in - that was already done...


OK here we go.  There are many aspects of this post but what particularly interests me is the 50,000 and 100,000 being used for Bank to Bank transactions.


Let me give you an example, here is a picture of a 1934 100,000 US Dollar Federal Reserve Gold Certificate bank note.  For many, you probably didn't know the U.S. had a 100,000 bank note.  Well they did.


100k us dollar.jpg

The $100,000.00 Gold Certificate was used for bank to bank transactions, and was never intended to be held by the public nor was it legal for an individual to own one.  This $100,000.00 is a Series 1934.  All Series 1934 gold certificates were issued only to banks and were not available to the public. The Series 1934 gold certificates are also distinguished from the previous gold certificates in their gold clause, which adds the phrase "as authorized by law" to denote that these notes cannot be legally held by private individuals.  The total print run for the original $100,000.00 Gold Certificate was 42,000 pieces, all but a few of them have been destroyed.  Only a few specimens of these Series 1934 gold certificates survive today, in the Smithsonian and Federal Reserve Bank Museums.


I am a numismatist and collecting bank notes and coins has been a hobby of mine since 1995, so this is where I was first introduced to these large bank notes.


Alright so now let me explain why this is significant in relation to the above intel from Walkingstick.


These U.S. 100,000 notes were only used for transactions between banks.  Today, transactions between bank to bank are generally settled digitally, so these large denomination notes are obsolete.  However, in some countries transactions between banks are still being practiced using notes, as in our case, of Iraq.


What is important to understand and realize is ONLY very large denomination size notes are used to settle bank to bank transactions.


Now getting back to Iraq, We know that the 50,000 Dinar note was introduced in 2015 and was introduced at the public level.  Since then the CBI has been pulling these notes from the streets and what got me very excited in Walkingstick's intel is that these notes along with the 100,000 notes will be used for Bank to Bank ONLY transactions.


So if we apply a little logical reasoning.  We can ask, how can the 50,000 note, used by the general public one moment and be used thru bank to bank transactions, the next moment?  Especially when I said, ONLY very large denomination size notes are used between Bank to Bank.  Particularity when the value has not changed...YET.  At the present rate of 0.0008, Iraq would have to use even larger size notes, something like a 1,000,000 Dinar note but they are not, it was stated that they will use the 50,000 and 100,000 notes, so in order for this to happen they MUST raise the value of the Dinar by Re-instating it to $4.   So, let me just clarify my point, it is illogical that the 50,000 note at present value be used to handle banks very large settlements, there has to be a sizeable or substantial gap variation for it to make sense.  For example in the case of the 1934 $100,000 note used for bank to bank settlements, at that time the highest denomination for the public was $1,000 dollars.  Therefore a note size of $100,000 worked well.  In the present case of Iraq the highest note size for the public is 50,000, so how can they use the same size to settle bank to bank transactions?  This is where it is not logical.  There is a missing factor here and that is the rate.  The rate must be increased for it to be practical and by the sounds of it; it may be sooner than we think.



So I hope that starts to excite you.  Now the other thing that got me very excited about this intel is that during the years, we have learnt that the Project to remove the 3 zeroes has been to remove the large notes from circulation or from the hands of the citizens.  And we have been told that 90% of the notes, inside Iraq, have been removed from circulation.   This was confirmed again by Walkingstick when he said, "that was already done..."


So it seems that the remaining 10,000 and 25,000 notes are in the banks.   So, again, applying my sense of logic to this, it would appear the CBI is trading the 50,000 and 100,000 notes for the banks 10,000 and 25,000 notes at the same value.  Swap for Swap, a Dinar for a Dinar. 


Therefore, in the bank's hands are 50,000 and 100,000 notes.  But these notes are restricted for bank to bank settlements ONLY.  You can see where this will start to become a problem, when the citizens come into the bank asking for withdrawals and banks say, sorry we have no money to give you.  Panics will start and a whole new wave of issues will give rise; the citizens will start accusing the banks of cheating and fraud, and the confidence level of the citizens to the banks will change in an instance.  The CBI will need to act quickly to raise the value of the Dinar so as to prevent a bad situation to get more worst.


I believe the CBI already has a time frame for collecting the remaining 10,000 and 25,000 notes from the banks and once the notes are back at the CBI, then PRESTO...the CBI will RI the Dinar and we will see the largest denomination size of the Iraq Dinar go to 1,000 Dinars, and the 50,000 and 100,000 notes will become the logical choice for bank to bank transactions.


Just an FYI side note here, as I am sure many people do not know this fact, but in Kuwait, did you know that the highest bank note size is 20 Dinar?  That is one powerful currency.  So for Iraq and Iran, once they increase in value and things start to stabilize in country, in time they will follow suite to Kuwait and you'll see them start dropping the 1,000 notes, then 500, then the 100 and 50.  


Now back to our logic flow and here's a new thought for you.  We can conclude that at current the 50,000 IQD note can still be used for public transactions, since we have not seen any official announcements from the CBI that cancels the 50,000 note, from the public and that they will officially be used for bank to bank transactions.  Once the value is raised, we may then see an announcement from the CBI.


From the standpoint of the CBI, they need to remove the last bit of 10k and 25k notes from the banks, because if they were to RI the Dinar now, before removing the notes, some of the bank employees thru temptation, may steal the notes and run over the border to exchange them.


Now, the 50,000 may become a question mark?  How will the CBI handle this note?  As it is now, the 50k notes are meant for public usage, and if these notes are still in the banks when they RI, then the same bank employees may try to steal them and run over the border for exchanging.   So it means to me, that the employees will either steal the 10k, 25k or 50k notes.   If that's the case, then once the CBI does the RI to $4, they will immediately have to cancel the 50k notes, for public level, to prevent the bank employees from stealing the notes.  If the 50k is ONLY designated as Bank to Bank, then even if they were to steal the notes, they won't be able to exchange it in any country of the world but thru an Iraqi bank to an Iraqi bank.  So it would be a futile thought on the bank employee to steal.


So what this means, is that, if anyone is holding the 50,000 IQD note now, do you need to be worried that you may not be able to get the chance to exchange it?


I think the CBI may do a 2nd scenario on the 50,000 note, and that is to make a new version of the note that would be intended for bank to bank transactions.  Therefore, there would be 2 editions of the 50,000 note.   The current one that was printed in 2015 and a new one for bank to bank.   If the CBI does this, then it'll be a sign of relief for anyone holding the current 50,000 note.  I believe this would be the choice as most of the 50,000 notes the CBI printed in 2015 should have already been collected from local circulation.


Since Walkingstick said, "the CBI has told us that all banks in Iraq are going to receive the 50,000 and the 100,000 freshly printed bills".  'Freshly printed bills' are the keywords and this tells me that the CBI will in fact print, or have already printed, a new version of the 50,000 note. 


This means the 10,000, 25,000 and current 50,000 notes will all be exchangeable, let's hope so, as I also have a few of the 50,000 IQD notes.


So aside from the matter on the 50,000 note.  I believe that it's time to get our plans in order and be ready.   It looks like the CBI will be ready to pull the trigger once they collect the remaining few of 10,000 and 25,000 notes which should not take long, as Walkingstick stated, "Some banks have [the 50k and 100k notes already]. "


If you still need help on your currency planning, please consider using my currency exchange planner.  I remind you that 85% of the Kuwaiti RI millionaires were flat broke in 5 months.  So if you  wish to be part of the 15% then make sure your plans are solid.


I have a current promotion on my planner software and that is, buy the Desktop version and get the Mobile App version for FREE.   This is a limited time offer as I may stop this promotion at any time.


So I hope my article has lifted your spirits after the stressful few days of the Iran-USA conflicts and I really believe that we are back on track and the RI is nearer to us now than ever before.


Just a shout out to The Dinarian, from The Dinarian YouTube Channel, for alerting me to this intel and thanks for Dinar Recaps for everything you guys are doing and a special thanks to Walkingstick, Frank and Delta for bringing us Iraq news in real-time.


Thank you

Muhammad Ali

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