2017
RETURN OF THE SUBJECT DELETE THE ZEROS TO THE FOREFRONT
11/26/2017 12:00 AM
We are on the doors of the year 2018 or is the date of deletion of the three zeros of the Iraqi dinar a question addressed to the makers of monetary policy?
(Mnt Goat – So again here we are in fall of 2017. Yes, the fall again. Coincidental?)
The past years have seen widespread debate about the advantages and disadvantages of deleting zeros.
Which brings this debate back to the forefront, but we are at the beginning of the road towards a rational economic reform that restores the country’s strength and strength after being subjected to several tremors almost paralyzed.
I see that the return of the subject delete the zeros to the forefront at a time when the steps of the reform calmly and slowly and unrivaled is a real vision to restore the real value of the Iraqi dinar to remain master of currencies at the level of local trading without rushing on the acquisition of the dollar to invest outside the country, and perhaps the advantages of the dinar equivalent with The dollar in terms of value, content and appearance of the debt to invest domestically, because it is difficult to invest currencies in the world outside the dollar as the currency of the most receptive and popular in transactions and investments.
This and other advantages lead to the adoption of consideration of this project and study the possibility of its application during the year 2018 as one of the basics of monetary and banking reform.
Perhaps follow the steps in reducing the exchange rate of the dollar gradually after the challenge of security will devote convictions and accept the deletion of zeros, which faced in a timely split between supporters and opponents because of poor understanding of raising zeros, and importance and advantages, especially when some believe that the deletion of zeros will reduce the size of the reserves of dinars because their view of their size is not to their true value.
(Mnt Goat – After postponing it again in 2015 when they were gradually going to roll it out. So in 2016 they are asking can we try it the same way in 2016?)
It should be noted that monetary policy had followed a balanced and balanced plan to reduce the exchange rate of the dollar against the dinar and succeeded to some extent fixed on what it is now, where it was able to reduce from 200 thousand to 100 dollars to 120 thousand dinars and the goal to reach 100 thousand Dinars but circumstances prevented timely completion of the gradual reduction.
(Mnt Goat – they are telling us what they needed to do. To reduce the rate down closer to 1:1 before doing the project. Today is 2024 and they still struggle to get the parallel market down to the CBI official rate. But in the article you get a sense of what program rate they want to achieve prior to triggering the project. Is this not what my CBI contact has been telling us?)
Today, it is easy for the Central Bank of Iraq to work on the principle of gradually reducing the exchange rate to the extent that it can be equivalent to the dinar against the dollar, so as to accept and digest the process of deleting zeros, so the advantage of reducing the size of money assured the owner to keep a small amount of cash with the bone market value and actual.
(Mnt Goat – WOW! WOW! WOW! gradually reducing the ( “program”) exchange rate until it is “equivalent to the dinar against the dollar”. Again, the parallel rate of the dollar must get down to the official rate. My point is they do not intend just to make a jump in rate without first controlling the dollar rate, to which is solely pegged to. This is in-country only remember. They are not yet talking in the article about FOREX rates. )
For this, the deletion of zeros or raise them from the Iraqi currency will make them enjoy these advantages in the field of compactness and commercial transactions and the risks are much lower than the large cash volumes.
The bottom line is that it is necessary to adopt the Central Bank of Iraq for the project to delete the zeros and work on its implementation from now in order to achieve the objectives of reducing the size of the monetary mass, and required a media program to devote convictions to the importance of this project,
(Mnt Goat – part of the process of the Project is reducing the monetary mass. Again, if the dinars in circulation shrink (the monetary mass), each note is worth more. Get it? Just for example sake – If you have 100 notes worth $50 (50 cents each) then shrink the note count down to half then they are worth $1 each. This is just an example to illustrate but this is where they are going with this,,,,, get it?)
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The 2017 Disappointment
GOVERNOR OF THE CENTRAL BANK’S “TOMORROW PRESS”: IRAQI DINAR IS NOT IN DANGER AND DELETE THE ZEROS POSTPONED
Sunday Jan 15, 2017
BAGHDAD / tomorrow Press The Central Bank, said on Sunday that there is full control of the Iraqi dinar, revealing that the deletion of zeros from the currency, deferred for the time said the governor of the bank, on the Keywords, for “tomorrow’s Press,” that “the rumors about the Iraqi dinar at risk and prone to degradation and decline “.
In comparison with other currencies as dollar, is not true,” adding that “Msatralih dinar fully and that in progress He added, “The Bank operates in accordance with the monetary and fiscal policies which are managed accurately and feminization and that the issue of “preservation of the Iraqi dinar of the priorities of his interest, but it’s at the heart of his work and on the application of the process of deleting the zeros of the Iraqi currency, Keywords, said that “the Iraqi Central Bank did not specify a date for the “deletion of zeros from the currency dinar,” noting that “subject to availability of appropriate conditions, including the general stability in the country.
He stressed the central bank governor and the agency, the need to “ensure the success of the process of deleting the zeros requirements before starting out”. So the central bank will continue technical preparations in order to be practical fit when deciding deletion.
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2019
PARLIAMENTARY FINANCE: GO TO RE-WORK THE COIN AND “DELETE THE ZEROS”
08/19/2019
The Finance Committee of the House of Representatives announced a move to reintroduce the currency that has been used for decades in the country, stressing the importance of pre-empting the process of minting the coin by “deleting zeros” from current currencies to make the small monetary classes valuable.
(Mnt Goat – so we know they also stamped the coins as they told us in previous article they needed. The key word is “pre-empting”. Which means prior and to be prepared when the time comes. So did they already stamp the needed coins in 2019? Do you see how this Project is much further than we are been led to believe?)
Committee member Hanin al-Qaddou said in a press statement, today, that “during meetings and discussions with officials of the Central Bank we stressed the need to re-work the coins that have been used in Iraq during the past decades, instead of paper that is damaged and printed in large quantities again.”” According to al-Sabah newspaper.
He added, “The use of metal categories and their descent into trading gives a legal value to the currency,” he said, noting that “, and yet we find the exchange rates of a number of neighboring countries are very high against the dollar that they have a coin in order to preserve the currency and do not need to ask for more banknotes, especially with Small categories”.
Al-Kaddo expressed surprise at the central bank’s policy, which does not favour the introduction of coins in the Iraqi market.
For his part, parliamentary finance member Majid al-Waili expressed the committee’s readiness to prepare any legislation requested by the Central Bank, which could benefit the Iraqi economy and market, including the trading of coins.
“The cost of a coin is more than paper, and it is more difficult for the citizen to carry it,” said Ahmed al-Saffar, a member of the finance committee.
Al-Saffar suggested that “there is a step to delete zeros before the coin mint process so that there is value for small versus large categories.”
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The appearance of Dr. Muhammad Salih: A testimony of history on the issue of raising the value of the Iraqi dinar in the year 2006-2008, as revealed by Professor Muhammad Allawi in his last lecture in Washington.
1.I would like to mention that the Paris Club Agreement signed on November 4, 2011, which dropped 80% of the total debt of Iraq, which was arranged before 1990 and was estimated at about 128 billion dollars at the time (which was led by Mr. Adel Abdul-Mahdi) and participated in it until the day it was signed by Dr. Sinan al-Shabibi And Mr. Aziz Jaafar, myself and a number of women, committed Iraq to historical stages for writing off debts before the expiry of the next 6-year grace period provided that a corrective program is signed with the International Monetary Fund. As I canceled 30% of Iraq’s debt immediately after signing the Paris Club agreement in 2004, and another 30% struck as soon as Iraq signed the SBA Credit Readiness Agreement with the International Monetary Fund that was signed in the last month of the year 2005 to be completed Monetary policy papers write off another 20% when Iraq succeeded in implementing its agreement with the fund at the end of the year, so that the total debt written off amounted to 80%.
2.In the first consultations that took place in Amman (Oman) with the International Monetary Fund, annual inflation was at that time more than 20%, and the economic model adopted by the Fund in implementing its program with Iraq has required reducing inflation to one decimal place to become about 6%, and this reduction needs to have a nominal fixed approval The Iraqi dinar increases the external value of the nominal anchor, which is the gradual increase of the Iraqi dinar exchange rate by about 20% over the years of the program, as well as raising the internal value of the Iraqi dinar, that is, the interest rate by adopting the monetary policy interest rate that the central bank lends and borrows with local banks by at least 20% This is to address the forces generating inflationary expectations, which specifically mean the importing forces. In both cases, the Central Bank was forced to follow a deflationary monetary policy to reduce inflation, called it tighten policy, and as a witness to the history of events, and in a closed meeting that included the head of the Iraq mission at the International Monetary Fund and Mr. Minister of Finance and Mr. Aziz Jaafar In my presence personally, the head of the mission asked, explaining that the conduct of that international program required preconditions, namely the acceptance of the amendment of the value of the internal and external Iraqi dinar for the interest rate exchange assistant.
Mutaqq meeting, deaf president of Baal Iraq in the International Monetary Fund and Mr. Finance Minister and Mr. Aziz Jaafar, in person in my presence, the head of the mission asked, explaining that the progress in that international program required pre-conditions, namely acceptance of adjusting the value of the internal and external Iraqi dinar, i.e. interest rates and the exchange rate. Dr. Sinan has categorically refused to adopt such a restrictive monetary policy (a policy inconsistent with advancing development after Dr. Sinan spent a year in UNCTAD and is one of the development organizations that ideologically intersect with the International Monetary Fund). Dr. Sinan left the meeting and left, saying, with the text: I will not accept With such oppressive conditions for development, I had to talk to him to return to the closed meeting because the head of the Fund’s delegation indicated that the program should be stopped with them and then the Paris Club agreement should be stopped! And to re-load Iraq’s debts before 1990 while continuing to delay benefits that are the product of the previous regime, making the damage even greater. So everyone had to accept the fait accomplishment in improving the exchange rate of the dinar.
To reach at the end of the program at the end of 2008 by about 1182 dinars against the dollar, after it was 1560 dinars per dollar at the end of the year 2005.
3.The problem in my estimation is not only to raise the value of the dinar at the time, despite the annual inflation decrease from 22% to 6% within the phenomenon of disinflation, that is, to have low or decreasing increases in the general level of prices at the time, but the biggest problem has remained in increasing the number of government workers to five times today compared to in the year 2003 and the increase in the value of government wages 7 times, which made the average government employee’s salary equal to approximately twice per capita gross domestic product, which added double benefits to the first government job that came from monetary policy and exchange rate stability and the second from higher wages and salaries as well as high banking interest on the savings of the savings available to him.
In addition, the increase in the allowances in government salaries, which constitute 66% of the salary components today, have been exempted (those allocations) from income taxes and by a government decision in the year 2009 until today. Demonstrations in Tahrir Square – Baghdad, Iraq – Mohammed Tawfiq Allawi: The Solution Mohammed Allawi’s Speech to the Iraqi Community in Virginia (Roadmap for the Future of Iraq in the Wake of the October Uprising).
https://mntgoatnewsusa.com/latest-mnt-goat-newsletter/
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