Will Iraq make a new currency and cancel the old one?
By Muhammad Ali
OK this question seems to float around the groups.
But the answer is very logical and simple.
Firstly, we need to understand and realize that what we are holding are not just pieces of paper.
They are LEGAL TENDER. So what does that really mean?
They have International Monetary Laws behind it.
So who governs and monitors these laws?
The IMF and the BIS (Bank of International Settlements).
The Governors of the respected country's Banks are not employees of the country, but to the BIS. So they need to report directly to the BIS. You can say that the BIS is the Boss of all the central banks around the world.
Presidents and Prime Ministers of countries UNDER THE BIS system of banking...have absolutely NO CONTROL over the countries monetary policies.
There are only 3 countries left in the world that are not under the BIS Elite's banking system control. For those the countries the leaders dictate the banking system.
Iraq and Iran were among those countries previously NOT under the Elite's banking system control... HENCE ... The GULF WAR...hence the Sanctions and so called nuclear threats from Iran.
Now, both of these countries have given into the Elite's system, and since then, sanctions removed and etc.etc.
OK back to the original question. Will Iraq cancel the old money when they come out with a new one?
So just to clear this up again, a bank governor, nor PM, no president can dictate monetary policies. They cannot just cancel currencies.
Everything has procedures and steps to follow. There is a system to demonetize a country’s money.
You have to remember and by adding some simple logic you will remove all doubts from your mind.
I will give you an example.
You have worked the whole month and today is the 31st, you have received your wages of $3000.
You are very happy right! You can now pay your bills, house, car, hydro, telephone, water etc.
And tomorrow is the 1st of the new month you plan to take your family out for a celebration dinner at everyone's favourite restaurant.
Happy life right. Thank God!
So next day comes around and THERE IS A BIG ANNOUNCEMENT BY MONETARY AUTHORITY OF MALAYSIA.
ATTENTION CITIZENS OF MALAYSIA
STARTING TODAY WE HAVE INTRODUCED A NEW CURRENCY.
IT IS CALLED THE BLING RINGGIT
THE PREVIOUS CURRENCY CALLED THE MALAYSIA RINGGIT IS NO LONGER VALID! BURN IT, USE IT AS TOILET PAPER, WE DO NOT CARE BECAUSE WE CANCELLED IT!
END OF ANNOUNCEMENT
OK! Now the tears start rolling in.
So after hearing this announcement, the $3000 that you just received yesterday for working 10 hour shifts, 6 days a week is now worth ZERO! The Money in your bank account also worth ZERO. Any Mutual funds or stocks you own are all worth ZERO.
So, now you have absolutely ZERO money...absolutely NO SAVING because any money you did have (RM) is now cancelled.
So what about that celebration dinner? Well no money ... so that is cancelled too.
So after hearing this ANNOUNCEMENT from the Malaysia Central Bank, you decided to head off to work.
Only to find your work place has CLOSED UP. Because ALL of the money your employer had in the bank is now also worthless. So the Employer CLOSED DOWN.
So you go home, depressed.
Only to find, there is NO electricity. Why? Because you didn't pay your electric bill.
So you go to the kitchen to have a drink of water because you're thirsty. NO WATER!
WHY? Because you didn't pay your water bill.
So you decide to call the Electric Company and Water Company to complain but your telephone does not work too.
WHY? Because you didn't pay your telephone bill.
HOW TO PAY WHEN THE $3000 you received from your monthly salary is now cancelled and worthless?
Then you look out the window and see the REPO MAN taking your car.
AND FINANLLY the BANK shows up at your door telling you to EVICT IMMEDIATELY because you haven't paid your house payment.
Isn't this a very sad and scary story but hey WAIT it’s not over, the same thing has just happened to all of your neighbours.
NO WAIT! Everyone in your entire city!
CAN IT GET ANY MORE WORSE?
YES, the ENTIRE population of Malaysia (35 Million people) are NOW HOMELESS and living on the streets.
SO CAN YOU NOW SEE WHY IT IS CRAZY TO THINK THAT A CENTRAL BANK CAN JUST CANCEL A COUNTRY'S MONEY? A DECISION LIKE THAT WILL AFFECT EVERY SINGLE PERSON IN THE WHOLE COUNTRY.
We are also talking about the lives of 30 million people inside Iraq.
THINK ABOUT IT.
So please think carefully about the little story above.
Can any Country simply make a NEW CURRENCY and CANCEL THE OLD ONE?
YES THEY CAN BUT!
THEY MUST ADHERE TO POLICIES SET BY THE IMF AND BIS (BANK FOR INTERNATIONAL SETTLEMENTS)
MEANING THAT, THEY MUST ALLOW THE CITIZENS OF THAT COUNTRY TO "TRADE-IN" and "EXCHANGE" THE OLD CURRENCY FOR THE NEW ONE.
THEY MUST GIVE AN ADEQUATE TIME FRAME. 1 DAY OR 1 MONTH IS NOT ENOUGH TIME.
As for Iraq we know that the Governor of the Central Bank of Iraq has stated that the new money and the old money will trade together for a period of 10 years.
So you do not need to be in any rush to exchange after the RV.
OK A LONG ANSWER, BUT I HOPE IT'S CLEAR.
I hope my article has been of some interest to you.
I am the creator of the Currency Exchange Planner, an excel spread sheet, which is the most advanced and affordable planning tool for the Dinar Community.
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