Ariel
Iraq- Deletion Of 3 Zeros Project
A Currency Redenomination:
Ex. The key equation governing this is:
Value = Exchange Rate x Face Value
Where:
Exchange Rate: The value of one currency unit against another (e.g. Dinar vs Dollar) Face Value: The number printed on the banknote (e.g. 10,000 IQD printed on a 10,000 dinar bill) When 3 zeros are removed from the Face Value via redenomination, the New Face Value becomes 10 IQD. Remember all of this is happening internally in Iraq. For their domestic market.
So if you already have the IQD this has nothing to do with anyone outside the country. The central bank will adjust the Exchange Rate proportionally at the same time. For example: Old Face Value: 10,000 IQD Old Exchange Rate: 0.00085 dollars per 1 IQD New Face Value: 10 IQD New Exchange Rate: 0.85 dollars per 1 IQD So in both cases: Value = (Exchange Rate) x (Face Value) = 0.00085 x 10,000 = 0.85 x 10 = 8.5 dollars Thus the Value in dollars is conserved, keeping real purchasing power constant in the economy. Only the numeric aesthetics change essentially.
Banks will implement this across deposits, loans, bills, salaries, prices etc simultaneously via the issuance of new banknotes/coins. Timing and Logistics: A key challenge is smoothly swapping old dinars for new dinars without economic disruption. So the Central Bank of Iraq will set a specific exchange period – let’s say 1 month. During that time, citizens can bring old cash and account balances to banks/financial institutions to exchange directly for newly issued bills/coins based on the adjusted exchange rate and face values. Old 10,000 dinar note x 0.00085 exchange rate –> New 10 dinar note x 0.85 exchange rate Banks do this incrementally to scale. They will likely bring in newly printed money (with 3 less zeros) in stages to swap for old money until the full money supply is transitioned. The central bank monitors and manages money supply inflation indicators throughout.
Additional new bills can be printed if needed to meet transactional demand during the swap. But care is taken not to devalue by overprinting recklessly. Accounting Impacts: All reporting like financial statements and accounts must reflect the changes as well during this time. It means scaling accounting balances like: Prices of goods and services Salaries Market capitalizations House values Bank balances With three less zeros appropriately. Proper protocols will govern this for auditability and truthfulness.
After the Transition: After the exchange period closes, the old dinars would likely no longer hold legal tender status as a vintage collectors item. The new dinar serves all money functionality at appropriately denominated scales for ease of use. So if you bought your Iraqi Dinar before this redenomination you will not be effected. Your currency will be honored.
Only people who purchase the Dinar after it goes international on the Forex will not see any significant returns no matter how much IQD they have purchased. Which is why you those who already have IQD are now top priority for Tier-2 exchanges. But hey’ do not take my word for it. Here is an economists from Iraq confirming everything I just told you officially.
Once again you all need to stop listening to people who get their info from Western media outlets.
Please share this with people who may be confused.
Read: https://search4dinar.wordpress.com/2024/02/26/doe
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Ariel
@Prolotario1
Now do you see why I told you all how important it us to have your receipt? The banks will need to know if you bought the currency before the “Deletion Of The Zeros Project”. This is not to say they may not do your exchange. But this will make the process more difficult for you. Because you will have to go through additional steps to prove you got the currency through legitimate means. But when you read the article that explains thar your currency will not lose any value you are hearing it directly from an Iraqi official who made it clear that whoever may hold IQD at this particular moment do not have to worry about your holdings not being honored as the value they will be worth once the currency is on the Forex. Because everything about the “Deletion Of The 3 Zeros Project” is for the Iraqi economy. This has nothing to do with what you hold outside the country. So everyone that has Iraqi Dinars now are is great shape.
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Ariel
@Prolotario1
1. It’s a currency conversion or scale change more than anything else. Simply changing numerical representations rather than economic fundamentals.
2. The redenomination aims to keep the dinar at the same real foreign exchange conversion rate with US dollars and other global currencies. For example:
Pre-Redenomination: 1,300 IQD could buy $1 USD when exchanged
Post-Redenomination: 1.3 New IQD would exchange for that same $1 USD Still the same real purchasing ability.
3. Domestically within Iraq, all prices, wages, savings etc would be scaled down proportionally when denominated in new dinars. Preserving individual real buying capacity.
Do you all understand now? The value of the currency will not change. Overall it’s mostly an ease of use change in numeric scale. The currency itself does not lose economic value or power intrinsically through this conversion process if executed properly by Iraq’s central bank. It would still buy the same amount of goods or other currencies.