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Expert: Canceling 3 zeros from the currency will lead to the collapse of the process ... Iraq needs a `` rescue plan ''


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Expert: Canceling 3 zeros from the currency will lead to the collapse of the process ... Iraq needs a `` rescue plan ''

 

 

493 Economie 02/02/2021 09:42 Baghdad Today -

Special Economic expert Rasim al-Akidi warned against the step of dropping zeros from the country's currency, indicating that this step may lead to the collapse of the Iraqi dinar. Al-Aqidi said in an interview with (Baghdad Today), that "dropping zeros from the Iraqi currency is not feasible at the present time, especially since the government and its financial instruments are not in control of the monetary mass that the country possesses." He added that "the decision to drop zeros from the currency must be preceded by a series of important matters, including state control over the largest monetary mass, so as not to accumulate hard currencies at the central bank." He pointed out that "raising the zeros without controlling the greater proportion of the monetary mass may lead to the collapse of the dinar, because the state does not control cash for the clubs of neighboring countries, companies and banks, and whoever controls the economy may resort to a game that leads to its collapse, which leads to a double loss of its value against the dollar." The economic expert, Rasim al-Aqidi, identified earlier, about 4 negatives that would emerge at once if the Iraqi government went to float the Iraqi dinar. Al-Aqidi said in an interview with (Baghdad Today), "The floating of the dollar, or what is known as the liberalization of the exchange rate, takes place through two methods, the first is pure or free, and the second is the controlled or controlled method, and in both cases the price of the dollar will rise against the Iraqi dinar and will lead to the withdrawal of a large amount of the monetary mass in the markets. ". He added, "Withdrawing a large monetary block offset by 4 drawbacks at the same time will arise and the affected will be large segments, including the increase in prices in the markets in addition to the factories’ reluctance to produce because the value of profits will decrease in front of costs in addition to the absorption of per capita income and the increase in rental prices, so the interest will be limited compared to other damages. ". Al-Aqidi pointed out that "Iraq needs an economic rescue plan that starts from maximizing non-oil revenues, which are many and keeping the influential authorities away from them because a large part of the financial resources does not go to the state treasury, and this is part of the causes of the current financial crisis in the country."

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Here we go again with the delete of the 000 articles.... The only difference is that we are in 2021            

DAMN, you guys have given me a headache!!!

Ok bro I can’t hold it anymore! SOOO many questions ALLLL THE TIME!!! I got no problem with questions, but not the same question that you will never get an answer to! Nobody can answer half of the que

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35 minutes ago, yota691 said:

the step of dropping zeros from the country's currency, indicating that this step may lead to the collapse of the Iraqi dinar.

 

the Iraqi government went to float the Iraqi dinar. "The floating of the dollar, or what is known as the liberalization of the exchange rate

You got it all wrong, dropping the zero doesn't collapse the iqd. Dropping zeros is the best idea to increase the value of iraq dinar. Let's say the official cbi rate is 1460, then drop 3 zeros=1.46. Then 1 usd=1.46 iqd or 1 iqd=0.68 usd. It isn't a bad rate for a start  is it.

On the other hand, floating the iraq dinar isn't a good idea because it takes many many years to increase the rate from 1:1460 to 1:1 or even 1:1.46. We all are getting old. Now move it faster by dropping zero. I know you have a power to do it. Just say yes and immediately push the rv button to start dropping the zero.

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17 minutes ago, rvmydinar said:

You got it all wrong, dropping the zero doesn't collapse the iqd. Dropping zeros is the best idea to increase the value of iraq dinar. Let's say the official cbi rate is 1460, then drop 3 zeros=1.46. Then 1 usd=1.46 iqd or 1 iqd=0.68 usd. It isn't a bad rate for a start  is it.

On the other hand, floating the iraq dinar isn't a good idea because it takes many many years to increase the rate from 1:1460 to 1:1 or even 1:1.46. We all are getting old. Now move it faster by dropping zero. I know you have a power to do it. Just say yes and immediately push the rv button to start dropping the zero.

You are not talking about “dropping the three 0s” you are talking about increasing the exchange rate by 1000%. Dropping the 0s means from our dinars as well despite how it’s always been spun in dinarland. This article is positive. 

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5 minutes ago, mally2 said:

You are not talking about “dropping the three 0s” 

What does dropping 3 zeros mean to you?Can you give me the example of dropping 3 zeros in a simple math. Because From my ponit of view, dropping 3 zeros means increasing the exchange rate.

 

1 hour ago, yota691 said:

canceling 3 zeros means deleting 3 zeros also means increasing the rate. What does canceling 3 zeros mean to you?

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6 minutes ago, rvmydinar said:

What does dropping 3 zeros mean to you?Can you give me the example of dropping 3 zeros in a simple math. Because From my ponit of view, dropping 3 zeros means increasing the exchange rate.

 

canceling 3 zeros means deleting 3 zeros also means increasing the rate. What does canceling 3 zeros mean to you?

It would increase the rate of the new dinar but not the dinar we hold. It’s a redenomination. What you are describing is this, “we devalued by 20% but to make up for it and help the poor we are going to increase the value by 1000% from that point” completely illogical, they could of just increased from the original rate. We want them to liberalize the exchange rate and find ways to increase it. We don’t want two classifications of dinar. 

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23 minutes ago, mally2 said:

This article is positive. 

Since you said that this article is positive , so do you agree that dropping 3 zeros from iraq currency will lead to the collapse of iraq dinar? Collapse of iraq dinar means the rate will decrease from 1460 to may be 1600 or even 2000. Is this what you mean?

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3 minutes ago, rvmydinar said:

Since you said that this article is positive , so do you agree that dropping 3 zeros from iraq currency will lead to the collapse of iraq dinar? Collapse of iraq dinar means the rate will decrease from 1460 to may be 1600 or even 2000. Is this what you mean?

Spend some time reading about what a redenomination is. I don’t want to be banished to the lopster tank. Most the time when countries go through a redenomination they try to do it after hyperinflation but when things have normalized. This economist is saying a redenomination won’t fix our current problems and doing so now while things are bad with a large deficit could be extra bad. 

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5 minutes ago, mally2 said:

It would increase the rate of the new dinar but not the dinar we hold. It’s a redenomination.  

If a redenomination means no gain no lose ( just a break even ). A redenomination happens when dropping 3 zeros from both the exchange rate and the bank notes. But this article isn't talking about dropping 3 zeros from the bank notes. In fact, The article is talking about dropping 3 zeros from the iraqi currency and iraqi currency means exchange rate not the bank notes.

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43 minutes ago, mally2 said:

This article is positive. 

You said this article is about redenomination, and redenomination means no gain no lost ( just a break even ). That means let's say when the redenomination  happens, then dinar investors gain nothing, just break even. Therefore, this is not a positive article for dinar investors. Don't you think?

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8 minutes ago, Longtimelurker said:

I would think currency equals bank note not exchange rate. 

 

I would expect them to redenominate their currency and then shortly after (month or so), revalue it.

So you were saying that let's say, first iraq drop 3 zeros from the bank notes by releasing the new lower denoms. So iraqi citizens will exchange old dinar with new lower denoms. Then a month later, iraq will drop 3 zeros from the exchange rate. Let's say 1 usd=1460 iqd. Then drop 3 zeros=1.46. So 1 usd=1.46 iqd or 1 iqd=0.68 usd. And, dinar investors will exchange dinar for dollars. Is this what you mean

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4 minutes ago, Laid Back said:

Here we go again with the delete of the 000 articles.... The only difference is that we are in 2021

 

 

 

 

 

 

It has already been almost 18 years and they have still talked and talked and talked about deleting 3 zeros and never implemented it until now. Nothing new it is the way of life for iraqi government to delay and delay and delay. Whenever iraq government wants to do something like deleting 3 zeros, the word " delay " always comes to their minds.

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39 minutes ago, Laid Back said:

Here we go again with the delete of the 000 articles.... The only difference is that we are in 2021

 

 

 

 

 

 

You know you have been here to long when you read that and say to yourself "Here we go again". That was the first thing I was thinking. :lol:

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3 minutes ago, stangernan said:

Otherwise known as   SSDD   :lol:


Yep.... 18 years of SSDD’s. ( sounds worse than a case of crabs or lice .... eeesh).

 

Makes for one helluva, all caught up in a surreal Deja Vu Twilight Zone episode: and no way out. :tiphat:This is worse than spending an eternity with my ex-wife ;)

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