Delta - Previous Article: Finance: Delete The Zeros Of The Local Currency Enhances the Value Of Iraqi Dinar In The International Monetary Fund !

[DinarThug]

CNN. Broadcasting While Frankie And Delta Blast Off From The Blue Couch !

 

 

 

BLAST FROM THE PAST:

Finance: Delete the zeros of the local currency enhances the value of Iraqi dinar in the International Monetary Fund

 

 

Palm – The Ministry of Finance that the deletion of zeros from the local currency will liberate the Iraqi economy from the constraints and enhance the value of Iraqi dinar in the International Monetary Fund.

The chancellor said the Ministry of Finance Zia Alckheon that the survival of the existing currency to its current state would not address the question of the economic gap experienced by the Iraqi dinar as it will increase the burden on the local economy.

The International Monetary Fund expressed support for the Iraqi economy in the event of his a number of economic measures,

including the privatization of banks(DONE)

and lifting the three zeroes from the currency(COMING)

and honoring debts(DONE).

 

DELTA

[DinarThug]

Here’s The Original Article From 3 Years Ago With A Link To It In The DV News Section And 10 Pages Of Comments ...

 

http://dinarvets.com/forums/index.php?/topic/198419-expert-delete-the-zeros-supports-the-national-currency-and-reduce-inflation-in-the-country/&

 

 

CNN. Broadcasting While Deleting The 'Zeros' At Achmed's Donut Cart In Baghdad During The 'Sand Storm Damage Sale'!

 

Mmm ... These Taste Crunchy ...

 

 

 

 

(by walkingstick)

الخميس 5 مارس 2015 | 06:10 مساء 
Expert: delete the zeros supports the national currency and reduce inflation in the country



BAGHDAD / ... confirmed an economic expert d. Peace Sumaisem, on Thursday, on the importance of the subject of the deletion of zeros from the Iraqi dinar, considering it as a support system" rel="">support of the national currency, and a reduction of inflation in the country.

Sumaisem said, in a statement to "Ein Iraq News", "delete the zeros includes two basic objectives, the deletion of zeros, and the restructuring of the Iraqi currency, instead of the $ 100 equals 120 000 Iraqi dinars, after deleting three zeros become a $ 100 equals 100 Iraqi dinars, which is equal to the dollar and the dinar This means strengthening the Iraqi currency. "

"The country suffers deficit as Iraq does not it can support system" rel="">support its currency unless received grants from third parties, and whether this possible implementation it is important, reframes the value of the currency indirectly supporting the national currency, and when structuring currency returned it reduces inflation Iraq ". Finished / 13

http://aynaliraqnews.com/index.php?aa=news&id22=33283

[ChuckFinley]

A BIG Thank you Thug, I am and always believe it will be 1 to 1. 

[skeetdog]

Thanks DT....It's cool to know that the IMF will supports the decimal movement...(1.12)...as soon as the UN confirms Iraq is constitutionality compliant to accept Chapter 8...Has the auditors finished the cincis of the citizens on their choice in Article 140??? Seems we've got a 'dime' holden up a 'dollar'...

[Gypsygirl11]

I love to see it in print, I must say.

2018 is our year, right????? 1 to 1 baby!!!!

[Floridian]

I sure hope Kaperoni is wrong:

 

3-31-2018  Newshound Guru  Kaperoni‏   We've talked about this for years and used factual information to support what the plan really is including actual words from the CBI.  The deletion of zeros is not a single event it's a process in which they gradually raise the value which could take several years once they started.  In fact one of the latest instructions from the CBI stated that they will continue to accept the old currency for up to 10 years.  The CBI also stated but the Iraqi dinar will join the world currency markets which is Forex.  The IMF also instructed the CBI to move to a more liberal exchange regime (float) to allow the dinar to appreciate based on the Balassa-Samuelson effect.  These are actual facts...and studying and learning how monetary policies work is critical to understanding what the dinar will do. The physical note account cannot be reduced until they begin to float the currency in which then they can collect notes as they are deposited and destroy them.  This is part of the reason why the process could take 10 years because it's going to be gradual over time.  Not to mention the CBI has stated over and over again as recent as a week ago that there's 60 trillion Iraqi dinar outside the banking system in homes (in mattresses under beds etc.)

[King Bean]

3 hours ago, skeetdog said:

It's cool to know that the IMF will supports the decimal movement...(1.12)

 

Right there with you on that, Skeetdog. As much as I would love to see these fools make the first step to even 10-cents, as Adam has mentioned for years now, that wouldn't take dollars out of the financial system. Especially, as Kap noted, the process could take 10 years. When the US attacked Sadaam and then UN and IMF then dropped value of old dinar to nothing, started the auctions and injected billions of US dollars into the Iraq financial system, it didn't take 10 years. More like 10 weeks. 1:1 is what is needed (IMO) to kick start this thing, then move on from there. Remember, the SIGIR report to US congress several years ago was in line with this rate too. Greenies for everyone this Saturday.

                                                                                                                                                                                                           

                                                              

[NEPatriotsFan1]

I agree I just could not get excited over $.10 if I had had all my wealth stripped away for me 20 years prior I would not be happy until my money was back to the value it was pre-Saddam era

[DinarThug]

1 hour ago, Floridian said:

I sure hope Kaperoni is wrong:

 

When Has He Ever Been Right ...

 

     

[Floridian]

24 minutes ago, DinarThug said:

 

When Has He Ever Been Right ...

 

     

 

That's the trouble.  Nobody's been right.  I hope he's not the one who is (right).

[Rmc10]

Iraq has said it's not feasible to float the dinar. It might have been an Iraqi economist who said it but you would think that person knows more about the dinar situation than Kap does.

Edited March 31, 2018 by Rmc10

[DinarThug]

13 hours ago, DinarThug said:

Here’s The Original Article From 3 Years Ago With A Link To It In The DV News Section And 10 Pages Of Comments ...

http://dinarvets.com/forums/index.php?/topic/198419-expert-delete-the-zeros-supports-the-national-currency-and-reduce-inflation-in-the-country/&

 

 

CNN. Broadcasting While Deleting The 'Zeros' At Achmed's Donut Cart In Baghdad During The 'Sand Storm Damage Sale'!

 

Mmm ... These Taste Crunchy ...

 

 

 

 

(by walkingstick)

الخميس 5 مارس 2015 | 06:10 مساء 
Expert: delete the zeros supports the national currency and reduce inflation in the country



BAGHDAD / ... confirmed an economic expert d. Peace Sumaisem, on Thursday, on the importance of the subject of the deletion of zeros from the Iraqi dinar, considering it as a support system' target='_blank' style=" rel="">support system" rel="">support of the national currency, and a reduction of inflation in the country.

Sumaisem said, in a statement to "Ein Iraq News", "delete the zeros includes two basic objectives, the deletion of zeros, and the restructuring of the Iraqi currency, instead of the $ 100 equals 120 000 Iraqi dinars, after deleting three zeros become a $ 100 equals 100 Iraqi dinars, which is equal to the dollar and the dinar This means strengthening the Iraqi currency. "

"The country suffers deficit as Iraq does not it can support system' target='_blank' style=" rel="">support system" rel="">support its currency unless received grants from third parties, and whether this possible implementation it is important, reframes the value of the currency indirectly supporting the national currency, and when structuring currency returned it reduces inflation Iraq ". Finished / 13

http://aynaliraqnews.com/index.php?aa=news&id22=33283

 

 

Here’s Another Archived Article With Comments At The Beginning By Don961 ...

 

 

 

An oldie but goody from Abadi's Adviser , The Appearance Mr. Saleh .... in his days as Deputy Governor of the CBI ... 5 years ago .... under Dr. Shabibi ... shortly before Abadi took office ... think his/these ideas/plans have changed ? ... or were they delayed due to extenuating circumstances ? ... perhaps they've even evolved and improved ... imo 

>>>>>>>>>>>

 

Dr..Appearance of Mohammed Saleh *: an economic point of view .. the project deleted the three zeros and cost transactions cash

 

BY
 

DR.. APPEARANCE OF MOHAMMED SALEH 

- POSTED ON 19/01/2013

 

In light of the volatile economic and financial conditions and the pressures of monetary inflation that have taken place in our country before and have led to negative effects on the regularity of the commercial market, labor markets, production and the standard of living of citizens,
Which included the presence of a mass of cash, many zeros, a small value, and in a manner not commensurate with future developments in the present and future of the Iraqi economy, which requires a solution to these circumstances and their consequences, including solutions to reform the system of cash management through the structure and delete zeros from them to control the Stream and manage the cost of the cash cluster optimally . 

The circulation of the monetary bloc exported more than 37 trillion Iraqi dinars in various categories, reflected by the number of securities traded amounting to 4 billion banknotes is the product of a long period of inflation and economic deterioration, for example increased the consumer price index on the basis of 1993 from 100 to 200 thousand in the year 2003, which means that the commodity, which was sold by 100 dinars has been sold for 200 thousand dinars ... And so on. Under this circumstance and the deterioration of the value of the currency, the category of currency increased from 25 dinars to 25 thousand dinars, which means that inflation is added to these zeros . 

* Current currency categories do not match the current and future economic situation . For example, just before the outbreak of the Iraq-Iran war, the JD25 category was equivalent to $ 75, with purchasing power, for that time or the equivalent of 300,000 dinars . Inflation in the country over the past three decades has added zeros to the currency, yet these zeros have not lifted the purchasing power of the largest category of the currency, the 25,000 dinars, which is now $ 21 . Today we need to restructure the currency. Valafar large means a large monetary bloc in circulation today, about 30 trillion dinars, which requires direct cash circulation and a large cost in counting and sorting and the time and spatial and security characteristics. In the price system , the price is the value expressed in cash. Thus, the structure of costs, wage payments, salaries and transactions, all of which are not commensurate with the country's need for a monetary management system, is in line with the structure and price levels of the real sector . The country needs an easy-to-handle cash system and small and large categories that reflect the cost of that real structure. (See details in the next page margin ). 

It should be noted that during the period 1990-2007 the consumer price index increased to 400000 % . In order to simplify, the commodity, which was sold for one hundred dinars before the start of the war in Kuwait in 1990 became sold at 400 thousand dinars in 2007. The value of the Iraqi dinar declined twice and strongly During the period 1990-1998 at a rate of more than 99% against the US dollar . The first decline was in 1990, the other decline was in 1997, and by 93.2 %, which made the total decline in the Iraqi dinar exchange rate against the dollar (minus 99.99%) that at the end of 1998, and during this period alone reached inflation in theindex For consumer prices 45000%. 

As we know that inflation itself means high money prices on goods and services (how much money we need to exchange a certain package of goods and services .. The more money to exchange the package itself means that there is inflation or increase in money prices). Noting that the value of money is inversely proportional to the price of money, and that the price is the value of goods and services expressed in cash *. 

(*) Social studies indicate that the monthly income of the Iraqi doctor was not equal to purchasing power in the nineties of the last century only to buy 30 eggs chicken and 20 pieces of bread that month, and the years of economic blockade. Also, many workers in various institutions have stopped working because the monthly return does not cover the cost of transportation to the workplace. Do not forget how distorted markets were created in the country, trading used materials from furniture, durable goods, clothes to buy flour or sugar, and filling the minimum household needs for food. The agricultural sector itself as afood sector has deteriorated since the 1970s because of the deterioration of the rural population and the absorption of oil revenues in the public sector and the militarization of the country. For instance, the annual growth rate in the agricultural sector was negative (1.1%).While the growth rate in that sector between 1962-1972 was 7.1% annually. With the supply ofall commodity sectors witnessed a deterioration in growth during the nineties, especially agriculture and industry . 

Today, the average annual per capita income of the Iraqi population has risen to more than $ 5,300, up from $ 750 before 2003. The average income of the government employee is almost double the average per capita income of GDP, estimated at $ 10,000 Annually . 

Money is anything that society agrees to become an intermediary of exchange, a storehouse of value and a unit of account. The money (legal) issued by the monetary authority under the law and with the power of discharge of receivables is seen as a social institution , That social institution ie money and vice versa. Continuous inflation has led to a rise in the currency exchange rate from 23 billion dinars in 1991 to about 30 trillion dinars at the present time, and the largest currency category from 25 dinars to 25,000 dinars over time. Thus, inflation setnew figures for the currency in addition to three zeros, which increased the amount ofnominal cash operations and the cost of production of large quantities of them, accompanied by storage and distribution operations and the promise and screening and accompanying and, at double levels, helped to increase the operational risks associated with Operational Risk 

In light of the price stability and optimism of the future of Iraq development, it is necessary to radical reform of the currency management system, restructuring structure commensurate with the new structure of different prices and stable wages and salaries, which differed significantly from the past thirty years, as well as dealing with a large critical mass weak in its components So that the largest currency category is worth only 21 US dollars at present.Noting that the rise of Iraq's gross domestic product from 140 billion dollars at the end of 2011 to more than 230 billion dollars by the end of 2015, will raise the cash export from 37 trillion dinars to about 70 trillion dinars. And the weak structure in the structure of the currency as mentioned above has been added to add a cost called the cost of cash transactions in terms of circulation, whether between individuals themselves, individuals and banks and within the banking system itself . 

** The demand for the US dollar (especially the $ 100) is an urgent need to settle cash transactions in the local market outside the will of the monetary policy because the market is looking at transactions to the largest groups are not available now, but is reflected in the large US currency category for easy to carry and circulation to reduce the cost Cash trading or cash transactions. Therefore, the Iraqi monetary system is in urgent need of administrative reform of the system of cash payments to be there categories of cash, high purchasing power in circulation, easy to carry and possession, which facilitates the exchange of cash for the purposes of transactions or trading. He pointed out that the imbalance in the structure or composition of the current monetary units has deepened the problems of the (state), which arranged undesirable effects on the effectiveness and performance of monetary policy . 

In Sweden, for example, which currently has one of the best cash payment systems in the world, however, the cost of cash circulation from counting, sorting, transporting and storing currency, costs the national economy at 4% of the GDP of Sweden. How can we compare this in a country such as Iraq that manages such huge amounts of money that are weak in structure, adding to the cost of monetary transactions that may reach 8% or more of GDP, a burden borne by the individual in its dealings, which reduces the efficiency of criticism as a social institution supporting the institutions of the economy Including the market. Proof of this is limited to large cash transactions to pay in US dollars , which means replacing the currency of another country in circulation to assign cash transactions due to the decline in efficiency and installation of the current cash mass . 

The multiplicity of zeros on currency categories with low purchasing power have many difficulties, including the difficulty of expressing monetary value, as well as the difficulties of cash operations themselves and technical problems in the registration of statistical data and registration in accounting books and change computer systems and settlement systems, as well as showing prices with long figures sometimes difficult Even the meters or digital devices to read the yellowing at the gas stations or other digital devices . 

On this basis, there has been a need to reform the monetary payments system through the following advantages : 

I. At the horizontal level: delete the three zeros . 
- Transferring 37 trillion dinars to 37 billion dollars by deleting three zeros from the current currency and replacing them with a new currency, thus facilitating the computation of the calculations with the numbers are the least number in terms of federal budget accounts,budgets of banks and companies, as well as the family budget cash (individuals) without arranging Any change or change in the income or the monetary wealth of natural and moral persons, as well as its impact on the contracts and obligations between all natural and legal persons. This is called a Homogenous Function of Degree Zero , as long as the amount of new coins is a number that covers the exchange of the same commodity package in the old money with the largest number. David Hume, a pioneer of pre-classical economics in his famous Political Discourse (1752), likened the effect of nominal price levels to the rise in the amount of money, such as moving from Roman numerals to Arabic numerals Now), that transition does not alter the basic principles of arithmetic or mathematics. The rise in money supply leads to higher prices for themselves without any impact on the results of the real economy . 

Second: On the vertical level: Restructuring and composition of the currency 
- Since the large category of 25 thousand dinars form alone (two-thirds of the amount of securities traded), the issuance of larger categories means reducing the four billion paper currently traded and converted to the number of (01.18) billion notes. Large categories of currency will cut 80 % -90% of the total new categories to be traded (such as 50, 100,200 new). 

Based on the above, the cost of cash transactions between individuals and banks and individuals themselves is normal or significant, will inevitably decrease in terms of costs of counting, screening and auditing. If we know that the circulation of notes in circulation is eroded over the course of five years, which means the replacement of a huge mass of weak installation and arrange printing costs with high security specifications, which is another burden borne by the authority of monetary issuance, which is the remnants of a monetary management system . And the desired economic progress . 
In conclusion, the reasons for changing the current currency reflect the result of economic stability and the success of the policies of the Central Bank of Iraq in maintaining stability, the stability of the exchange rate of the Iraqi dinar and the fall of inflation to the level of one-tenth and build foreign reserves supporting the Iraqi dinar levels that have not been achieved during the past thirty years, which The cover of the Iraqi currency. In addition to improving the system of cash payments and make it leave the past adhesion and installation of the past and economic imbalances and reconstruction of the future of economic development and its real and nominal.Therefore, the CBI has prepared a long-term strategy that is feasible in the future when the appropriate opportunity is available gradually, in accordance with clear instructions and guidelines, providing protection for various rights and interests, in line with the stage of future prosperity and expected economic growth . More than once, and the economy will take steps towards progress, which requires reform of the remnants of the stages of inflation and may require some legislation in this regard .
*) Deputy Governor of the Central Bank

Al - Mada Newspaper

http://almadapaper.net/news.php?action=view&id=72395

 

[DinarThug]

3-30-2018  Newshound Guru Breitling  I don’t even think they need to reduce the note count anymore. 

I think they are done doing that…

because the last report was they reduced it to 4 billion notes and I think that was a 2 year pace it took them to get there…

that was 2 and a half, 3 years ago when the report came out. 

So they’re there. 

On that end they don’t need to do anything…

there is no hold up position.  

It’s simply the market value,

what it is they can do to make their currency and economy efficient so they can compete.

[hspotman]

4 hours ago, Floridian said:

 

That's the trouble.  Nobody's been right.  I hope he's not the one who is (right).

As long as they get started with "something" already!

 

[mylilpony]

10 hours ago, Floridian said:

I sure hope Kaperoni is wrong:

 

3-31-2018  Newshound Guru  Kaperoni‏   We've talked about this for years and used factual information to support system" rel="">support what the plan really is including actual words from the CBI.  The deletion of zeros is not a single event it's a process in which they gradually raise the value which could take several years once they started.  In fact one of the latest instructions from the CBI stated that they will continue to accept the old currency for up to 10 years.  The CBI also stated but the Iraqi dinar will join the world currency markets which is Forex.  The IMF also instructed the CBI to move to a more liberal exchange regime (float) to allow the dinar to appreciate based on the Balassa-Samuelson effect.  These are actual facts...and studying and learning how monetary policies work is critical to understanding what the dinar will do. The physical note account cannot be reduced until they begin to float the currency in which then they can collect notes as they are deposited and destroy them.  This is part of the reason why the process could take 10 years because it's going to be gradual over time.  Not to mention the CBI has stated over and over again as recent as a week ago that there's 60 trillion Iraqi dinar outside the banking system in homes (in mattresses under beds etc.)

 

 

In any article that i have read over the years has stated that its the banks that will be able to hold onto the dinar and exchange it gradually over 10 years, not the citizens. The imf never told iraq to allow the dinar to appreciate based on the balassa-samuelson effect. The balassa-samuelson effect is a monetary theory that one of the economists from iraq talked about. 

Cant say i ever read it anywhere that the imf said this because if that was the case then we would know how they were going to do it and so would every other person or business that could make a run on their currency. Shabbs always said that no one would be able to make a run on their currency and cause adverse effects. The only way to do that would be to come out close to the dollar because the more expensive it is to buy the dinar the more likely it is that the currency would be safe from such things. Remember when they talk about security its not only their borders its their currency also. The currency of a country is their security. With all do respect one can study too much and come up with many theories, but sometimes it can be just a simple process also. One thing i have said before is that iraq would have to have huge reserves in order for this process to take place, because in a gradual float they would need to be able to keep the currency steady and avoid shocks. That has been told to us many times over the years.

 

[Rmc10]

That's what I was thinking too 😁

 

25 minutes ago, Botzwana said:

Oh Iraqi TV put it up then took it down eh Delta?  This little pissant lies more than my mother.

 

[Floridian]

3 hours ago, mylilpony said:

 

 

In any article that i have read over the years has stated that its the banks that will be able to hold onto the dinar and exchange it gradually over 10 years, not the citizens. The imf never told iraq to allow the dinar to appreciate based on the balassa-samuelson effect. The balassa-samuelson effect is a monetary theory that one of the economists from iraq talked about. 

Cant say i ever read it anywhere that the imf said this because if that was the case then we would know how they were going to do it and so would every other person or business that could make a run on their currency. Shabbs always said that no one would be able to make a run on their currency and cause adverse effects. The only way to do that would be to come out close to the dollar because the more expensive it is to buy the dinar the more likely it is that the currency would be safe from such things. Remember when they talk about security its not only their borders its their currency also. The currency of a country is their security. With all do respect one can study too much and come up with many theories, but sometimes it can be just a simple process also. One thing i have said before is that iraq would have to have huge reserves in order for this process to take place, because in a gradual float they would need to be able to keep the currency steady and avoid shocks. That has been told to us many times over the years.

 

 

Thanks mylilpony.  I really appreciate this information.  

[ChuckFinley]

17 hours ago, DinarThug said:

 

Here’s Another Archived Article With Comments At The Beginning By Don961 ...

 

 

 

An oldie but goody from Abadi's Adviser , The Appearance Mr. Saleh .... in his days as Deputy Governor of the CBI ... 5 years ago .... under Dr. Shabibi ... shortly before Abadi took office ... think his/these ideas/plans have changed ? ... or were they delayed due to extenuating circumstances ? ... perhaps they've even evolved and improved ... imo 

>>>>>>>>>>>

 

Dr..Appearance of Mohammed Saleh *: an economic point of view .. the project deleted the three zeros and cost transactions cash

 

BY
 

DR.. APPEARANCE OF MOHAMMED SALEH 

- POSTED ON 19/01/2013

 

In light of the volatile economic and financial conditions and the pressures of monetary inflation that have taken place in our country before and have led to negative effects on the regularity of the commercial market, labor markets, production and the standard of living of citizens,
Which included the presence of a mass of cash, many zeros, a small value, and in a manner not commensurate with future developments in the present and future of the Iraqi economy, which requires a solution to these circumstances and their consequences, including solutions to reform the system of cash management through the structure and delete zeros from them to control the Stream and manage the cost of the cash cluster optimally . 

The circulation of the monetary bloc exported more than 37 trillion Iraqi dinars in various categories, reflected by the number of securities traded amounting to 4 billion banknotes is the product of a long period of inflation and economic deterioration, for example increased the consumer price index on the basis of 1993 from 100 to 200 thousand in the year 2003, which means that the commodity, which was sold by 100 dinars has been sold for 200 thousand dinars ... And so on. Under this circumstance and the deterioration of the value of the currency, the category of currency increased from 25 dinars to 25 thousand dinars, which means that inflation is added to these zeros . 

* Current currency categories do not match the current and future economic situation . For example, just before the outbreak of the Iraq-Iran war, the JD25 category was equivalent to $ 75, with purchasing power, for that time or the equivalent of 300,000 dinars . Inflation in the country over the past three decades has added zeros to the currency, yet these zeros have not lifted the purchasing power of the largest category of the currency, the 25,000 dinars, which is now $ 21 . Today we need to restructure the currency. Valafar large means a large monetary bloc in circulation today, about 30 trillion dinars, which requires direct cash circulation and a large cost in counting and sorting and the time and spatial and security characteristics. In the price system , the price is the value expressed in cash. Thus, the structure of costs, wage payments, salaries and transactions, all of which are not commensurate with the country's need for a monetary management system, is in line with the structure and price levels of the real sector . The country needs an easy-to-handle cash system and small and large categories that reflect the cost of that real structure. (See details in the next page margin ). 

It should be noted that during the period 1990-2007 the consumer price index increased to 400000 % . In order to simplify, the commodity, which was sold for one hundred dinars before the start of the war in Kuwait in 1990 became sold at 400 thousand dinars in 2007. The value of the Iraqi dinar declined twice and strongly During the period 1990-1998 at a rate of more than 99% against the US dollar . The first decline was in 1990, the other decline was in 1997, and by 93.2 %, which made the total decline in the Iraqi dinar exchange rate against the dollar (minus 99.99%) that at the end of 1998, and during this period alone reached inflation in theindex For consumer prices 45000%. 

As we know that inflation itself means high money prices on goods and services (how much money we need to exchange a certain package of goods and services .. The more money to exchange the package itself means that there is inflation or increase in money prices). Noting that the value of money is inversely proportional to the price of money, and that the price is the value of goods and services expressed in cash *. 

(*) Social studies indicate that the monthly income of the Iraqi doctor was not equal to purchasing power in the nineties of the last century only to buy 30 eggs chicken and 20 pieces of bread that month, and the years of economic blockade. Also, many workers in various institutions have stopped working because the monthly return does not cover the cost of transportation to the workplace. Do not forget how distorted markets were created in the country, trading used materials from furniture, durable goods, clothes to buy flour or sugar, and filling the minimum household needs for food. The agricultural sector itself as afood sector has deteriorated since the 1970s because of the deterioration of the rural population and the absorption of oil revenues in the public sector and the militarization of the country. For instance, the annual growth rate in the agricultural sector was negative (1.1%).While the growth rate in that sector between 1962-1972 was 7.1% annually. With the supply ofall commodity sectors witnessed a deterioration in growth during the nineties, especially agriculture and industry . 

Today, the average annual per capita income of the Iraqi population has risen to more than $ 5,300, up from $ 750 before 2003. The average income of the government employee is almost double the average per capita income of GDP, estimated at $ 10,000 Annually . 

Money is anything that society agrees to become an intermediary of exchange, a storehouse of value and a unit of account. The money (legal) issued by the monetary authority under the law and with the power of discharge of receivables is seen as a social institution , That social institution ie money and vice versa. Continuous inflation has led to a rise in the currency exchange rate from 23 billion dinars in 1991 to about 30 trillion dinars at the present time, and the largest currency category from 25 dinars to 25,000 dinars over time. Thus, inflation setnew figures for the currency in addition to three zeros, which increased the amount ofnominal cash operations and the cost of production of large quantities of them, accompanied by storage and distribution operations and the promise and screening and accompanying and, at double levels, helped to increase the operational risks associated with Operational Risk 

In light of the price stability and optimism of the future of Iraq development, it is necessary to radical reform of the currency management system, restructuring structure commensurate with the new structure of different prices and stable wages and salaries, which differed significantly from the past thirty years, as well as dealing with a large critical mass weak in its components So that the largest currency category is worth only 21 US dollars at present.Noting that the rise of Iraq's gross domestic product from 140 billion dollars at the end of 2011 to more than 230 billion dollars by the end of 2015, will raise the cash export from 37 trillion dinars to about 70 trillion dinars. And the weak structure in the structure of the currency as mentioned above has been added to add a cost called the cost of cash transactions in terms of circulation, whether between individuals themselves, individuals and banks and within the banking system itself . 

** The demand for the US dollar (especially the $ 100) is an urgent need to settle cash transactions in the local market outside the will of the monetary policy because the market is looking at transactions to the largest groups are not available now, but is reflected in the large US currency category for easy to carry and circulation to reduce the cost Cash trading or cash transactions. Therefore, the Iraqi monetary system is in urgent need of administrative reform of the system of cash payments to be there categories of cash, high purchasing power in circulation, easy to carry and possession, which facilitates the exchange of cash for the purposes of transactions or trading. He pointed out that the imbalance in the structure or composition of the current monetary units has deepened the problems of the (state), which arranged undesirable effects on the effectiveness and performance of monetary policy . 

In Sweden, for example, which currently has one of the best cash payment systems in the world, however, the cost of cash circulation from counting, sorting, transporting and storing currency, costs the national economy at 4% of the GDP of Sweden. How can we compare this in a country such as Iraq that manages such huge amounts of money that are weak in structure, adding to the cost of monetary transactions that may reach 8% or more of GDP, a burden borne by the individual in its dealings, which reduces the efficiency of criticism as a social institution supporting the institutions of the economy Including the market. Proof of this is limited to large cash transactions to pay in US dollars , which means replacing the currency of another country in circulation to assign cash transactions due to the decline in efficiency and installation of the current cash mass . 

The multiplicity of zeros on currency categories with low purchasing power have many difficulties, including the difficulty of expressing monetary value, as well as the difficulties of cash operations themselves and technical problems in the registration of statistical data and registration in accounting books and change computer systems and settlement systems, as well as showing prices with long figures sometimes difficult Even the meters or digital devices to read the yellowing at the gas stations or other digital devices . 

On this basis, there has been a need to reform the monetary payments system through the following advantages : 

I. At the horizontal level: delete the three zeros . 
- Transferring 37 trillion dinars to 37 billion dollars by deleting three zeros from the current currency and replacing them with a new currency, thus facilitating the computation of the calculations with the numbers are the least number in terms of federal budget accounts,budgets of banks and companies, as well as the family budget cash (individuals) without arranging Any change or change in the income or the monetary wealth of natural and moral persons, as well as its impact on the contracts and obligations between all natural and legal persons. This is called a Homogenous Function of Degree Zero , as long as the amount of new coins is a number that covers the exchange of the same commodity package in the old money with the largest number. David Hume, a pioneer of pre-classical economics in his famous Political Discourse (1752), likened the effect of nominal price levels to the rise in the amount of money, such as moving from Roman numerals to Arabic numerals Now), that transition does not alter the basic principles of arithmetic or mathematics. The rise in money supply leads to higher prices for themselves without any impact on the results of the real economy . 

Second: On the vertical level: Restructuring and composition of the currency 
- Since the large category of 25 thousand dinars form alone (two-thirds of the amount of securities traded), the issuance of larger categories means reducing the four billion paper currently traded and converted to the number of (01.18) billion notes. Large categories of currency will cut 80 % -90% of the total new categories to be traded (such as 50, 100,200 new). 

Based on the above, the cost of cash transactions between individuals and banks and individuals themselves is normal or significant, will inevitably decrease in terms of costs of counting, screening and auditing. If we know that the circulation of notes in circulation is eroded over the course of five years, which means the replacement of a huge mass of weak installation and arrange printing costs with high security specifications, which is another burden borne by the authority of monetary issuance, which is the remnants of a monetary management system . And the desired economic progress . 
In conclusion, the reasons for changing the current currency reflect the result of economic stability and the success of the policies of the Central Bank of Iraq in maintaining stability, the stability of the exchange rate of the Iraqi dinar and the fall of inflation to the level of one-tenth and build foreign reserves supporting the Iraqi dinar levels that have not been achieved during the past thirty years, which The cover of the Iraqi currency. In addition to improving the system of cash payments and make it leave the past adhesion and installation of the past and economic imbalances and reconstruction of the future of economic development and its real and nominal.Therefore, the CBI has prepared a long-term strategy that is feasible in the future when the appropriate opportunity is available gradually, in accordance with clear instructions and guidelines, providing protection for various rights and interests, in line with the stage of future prosperity and expected economic growth . More than once, and the economy will take steps towards progress, which requires reform of the remnants of the stages of inflation and may require some legislation in this regard .
*) Deputy Governor of the Central Bank

Al - Mada Newspaper

http://almadapaper.net/news.php?action=view&id=72395

 

Thanks Thug, If it were not for the highlight areas I would go crazy.  

[ChuckFinley]

10 hours ago, mylilpony said:

 

 

In any article that i have read over the years has stated that its the banks that will be able to hold onto the dinar and exchange it gradually over 10 years, not the citizens. The imf never told iraq to allow the dinar to appreciate based on the balassa-samuelson effect. The balassa-samuelson effect is a monetary theory that one of the economists from iraq talked about. 

Cant say i ever read it anywhere that the imf said this because if that was the case then we would know how they were going to do it and so would every other person or business that could make a run on their currency. Shabbs always said that no one would be able to make a run on their currency and cause adverse effects. The only way to do that would be to come out close to the dollar because the more expensive it is to buy the dinar the more likely it is that the currency would be safe from such things. Remember when they talk about security its not only their borders its their currency also. The currency of a country is their security. With all do respect one can study too much and come up with many theories, but sometimes it can be just a simple process also. One thing i have said before is that iraq would have to have huge reserves in order for this process to take place, because in a gradual float they would need to be able to keep the currency steady and avoid shocks. That has been told to us many times over the years.

 

Thanks MLP for bring this up, I too remember ready this somewhere. Guess we have been in this too long. Have not seen you in awhile, trust all is well. 

[skeetdog]

Thanks DT...There's a new sheriff in town...He said..."I ain't sayin you can't own a gun...You just can't carry it around town"....

11 hours ago, mylilpony said:

 

 

In any article that i have read over the years has stated that its the banks that will be able to hold onto the dinar and exchange it gradually over 10 years, not the citizens. The imf never told iraq to allow the dinar to appreciate based on the balassa-samuelson effect. The balassa-samuelson effect is a monetary theory that one of the economists from iraq talked about. 

Cant say i ever read it anywhere that the imf said this because if that was the case then we would know how they were going to do it and so would every other person or business that could make a run on their currency. Shabbs always said that no one would be able to make a run on their currency and cause adverse effects. The only way to do that would be to come out close to the dollar because the more expensive it is to buy the dinar the more likely it is that the currency would be safe from such things. Remember when they talk about security its not only their borders its their currency also. The currency of a country is their security. With all do respect one can study too much and come up with many theories, but sometimes it can be just a simple process also. One thing i have said before is that iraq would have to have huge reserves in order for this process to take place, because in a gradual float they would need to be able to keep the currency steady and avoid shocks. That has been told to us many times over the years.

 

....I don't think the actual dinar in fiscal form was the issue of 'security'...The 'security' of securing the dinar to unique internation IMF programs to be used as gigantic 'trust funds' to bailout failing economies.....by using the dinar in a basket of currencies...of other merging economies....to support the growth of less promising currencies of merging economies...There's no evidence to prove it...but...with the intervention of the IMF...the IMF's projected world basket proposals...and the IMF has already approved the "000" deletion program for the dinar...Why not put the dinar in a 'secondary basket of merging economies'...use the dinar as the work-horse for the secondary baskets...As these merging countries develope...create these trust at the dinar's present rate in an international  reserve fund for each merging countries and simply have agreed to hold the dinar in the trust until that said country can "gradually" put the massive amounts gained though this...secured trust...back into that said economy.'s account...Thus the massive amounts of LD notes can be accounted for with "secured" guarantee by the IMF...that's in control...that these accounts will not effect the Iraqi economy....jmho

to

[Freedomwish]

On 3/31/2018 at 5:52 AM, ChuckFinley said:

A BIG Thank you Thug, I am and always believe it will be 1 to 1. 

 

[ranger173]

Isnt this aarticle old as the hills 

[skeetdog]

Thanks DT.....

11 hours ago, ranger173 said:

Isnt this aarticle old as the hills 

....Not really sure...Aint that ol'....but I can recall times after....the stream filled the lake that grew the fish I love to 'try to catch....Looking back from the time period when this article was releast...until now...is reasuring that the original concept in the ideology behind Iraq's multifacet economy is still staying the coarse...The main concern is the welfare of an 'open-economy' that supports as well as being supported by the 'private-sector'....

[DinarThug]

On 3/31/2018 at 2:52 AM, ChuckFinley said:

A BIG Thank you Thug, I am and always believe it will be 1 to 1. 

 

1 To 1 Would Be One-derful - But Just Get Us Off Of This Endless Camel Merry-Go-Round ! 

     

[DinarThug]

4-2-2018   Newshound Guru Kaperoni  

[...What will happen to the dinar notes we hold here in the US? Any thoughts?]  

According to the CBIs own words,

held in central banks around the world for a very long time.