Does deleting the currency’s zeros affect its value? An economist explains
Economic expert, Durgham Muhammad, said on Sunday that deleting the currency’s zeros does not conflict with its value, explaining what needs to be taken before resorting to this step.
Muhammad told Jarida, “Deleting the currency’s zeros is a regulatory process that does not conflict with its value, but this step needs educational campaigns to precede it, and a transitional period for trading the currency with its zeros and the new currency to know that the two currencies are equal in value.”
He stressed, “Printing new denominations must be proportional to the market’s need to cover daily trading, provided that there is no significant increase in the monetary supply in the market so that inflation does not occur.” link
They're talking about deleting the zeros again...We're not talking 1, 2 or three articles...
Article quote: "The issue of deleting the zeros and splinting the dinar has become a topic that causes a lot of reflection and controversy in economic circles..."
If you go from 1310 to something back to a 'previous era'...is a big move ...Article quote: "When this is done correctly we can expect...a strong dinar that is considered a store of value and perhaps even stronger than the dinar that was before 1980."
Iraq is going to explode with growth. We all know that...You're going to provide thousands and thousands of jobs and build 10 industrial cities, millions of homes...it creates a lot of growth. It creates a lot of jobs...
Advisor to the Iraqi Prime Minister for Economic Affairs, Mazhar Muhammad Salih, announced the mechanism for distributing employee salaries after the Federal Court’s decision to oblige the localization of the salaries of all employees of government agencies in the center and the Kurdistan Region in federal banks.
Mazhar Muhammad Saleh said, in a statement followed by Mawazine News, that the mechanism for distributing employees’ salaries is based on:
1- On a principle called (salary localization), that is, the employee chooses the bank (governmental or licensed private) in which the employee wishes to deposit his salary and in a bank account in his name. Then the employee’s department replenishes that employee’s account (monthly) with the bank he chose himself and opens his account there, usually a savings account.
2- The employee (whose salary is with the bank) is provided with an electronic debit or payment card issued by the bank agent (which is a payment company that is responsible for providing the employee with an electronic debit or payment card, such as (Key Card, Sawj, or Al Nakheel Company…etc.), that is, the company Payments are determined by the bank in which the employee’s salary is settled.
3- The employee’s account with the bank is linked to a credit card.
4- The employee has the right to withdraw his salary in cash through the card, in whole or in part, and through automated teller machines, especially POC (point of cash) machines, which are widespread. Everywhere is managed by the licensed private sector.
The employee who holds the electronic card also has the right to pay digitally through the phone or point of sale devices in shops, restaurants, etc.
During the Federal Court session, Wednesday (February 21, 2024), the President of the Federal Court, Jassim Muhammad Abboud, issued a decision requiring the defendants to oblige the Prime Minister of the Federal Government and his counterpart in the region to localize the salaries of employees of all ministries, governorates, and entities not affiliated with a ministry, and all employees of other entities, retirees, and beneficiaries. The social protection network is held by government banks, and is deducted from the region’s share in accordance with the budget law for this year and the coming years.
The court referred to “obligating the monthly budget of Kurdistan Region employees to be submitted to the Federal Ministry of Finance, and obliging the Kurdistan Region Council of Ministers to hand over all oil and non-oil revenues to the federal government.”
“The decision to localize the salaries of the region’s employees is a final and binding decision,” according to the Federal Supreme Court.
During the meeting of the Iraqi Minister of Finance, Taif Sami, with the Finance Committee of the Iraqi House of Representatives, she confirmed that “the release of salaries for employees in the Kurdistan Region during the current month is subject to submitting lists of names, and we have stipulated localization in order to disburse them during the coming months.”
"The WTO's 13th Ministerial Conference (MC13) will take place from 26 to 29 February 2024 in Abu Dhabi, United Arab Emirates. Ministers from across the world will attend to review the functioning of the multilateral trading system and to take action on the future work of the WTO. The Conference will be chaired by H.E. Dr Thani bin Ahmed Al Zeyoudi, UAE's Minister of State for Foreign Trade."
There are high expectations that full acceptance into the WTO for Iraq will happen during this meeting taking place today.
Let's stay grounded. We will soon find out if Iraq is fully accepted into the WTO or not this week.