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More on the proposal to raise zeros


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Proposal to raise zeros from Iraqi dinar

A. M. D. Jawad Kadhim al-Bakri

Usually Matqom financial authorities of b (Ministry of Finance) by using the (fiscal policy) in order to maintain the general level of prices, in addition to the use of all productive resources available in the local economy to reach a state of full employment, as well as supporting the march of economic development, and this is done through the use of power financial instruments of fiscal policy b (government spending, and taxes).

The Authority uses financial instruments to address these problems (inflation, recession, unemployment), which is usually self-styled (the gap inflationary and deflationary gap), which might be exposed to the local economy, in addition to their use is targeted to raise the level of growth in the country.

Thus, the fiscal authority has no right to influence money supply and demand as they are the powers of the monetary authority of the Central Bank.

History tells us modern economy that many of the countries of the world (which went through wars large Kaharpin Wars I and II or the collapse of their totalitarian as States of the former socialist camp) has proceeded to one of two things, either you change the national currency or remove a group zeroes them to return to the square of economic stability.

In the U.S. experience in Iraq after the fall of the previous dictatorial regime has the Coalition Provisional Authority to change the currency of the new Iraqi currency, but equal in value, which would not intentionally CPA to raise the purchasing power of the Iraqi currency against the U.S. dollar or other currencies.

This situation led to keep the Iraqi dinar is equivalent to (0.067) U.S. cents, which indicates a significant decrease in the purchasing power of the Iraqi dinar.

If what has lift (three zeros) from the Iraqi dinar, it will lead to increase its value to the (1000) once calculated value Almertbip to the number of zeros that have been filed, any box of cigarettes that were sold (1000) dinars possible purchase after the lifting of the zeroes dinar and one, a thousand dinars and modern can be obtained by the A pack of cigarettes.

In theory and when lifting (three zeros from Iraqi dinar), the purchasing power will rise to the U.S. dollar significantly to become one U.S. dollar equals (JD and a half) just so that the goods imported from abroad, worth before the lifting of the zeroes (1.2 million) Iraqi dinars, equivalent to ( 1000) U.S. dollars, will be worth after the lifting of the three zeroes (1200) Iraqi dinars, equivalent to (1000) dollars as well, and this will Igelb to remember any negative effects on the Iraqi citizen of the theory.

? positives raise zeros from the Iraqi dinar: The process of removing three zeros from Iraqi dinar deliberate, according to a tight monetary policy will lead to the following pros:

1. raise the purchasing power of the Iraqi dinar.

2. revalue the Iraqi dinar against other currencies.

3. increase the confidence of the Iraqi economy to foreign investors.

4. increase the confidence of the Iraqi citizen Bammelth National, which has become comparable to other currencies such as the U.S. dollar and the Jordanian dinar and the Kuwaiti dinar ... etc..

http://www.uobabylon.edu.iq/uobColeges/service_showarticle.aspx?fid=9&pubid=1122

Central Bank Consultant: The decision to raise zeros from Iraqi dinar will strengthen the value of the incomes of citizens

Adviser said the CBI appearance of Dr. Mohammed Saleh, "The draft raise three zeros from Iraqi dinar is a strategic project and it has no effect on purchasing power, or incomes of citizens, but will enhance the value and strengthens Iraq's relations economic ties with other countries," urged the economists to "postpone the adoption of law and conducting extensive studies on it because of the threat to the Iraqi economy. " Saleh added on the sidelines of the symposium organized by the Faculty of Management and Economics at the University of Babylon, recently carried the title (raise zeros from Iraqi dinar and its negative and positive), "The project, which conducted many scientific symposiums between specialists of the saturation of research and audit will also contribute to reducing transaction costs and reduces the carry cash and that the pros have it involves much more than the disadvantages of possible "He continued," that Iraq is on the verge of producing 6 to 12 million barrels of oil and this will impact on the development and raise the value of the Iraqi dinar and the adoption of the project would suit fully and this increase in oil production and it also aims to improve the management system the currency in Iraq, the fact that the current system is a system behind does not suit the current development in the world in this area as well as being remnants of the former regime, based on grounds other than scientific and represent three decades of underdevelopment and economic decline, especially as the economic progress which will be witnessed Iraq's future needs to system management a new currency commensurate with the boom expected in the country and therefore will not affect not only on the dealings of the citizens, nor on its revenues, not even on their diverse contracts, but he would maintain it and strengthen economic relations and exchanges in the future, "he said, linking adviser to the CBI between the approval of the project to delete three zeros from Iraqi dinar and economic prosperity is achieved in Iraq. "This project will not be unless there is a boom in the Iraqi economy and that if this is not achieved it no value at all for the project" as he said, stressing that "today, which is approved the project in which it meant that Iraq had walked in the path of stability and progress defiantly disobedient and life in the country has become is not what it is now and then Iraq will be then commander of the energy in the Middle East "In response to a question about the period for implementation of the project it has no effect on the exchange rate of the dinar against the dollar, said," that the period is open There is currently no specific time for its implementation and all Accessories success of the project will be studied carefully and all aspects are then submitted to the House of Representatives for approval after that generated the legislative and executive branches convictions sufficient to implement As for its impact on the Iraqi dinar exchange rate against the U.S. dollar, there is no any effect in this regard but that the implementation of the project will will not be what were not there the strength of the Iraqi dinar "Economists and those interested in economic affairs, for their part have expressed concern about the negative effects expected from the project in the event of approval, which was mentioned by Dr. Dean of the Faculty of Management and Economics at the University of Babylon Mujbil Rafik Morgan said," that the issue of lifting of the zeroes is still in the process of debate and so far as economists do not know who will put the law Is it the Central Bank of Iraq is the prime minister or whether he will be presented to the House of Representatives which will be discussed because the issue is the seriousness of the Iraqi economy, "calling for" the study of law by economists and specialists in economic affairs that the process of advancement of the economy Iraq at the present time does not bear any confusion, "adding that" after the decision must be justified on grounds and find out whether he will support the Iraqi economy or will of the mechanisms of disinflation, because this issue affects all citizens must therefore be carefully studied before approval, "he said with expect the President of Chamber of Commerce of Babylon that the decision to raise zeros from Iraqi dinar will have an impact on the Iraqi economy and inflation as well as the impact of the circulation of currency in the Iraqi market, "adding that" the view of the Chamber of Commerce can not be built on the point of view of the Central Bank, but there will be extensive studies on the subject and we will organize seminars with stakeholders and traders and businessmen to form a complete idea with him, and then we will give our opinion about "The specialists Iraqis in the area of ​​the economy they had underestimated the impact of the Central Bank of deleting three zeros from the currency the purchasing power of the Iraqi dinar, with one researchers that the cost of lifting of the zeroes will be the biggest of its utility as the currency's strength is measured by the stability of disbursement, which is based on the strength of the productive sector can provide goods and services. According to them

http://www.uobabylon.edu.iq/Newsletter/5.aspx

Ok sounds to me that this raising the three zeros will if anything start us at 67k for every million dinar...

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Ha this screws my hope of BIG profits for my dinar. I knew it was too good to be true.

Dont worry about it right now....it still might not even happen....it has to be sent through parliment and they have to approve it first before anything.....we will just keep our fingers crossed it doesnt make it!!

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Ok sounds to me that this raising the three zeros will if anything start us at 67k for every million dinar...

Read more: http://dinarvets.com/forums/index.php?/topic/69495-more-on-the-proposal-to-raise-zeros/#ixzz1OTCIFYxj

Nope. They are exactly describing a lop. Hopefully this is just smoke and mirrors and they aren't even considering this.

Cause if they are actually considering lopping for real, they aren't close to an RV.

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OK rethinking what they are saying here...

to keep the Iraqi dinar is equivalent to (0.067) U.S. cents this would be the cost? Hence about the same rate for printing a new bill...

Then it says...

positives raise zeros from the Iraqi dinar: The process of removing three zeros from Iraqi dinar deliberate, according to a tight monetary policy will lead to the following pros:

1. raise the purchasing power of the Iraqi dinar. < raise zeros...

2. revalue the Iraqi dinar against other currencies. < RV...

3. increase the confidence of the Iraqi economy to foreign investors. < Internationally Traded...

4. increase the confidence of the Iraqi citizen Bammelth National, which has become comparable to other currencies such as the U.S. dollar and the Jordanian dinar and the Kuwaiti dinar ... etc.. < Peg or Float Rate...

1 = $1000 Per Mil

2 = $1200 + Per Mil

3 = ???

4 = $3000 + Per Mil???

So take about 27 Tril and turn to 27 Bil... then RV...and turn in to 81 Bil... Hmmm 35 Mil citizens, contractors, investors, banks, outside country currency, etc.. = they need a lot of printed money

Real problem is they have at least 15 Tril in oil alone...

Lets think about this lets say I open one condo complex for the somewhat well to do people in Iraq... has the works, restaurants, shops, etc... asking price around 850k per unit... I would easily have 1 Billion USD invested in this one complex... question is how many projects like this will be going up at the same time... How much IQD would really be needed? We haven't even talked about coinage yet.

So now we are back to .067 to produce more currency bills not only to meet demand but to replace the worn bills as well. Now how much is all the coinage going to cost on top of this?

I know I'm going to far with this, but I'm just trying to determine if by not lifting the zeros would they be able to sustain a rate they want $3+

I've heard it said that 7 Trillion IQD are in circulation as being not held by Iraq. If that was about right then we would assume Iraq has 20 Trillion...

now if you forget about the raising of the three zeros (step 1) and go straight for the RV (step 2) they could come out at $1.30 and make it an international currency (step 3) after buying back half of the out of country IQD they could then peg or float the rate at $3.22+ (step 4)

Think about this: proven oil reserves are about 140Bil BBL unproven are around 400Bil BBL = 540Bil BBL at $100 per BBL that would be 54 Trillion in Oil, if they proved all oil reserves.

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That .067 is US Cents not Dollars. So it is an exchange rate of .00067 US Dollars.

What they are saying is... When they first put in the new currency back in 2003 it was worth .00067 US Dollars. It has since went up to something like .000856 US Dollars.

1.2 Million Dinar is now worth 1000 Dollars and after they are done 1200 Dinars are worth 1000 Dollars. LOP.

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That .067 is US Cents not Dollars. So it is an exchange rate of .00067 US Dollars.

What they are saying is... When they first put in the new currency back in 2003 it was worth .00067 US Dollars. It has since went up to something like .000856 US Dollars.

1.2 Million Dinar is now worth 1000 Dollars and after they are done 1200 Dinars are worth 1000 Dollars. LOP.

Thanks Doctor Smith I completely missed the Cents

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Great article - thanks for posting but after further research it appears this was written by an Iraqi College Student......I am moving to dinar rumors....thanks for the post.

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That .067 is US Cents not Dollars. So it is an exchange rate of .00067 US Dollars.

What they are saying is... When they first put in the new currency back in 2003 it was worth .00067 US Dollars. It has since went up to something like .000856 US Dollars.

1.2 Million Dinar is now worth 1000 Dollars and after they are done 1200 Dinars are worth 1000 Dollars. LOP.

I'm not liking what they are saying. Definetely what they are talking here about is a LOP. They are even saying a pack of cigarettes from 1000 will become 1 IQD. If this happens when we change the IQD's it will come out with less than what we paid . The other option would be to wait 2 more years or so for it to appraise. I had hopes at least it would revalue to 20 or 40 cents. Lets see what finally happens! At least we know something is in the making. I'll stay positive but this info I'm not liking at all!

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hey koolaid drinkers .. it says 0.067 as in 67/1000 . as in 67k for every million dinar... tnx

Exactly. Some here seem to think it would be $670,000 per Million IQD....Not so... If things go as described in the original post then it would be $67,000 per Million IQD...I'll take it if I have to.

Edited by umbertino
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I have problems with this approach,,,Iraq can make the dinar,any,rate they want. The problem comes up, when they don`t have enough currency in circulation to carry on day to day business,,,PRINT MORE MONEY... Doesn`t that defeat the purpose ? Their best way to solve the problem at hand is to RV at ,25 cents,,,It`s an improovement,,,but will not force inflation out the roof... JMO George

Edited by leola
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He (FX) tells me that after reading it he realized it was just the same cr@p. Nothing really new. But that's ok...we get a lot of that ...so we just shake it off and go with the flow. RV is soon...and today is MONDAY! :blink: JUNE is my month of months. So this HAS to be it...laugh and have a great day. For tomorrow we will be rich. :lol:

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