The decision to delete zeros from the currency. Ink on paper

[boomer113189]

A while ago, near the decision to delete three zeros of the Iraqi currency, and that the project will be launched early next year and will run for two to three years. Then came other statements the Government cautiously announces the implementation of this resolution and postponed to another date.

Does the project will remain a dead letter permission as described by Central Bank Deputy Director Mohammad Saleh appearance? .... Was the decision to delete zeros of the Iraqi currency in many opinions Pro and con, economists believed that the resolution would lead to the collapse of the national currency and some other that he would return to the country with great interest and unfortunately its await as a joint venture between the Government and the Central Bank. As long as the Government seeks to postponed due to security concern, it could not be implemented this year or the year after – as Deputy Director of the Central Bank — the timing is very important in this case and that its implementation must coincide with the beginning of the fiscal year, so you will not find a space for implementation this year inevitably ... Regrets for the delay of the country's economic performance will improve efficiency as long as currency and reduce the influence of big numbers, monetization needs to cash large and small groups will be dealing with categories such as (50 dinars) and (100 dinars) and (200 dinars) in addition to the categories below as dinar (half dinars and quarter-dinars) and (50 Fils, 25 Fils).

And is confirmed by the Economist and financial Bank of Majed who doesn't see mock difficulty in the implementation of the resolution as it will help in the process of reducing the size of the trading currency in large transactions and will lead to more accurate price policy in the future as long as it will be dealing with thousands and millions rather than billions as well as its role in the detection of forgeries before that the Central Bank will charge banks using ultra-modern techniques for the detection of forgeries. Adds «the techniques to be used in printing the new currency will be strong only if behind that organized gangs or assisted by the State because the precise specifications and the methods that the Central Bank would be very strict. "

In contrast, warns Economist Tawfiq inhibitor from the collapse of the national currency in case of application of the decision to delete the three zeros, noting the need to prolong the currency switch and its failure to withdraw the old currency and the new release directly, but do it together so as not to cause harm to the economy or any direct impact on the living conditions of the citizens. On the other hand believes that anticompetitive counterfeiting are another reason to collapse so it warns that there are large gangs and Division of work capable of forging the largest Iraqi currency.

Most of the citizens considering to delete three zeros from the decision of the national currency after apprehension look used their pocket to carry large paper groups and stakeholders, including dealing with the hundreds of millions.

Businessman Saleh believes that the deletion of zeros wazani would affect the level of stock trading in Iraq market for securities, because there would be lost if shares delete zeros. Working in the stock exchange weighted since 2005 and has increased his fondness when developed using electronic screens, but he does not hide his fear of failure to deal in the shares of the stock will fall leading to block the signing of agreements with foreign investment companies that believe that currency will reduce profits.

Meanwhile, Adel Abdul Jalil/Assistant Professor in the College of business and economics, said Iraq is willing to delete the zeros of the dinar, because it needs to stabilize the political and economic security, and Iraq — in his view — no need to replace currency as much as is needed to control the oscillation in the dinar against the dollar. Underlines that raising zeros Abdul Jalil will cost the State budget has significant amounts of financial corruption opens Baba and waste of public money as well as not addressing the problem of inflation because the Iraqi market for imported goods and services from abroad means drain big hard currency.

In response to these concerns, the Deputy Director of the Central Bank to force Iraqi dinar which has become similar to hard currency, Central Bank policy of controlling liquidity in the domestic market ". There was a large cash reserve of foreign currency kept to face difficult circumstances that may occur in the country, what gives power to the dinar to currency. The policy of the Central Bank — by Salih to the stability of the dinar against the US dollar, likely equal the price of the Iraqi dinar against the US dollar over the next two years after the implementation of the project to delete the three zeros Iraqi currency. Opinion in favour of the Iraqi citizen needs to educate in villages and towns and also school students and that the media's role in helping citizens to receive project.

Economic expert confirms this view Majed mock, explaining that the new currency would be gradual so as not to any citizen or blackmail from stakeholders even ancient currency is withdrawn completely, requiring a large information campaign also supervised by the Central Bank and its associates to educate the citizen.

My link

[uncirculd]

Ink on Paper. They will collapse if they don't do something about the idiots that won't allow progress.

Wow, I am on a roll of name calling. Shame on me. Sometimes you can't be nice. I think the shoe fits, so I will throw it to him.

[Butifldrm]

Good article boomer, thanks for the post

[TQueezy]

There's the key word we're looking for... "gradual"

It's what Keep, and some of the other members arguing that a "L O P" is very likely given the way they are disseminating information through these articles, were looking for; a gradual increase in the rate and withdrawal of the older currency. I guess it goes hand in hand, and it still is muddy on whether or not that would be a value neutral process, since as the new bills are given out from banks and old currency taken in an destroyed, the rate will slowly climb to be closer to the dollar. It's not as much of a shock as 1 : 1 overnight, but isn't it still the same principle and is value neutral? Hmmm

[Realdinar]

Ink on paper.....

[Mxmann]

There's the key word we're looking for... "gradual"

It's what Keep, and some of the other members arguing that a "L O P" is very likely given the way they are disseminating information through these articles, were looking for; a gradual increase in the rate and withdrawal of the older currency. I guess it goes hand in hand, and it still is muddy on whether or not that would be a value neutral process, since as the new bills are given out from banks and old currency taken in an destroyed, the rate will slowly climb to be closer to the dollar. It's not as much of a shock as 1 : 1 overnight, but isn't it still the same principle and is value neutral? Hmmm

You listen to keep????

[DiveDeepSix]

I'm bumping this back up, I would really like to know from those in the know what they think of this article. To me it looks like, here anyway, they are shelving the plan to delete the zeros, for this year and possibly next. I suppose it could be a good thing, IF they gradually increase the value and release the smaller bills at the same time. Not sure what to think, probably more smoke from the Masters of BS articles!!

[powerpager]

Shoe Polish !!!

[Brisco]

Say this here and do That over there.

Iraq's are the best in the world at mis-direction.

No matter what you hear or what happens never & I repeat NEVER listen to Keep!

[Dalite]

I'm bumping this back up, I would really like to know from those in the know what they think of this article. To me it looks like, here anyway, they are shelving the plan to delete the zeros, for this year and possibly next. I suppose it could be a good thing, IF they gradually increase the value and release the smaller bills at the same time. Not sure what to think, probably more smoke from the Masters of BS articles!!

I don't think I am in the loop as to what the decision will be, and when it will be decided......

But.......................

If they put off deleting the zeros (ReDenomination), the exchange rate would have to be adjusted incrementally; according th to reserves available to back the increase.

Granted, this would be slow, but the zeros remain in tact. KeepM and others have been trying to get this point across or some time. History, and the CBI's actions support what KeepM has been trying to get across.

Putting off ReDenomination is not a bad thing for us; but does nothing for Iraq, as the currency continues to carry the remnants of past hyper inflation.

Despite the amount of articles that have come out since June of last year explaining the reasoning behind, and concept of ReDenomination, the members of Parliament supposed to be educated in finance do not seem to be able to grasp the concept.

As long as they continue to stonewall the progress of the CBI, currency form will continue to be put off.

[uncirculd]

I am thinking that this is just as planned. It is Shabibi's plan that the dinar's worth rises gradually. It will be a neutral in country RD. It is happening as we write. I believe there are 3 phases and we are still on the 2nd. Sometimes they want us to believe they have done nothing. But we know Shabibi has put all the infrastructure in place and that he is pulling in some of the dinar. I don't know yet if they are being destroyed but we do know that it is being destroyed on it's own since they have complained about bad bills and the money changers were ripping the folks off.

I do listen to keepmwalkfny (however he spells it) because if I didn't I would be one sided. He provokes critical thinking. If we didn't have that we would be indoctrinated by pumpers. It is good to have a well rounded conversation. But where I think we might be missing the boat is that the RD is in country and the RV will be the rest out of country. Pulling in the money supply and being able to sustain (whatever goal Shabibi put for this project) the economy, having all the infrastructure, security in the country, political security, HCL, re-appropriations of loans, ISX along with the confidence of the citizens is all part of that. Oh, I left some out, pumping a certain amount of oil, tax and tariffs infrastructure all have to be in place and working.

I believe that all this has been in the making. Those who would be in charge of some projects are slow at progress, and then you have those who will stall the progress. Too many holidays, and too many personalities. In the end what I have believed to be the Kurds are our friends in this. The Iraqi list has been trying to go forward. They know what needs to be done but the Alliance has pushed them back all the way with Maliki's help.

There is so much that has and needs to be done and there are even out side influences that seek to destroy Iraq's economy and want them to fail. This also is a big factor and an uphill battle for those who are trying to move forward.

The dinar is rising in worth as we post here on DV daily. We know it is worth more than 1166 to the dollar. We often get impatient and confused with these articles and that's the time to take a break. It is an RV for us. For the country it's will be a RD. The developing of the agriculture, investment, building, output of oil pumping, implementation of tariffs, and HCL, the higher the dinar will rise. This is in the making.

An example would be your going to start a business selling pizza. You begin with your business model. Then you have to either buy existing place or buy a lot and build the building. What ever your business model is calling for, you will have to make those decisions. Once you build or buy you then must look at your schematics layout of how your shop will be sufficient. Then there is the equipment, lighting, restrooms, etc etc. Each and every project for this business model will take time. You will hit glitches that may force you to modify your original plans. It happens. After is it up and running you may get a good turnout on opening day and the day after. Then it begins to slow down. Your pizza's are worth more the day you had your opening because folks are curious. (Same in Iraq, investors are curious and they pour in. Then they look at their model and realize there is going to be extra expenses that will have to be offset. (security etc.)). Some will not be able to do that and pull back until the security is stable. Same with your pizza. After the a month or 2 you see that your business is not sustaining as you would really want. You might need to make a few changes. Advertising, modifications, sales, etc etc. You make your pizza shop inviting and soon your business is booming..... Just like Iraq, they need security, laws passed, tradable currency etc etc. It's all part of the process of the rising value of your business.

I just think that we are still on track for this investment to pay off, and that the RD will be in country. The dinar gets more valuable every day they make progress. Yeah, I could be nuts, and sometimes I am, but this is how is has presented in numerous readings, such as IMF, Future of Iraq, WTO, CBI, UNAMI, Security Council. This is how a business model works. Shabibi's goal is to bring back the value and make it the strongest in the ME. I tend to believe in him. He has a resume that says he can and will do it. The words that ring in my ear is settle debt, settle the books, RD currency, and RV the rest. Maybe not the exact wording, but the same message.

Sorry for writing a book, but sometimes I get on a roll and don't want folks to argue, and hopefully shed a bit of light. But then I could be totally mislead. Ya'll have read what I have, you decide.