THE DISCUSSION ABOUT REMOVE THE ZEROS OF THE IQD: " IT MAY BE PRUDENT TO WAIT UNTIL THESE CONDITIONS ARE MORE FAVORABLE" BY DINAR REVALUATION, 19 AUGUST

The discussion on removing zeros from the Iraqi dinar (a process known as "redenomination") involves balancing the immediate economic benefits against the potential social and logistical challenges. Here’s a summary of the key points from the analysis:

Advantages of Removing Zeros

1. Reduction in Monetary Mass: By removing zeros, the currency’s face value is simplified, reducing the total volume of banknotes in circulation. This can make transactions more manageable and less prone to physical issues like theft or damage.
2. Ease of Handling: It simplifies accounting and cash handling by making amounts easier to work with, which can be beneficial in daily transactions and financial record-keeping.

Disadvantages of Removing Zeros

1. Public Confusion and Resistance: The process could lead to widespread confusion among the public, particularly if there is a lack of understanding about the true value of money post-redenomination. People are often accustomed to seeing and dealing with large numbers, and sudden changes can be disorienting.
2. Social and Economic Disruption : The transition may lead to disagreements in commercial and personal agreements as people adjust to the new currency format. This could impact contracts, pricing, and economic stability during the adjustment period.

Conditions for Successful Implementation

1. Electronic Payment Infrastructure: The analysis suggests that implementing redenomination would be smoother once electronic payment systems are widely adopted. The higher the percentage of electronic transactions, the easier it will be for the public to adapt to the new currency format without significant disruptions.
2. Public Awareness and Education: A successful transition requires comprehensive media and advertising campaigns to educate the public about the redenomination process and its benefits.
3. Control and Regulation: Authorities need to ensure robust measures to prevent fraud and manipulation, and to make electronic payment systems widely accessible and cost-effective.

Current Status and Recommendations

• Readiness: Given the early stage of electronic payment adoption in Iraq, the consensus is that it may be too soon to implement redenomination. It is suggested that the process should be considered once electronic payment usage becomes more widespread and integrated into everyday transactions.
• Incremental Approach: Starting with state institutions and gradually expanding the use of electronic payments can help build the necessary infrastructure and public acceptance for redenomination.

Overall, while removing zeros from the Iraqi dinar could offer long-term benefits, the current state of electronic payment adoption and public readiness means it may be prudent to wait until these conditions are more favorable.

Is It Time To Remove The Zeros?, 19 AUGUST

 Is It Time To Remove The Zeros?

Economic  2024/08/18  

There is an economic principle in the free market economy, capitalism, or whatever you call it, to treat the defect or distortion in the economic structure as a result of the shock.

That is, accepting the financial, economic and social effects of this measure in the hope of improving the economic reality.

In order to clarify this principle and analyze its effects as a means of spreading economic culture, we will address the issue of deleting zeros from the currency in order to reduce its effects on the size of the monetary mass and the value of money.

The more difficult and complex the solutions to reduce the dollar exchange rate between the official and parallel rates become, the more calls for the necessity of deleting zeros increase, believing that it is one of the solutions.

Here, if the decision is made to remove zeros, this means treating the defect with the shock effect, but we must first present the most prominent advantages and disadvantages of removing zeros and compare them to reach an optimal solution and a sound decision.

This is the best way to spread the culture of discrimination among the public, rather than addressing specialists because they are aware of the optimal solution.

 One of the most prominent advantages of removing zeros is reducing the size of the monetary mass, not its value (simply the number of banknotes used in circulation).

This advantage results in the ease of carrying cash amounts and protecting them from theft or damage.

As for the disadvantages, deleting zeros will create countless social problems that we can do without 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 the memory’s preservation of large amounts, and then the solution of commercial and personal contracts and agreements creates disagreements and an inability to reach an understanding.

From the above analysis, it is clear that the procedure of deleting zeros is not appropriate at the present time. However, with the use of electronic payment operations, the environment will be mature and acceptable for the idea of ​​implementing the decision to delete zeros, and the process will be automatic without the citizen feeling it. But is it time to issue the decision?

We see that it is too early due to the recent introduction of electronic payment technology in commercial, market, official and private transactions.

 The experience is still limited to absorbing such a transformation, and when the percentage of acceptance and use of electronic payment tools reaches 90 percent of citizens, then the decision to delete zeros can be implemented easily and smoothly. It takes time to spread the culture of electronic payment, and it is required to intensify media and advertising campaigns to focus it in the citizen's memory and accept it.

In such a case, the concerned authorities should reduce the costs of using electronic payment and impose strict control over fraud and manipulation, and then expand and diversify electronic payment companies throughout the country.

Those concerned should start with state institutions in using electronic payment for all transactions, and then the culture of electronic payment will expand.    https://alsabaah.iq/101197-.html

NOTE FROM Free and Easy Missouri on Telegram , 19 AUGUST

Sat. 17 Aug. 2024 Free and Easy Missouri on Telegram Fri. 16 Aug. 2024:

 On Fri. 16 Aug. we were told it would go between 12 noon and 12 midnight.

 It did go through so you know some people got paid yesterday. Banks were putting it in to make sure it would go.

 This morning Sat. 17 Aug. there are people getting paid. Certain people have privileges that you don’t have yet.

 Some will be elevated there by Mon. 19 Aug. Should have 800#s tonight after 5 pm. The system is live and it’s working.

 If not tonight, then we’ll start tomorrow morning.

Iraqi Dinar Guru News Highlights (8/19/24)

Economist Identifies Weaknesses In Banking System: 80% Of Money Supply In Citizens’ Homes, 19 AUGUST

 Economist Identifies Weaknesses In Banking System: 80% Of Money Supply In Citizens’ Homes

Economy |Baghdad Today – Baghdad  Financial and economic expert Alaa Jaloub Al-Fahd revealed today, Sunday (August 18, 2024), a weakness in the Iraqi banking system, while confirming the presence of 80% of the cash mass in citizens’ homes.

Al-Fahd told Baghdad Today, "The amount of cash liquidity pumped into the local market is estimated at the size of annual government spending, and this includes salaries, wages, and others. It constitutes a large percentage and is considered the citizen's purchasing power."

He added that "the rise in income levels after 2003, due to the increase in salaries, led to an increase in purchasing power, and this led to an increase in the level of demand for real estate and other things," indicating that "the rise in real estate prices has nothing to do with the issue of the increase in the citizen's cash liquidity or not, because this increase is dependent on the issue of supply and demand."

Al-Fahd explained that "any increase or decrease in the volume of liquidity is estimated by the volume of real spending and the volume of savings, considering that the citizen's income is divided between consumption and savings, and the higher the savings rate, the more it is supposed to be exploited economically through investment."

He pointed out that "there is a weakness in the banking system's ability to absorb all the cash available to citizens, as most of this cash is inside homes, far from banks," noting that "the amount of cash available to citizens in homes is estimated at more than 80% of the issued cash mass, and this constitutes a weakness in the banking system, in withdrawing that mass and investing it."

It is noteworthy that financial expert Saleh Al-Masrafi confirmed on Tuesday (August 6, 2024) that Iraq is among the highest countries in the Middle East in the file of hoarding money, while he diagnosed a grave error in the Iraqi banking system .

The banker said in an interview with Baghdad Today, "The accumulations that have continued for many years have pushed citizens to lose confidence in banks and resort to hoarding money in their homes," indicating that "its percentage reaches 70% of financial liquidity, and these are large numbers that indicate that we are among the highest countries in the Middle East in hoarding money ."

He added that "hoarding money in the financial concept is a grave mistake that will confuse the financial process and reduce the government's ability to provide liquidity to pay salaries," explaining that "resorting to electronic payment is a step in the right direction, but the most important thing is withdrawing liquidity, and there are several ways ."

The banker pointed out that "the recent issuance of treasury bonds is a correct decision, but the media propaganda to create a culture of safe investment in the street is very weak, and this is what creates low rates of dealing with them, even though the interest rates are attractive ."

He stressed the "necessity of seeking to expand the circle of withdrawing liquidity from homes and creating a movement of money that contributes to increasing the recovery of investment and granting government loans, especially with the presence of requests that exceed by 5 times the amount of money allocated for loans in any sector, especially housing."   LINK

LATEST FROM WOLVERINE, 19 AUGUST

 WOLVERINE

Sat. 17 Aug. 2024 Wolverine

“It’s all coming through this next week. Exciting things have happened, but I’m not allowed to say what. People are expecting something Sun. night 18 Aug. Just to let you know guys is to get ready. I’m sorry that I can’t say anything as everyone is under total NDA now and soon I will be as well. That opera will be release any day now.

 Thank you for all the support you have all given me as this is one of the most hardest things that I have done in my life as it has control our way of life for years and played with our emotions. We have seen so many of our compatriots that did not make it and thankfully their family will cross the finish line for them. 

During this journey I never thought that I was going to be attacked viciously and even to this day the attacks are still continuing. I know within my heart that I’m doing God’s work and that too many of you are suffering and you need hope and a messenger to know what is going on. 

As soon as I’m under NDA you won’t hear from me anymore but my job has been completed and I can leave with good conscience that I have done everything possible to help you. The opera will be release once I receive the green light. 

Don’t forget the Get Together in February 2025 here in Sydney as we are planning to have the biggest party that Sydney has ever held with all these patriots coming from so many countries. Remember that it’s going to be a gala night and so wear your best clothes everyone.

 I’ll let you all know the day and the address of the Get Together. 

Love you all. Your friend Wolverine.”

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