"THANK YOU FOR YOUR OPINION... BUT WE DON'T NEED IT BECAUSE ALAQ HAS ALREADY EXPLAINED IT TO US!!!" BY FRANK26, 29 SEPT

 KTFA

FRANK26: "THANK YOU FOR YOUR OPINION... BUT WE DON'T NEED IT BECAUSE ALAQ HAS ALREADY EXPLAINED IT TO US!!!"....F26

A specialist details the negatives and positives of removing zeros from the Iraqi currency

9/26/2024

 

 Baghdad

Economic expert Nabil Al-Marsoumi detailed the pros and cons of removing zeros from the local currency.

Al-Mawsumi said in a tweet followed by "Al-Ahd News", "The process of removing zeros from the currency means replacing a new currency with the old currency with the aim of simplifying the accounting process between consumers, and it is often resorted to by countries that suffer from high inflation and have become unable to deal with paper currencies of very weak value."

He added, "54 countries have previously implemented, at different times, the deletion of a group of zeros from their local currencies due to some positives resulting from such a measure, represented by the revaluation of the national currency, simplification of financial transactions, and streamlining of currency units as a necessary condition for reducing accounting numbers, facilitating accounting dealings, the cost of managing new large numbers, and the absence of small numbers."

Al-Marsoumi continued, “The issue of deleting 3 zeros from the Iraqi currency has been receiving attention and study from the Central Bank since 2007, but the bank has not yet taken such a measure due to the lack of two important conditions, the first of which is the instability of the dollar exchange rate against the Iraqi dinar and the second is the lack of political stability, in addition to the disadvantages and risks resulting from it:  (MR. ECONOMIST BOTH OF THESE ISSUES HAVE BEEN RESOLVED ACCORDING TO ALAQ!!! -F26)

First: The process of deleting zeros is not a magic solution to the problem of inflation, but rather a formal procedure aimed at giving momentum to the Iraqi economy.

Second: The impact on the behavior of consumers and producers, economic variables, and economic relations between Iraq and other countries.

Third: Deleting zeros is an imaginary change in the value of the currency and does not change its purchasing power.

Fourth: People may panic and abandon their dollar savings and replace them with Iraqi dinars, which will lead to a large and sudden growth in the money supply, undermining monetary stability.

Fifth: The high costs involved in printing the new Iraqi currency.

Sixth: The emergence of corruption in the process of disposing of old currency or the entry of counterfeit currencies and attempts to replace them with new currency, in addition to the occurrence of money laundering operations.

Seventh: The decision will not affect the competitiveness of Iraqi goods against foreign goods because the majority of transactions are conducted in dollars.

Eighth: Deleting zeros will create social problems at this stage due to the inability to convince the public to accept the decrease in the size of the monetary mass while acknowledging that the real value of the money is not affected. The issue is related to the mind and memory retention of large amounts, in addition to the difficulty of settling commercial and personal contracts and agreements.

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