Iraq unlikely to remove zeros from the currency

[SocalDinar]

Iraq unlikely to remove zeros from the currency 15.1.2014

 

 

 

 

 

Photo: Archive • See Related Articles

 

January 15, 2014

BAGHDAD,— A rumor circulating regarding the removal of zeros from the Iraqi Dinar (ID) is false. Najiba Najib, a member of parliament (MP) from Iraq’s finance committee, recently clarified that there is no such plan in the Iraqi Parliament.

An economic expert believes that the zeros will not be removed from the Iraqi currency because the Iraqi budget is highly dependent on oil revenue.

“There is no draft law in parliament about removing zeros from the Iraqi currency,” Najib said.

She acknowledged that, “The central bank made a request to remove the zeros, but our committee refuses such requests because they are not in the interest of Iraq’s market and also, it is hard to control currency exchange - serious work needs to be done for this.”

Najib further explained that the reason the removal of zeros from the Iraqi currency has been delayed is due to the difficulty of controlling the currency during the crisis Iraq is currently experiencing regarding the exchange of 35 trillion ID in the bazaar. The federal government does not trust the central bank to be capable of carrying out this process successfully.

 

Another MP from the finance committee, Abdul-Hussein Yassri, said that removing zeros from the ID will increase the value of the currency.

In recent years, there was a draft law prepared by the previous head of the central bank for ID to be written in both Arabic and Kurdish languages, as well as using other signs representative of minorities in Iraq. But due to disagreement with the federal government, the draft law was rejected.

Many economic analysts believe that reform in Iraq’s economy is not related to the removal of zeros from the Iraqi currency because what is happening in Iraq now is related to inflation, not zeros.

“Zeros will not be removed from the currency because the budget of Iraq is highly dependent on oil revenue” Ismael Shukur, an economic expert and university lecturer told Basnews.

Shukur noted that, “95% of the Iraqi budget comes from oil revenue, and the oil is sold in US Dollars (USD) and then gets exchanged to ID. Thus, if we remove zeros, there will be a resultant increase in deficit.”

Dr. Khalid Haidar, Economic Expert at Sulêmanî [sulaimaniyah] University, emphasized that the economy of Iraq is not productive, and therefore, if the removal of zeros from ID takes place,www.Ekurd.net Iraq’s economy will be in a risky position and people will no longer value Iraq’s currency and will use USD instead. Dr. Haidar said such a move is not in the interest of Iraq nor the Kurdistan Regional Government (KRG).

The first Iraqi currency was released in 1932. It has been changed often, the last time being in 2003 when the dictatorship regime came to end and Saddam Hussein was removed from power.

 

http://www.ekurd.net/mismas/articles/misc2014/1/govt2255.htm

Edited January 15, 2014 by SocalDinar

[gregp]

Sorry Lopsters.

[yota691]

one more..

Zeros in Iraqi Dinar won’t be removed

15.01.2014

•  
•  

Shwan Barzinji
BasNews (ERBIL):
 
A rumor circulating regarding the removal of zeros from the Iraqi Dinar (ID) is false. Najiba Najib, a member of parliament (MP) from Iraq’s finance committee, recently clarified that there is no such plan in the Iraqi Parliament.
 
An economic expert believes that the zeros will not be removed from the Iraqi currency because the Iraqi budget is highly dependent on oil revenue.
 
“There is no draft law in parliament about removing zeros from the Iraqi currency,” Najib told BasNews.
 
She acknowledged that, “The central bank made a request to remove the zeros, but our committee refuses such requests because they are not in the interest of Iraq’s market and also, it is hard to control currency exchange - serious work needs to be done for this.”
 
Najib further explained that the reason the removal of zeros from the Iraqi currency has been delayed is due to the difficulty of controlling the currency during the crisis Iraq is currently experiencing regarding the exchange of 35 trillion ID in the bazaar. The federal government does not trust the central bank to be capable of carrying out this process successfully.
 
Another MP from the finance committee, Abdul-Hussein Yassri, said that removing zeros from the ID will increase the value of the currency.

In recent years, there was a draft law prepared by the previous head of the central bank for ID to be written in both Arabic and Kurdish languages, as well as using other signs representative of minorities in Iraq. But due to disagreement with the federal government, the draft law was rejected.
 
Many economic analysts believe that reform in Iraq’s economy is not related to the removal of zeros from the Iraqi currency because what is happening in Iraq now is related to inflation, not zeros.
 
“Zeros will not be removed from the curency because the budget of Iraq is highly dependent on oil revenue” Ismael Shukur, an economic expert and university lecturer told BasNews.
 
Shukur noted that, “95% of the Iraqi budget comes from oil revenue, and the oil is sold in US Dollars (USD) and then gets exchanged to ID. Thus, if we remove zeros, there will be a resultant increase in deficit.”
 
Dr. Khalid Haidar, Economic Expert at Suleimaniyah University, emphasized that the economy of Iraq is not productive, and therefore, if the removal of zeros from ID takes place, Iraq’s economy will be in a risky position and people will no longer value Iraq’s currency and will use USD instead. Dr. Haidar said such a move is not in the interest of Iraq nor the Kurdistan Regional Government (KRG).
 
The first Iraqi currency was released in 1932. It has been changed often, the last time being in 2003 when the dictatorship regime came to end and Saddam Hussein was removed from power.

[SocalDinar]

And I highly doubt the GOI and parliment could ever agree on this with any kind expediency.

 

Also confirms that there is no draft law in parliament about removing zeros from the Iraqi currency, which also means it would be required if the plan was to LOP

 

I guess the CBI will have to find another way to raise the value!!!

[ScaryMary]

Hey Keep what's your opinion on this?

[davis411]

not the smartest here so i take this as good news also

[yota691]

Hey Keep what's your opinion on this?

Let's talk Turkey....

[gamaray]

Hey Keep what's your opinion on this?

 

don't worry ........ he'll be on this like a grease monkey fly on BMW poo!

[NeedRv]

Remove...dont remove..... as long as they come out close to or at a buck (or better) then I'm good!!! 

 

 

GOOOOOOOO RV... 

[Shabibilicious]

don't worry ........ he'll be on this like a grease monkey fly on BMW poo!

 

That was a nice visual.    

 

GO RV, and NO BV

[ScaryMary]

I love you guys!!! Thanks for making me smile from my heart. Go Go Go Go Go RV.

[Tripphood]

Removing zeros doesn't concern us. We are waiting for Article 8.

[hoof hearted]

Yes thats good.....but when will they ****** rv ?

[Zigs]

Was, www.Ekurd.net a subliminal message so more people will read the Kurds on line articles?

[AmericaInc]

She acknowledged that, “The central bank made a request to remove the zeros, but our committee refuses such requests because they are not in the interest of Iraq’s market and also, it is hard to control currency exchange - serious work needs to be done for this.”
 

 

So this sheds some light on their perception of the elusive and ambiguous "remove the zeros" issue. Not in the interest of the market...what could this mean?  It seems they feel deletion will raise the deficit, given they sell oil in dollars. Something to consider. Others better versed in this should analyze this one.

 

Two, "serious work needs to be done" beforehand. This points to a revaluation rather than and LOP in my opinion. The technical fix of an LOP does not require serious work involving years of preparation in banking, foreign trade, stability, Q cards, etc etc.

It is a central bank technical fix that removes past inflation. "Serious work" must mean something else - what we are interested in.

They would have LOP'd long ago if that were their intention.

[SocalDinar]

Was, www.Ekurd.net a subliminal message so more people will read the Kurds on line articles?

This news agency has been around for a long time Zigs. It's good to get their spin on the news to keep things balanced

[TBomb]

Removing zeros doesn't concern us. We are waiting for Article 8.

right on!

[Zigs]

She acknowledged that, “The central bank made a request to remove the zeros, but our committee refuses such requests because they are not in the interest of Iraq’s market and also, it is hard to control currency exchange - serious work needs to be done for this.”

 

 

So this sheds some light on their perception of the elusive and ambiguous "remove the zeros" issue. Not in the interest of the market...what could this mean?  It seems they feel deletion will raise the deficit, given they sell oil in dollars. Something to consider. Others better versed in this should analyze this one.

 

Two, "serious work needs to be done" beforehand. This points to a revaluation rather than and LOP in my opinion. The technical fix of an LOP does not require serious work involving years of preparation in banking, foreign trade, stability, Q cards, etc etc.

It is a central bank technical fix that removes past inflation. "Serious work" must mean something else - what we are interested in.

They would have LOP'd long ago if that were their intention.

A redenomination takes "serious work".  Education for the people, applying for a new currency, printing new currency, distribution of new and exchange of old, making sure the old currency is not counterfeit.  Risking failure, (more inflation), It is quite an ordeal.

An RV is a flip of a switch, and it is done pretty much.

This news agency has been around for a long time Zigs. It's good to get their spin on the news to keep things balanced

I know, I just thought it was interesting where they put their web site address.

[Man_Kind]

right on!

 

TBomb or Tripphood,

 

Please make me smarter and tell me why we should be waiting on Article 8.

 

Thanks in advance

[MyLadiesDaddy]

A redenomination takes "serious work".  Education for the people, applying for a new currency, printing new currency, distribution of new and exchange of old, making sure the old currency is not counterfeit.  Risking failure, (more inflation), It is quite an ordeal.An RV is a flip of a switch, and it is done pretty much.I know, I just thought it was interesting where they put their web site address.

A lot of work'REALLY'. Wasn't it Venezuela that recently redominated there currency

by reducing it some 47%? Didn't work out too well for the Ford Motor Company.

They lost nearly 400 million dollars. Yea lobisters that's gonna create all kinds of

financial interest in Iraq.

[zul]

Sorry Lopsters.

 

 

[Gunshow2425]

A redenomination takes "serious work". Education for the people, applying for a new currency, printing new currency, distribution of new and exchange of old, making sure the old currency is not counterfeit. Risking failure, (more inflation), It is quite an ordeal.

An RV is a flip of a switch, and it is done pretty much.

I know, I just thought it was interesting where they put their web site address.

Rv is not just a flip of a switch. The work you explained is pretty much for our rv bc there will be an exchange of old, torn up currency and all of that.

[DinarThug]

Have No Fear !

 

Team LOPster Will Soon Be Here - To Demonstrate How Iraq Is A Textbook LOP !

 

 

                             

[Igor]

What is next step, if will be no 000's removal?

[Zigs]

Rv is not just a flip of a switch. The work you explained is pretty much for our rv bc there will be an exchange of old, torn up currency and all of that.

There is more to it, for sure, both require serious work.  I was being a bit flip on that one.  However we cannot assume "serious work" reflects an RV or an RD.