"DELETING ZEROS WILL RAISE INFLATION", 30 JULY

 Deleting Zeros And Printing A New Currency Will Raise Inflation

Special|..Economic expert Ahmed Saddam warned today, Thursday, against printing a new currency, pointing out that this will lead to an increase in the level of inflation.

Saddam said in an interview with Al-Jarida , that “printing a new currency with no expansion of non-oil commodity production, i.e. the absence of real growth in non-oil domestic product, will lead to raising the level of inflation, meaning the depreciation of the currency against the dollar and the instability of prices, and therefore no This can be considered a solution that alleviates the monetary crisis in Iraq.

He explained, "Resorting to deleting zeros, this option cannot work unless there is stability in the dollar exchange rate, economic diversification and political stability, and these conditions are not available in Iraq at present, meaning that deleting zeros under the current circumstances may be feasible only from a computational point of view."   If there will be ease in transactions in large numbers, no more, and this procedure is not feasible if we take into account the costs that the central bank will bear to print a new currency.   https://jaredaiq.net/News/4984

The Banking System Is Facing Serious Disturbances: Cash Withdrawal Operations Are Expanding!

Special  |.. The economic advisor, Ziyad Al-Hashemi, said today, Wednesday, that the operations of withdrawing cash balances from accounts with local banks are among the dangerous signs that indicate a weakness in the level of confidence and concern about the loss of the monetary value of savings in Iraqi banks, which led to the tendency of dealers to withdraw their savings from the dinar and search for dollars..

And Al-Hashemi told Al-Jazeera that the fever of these withdrawals may expand as a result of the continued rise in exchange rates and the state of turmoil in the banking system remaining unresolved, and this will generate a significant decrease in the cash balances with banks, and this may eventually lead to the collapse of those banks and the declaration of their bankruptcy.. 

Al-Hashemi added, “This dangerous scenario reminds us of the collapse of US banks that occurred a few months ago as a result of the widespread and continuous cash withdrawal by dealers, and this caused great confusion in the US banking system, which prompted the US Federal Reserve to intervene urgently to save the US banking system.” 

He pointed out, “The Central Bank of Iraq must be ready to deal with all scenarios, especially since there are no viable solutions on the horizon for the structural problems of the Iraqi banking system and the resulting continuous rises in the exchange rate of the dollar, which is matched by a continuous erosion of the value of the Iraqi dinar.”   https://jaredaiq-net.translate.goog/News/4977