More News, Rumors and Opinions Thursday Evening 10-1-2020
TNT:
Thursday UPDATE for October 1, 2020
Reportedly, Iraqi banks are receiving new 100, 250 and 500 dinar notes and are using advertising to encourage hoarders to deposit their money with added emphasis on reading the "Special Instructions."
Tishwash Small denominations of banknotes
The Central Bank of Iraq decided, and based on the minutes of the Currency Affairs Committee meeting No. (6) for the year 2020 held on 9/23/2020
Re-impose a shortage fine on the small denominations ( 1000 , 500 , 250 ), starting from the date of 1/10/2020 and according to the instructions of the standards for circulation and replacement of banknotes, and the mechanisms of counting and sorting. ink
Tishwash: if this bank is doing it the probably all are doing it
Rafidain Bank makes a presentation: accounts and benefits for citizens
Al-Rafidain Bank announced, on Thursday, that it will continue opening accounts for citizens and other segments to deposit their money in the bank.
The media office of the bank said in a statement, "People" received a copy of it, (October 1, 2020), "The bank continues to open (saving and current) accounts for citizens and deposit their money in exchange for interest."
He called on citizens to "visit bank branches for the purpose of viewing special instructions and placing their money in the bank and not hoarding them in homes in light of the positive benefits set by the bank in return for that." link
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Harambe: Bloomberg: Iran’s Rial Weakens to New Record Low Against the Dollar
(10/1/20)
Iran’s rial weakened to a new low, breaching 300,000 to a dollar for the first time on the unregulated market in Tehran, three currency traders said.
It has now lost more than 46% of its value since January as the Middle East’s worst coronavirus outbreak compounded the impact of U.S. sanctions on critical oil exports. The deteriorating outlook triggered panic buying of euros and dollars on the open market.
The U.S. is considering yet more sanctions that would effectively sever Iran from the global economy. That proposal includes targeting those banks still able to facilitate imports, including of humanitarian goods, people familiar with the matter said on Monday.
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Courtesy of Dinar Guru
Pimpy ...A couple days ago or so we had an article in which the IMF was suggesting that Iraq do a reduction on the exchange rate. That's good for us. We got other news. Article "Iraq: the government is compelled to "delete the zeros" from the dinar currency..." ...This person is suggesting that...they go ahead and devalue the currency. This scenario is not good for us. We want them to reduce the exchange rate. We do not want them to reduce the value of the actual dinar...this has been studied. This has been talked about several times....the studies show is you can't do that [devalue the currency]. It effects the poor people...in addition to that it'll cause the citizens of the country to lose faith in their currency because it has no value...this article here is an economic expert saying that this is what the Iraqi government should do. The other article is the IMF saying this is what they want done...a reduction in the exchange rate. That's good for us.
KTFA:
REaltormc: “ Iraq: the government is compelled to "delete the zeros" from the dinar currency ... more than "3 scenarios" are expected that will affect salaries and living”
IMO, I like when I see them talk about deleting the zeros. All the examples of countries he gave had run-away inflation. I guess he couldn't use Turkminestan because nobody ever heard of that country.
I found something about Bolivia that was interesting from 1986:
DEC. 30, 1986
Bolivia clips six zeros from peso and renames currency
LA PAZ, Bolivia -- The government of Bolivia announced Tuesday it will remove six zeros from the its inflation-battered peso and rename the currency the 'boliviano,' effective New Year's Day.
One U.S. dollar now buys 1,923,000 pesos. After Jan. 1, one dollar will be worth 1.93 bolivianos, the government said in newspaper advertisements in local newspapers. Bolivia's Central Bank said all commercial banks will close Friday so they can adjust their balances and ledgers.
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Oct 1, 2020 11:13 AM UTC
1 United States Dollar equals
6.90 Bolivian Boliviano
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Ross: IMO INTERESTING: In the section titled “Central Bank Digital Currencies”, the Cleveland Fed president writes that “the experience with pandemic emergency payments has brought forward an idea that was already gaining increased attention at central banks around the world, that is, central bank digital currency (CBDC).”
And in the shocking punchline, then goes on to reveal that “legislation has proposed that each American have an account at the Fed in which digital dollars could be deposited, as liabilities of the Federal Reserve Banks, which could be used for emergency payments.”
But wait it gets better, because in launching digital cash, the Fed would then be able to scrap “anonymous"” physical currency entirely, and track every single banknote from its “creation” all though the various transactions that take place during its lifetime.
And, eventually, the Fed could remotely “destroy” said digital currency when it so decides. Oh, and in the process the Fed would effectively disintermediate commercial banks, as it would both provide loans to US consumers and directly deposit funds into their accounts, effectively making the entire traditional banking system obsolete.
Other proposals would create a new payments instrument, digital cash, which would be just like the physical currency issued by central banks today, but in a digital form and, potentially, without the anonymity of physical currency. Depending on how these currencies are designed, central banks could support them without the need for commercial bank involvement via direct issuance into the end-users’ digital wallets combined with central-bank-facilitated transfer and redemption services.
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Vietnam Dong News 10/01/20
Pimpy’s Investment Chat: Oct 1, 2020