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Will Iraq succeed in overcoming the financial crisis by deleting 3 zeros from the local currency?


DWS112
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17 hours ago, rvmydinar said:

Saddam's era=3.24 usd? 

Kim Clement said the dinaree would be high. 
If this is the case, Saddam’s era makes total sense. 
The current timing also makes sense with what Kim also said. 

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3 hours ago, md11fr8dawg said:

Time for new girlfriends!!


The goats ARE the girlfriends with the pretty outfits over there.... the“ girlfriends “they sacrifice cuz it’s what they does :lmao:

 

Youd probably do better flying solo once ( or presently )this does hit. Can’t risk a Gold digger 

 

Too bad Fembots aren’t for sale at the moment. Perfect company and won’t spend your “bread”

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Question and answer.. What are the pros and cons of deleting zeros from the Iraqi currency? And what are the conditions for that?
The devaluation of the Iraqi dinar against the dollar is part of the government reforms paper (Reuters)
12th July, 2021
Iraq is witnessing a severe financial crisis that began with the outbreak of the Corona virus last year and the decline in global demand for oil, which represents nearly 91% of Iraq's financial imports.
 
With the continuation of the financial crisis and the failure to pay the salaries of employees last year, the Iraqi government resorted to what was called the Iraqi government reform paper (the white paper), which included the devaluation of the Iraqi dinar against the US dollar, and the decision entered into force at the beginning of this year.
 
With the rise in oil prices globally, the Iraqi government has been thinking about long-term financial strategies that may protect the country from falling into a financial crisis that may be more influential, without specifying a date for the implementation of this step.
 
Saleh believes that deleting zeros from the currency is a necessary condition for reducing accounting numbers and facilitating arithmetic use
 
What are the conditions for deleting zeros?
 
Deleting zeros from the Iraqi currency requires the fulfillment of two conditions, according to Saleh. The first is price stability within the country, which means the stability of the dollar exchange rate against the Iraqi dinar, which is still witnessing relative volatility after the Iraqi government decided to raise the value of the dollar at the beginning of this year.
 
As for the second condition, Salj adds in his speech to Al Jazeera Net that it is represented by stability in political life inside Iraq, which is what is required to change the exchange rate from laws and political consensus and so on.
 
Why deleting?
 
 
In his interpretation of the reasons for deleting 3 zeros from the Iraqi currency (a dollar is equivalent to 1450 Iraqi dinars), Saleh comments, "The importance of deleting zeros from the currency and slimming its units as a necessary condition to reduce accounting numbers and facilitate arithmetic and the cost of managing new large numbers and the absence of small numbers and fractions."
 
He continues that the slimming of coins comes because of their role in sustaining the calculation of huge numbers of financial values that are not absorbed by ordinary computers due to the large number of decimal places and the emergence of many accounting errors, especially when dealing with trillions, which means that one number in front of it has 12 decimal places.
 
Regarding the importance of the deletion process and the extent of its realism, Saleh indicated that the Central Bank of Iraq put a project to delete 3 zeros from the Iraqi currency the subject of research and study a long time ago, after reviewing 54 international experiences since the end of World War II until now, the last of which was in Iran and before it. Turkey.
 
Rashid believes that the current economic situation in Iraq is not ready to delete zeros from the local currency
 
What effects?
 
 
For his part, a member of the Iraqi Parliament's Finance Committee, Ahmed Hama Rashid, confirmed that the current economic situation in Iraq is not ready to delete zeros from the local currency.
 
Hama Rashid continued in his speech to Al Jazeera Net that this process means withdrawing the current currency denominations and printing new ones, which requires huge funds to print them with technical specifications necessary to protect the currency from counterfeiting, in addition to the fact that replacing the currency will destabilize the monetary system, which may cause successive collapses, enslaving that The Central Bank of Iraq takes such a step.
 
A member of the Finance Committee, Jamal Cougar, agrees with this proposition by confirming that this step is excluded in the next two years at the very least for several considerations, as he believes that deleting zeros is an unworkable step, especially that changing the currency exchange rate led to a shock to the Iraqi street, and therefore Iraqis are not Prepare for another shock.
 
In an exclusive interview with Al-Jazeera Net, Cougar points out that the Iraqi economy does not have its own decision, and that many countries benefit from the current Iraqi currency in buying and selling transactions and others.
 
Cougar: The lower the number of currency numbers, the greater its strength among currencies in the economic perspective
 
What are the benefits?
 
 
As for the benefits, Cougar believes that the smaller the number of currency numbers, the greater its strength among currencies in the economic perspective. However, this requires strengthening the local economy inside the country and diversifying the sources of the Iraqi budget, which requires strengthening industry and agriculture as a preliminary condition for this step.
 
And about the extent of the benefit derived from this change in restoring the Iraqi cash block hoarded by the Iraqis or smuggled abroad, he explained that the international deal in the Iraqi currency is not related to the number of zeros as much as it relates to the strength of investments inside the country and the size of the Iraqi product exported abroad.
 
Cougar gives an example of this: Turkey, which deleted zeros from its currency years ago, has embarked on building a diverse and large economy and investments, and this is different from the Iraqi situation, whose currency is not found in global currency exchanges so far.
 
On the other hand, Abdul Rahman al-Mashhadani, a professor of economics at the Iraqi University, believes that deleting zeros will save the state the costs of transferring the Iraqi currency between the central bank and government and private banks.
 
Al-Mashhadani continues in his speech to Al-Jazeera Net that deleting zeros may lead to a decline in Iraqis' demand for the dollar for the sake of hoarding, as the Iraqis currently keep the dollar for ease of preservation, while preserving the same value in the Iraqi currency requires greater storage capacity, pointing out that this is conditional on printing cash denominations. A new denomination with a value higher than what is currently available was to print a denomination of 200 dinars (equivalent to 200 thousand dinars in the current currency), which requires 4 banknotes of a denomination of (50 thousand).
 
Al-Shamaa believes that deleting zeros from the currency will not do anything for the Iraqi economy
 
Who is the loser?
 
 
In every economic equation, the profit and loss ratio is calculated, which is what the economist Hammam Al-Shamma points out that this ratio will not be equally present in the equation, warning of psychological disturbances in the Iraqi market in the event of zeros being deleted.
 
Al-Shamma comments to Al-Jazeera Net, "Deleting zeros from the currency will not provide anything for the Iraqi economy, but rather it will cost the Iraqi state huge money to print a new currency without this having a clear impact on the local economy."
 
Al-Shammaa points out that the competitiveness of Iraqi goods against the imported ones will not witness a positive change inside the country, especially since international transactions are mostly made in US dollars.
 
This is confirmed by Abdul Rahman Al-Mashhadani, professor of economics at the Iraqi University, and adds that competition with imported goods depends on the local product and its strength, pointing out that Iraq does not have industries that can compete with imported goods and overcome them in terms of quality, price, and state protection for them, according to him.
 
Returning to Ahmed Hama Rashid, where he believes that deleting zeros from the currency will not be in the interest of the government currently, inferring that Iraq has 80 trillion Iraqi dinars from multiple monetary categories, and that printing 5 trillion dinars from the category (50 thousand) cost the Iraqi government 60 million dollars At that time, the cost of the rest of the denominations will be much greater, given that printing each denomination costs approximately (6 US cents) on average, according to him.
 
Who is the winner?
 
 
In contrast to the losing party, Al-Shammaa believes that the government may derive limited benefits from deleting zeros, which is that the government and the central bank will face fewer problems in the accounting system and final accounts with limited zeros and small accounting numbers.
 
The last proposition is consistent with what was revealed by the economic advisor to the Prime Minister that the hyperinflation that hit the Iraqi economy in the nineties of the last century added 3 numbers to the Iraqi monetary unit, while the small categories disappeared from circulation completely, as the category (250 dinars) became smaller. A monetary unit in daily circulation inside the country, which raised the cost of micro-transactions, as well as the inflation caused by the appearance of the huge numbers circulating in the accounting system inside the country.
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Will Iraq succeed in overcoming the financial crisis by deleting 3 zeros from the local currency?

July 12, 2021

http://iraqnews.info/wp-content/uploads/2021/07/%D8%B9%D9%85%D9%84%D8%A93-600x380.jpg

 

Iraq News: A proposal was recently re-submitted to delete 3 zeros from the Iraqi currency to provide a monetary value in the Iraqi market with the aim of facing the financial crisis, which began with the outbreak of the Corona virus last year and the decline in global demand for oil, which represents approximately 91% of Iraq’s financial imports .


With the rise in oil prices globally, the government is planning long-term financial strategies that may protect the country from the risks of falling into a financial crisis that may be more effective.


Among the most prominent of these strategies was put forward by the appearance of Muhammad Salih, the economic advisor to the Iraqi Prime Minister, and is represented in deleting 3 zeros from the Iraqi currency, without specifying a date for the implementation of this step.


Saleh says in a press interview, that deleting zeros from the Iraqi currency requires the fulfillment of two conditions, the first is price stability within the country, which means the stability of the dollar exchange rate against the Iraqi dinar, which is still witnessing relative volatility after the Iraqi government decided to raise the value of the dollar at the beginning of this year .


As for the second condition, Saleh adds, it is represented in the stability of political life inside Iraq, which is required to change the exchange rate from laws and political consensus and so on.


And about the importance of the deletion process and the extent of its realism, Saleh indicated that the Central Bank of Iraq has developed a project to delete 3 zeros from the Iraqi currency, the subject of research and study for a long time.


The Iraqi economist, Khalifa Al-Zubaidi, says that deleting zeros from the local currency without feasible and effective economic reforms in all economic sectors will be negative and have no positive impact on the national economy and does not contribute to reducing inflation, although it may delude some that prices have decreased and that the purchasing power of the currency I got better.


He points out that the Netherlands succeeded in this work in 1960 because it established a strict policy to control prices and liquidity. Turkey also succeeded in this measure, with the testimony of the International Monetary Fund, for taking effective measures in the fight against inflation.


International dealing in the Iraqi currency is not related to the number of zeros as much as it is related to the strength of investments inside the country and the size of the Iraqi product exported abroad.


In the opinion of Professor of Economics at the Iraqi University, Abdul Rahman al-Mashhadani, that deleting zeros will save the state the costs of transferring the Iraqi currency between the central bank and government and private banks.

 

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Confidence in the Iraqi dinar is eroding... and the prospect of
removing zeros
 
PM 1:01:47 7/12/2021
Baghdad / Obelisk:
 
Iraq is witnessing a severe financial crisis that began with the outbreak of the
Corona virus last year, and the decline in global demand for oil, which represents nearly 91% of
Iraq's financial imports.
 
With the continuation of the financial crisis and the failure to pay the salaries of employees last year,
the government resorted to what was called the Iraqi government reform paper (the white paper),
which included the devaluation of the Iraqi dinar against the US dollar, and the decision entered into
force at the beginning of this year.
 
With the rise in oil prices globally, the Iraqi government has been thinking about long-term financial
strategies that may protect the country from the risks of falling into a financial crisis that may be
more influential. One of these strategies was put forward by the economic advisor to the Prime
Minister, Mazhar Muhammad Salih, and is represented in deleting 3 zeros from the Iraqi currency,
Without specifying a date for the implementation of this step.
 
In every economic equation, the ratio of profit and loss is calculated, which is indicated by the
economist Hammam Al-Shamma that this ratio will not be equally present in the equation, warning
.of psychological disturbances in the Iraqi market in the event of deleting zeros
In contrast to the losing party, Al-Shammaa believes that the government may derive limited
benefits from deleting zeros, which is that the government and the central bank will face fewer
problems in the accounting system and final accounts with limited zeros and small accounting
numbers.
 
On Sunday, June 20, 2021, the financial advisor to the Prime Minister, Mazhar Muhammad Salih,
set two conditions for deleting 3 zeros from the currency, while stressing that the option to delete is
proposed as part of the strategies for reforming the currency and cash payments system in Iraq.
 
Saleh told the Obelisk, "The Central Bank of Iraq developed a project to delete three zeros from the
Iraqi currency in order to reform the cash payments system, which has become burdened with the
insomnia of the economic blockade imposed in the nineties of the last century, and put it into
research and study a long time ago, after looking at about 54 An international experience from the
end of the Second World War until the second decade of the twenty-first century, which took place
in various countries of the world, in which the monetary payment systems were reformed and made
to work more efficiently, the last of which was the Islamic Republic of Iran and before that, Turkey.
 
He added that "the phenomenon of increasing zeros in the monetary unit or adding zeros to a single
monetary unit usually comes due to the exposure of economies to unruly waves of inflation or
continuous sharp rises for years in the price level due to wars, sieges and conflicts, which lead to
".financing the deficit of government budgets through cash issuance.
 
And because the price means the value of goods and services expressed in cash, the continuous rise
in prices without stopping leads to the erosion of the value of the monetary unit, which requires the
7/12/2021 Confidence in the Iraqi dinar is eroding... and the prospect of removing zeros
issuance of larger monetary categories due to the lack of value of the smaller monetary groups and
the disappearance of their ability to cover transactions and exchanges of high monetary value in the
market.
 
He continued, “Accordingly, the monetary value of things or tangible assets and others inflates, and
when inflation ends, according to which prices have increased to three decimal places, or more or
less, according to the nature of each economy, countries resort to reducing the artificial reproduction
in numbers, especially in the numbers of accounts books, budgets and various numbers of tools.”
Accountability, after two conditions are met.
 
He continued, "The first condition is price stability and global economic growth, and the second is
appropriate stability in political life, so the importance of deleting zeros from the currency and
slimming currency units as a necessary condition to reduce accounting numbers and facilitate
arithmetic handling and the cost of managing new large numbers and the absence of small numbers
and fractions, as it is noted that slimming currencies Cash comes because of its role in the
sustainability of calculating huge numbers of financial values, which are not absorbed by ordinary
computers due to the large number of decimal places and the emergence of many accounting errors,
especially dealing in trillions, which means that one number in front of it has 12 decimal places.
 
Saleh believed that "the hyperinflation that hit the Iraqi economy in the nineties of the last century
added three numbers to the Iraqi monetary unit (that is, one dinar became equal to a thousand
dinars, and ten dinars became ten thousand dinars, and so on for the rest of the categories), while the
small categories disappeared from circulation completely, but rather Every 250 fils became equal to
250 dinars, and it was considered the smallest monetary unit in circulation today, which raised the
cost of micro-transactions that mostly affect the poor.
 
He added, "In this way, monetary systems aspire to remove the burden of historical inflation from
the folds of the monetary unit by resorting to deleting three zeros from the old currency to equalize
the new currency with lower numbers, but with the same value. Let's say, for example, that one new
dinar is equal to 1000 old dinars without change in value or rights. Also, accounting books,
statistics, numbers and computer systems are modified with the value of the new currency within an
easy and easy reform strategy, and countries believe that slimming the currency system facilitates
the circulation of mathematical numbers and helps to issue smaller cash denominations
for very small transactions whose monetary values have been destroyed by historical inflation in our country
such as the dirham and others.
 
He concluded by saying, "The project to delete zeros in Iraq is still technically prepared by the
Central Bank of Iraq, which is the official sectoral authority and the monetary authority concerned
with this matter and in cooperation with all three state agencies and authorities, but the project is
postponed at the present time until the appropriate conditions are achieved and remains part of the
currency system reform strategies. and cash payments in Iraq.
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Deleting the zero's ,leading us here in the US to think 25,000 IQD would be worth $25 USD ? We've heard this for freakin' years .but they think they have to spin something about it . If nothing was going on ,they would say nothing .   

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Question and answer.. What are the pros and cons of deleting zeros from the Iraqi currency? And what are the conditions for that?

July 12, 2021

Experts have warned that deleting 3 zeros from the Iraqi currency may cause psychological disturbances in the Iraqi market.

The devaluation of the Iraqi dinar against the dollar is part of the government reforms paper (Reuters)

 

The devaluation of the Iraqi dinar against the dollar is part of the government reforms paper (Reuters)

 

Mosul - Iraq is witnessing a severe financial crisis that began with the outbreak of the Corona virus last year and the decline in global demand for oil, which represents nearly 91% of Iraq's financial imports.

 

With the continuation of the financial crisis and the failure to pay the salaries of employees last year, the Iraqi government resorted to what was called the Iraqi government reform paper (the white paper), which included the devaluation of the Iraqi dinar against the US dollar, and the decision entered into force at the beginning of this year.

 

With the rise in oil prices globally, the Iraqi government has been thinking about long-term financial strategies that may protect the country from falling into a financial crisis that may be more influential. , without specifying a date for the implementation of this step.

 

9-14.jpg?w=770&resize=770%2C513

 

Saleh believes that deleting zeros from the currency is a necessary condition for reducing accounting numbers and facilitating arithmetic use (Al-Jazeera)

 


What are the conditions for deleting zeros?


Deleting zeros from the Iraqi currency requires the fulfillment of two conditions, according to Saleh. The first is price stability within the country, which means the stability of the dollar exchange rate against the Iraqi dinar, which is still witnessing relative fluctuations after the Iraqi government decided to raise the value of the dollar at the beginning of this year.


As for the second condition, Salj adds in his speech to Al Jazeera Net that it is represented by stability in political life inside Iraq, which is what is required to change the exchange rate from laws and political consensus and so on.


why deleting?


In his interpretation of the reasons for deleting 3 zeros from the Iraqi currency (a dollar is equivalent to 1450 Iraqi dinars), Saleh comments, "The importance of deleting zeros from the currency and slimming its units as a necessary condition for reducing accounting numbers and facilitating arithmetic and the cost of managing new large numbers and the absence of small numbers and fractions."


He continues that the slimming of coins comes because of their role in sustaining the calculation of huge numbers of financial values that are not absorbed by ordinary computers due to the large number of decimal places and the emergence of many accounting errors, especially when dealing with trillions, which means that one number in front of it has 12 decimal places.


Regarding the importance of the deletion process and the extent of its realism, Saleh indicated that the Central Bank of Iraq put a project to delete 3 zeros from the Iraqi currency the subject of research and study a long time ago, after reviewing 54 international experiences since the end of World War II until now, the last of which was in Iran and before it. Turkey.

 

3-1.jpeg?w=770&resize=770%2C513

 

Rashid believes that the current economic situation in Iraq is not ready to delete zeros from the local currency (Al-Jazeera)

 

What effects?


For his part, a member of the Iraqi Parliament's Finance Committee, Ahmed Hama Rashid, confirmed that the current economic situation in Iraq is not ready to delete zeros from the local currency.


Hama Rashid continued in his speech to Al Jazeera Net that this process means withdrawing the current currency denominations and printing new ones, which requires huge funds to print them with technical specifications necessary to protect the currency from counterfeiting, in addition to the fact that replacing the currency will destabilize the monetary system, which may cause successive collapses, enslaving that The Central Bank of Iraq takes such a step.


A member of the Finance Committee, Jamal Cougar, agrees with this proposition by confirming that this step is excluded in the next two years at the very least for several considerations, as he believes that deleting zeros is an unworkable step, especially that changing the currency exchange rate led to a shock to the Iraqi street, and therefore Iraqis are not Prepare for another shock.


In an exclusive interview with Al-Jazeera Net, Cougar points out that the Iraqi economy does not have its own decision, and that many countries benefit from the current Iraqi currency in buying and selling transactions and others.

 

2-37.jpg?w=770&resize=770%2C513

 

Cougar: The lower the number of currency numbers, the greater its strength among currencies in the economic perspective (Al-Jazeera)

 

What are the benefits?


As for the benefits, Cougar believes that the smaller the number of currency numbers, the greater its strength among currencies in the economic perspective. However, this requires strengthening the local economy inside the country and diversifying the sources of the Iraqi budget, which requires strengthening industry and agriculture as a preliminary condition for this step.


And about the extent of the benefit deriving from this change in restoring the Iraqi cash block hoarded by the Iraqis or smuggled abroad, he explained that the international deal in the Iraqi currency is not related to the number of zeros as much as it relates to the strength of investments inside the country and the size of the Iraqi product exported abroad.


Cougar gives an example of this, that Turkey, which deleted zeros from its currency years ago, has embarked on building a diverse and large economy and investments, and this is different from the Iraqi situation, whose currency is not found on the global currency exchanges so far.


On the other hand, Abdul Rahman al-Mashhadani, a professor of economics at the Iraqi University, believes that deleting zeros will save the state the costs of transferring the Iraqi currency between the central bank and government and private banks.


Al-Mashhadani continues in his speech to Al-Jazeera Net that deleting zeros may lead to a decline in Iraqis' demand for the dollar for the sake of hoarding, as the Iraqis currently keep the dollar for ease of preservation, while preserving the same value in the Iraqi currency requires greater storage capacity, pointing out that this is conditional on printing cash denominations. A new denomination with a value higher than what is currently in existence, such as printing a denomination of 200 dinars (equivalent to 200 thousand dinars in the current currency), which requires 4 banknotes of a denomination of 50 thousand.

 

1-2.jpeg?w=770&resize=770%2C433

 

Al-Shamaa believes that deleting zeros from the currency will not do anything for the Iraqi economy (Al-Jazeera)


Who is the loser?


In every economic equation, the ratio of profit and loss is calculated, which is what the economist Hammam Al-Shamma points out that this ratio will not be equally present in the equation, warning of psychological disturbances in the Iraqi market if zeros are deleted.

Al-Shamma comments to Al-Jazeera Net, "Deleting zeros from the currency will not provide anything for the Iraqi economy, but rather it will cost the Iraqi state huge sums of money to print a new currency without this having a clear impact on the local economy."


Al-Shammaa points out that the competitiveness of Iraqi goods against the imported ones will not witness a positive change inside the country, especially since international transactions are mostly made in US dollars.


This is confirmed by Abdul Rahman Al-Mashhadani, professor of economics at the Iraqi University, and adds that competition with imported goods depends on the local product and its strength, pointing out that Iraq does not have industries that can compete with imported goods and overcome them in terms of quality, price, and state protection for them, according to him.


Returning to Ahmed Hama Rashid, where he believes that deleting zeros from the currency will not be in the interest of the government currently, inferring that Iraq has 80 trillion Iraqi dinars from multiple monetary categories, and that printing 5 trillion dinars from the category (50 thousand) cost the Iraqi government 60 million dollars At that time, the cost of the rest of the denominations will be much greater, given that printing each denomination costs approximately (6 US cents) on average, according to him.


who is the winner?


In contrast to the losing party, Al-Shammaa believes that the government may derive limited benefits from deleting zeros, which is that the government and the central bank will face fewer problems in the accounting system and final accounts with limited zeros and small accounting numbers.

 

The last proposition is consistent with what was revealed by the economic advisor to the Prime Minister that the hyperinflation that hit the Iraqi economy in the nineties of the last century added 3 numbers to the Iraqi monetary unit, while the small categories disappeared from circulation completely, as the category (250 dinars) became smaller. A monetary unit in daily circulation inside the country, which raised the cost of micro-transactions, as well as the inflation caused by the appearance of the huge numbers circulating in the accounting system inside the country.

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Iraq couldn't pay their employees but they will spend millions and millions of dollars to print new currency because a few denominations have 3 zeroes, other notes have fewer. Iraq is going digital where 3 zeroes wouldn't be an accounting problem. Master cards, payroll cards, debit cards....3 zeroes is not a huge problem when you are broke and digital. 

 

Zimbabwe had a 100-trillion note worth 40 US cents. That's a 0s problem.

 

There just seems to be a lot of "delete the zeros" articles that are doing a lot of educating, a step in the revaluation process.

 

 

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2 hours ago, DWS112 said:

Will Iraq succeed in overcoming the financial crisis by deleting 3 zeros from the local currency?

 

and is represented in deleting 3 zeros from the Iraqi currency, without specifying a date for the implementation of this step.

 

no more talk talk talk about deleting 3 zeros. just do it.  by the way, they said " without specifying the date "? this is interesting. hopefully, that means that they really want to delete 3 zeros quietly, suddenly, and surprisingly let's just wait and see then..

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1 hour ago, Inbedded HorseHead said:

That would suck (deleting the zeros from the currency) then the RV is officially a scam if they do this and time to get out.

 

thats always been the risk / debate in this speculation on the flipside the cbi has gone to great lengths to draw in zero notes stated by some articles outside the banking system in iraq if the plan is to lop zeros , but who knows ... right 

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4 hours ago, RJG said:
Question and answer.. What are the pros and cons of deleting zeros from the Iraqi currency? And what are the conditions for that?
The devaluation of the Iraqi dinar against the dollar is part of the government reforms paper (Reuters)
12th July, 2021
Iraq is witnessing a severe financial crisis that began with the outbreak of the Corona virus last year and the decline in global demand for oil, which represents nearly 91% of Iraq's financial imports.
 
With the continuation of the financial crisis and the failure to pay the salaries of employees last year, the Iraqi government resorted to what was called the Iraqi government reform paper (the white paper), which included the devaluation of the Iraqi dinar against the US dollar, and the decision entered into force at the beginning of this year.
 
With the rise in oil prices globally, the Iraqi government has been thinking about long-term financial strategies that may protect the country from falling into a financial crisis that may be more influential, without specifying a date for the implementation of this step.
 
Saleh believes that deleting zeros from the currency is a necessary condition for reducing accounting numbers and facilitating arithmetic use
 
What are the conditions for deleting zeros?
 
Deleting zeros from the Iraqi currency requires the fulfillment of two conditions, according to Saleh. The first is price stability within the country, which means the stability of the dollar exchange rate against the Iraqi dinar, which is still witnessing relative volatility after the Iraqi government decided to raise the value of the dollar at the beginning of this year.
 
As for the second condition, Salj adds in his speech to Al Jazeera Net that it is represented by stability in political life inside Iraq, which is what is required to change the exchange rate from laws and political consensus and so on.
 
Why deleting?
 
 
In his interpretation of the reasons for deleting 3 zeros from the Iraqi currency (a dollar is equivalent to 1450 Iraqi dinars), Saleh comments, "The importance of deleting zeros from the currency and slimming its units as a necessary condition to reduce accounting numbers and facilitate arithmetic and the cost of managing new large numbers and the absence of small numbers and fractions."
 
He continues that the slimming of coins comes because of their role in sustaining the calculation of huge numbers of financial values that are not absorbed by ordinary computers due to the large number of decimal places and the emergence of many accounting errors, especially when dealing with trillions, which means that one number in front of it has 12 decimal places.
 
Regarding the importance of the deletion process and the extent of its realism, Saleh indicated that the Central Bank of Iraq put a project to delete 3 zeros from the Iraqi currency the subject of research and study a long time ago, after reviewing 54 international experiences since the end of World War II until now, the last of which was in Iran and before it. Turkey.
 
Rashid believes that the current economic situation in Iraq is not ready to delete zeros from the local currency
 
What effects?
 
 
For his part, a member of the Iraqi Parliament's Finance Committee, Ahmed Hama Rashid, confirmed that the current economic situation in Iraq is not ready to delete zeros from the local currency.
 
Hama Rashid continued in his speech to Al Jazeera Net that this process means withdrawing the current currency denominations and printing new ones, which requires huge funds to print them with technical specifications necessary to protect the currency from counterfeiting, in addition to the fact that replacing the currency will destabilize the monetary system, which may cause successive collapses, enslaving that The Central Bank of Iraq takes such a step.
 
A member of the Finance Committee, Jamal Cougar, agrees with this proposition by confirming that this step is excluded in the next two years at the very least for several considerations, as he believes that deleting zeros is an unworkable step, especially that changing the currency exchange rate led to a shock to the Iraqi street, and therefore Iraqis are not Prepare for another shock.
 
In an exclusive interview with Al-Jazeera Net, Cougar points out that the Iraqi economy does not have its own decision, and that many countries benefit from the current Iraqi currency in buying and selling transactions and others.
 
Cougar: The lower the number of currency numbers, the greater its strength among currencies in the economic perspective
 
What are the benefits?
 
 
As for the benefits, Cougar believes that the smaller the number of currency numbers, the greater its strength among currencies in the economic perspective. However, this requires strengthening the local economy inside the country and diversifying the sources of the Iraqi budget, which requires strengthening industry and agriculture as a preliminary condition for this step.
 
And about the extent of the benefit derived from this change in restoring the Iraqi cash block hoarded by the Iraqis or smuggled abroad, he explained that the international deal in the Iraqi currency is not related to the number of zeros as much as it relates to the strength of investments inside the country and the size of the Iraqi product exported abroad.
 
Cougar gives an example of this: Turkey, which deleted zeros from its currency years ago, has embarked on building a diverse and large economy and investments, and this is different from the Iraqi situation, whose currency is not found in global currency exchanges so far.
 
On the other hand, Abdul Rahman al-Mashhadani, a professor of economics at the Iraqi University, believes that deleting zeros will save the state the costs of transferring the Iraqi currency between the central bank and government and private banks.
 
Al-Mashhadani continues in his speech to Al-Jazeera Net that deleting zeros may lead to a decline in Iraqis' demand for the dollar for the sake of hoarding, as the Iraqis currently keep the dollar for ease of preservation, while preserving the same value in the Iraqi currency requires greater storage capacity, pointing out that this is conditional on printing cash denominations. A new denomination with a value higher than what is currently available was to print a denomination of 200 dinars (equivalent to 200 thousand dinars in the current currency), which requires 4 banknotes of a denomination of (50 thousand).
 
Al-Shamaa believes that deleting zeros from the currency will not do anything for the Iraqi economy
 
Who is the loser?
 
 
In every economic equation, the profit and loss ratio is calculated, which is what the economist Hammam Al-Shamma points out that this ratio will not be equally present in the equation, warning of psychological disturbances in the Iraqi market in the event of zeros being deleted.
 
Al-Shamma comments to Al-Jazeera Net, "Deleting zeros from the currency will not provide anything for the Iraqi economy, but rather it will cost the Iraqi state huge money to print a new currency without this having a clear impact on the local economy."
 
Al-Shammaa points out that the competitiveness of Iraqi goods against the imported ones will not witness a positive change inside the country, especially since international transactions are mostly made in US dollars.
 
This is confirmed by Abdul Rahman Al-Mashhadani, professor of economics at the Iraqi University, and adds that competition with imported goods depends on the local product and its strength, pointing out that Iraq does not have industries that can compete with imported goods and overcome them in terms of quality, price, and state protection for them, according to him.
 
Returning to Ahmed Hama Rashid, where he believes that deleting zeros from the currency will not be in the interest of the government currently, inferring that Iraq has 80 trillion Iraqi dinars from multiple monetary categories, and that printing 5 trillion dinars from the category (50 thousand) cost the Iraqi government 60 million dollars At that time, the cost of the rest of the denominations will be much greater, given that printing each denomination costs approximately (6 US cents) on average, according to him.
 
Who is the winner?
 
 
In contrast to the losing party, Al-Shammaa believes that the government may derive limited benefits from deleting zeros, which is that the government and the central bank will face fewer problems in the accounting system and final accounts with limited zeros and small accounting numbers.
 
The last proposition is consistent with what was revealed by the economic advisor to the Prime Minister that the hyperinflation that hit the Iraqi economy in the nineties of the last century added 3 numbers to the Iraqi monetary unit, while the small categories disappeared from circulation completely, as the category (250 dinars) became smaller. A monetary unit in daily circulation inside the country, which raised the cost of micro-transactions, as well as the inflation caused by the appearance of the huge numbers circulating in the accounting system inside the country.

a boring read. it is all talk talk talk about who is the winner and who is the loser and hopefully, they aren't afraid to delete 3 zeros.

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2 hours ago, dinarham said:

Deleting the zero's ,leading us here in the US to think 25,000 IQD would be worth $25 USD ?   .   

i can definitely say that iraq is like chickens that dare to talk talk talk, but actually, they are scared of deleting 3 zeros. how many years have they been talking about deleting 3 zeros and they have never been implementing it? why? because they are scared of deleting 3 zeros for almost 18 years. can someone imagine that?

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5 minutes ago, Inbedded HorseHead said:

If a 25,000 bill is worth $25 you basically make a few pennies on your investment........🤬

Better to delete the zeros  and move that dang decimal point from the exchange rate..146,000 becomes $1.46.  

:twothumbs:

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