Economist: lifting the three zeroes from the currency will impact negatively on the rich and the poor positive

[Sara Johnson]

Economist:lifting the three zeroes from the currency will impact negatively on the richand the poor positive

10/11/2011 07:25

Baghdad, November 10 (Rn) - An economic expert said onThursday that the deletion of zeros from the local Iraqi currency will lead tothe rehabilitation of the distribution of the value of exchange betweenindividuals of the rich and the poor, the rich will be affected negatively andpositively poor.

Dr. Abdul Salam gesture Said a professor at BaghdadUniversity / School of Management and Economics and a specialist in the studyof the banks, told the Kurdish news agency (Rn) that "the pursuit of theIraqi Central Bank to raise three zeroes from the local currency will enhancethe Iraqi economy, and will lead to increase the value of currency in thelow-income , and to increase the purchasing power of citizens and will lead toa reduction of the volume of money supply in the market by 10%. "

The organizers of the Central Bank of Iraq, has indicated inmore than one occasion to the need to delete three zeros and the issuance ofnew currency, the categories of large cash transactions to fill the large, inaddition to the presence of small coins, as well as the new currency is issuedin Arabic, Kurdish and English.

He Said, "The decision to raise zeros of the three issubject to three policies, Nation Books monetary and credit (undertaken by thecentral bank) and fiscal policy undertaken by the Ministry of Finance, todevelop studies and solutions to address the amount of cash block in the Iraqimarket, valued at 30 trillion Iraqi dinars.

He stressed that "the lifting of the zeros of the Iraqicurrency strategic project must work according to the criteria byfundamentalism because much of the cash payments are not due to the evolutionof the banking system."

He explained that "there are two ways to solve thedilemma of the withdrawal of old currency from the local market and inject newway in the first not to print a new currency in the Press Central Bank or theprinting of foreign, but that is put the seal on the old currency and make it anew currency through it, and the way the second complementary to the first thatthe old currency is traded between citizens and banks on the basis ofcalculation of all (1100) and a hundred thousand dinars, equal to an olddinars, and a new one.

And that "this method will provide the cost ofprinting, which will cost the state billions of dinars, and will reducethe" seal "the likelihood of fraud, and reduce the size of the moneysupply in the market by 10%, which would increase the value and considered anindirect tax on the owners of the money."

He Said that "this action will benefit the low incomeand poor people because the currency will be of more value than its previousvalue."

And reduced specialize Iraqis in the area of ​​the economyfrom the impact of the CBE to delete the zeros from the currency purchasingpower of the Iraqi dinar, also hopes the government from behind the move, asseen researchers that the cost of raising the zeros will be greater than thebenefit, considering that the currency's strength is measured by the stabilityof disbursement, which is based on the strength of the productive sector isable to provide goods and services.

The Central Bank of Iraq announced on June 23 last was readyto delete the zeros of the Iraqi currency, and as he emphasized that this stepis one of the strategic functions of the Bank, pointed out that the newcurrency will contain on the Kurdish language in addition to Arabic.

The Central Bank of Iraq four branches in Basra andSulaymaniyah, Erbil and Mosul, where the established bank independent Iraqiunder the law of the Central Bank of Iraq issued on the sixth of March / March2004, which is responsible for maintaining price stability and theimplementation of monetary policy, including exchange rate policies and themanagement of foreign reserves and the issuance of and currency management, inaddition to the organization of the banking sector.

http://www.aknews.com/ar/aknews/2/271627

[DinarDana]

Baghdad, November 10 (Rn) - An economic expert said onThursday that the deletion of zeros from the local Iraqi currency will lead tothe rehabilitation of the distribution of the value of exchange between individuals of the rich and the poor, the rich will be affected negatively and positively poor.

GO RV

[trooper]

My question? Why will the rich be affected negatively??

[Elixirbaby]

My question? Why will the rich be affected negatively??

My thoughts too.

[trooper]

He Said, "The decision to raise zeros of the three issubject to three policies, Nation Books monetary and credit (undertaken by thecentral bank) and fiscal policy undertaken by the Ministry of Finance, todevelop studies and solutions to address the amount of cash block in the Iraqimarket, valued at 30 trillion Iraqi dinars.

Read more:

monetary and credit

[only 1-25k dinar]

Good Question.... and how would it be positive for the poor??

[trooper]

Good Question.... and how would it be positive for the poor??

Cause they don't have the Dinar to lose or for that matter the Dinar to buy anything... It evens out the playing field.. Their 25 will by the same as the rich

[Biker]

Seems to me it will be easy for trading but would be the same value, but the part of being bad for the rich only says to me if you got lots of Dinar it will only be Worth little after deleting the 000s. Smack my mouth but it talks Lop to me in this read.

[sonny1]

This article makes as much sense As j-lo hooking up with Marc Anthony

[JWJW11]

This article makes as much sense As j-lo hooking up with Marc Anthony

THATS WAS FUNNYYY

Im so confused why so many put so much stock in every article when we are all aware how our news here in the states lies constantly and holds out the real thruth.... I see so many that hold on to every article like its the gospel....cmon already why would Iraq be any different! I dont believe any article one way or another....they are only gunna tell you what they want you to know and I prefer to think for myself....as apposed to actually believing what Im told. This thing is guna RV or RD and they will not tell us what its gunna be!

There are so many questions that will remain unanswered even after this is over. Sure an RD is possible but I seriously doubt it!!! But thats just my thoughts....GO RV!!!

[sirlep33]

If it is bad for the rich then it is bad for the poor also. 25k note = 25 note. A rich person has 1000 25k notes, so it turns into 1000 25 notes. Yet a poor person holds 2 25k notes, now he has 2 25 notes.... no one wins.... both rich and poor suffer greatly. JMO though. Have a nice day

[trooper]

If it is bad for the rich then it is bad for the poor also. 25k note = 25 note. A rich person has 1000 25k notes, so it turns into 1000 25 notes. Yet a poor person holds 2 25k notes, now he has 2 25 notes.... no one wins.... both rich and poor suffer greatly. JMO though. Have a nice day

Now the poor are on a even playing ground... They can afford food just like the rich..

[FuzzyUzzy]

Now the poor are on a even playing ground... They can afford food just like the rich..

1000x25notes VS 2x25notes

im pretty sure the 1000x25 notes will still have the advantage over the 2x25 notes.

this does not level playing field sir.

[trooper]

1000x25notes VS 2x25notes

im pretty sure the 1000x25 notes will still have the advantage over the 2x25 notes.

this does not level playing field sir.

[/quote

It works like this.. The rich have 10 25,000 dinar to pay rent, food, ect.. Now the poor have only 2 25,000 dinar can,t pay rent or buy groceries.. Now that everyones dinar is worth the dinar amount.. 25 dinar per 25,000... The poor person will have 400.. Of course the rich will still be better off.. But now the poor can pay rent and get food.. Because the market price set properly.. So instead of a loaf of bread costing 25,000 it could be one dinar

Edited November 11, 2011 by trooper

[jg1]

Since most everyone uses dollars over there, how many of their people will get rich. At least one thing is the people that have it will be spending it and spreading the wealth around.

[marknet73]

Just another lop article. Seen them for over a year now. Same ol' song and dance...

[Rossenbos]

And lifting three zeroes will reduce the money in circulation by 10%????????

Hogwash! This is utter bull.....

[TFK]

This article makes as much sense As j-lo hooking up with Marc Anthony

That's funny Sonny! Man that guy is ugly! She must have been hammered when she met him! :lol:

This is just another regurgitated article we have seen ten thousand times before.

Absolutely nothing new here!

On the bright side... it is good to see the flow of 000 articles has started again. I think the more they try to confuse Iraqi's, and world investors, the closer we get to the prize!

[Trigger the old biker]

Just another lop article. Seen them for over a year now. Same ol' song and dance...

That's what it is: song and dance.

They just want as many people as possible to dance along with their song.

They even have a light show that moves with the beat, and a fogger for special effects.

As in smoke and mirrors.

[TFK]

Smack my mouth but it talks Lop to me in this read.

SMACK!

[noob57]

My thoughts on Rich/Poor:

Poor= your 25K note value increases greater than $21. ie what we are hoping for....

Rich= the poor guy that owes you $1000 in value pays you post RV. Now he gives you a 1K note that is valued at $1,000 instead of around $1.00.

That is what immediately went through my mind when I read the article.