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Parliamentary finance identifies a reason why coins should not be minted and advises such a move


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http://burathanews.com/arabic/reports/341343 

The future of the Iraqi currency!!

Diaa Mohsen
200 2018-11-28

Diaa Mohsen


Money, a source and document representing the state, is a symbol and expresses its political and religious system and its own philosophy. 

In comparison to date writing, documentation across currencies can not be questioned or challenged as a concrete fact and document for a certain period of time. 

Humanity has greatly benefited from the history of civilizations through the study of its currencies and their holdings

The discovery of currency is compared to the discovery of printing, as it facilitates the process of exchange between people and traders alike, and the currency is one of the main components of the market; without it, there can be no buying and selling

Before the entry of the British occupation forces in October 1914 was the currency traded among the people is the Ottoman lira, after which the British occupation authorities introduced the Indian rupee as the currency of circulation, and after independence was established the first council to issue the Iraqi currency in 1931, was linked to the Iraqi dinar in pounds sterling, The July 14, 1958 Revolution The dinar was pegged to the pound and pegged to the US dollar

The Central Bank of Iraq issued a new currency of paper and metal, bearing the slogan of the new Republic. New issues of paper currency were issued in 1971, 1973, and 1978. 

The Iraqi dinar suffered a continuous deterioration in its value after the Iran-Iraq war began, dropping from $3.3 per dinar in 1980 to about $4 in 1988.

As a result of the invasion of Kuwait and the issuance of resolutions of the Security Council to impose a blockade on him, and the deterioration of the value of the Iraqi dinar, forced the Central Bank of Iraq to issue currencies that were not traded before, issued banknotes of 50 and 100 dinars, followed in 1995 issued a paper of 250 dinars, 

The year 2000 issued a cash paper bearing the category of 10,000 dinars, and it is noted that all these categories were carrying the image of former President Saddam Hussein. 

The citizen carried large packages to buy his simple needs, which do not exceed eating and drinking

After the fall of the former regime, specialists began to think about how to restore the spirit of the Iraqi dinar, and remove the heavy legacy of the Iraqi economy, they began to put the idea of removing three zeros from the current currency

The deletion of zero is defined as a process by which the nominal value of the currency is adjusted due to high inflation and devaluation. Countries such as Brazil, Argentina (South America), Yugoslavia and Poland (countries in the orbit of the Soviet Union) Ireland (for joining the European Monetary Unit), a process different from the devaluation process,

But can such action be implemented? 

What are the pros and cons of the economic movement in Iraq? 

Could it really help to reduce inflation rates? 

Finally, what is the right timing for it?

This process is still controversial in the government and monetary circles, businessmen and specialists. 

Some believe that doing such a process will lead to more corruption and tampering with public money, because of what is happening in the process of changing the currency, and it will create a state of chaos and confusion in contracts internally and externally, And that it will not change anything from the fact that the amount of the issued paper will remain the same

At a time when an optimistic team believes that this process will lead to the restoration of prestige of the Iraqi dinar, if accompanied by the improvement of the dinar exchange rate, and the process of calculations in various fields will be less complex and simply

We do not deny that the process of deleting zeros is a necessary and important step comes within the need for the country to the process of administrative reform of the currency contribute to reduce transaction costs and cash transactions in the economic process, and reduce the size of the country's monetary mass and help to facilitate calculations and reduce the amplification of numbers, if applied Properly and at the right times. 

But there must be introductions to that process, including choosing the appropriate time in which the Iraqi economy in a state of stability, and then create the economic environment in a deliberate manner to implement the deletion, and this requires the procedures and financial and banking decisions taken by the financial authority in the country.


The process of replacing those "in the process" will cost the state budget of 172 billion dinars (150 million dollars), which is a large amount is significant, if we add the effort of the banking staff and the time that will be lost by the process of switching, and can not Forget the attempt of the weak souls who will try to profit from that process by all means and methods!

It is true that this process will not have an impact on the purchasing power of the citizen, since the exchange of currency will take place in another currency. There may be some shock in the market as a result of this switch, but it is a temporary shock. 

It is not bad to see the experiences of many countries replaced the currency, such as Turkey, which continued its currency exchange for four years, the Turks remained trading the old currency with the new currency until they were all withdrawn from the market without the market confused

The most important negatives that will accompany the process of deletion of zeros is the cash illusion, as the deletion of three zeros from the Iraqi currency will sign the citizen under the illusion of cash, which is the most prominent negative that can affect the Iraqi citizen in the event of deletion of three zeroes of the current currency is a significant effect, 

This will be the result of colliding with the value of the new currency after the deletion, leading him to believe that the value of its assets has decreased by dividing them on the three zeros.

The Iraqi citizen would like to see his currency strong, so the process of raising zeros will contribute to the revaluation of the currency, and reduce the proportion of demand for hard currency, which is characterized by force, and will lead to a balance between the value of domestic and foreign currency and will give them market power at home and abroad, 

It is possible that the value of the Iraqi currency against the US dollar, for example, that the employee who receives 1200 thousand dinars at the exchange rate 1200, the purchasing power of $1000 dollars and if the strengthening of the dinar equivalent to 500 dinars to the dollar will be purchasing power $2400 instead of $1000
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It is possible that the value of the Iraqi currency against the US dollar, for example, that the employee who receives 1200 thousand dinars at the exchange rate 1200, the purchasing power of $1000 dollars and if the strengthening of the dinar equivalent to 500 dinars to the dollar will be purchasing power $2400 instead of $1000
 

can anyone make sense of that bit

Edited by dinarbeleiver
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Here's the Bing Translation!

 

 

The future of Iraqi currency!

DIAA Mohsen531 2018-11-28
5bfec3e3b85b3.jpg
 
 

DIAA Mohsen

 

Money is a source document and represents the State and is the symbol and expresses its political and religious philosophy. Compared to writing history the authentication across currencies cannot be questioned or challenged by being real and tangible document to a certain era, mankind has benefited greatly in a history of civilizations through their study and mskokatha

Compare discover discovery currency printing, being facilitated exchanges between people and merchants alike, is the currency of the market President; without them cannot be any sale and purchase

To the British occupation forces before October 1914 was the currency in circulation among people is the Ottoman lira, then British occupation authorities introduced the Indian rupee as currency for trading, the first Council was established after independence for Iraqi currency issued in 1931, Brennan has been linkedIraqi lightened Sterling, after the revolution of 14 July 1958 been delinking and linking pound dinar in us dollars

The Iraqi Central Bank with a new version of banknotes and coins, the new Republic logo. New versions were issued paper currency in 1971 and 1973 and 1978. The Iraqi dinar has suffered from a continuing deterioration of its value after the Iran-Iraq war started, where the price fell from $3.3 in 1980 to about 4 dinars to the dollar in 1988.

As a result of the invasion of Kuwait and the issuance of Security Council resolutions the embargo, Iraqi dinar degradation, forcing the Central Bank to issue coins not in circulation, issued banknotes of 50 and 100 dinars, followed by 1995 year issued paper of a class 250 dinars, 2000 year issued paper nBe convicted of carrying a class 10000 dinar, all these groups had been carrying on her face a picture of former President Saddam Hussein. Citizen was carrying huge packages to buy simple, which needs no more than eating and drinking

After the fall of the previous regime, competent began thinking about how to recreate the spirit of the Iraqi dinar, removing the heavy inheritance which overwhelmed the Iraqi economy, so naturally they raised the idea of removing three zeros from the current currency

You know the deletion of zeros (Delete of zero) as a process whereby the nominal value of the currency because of rising inflation and devaluation, from countries where such a process is Brazil and Argentina (South America) Yugoslavia and Poland (countries moving within the orbit of the Union Soviet Union) Germany and Ireland (due to joining the European Monetary Union) which is different from the process of devaluation (Devaluation)

But you can actually implement such conduct? What are its pros and cons on economic movement in Iraq? And you could actually help in reducing inflation rates? Finally, what is the proper time for him?

This process remains controversial within the Government and monetary and business specialists, some are of the opinion that such a process would push further into corruption and tampering with public money, because what happens in the process of changing the currency, they will create chaos and confusion in engagements Internally and externally, it won't change anything from the fact the quantity of papers will remain the same

While an optimistic group, believes that this process will pay to restore prestige to Iraqi dinar, then tie it with improving the dinar, and the accounts in various fields would be less complicated and are simply

We do not deny that the deletion of zeros is a necessary step and important part of the country's administrative reform process needed for currency reduce transaction costs and cash transactions in the economic process, and reduce the size of the money supply in the country and help to facilitate calculations and Reduced inflate the numbers, if applied correctly and in a timely manner. But there must be some introductions to that process, including choosing the right time when the economy is in a State of stability, thus creating the economic environment thoughtfully to apply the deletion process, and this needs to banking and financial actions and decisions taken by the Monetary Authority in the country.

The replacement process that "was" it would cost the State budget $172 billion dinars (150 million dollars), a considerable sum, that if his maadavna effort by Bank staff and the time that would be lost because of the switch, and can't forget try weak souls who will try to profit from that process by various means and ways!

It is true that this process will not have an impact on the purchasing power of the citizen, that's going to happen is replacement currency in another currency, a kind of shock may occur in the market because of the switch, but temporary shock. And no harm in many countries experiences found replaced its currency like Turkey which lasted changeover process for four years, the Turkish currency trading remained with the new currency that dragged all markets without squirm market

The most important negatives that will accompany the process of deleting zeroes are monetary illusion, since deleting three zeros from the Iraqi currency would sign the citizen under pain of a monetary illusion, which is the most prominent negatives that can infect the Iraqi citizen in case deleting three zeros from the current currency and the impact of ICH, All of that would be the result of colliding with the new currency after deletion, which leads him to believe that the value of its assets fell by divide by three zeros.

The Iraqi citizens would like to see a strong currency, then the process of lifting the zeros will raise the value of the currency, and reduce the demand for hard currency that they have the strength and will to restore the balance between domestic and foreign value of the currency and the apparent market at home and abroad, whichIt could lead to a rise in the value of the Iraqi currency to the US dollar, for example, the employee who receives 1.2 million dinars at the exchange rate of 1200 be purchasing $1000 dollar if for example equals 500 dinar

strengthened dinar to the dollar will be purchasing $2400 instead of 1000 Dollars.

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The Iraqi citizens would like to see a strong currency, then the process of lifting the zeros will raise the value of the currency, and reduce the demand for hard currency that they have the strength and will to restore the balance between domestic and foreign value of the currency and the apparent market at home and abroad, whichIt could lead to a rise in the value of the Iraqi currency to the US dollar, for example, the employee who receives 1.2 million dinars at the exchange rate of 1200 be purchasing $1000 dollar if for example equals 500 dinar strengthened dinar to the dollar will be purchasing $2400 instead of 1000 Dollars.

 

Could be an increase of 1.5 or 500 IQD to the Dollar

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3 minutes ago, Butifldrm said:

The Iraqi citizens would like to see a strong currency, then the process of lifting the zeros will raise the value of the currency, and reduce the demand for hard currency that they have the strength and will to restore the balance between domestic and foreign value of the currency and the apparent market at home and abroad, whichIt could lead to a rise in the value of the Iraqi currency to the US dollar, for example, the employee who receives 1.2 million dinars at the exchange rate of 1200 be purchasing $1000 dollar if for example equals 500 dinar strengthened dinar to the dollar will be purchasing $2400 instead of 1000 Dollars.

 

Could be an increase of 1.5 or 500 IQD to the Dollar

I want an increase of x 1000 not 1.5 lol

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19 minutes ago, Butifldrm said:

The Iraqi citizens would like to see a strong currency, then the process of lifting the zeros will raise the value of the currency, and reduce the demand for hard currency that they have the strength and will to restore the balance between domestic and foreign value of the currency and the apparent market at home and abroad, whichIt could lead to a rise in the value of the Iraqi currency to the US dollar, for example, the employee who receives 1.2 million dinars at the exchange rate of 1200 be purchasing $1000 dollar if for example equals 500 dinar strengthened dinar to the dollar will be purchasing $2400 instead of 1000 Dollars.

 

Could be an increase of 1.5 or 500 IQD to the Dollar

If they double the value of the IQD that might start getting the Iraqis spending their money. They might even start using the banks maybe 

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Honestly to me it appears this guy is describing two different processes.

 

1. The deletion of the three zero's which descibes a redenomination or  (LOP) which would be a neutral event with the printing of a new currency, which would confuse the citizens because they would think that the old currency they hold would have increased in value. 

 

2. The raising of the zero's which appears to increase/revalue the IQD 500 to one dollar,  not printing a new currency.  IMO, this is the process we want to see.  Plus, this event would as he describes attribute to less need for a hard currency like the Dollar, which more than likely the IQD would have to become traded internationally.  It's a win win situation.

 

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1 hour ago, dinarbeleiver said:

It is not bad to see the experiences of many countries replaced the currency, such as Turkey, which continued its currency exchange for four years, the Turks remained trading the old currency with the new currency until they were all withdrawn from the market without the market confused

This article is comparing Iraq to Turkey. The results of removing zeros like in Turkey will be the same for Iraq!?

 

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not that it really matters but Turkey had high inflation Iraq has very low inflation, to be honest cbi just needs to execute their monetary Plan , would be nice to see a completely seated functioning goi someday as well ( pipe dream I know ) .. lets go 

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Just now, dinarbeleiver said:

Iraq can send as many lop articles as they want - I’m banking on the Dinar being grossly undervalued 

True... neutral event makes NO sense after all these years! They are still trying to keep people off the scent so they don’t mortgage their houses to speculate on Dinar, while still letting THEIR citizens that a change is coming...... just my initial thoughts.

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15 minutes ago, NEPatriotsFan1 said:

True... neutral event makes NO sense after all these years! They are still trying to keep people off the scent so they don’t mortgage their houses to speculate on Dinar, while still letting THEIR citizens that a change is coming...... just my initial thoughts.

Yes! Makes sense to me. All of this smoke means someone's in the kitchen with Dinar! Someones in the kitchen I know oh oh! 

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32 minutes ago, dinarbeleiver said:

Iraq can send as many lop articles as they want - I’m banking on the Dinar being grossly undervalued 

 undervalued  - I agree

I also think the CBI wants and needs this process to complete "without a hitch". To that end there are no mirrors, fake info or lack of transparency that could confuse the iraqi citizen at the critical time. These lop articles could be true just for this reason. IMO

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2 hours ago, DWS112 said:

 undervalued  - I agree

I also think the CBI wants and needs this process to complete "without a hitch". To that end there are no mirrors, fake info or lack of transparency that could confuse the iraqi citizen at the critical time. These lop articles could be true just for this reason. IMO

If they are going to increase the dinar by 1000% or more I doubt they would tell the citizens or us until its happened. God knows how they are going to do this

Edited by dinarbeleiver
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The future of the Iraqi currency

5bfec3e3b85b3.jpg

11/29/2018 Article Published 11/28/2018:

 Money, a source and document representing the state, is a symbol and expresses its political and religious system and its own philosophy. In comparison to date writing, documentation across currencies can not be questioned or challenged as a concrete fact and document for a certain period of time. Humanity has greatly benefited from the history of civilizations through the study of its currencies and their holdings.
The discovery of currency is compared to the discovery of printing, as it facilitates the process of exchange between people and traders alike, and the currency is one of the main components of the market; without it, there can be no buying and selling.
Before the entry of the British occupation forces in October 1914 was the currency traded among the people is the Ottoman lira, after which the British occupation authorities introduced the Indian rupee as the currency of circulation, and after independence was established the first council to issue the Iraqi currency in 1931, was linked to the Iraqi dinar in pounds sterling, The July 14, 1958 Revolution The dinar was pegged to the pound and pegged to the US dollar
The Central Bank of Iraq issued a new currency of paper and metal, bearing the slogan of the new Republic. New issues of paper currency were issued in 1971, 1973, and 1978. The Iraqi dinar suffered a continuous deterioration in its value after the Iran-Iraq war began, dropping from $ 3.3 per dinar in 1980 to about $ 4 in 1988.
As a result of the invasion of Kuwait and the issuance of resolutions of the Security Council to impose a blockade on him, and the deterioration of the value of the Iraqi dinar, forced the Central Bank of Iraq to issue currencies that were not traded before, issued banknotes of 50 and 100 dinars, followed in 1995 issued a paper of 250 dinars, The year 2000 issued a cash paper bearing the category of 10,000 dinars, and it is noted that all these categories were carrying the image of former President Saddam Hussein. The citizen carried large packages to buy his simple needs, which do not exceed eating and drinking
After the fall of the former regime, specialists began to think about how to restore the spirit of the Iraqi dinar, and remove the heavy legacy of the Iraqi economy, they began to put the idea of removing three zeros from the current currency
The deletion of zero is defined as a process by which the nominal value of the currency is adjusted due to high inflation and devaluation. Countries such as Brazil, Argentina (South America), Yugoslavia and Poland (countries in the orbit of the Soviet Union) Ireland (for joining the European Monetary Unit), a process different from the devaluation process,
But can such action be implemented? What are the pros and cons of the economic movement in Iraq? Could it really help to reduce inflation rates? Finally, what is the right timing for it?
This process is still controversial in the government and monetary circles, businessmen and specialists. Some believe that doing such a process will lead to more corruption and tampering with public money, because of what is happening in the process of changing the currency, and it will create a state of chaos and confusion in contracts internally and externally, And that it will not change anything from the fact that the amount of the issued paper will remain the same
At a time when an optimistic team believes that this process will lead to the restoration of prestige of the Iraqi dinar, if accompanied by the improvement of the dinar exchange rate, and the process of calculations in various fields will be less complex and simply.
We do not deny that the process of deleting zeros is a necessary and important step comes within the need for the country to the process of administrative reform of the currency contribute to reduce transaction costs and cash transactions in the economic process, and reduce the size of the country's monetary mass and help to facilitate calculations and reduce the amplification of numbers, if applied Properly and at the right times. But there must be introductions to that process, including choosing the appropriate time in which the Iraqi economy in a state of stability, and then create the economic environment in a deliberate manner to implement the deletion, and this requires the procedures and financial and banking decisions taken by the financial authority in the country.
The process of replacing those "in the process" will cost the state budget of 172 billion dinars (150 million dollars), which is a large amount is significant, if we add the effort of the banking staff and the time that will be lost by the process of switching, and can not Forget the attempt of the weak souls who will try to profit from that process by all means and methods!
It is true that this process will not have an impact on the purchasing power of the citizen, since the exchange of currency will take place in another currency. There may be some shock in the market as a result of this switch, but it is a temporary shock. It is not bad to see the experiences of many countries replaced the currency, such as Turkey, which continued its currency exchange for four years, the Turks remained trading the old currency with the new currency until they were all withdrawn from the market without the market confused.
The most important negatives that will accompany the process of deletion of zeros is the cash illusion, as the deletion of three zeros from the Iraqi currency will sign the citizen under the illusion of cash, which is the most prominent negative that can affect the Iraqi citizen in the event of deletion of three zeroes of the current currency is a significant effect, This will be the result of colliding with the value of the new currency after the deletion, leading him to believe that the value of its assets has decreased by dividing them on the three zeros.
The Iraqi citizen would like to see his currency strong, so the process of raising zeros will contribute to the revaluation of the currency, and reduce the proportion of demand for hard currency, which is characterized by force, and will lead to a balance between the value of domestic and foreign currency and will give them market power at home and abroad, It is possible that the value of the Iraqi currency against the US dollar, for example, that the employee who receives 1200 thousand dinars at the exchange rate 1200, the purchasing power of $ 1000 dollars and if the strengthening of the dinar equivalent to 500 dinars to the dollar will be purchasing power $ 2400 instead of $ 

1000. http://burathanews.com/arabic/reports/341343

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