DINAR REVALUATION REPORT: Iraq's Currency Reform: Conditions for Removing Three Zeros from the Dinar, 30 AUGUST

 Iraq's Currency Reform: Conditions for Removing Three Zeros from the Dinar

In the midst of ongoing discussions regarding Iraq's currency reform, the Prime Minister's financial advisor, Mazhar Mohammed Saleh, has made a significant statement about the prospects of removing three zeros from the Iraqi currency as of August 29, 2024. 1 Saleh emphasized that the government is currently ruling out the removal of zeros at this juncture, citing the need for two primary conditions to be met before such a measure could be considered.

Two Conditions for Currency Reform

Saleh clarified that removing three zeros from the currency does not directly correlate with the value of the currency itself. Instead, this action is more closely associated with improving cash payment systems. The advisor outlined two essential conditions that must be achieved before the government could proceed with the removal of zeros:

1. Adequate Stock of Foreign Currencies and Gold

According to Saleh, the country needs to ensure a sufficient stockpile of foreign currencies and gold reserves. This condition is crucial for stabilizing the economy and supporting the value of the new currency.

2. Enhanced Cash Payment Systems

The advisor also stressed the importance of upgrading the country's cash payment systems. Modernizing these systems would facilitate smoother transactions and improve the efficiency of the financial sector.

Challenges and Considerations

The removal of zeros from a currency is a complex procedure that demands careful planning and execution. Challenges include the printing of new currency, modifications to accounting systems, and the need for comprehensive training on how to use the new currency. 4 Initially, there could be confusion among residents and consumers. If not implemented properly, this process might disrupt economic activities. Therefore, it is imperative that any such reform is executed with meticulous planning to achieve its intended goals.

Historical Context

Iraq's Central Bank has previously considered removing three zeros from the dinar as part of a strategic plan to reduce transaction costs and ease the burden of carrying large amounts of cash. 6 Such a move is not unprecedented, with countries like Turkey and Venezuela implementing similar measures in 2005 and 2021, respectively . 3

The Way Forward

As of August 30, 2024, the Iraqi government is not actively pursuing the removal of three zeros from the currency. However, this decision is subject to change based on the evolving economic landscape and the country's ability to meet the outlined conditions. The focus currently lies on strengthening economic fundamentals and ensuring that the financial infrastructure is robust enough to support any future reforms.

"BIT'S & PIECES OF THE MONETARY REFORM ARE NOT THE TRUTH" BY FRANK26, 30 AUGUST

 KTFA:

Frank26:  "BIT'S & PIECES OF THE MONETARY REFORM ARE NOT THE TRUTH"...........F26

Clare:  FRANK WILL TALK ABOUT THIS ARTICLE ON FRIDAY'S YOUTUBE.

"Two conditions to achieve it" .. Al-Sudani's advisor rules out removing 3 zeros from the currency

8/29/2024

The Iraqi Prime Minister's advisor for economic affairs, Mazhar Mohammed Salih, ruled out the government removing three zeros from the Iraqi currency at present, noting that achieving this requires two basic conditions.

Mazhar Mohammed Saleh told Rudaw Media Network: "I rule out that the government will remove zeros now," indicating that "removing three zeros from the currency has nothing to do with the value of the currency, but rather improving cash payment systems."

The Iraqi Prime Minister's advisor for economic affairs explained that "the three zeros added price and monetary inflation to the currency, starting with the Iran-Iraq war and passing through the time of the economic blockade (the nineties of the last century), and the conflicts generated inflation in the value of the currency."

He pointed out that "when prices rise, we need larger denominations of money to maintain the equivalence between price and money. For example, due to price inflation, 25 Iraqi dinars have become 25,000 dinars."

Mazhar Mohammed Saleh pointed out the importance of "reducing the calculations that have reached trillions in recent years, and this has become a tiring matter," adding that "the process of raising three zeros does not only mean the value of the currency, but also the calculations and statistics, and in order for the method of managing it to be easy."

The Iraqi Prime Minister's advisor for economic affairs also said, "The process of issuing large denominations reduces the currency in terms of quantities, and is a process of reforming the cash payments system, especially since this modern and advanced time requires smaller numbers." 

Mazhar Muhammad Salih believed that removing three zeros from the currency, globally, requires two conditions: “political stability and economic stability. When these two factors are available, countries resort to removing zeros from their currency,” adding that “the value is fixed and not affected. Rather, it is a relative change.”

He stated that the project to remove three zeros “we worked on between 2011 and 2012, but there was a delay in the matter, because it requires a change in the accounts of the Republic of Iraq and statistics, and requires cooperation between monetary policy and all government policies.”

It is noteworthy that a number of economists and experts recently called for deleting three zeros from the Iraqi currency, considering that this would reduce monetary inflation in Iraq and strengthen the dinar currency.   LINK

THE IRAQ DINAR RATE CHANGE BY REINALDO JC, 30 AUSGUT

REINALDO JC 

The Iraq Dinar Rate Change

(receipts) *Iraq 2024 Budget is Currently Suspended Unconstitutional, Now Going Through An Appeal Per Federal Court-Delaying It on Purpose(Scripted) Along With {“World Wars”In The Middle East & Financial Events…Stock Markets/Fake Fiat} [waiting on Israel/US to attack Iran Nuclear Plant]. *The Budget #4782 Is Still Not Printed On The Gazette(that’s great news). We Want It On The Gazette After The Dinar Rate Changes. *WTO Final Steps Meeting in Nov Towards Full Ascension By End Of Yr. *U.S Troops Will Begin Withdrawing From Iraq This September. (Trump Mentioned They Wont Leave Iraq Until They Get Paid In Full-Hmmm). *BRICS Summit Scheduled This Oct. Iraq Will Be Part/Joining of BRICS. (TRADABLE CURRENCY NEEDED). *The Iraq General Population & Housing Census Scheduled To Be Conducted In October(After 27yrs). Head Count Needed For Financial Disbursement From The HCL-AFTER RATE CHANGES. *U.S. Treasury Dept Took Over Iraq Central Bank(CBI) To Get This Monetary Reforms Done & Over The U.S. Wants To Get Paid Now!!! *Possibility Of Trading Oil With Iraq Dinars. *Court Rules XRP Not Being A Security Which They’re Also ISO-20022 Compliant & Paired with the IQD. *Iraq Will Remove The Three Zeros Due To Historic Low Inflation, Political & Economic Stability-(iraq is very stable)-New Dinar Lower Currency Notes incoming. *Iraq Banking System is Basel lll Compliant. Iraq Dinar Currency Has Been ReClassified From C to A&B. Stated Directly From The CBI (in other words Iraq banking system is world class TOP NOTCH). *CBI Governor Ali Mohsen Al-Alaq Had Meetings With The Federal Reserve/U.S. Treasury Department This Week To Resolve Final Issues Including Lifting Sanctions On Iraq Banks (i wonder why). *Iraq Has Been Removed From The Grey List of Money Laundering. *The Ministry Of Education/Council Of Minister Has Set September 22 as The Date For The Start Of The 2024-2025 Academic Year(aligning w/middle year fiscal budget). *Baghdad International Airport Was Just Reopened To The Citizens On Aug 17th. After An Unspecified Duration Of Being Closed (why now). *Iraq Has Accomplished These Following Steps For Its Reforms In Order To Reinstate The Dinar: -Economic Stability -Political & Security Environment -Effective Implementation -International Support *The Central Bank of Iraq Will Cancel The Dollar Transfer Platform By The End Of This Year(no more $ auction-no more corruption stealing). **Iraq Central Bank(CBI) Gave Their Outlets/Partners Instructions On How To Advance Train Their Employees On Foreign Currency Exchange Procedures. **(History)-The Central Bank Of Iraq Introduced The New Iraq Dinar Currency In October 15, 2003 {the rate changed in september 03} & The Currency Exchange LASTED For ONLY (3) Months Until Jan 15 2004. *Most Likely, You’ll Have 90 Days From The Day The Rate Changes To Exchange Your Iraq Dinar Currency(imo). *The Late Dr Shabibi Governor of Iraq Central Bank From 2003-2012, Stated That Iraq Can Only Change The Currency Rate In The Beginning Or The Middle Of The Year. (that is Iraq financial MIDDLE of the Yr) *Iraq Internal Financial Budget Runs From {April-March}-jeff **Therefore, Iraq Financial MIDDLE Of The Year Would Be OCTOBER. *New Middle Yr Financial Budget Period is {October}. Therefore, Iraq Budget Would Need To Be Constitutionally Active With A New Exchange Rate To Be Implemented BEFORE Oct. *The Month of September Is a Highly Known Historical Possibility of Rate Changes. *Al-Sudani Openly Stated To The Citizens Of Iraq, That They Will Receive Their Purchasing Power(“ratechange”) In 2024, Swearing On Allah Himself. (PREDICTION) {imo} *It’s All Lining Up For Us Dinar Investors To Finally Be Financially Blessed This Year in 2024 Rate Change Anywhere Between {Mid September-Mid October 2024} -

@SmoothRey

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IRAQ'S BOLD MOVE: DINAR PEGGED TO A CURRENCY BASKET

DINAR REVALUATION REPORT: Central Bank of Iraq and the Iraqi Dinar's Forex Market Presence, 30 AUGUST

Central Bank of Iraq and the Iraqi Dinar's Forex Market Presence

The Central Bank of Iraq's (CBI) restrictions on the exchange and trading of the Iraqi dinar (IQD) have been significant factors in the currency's absence from the Forex market. 1 These limitations have made it challenging for Forex traders to access and trade the IQD, affecting its liquidity and appeal as an investment option. 1 As of August 30, 2024, the CBI's policies toward the IQD remain restrictive, impacting its potential for inclusion in the global foreign exchange markets. 1

Iraq's Shift in Currency Policies

In a recent development, Iraq has announced plans to restrict all internal trade to the Iraqi dinar from the following year. 6 This policy is designed to help control the black-market exchange rate and reduce the country's dependence on the US dollar. 6 The Central Bank governor, Ali Al Alaq, has stated that the new measures align with international standards and anti-laundering laws.  6

Impact of US Regulations

US regulations governing international money transfers have played a significant role in Iraq's decision to reevaluate its currency policies. 2 Since November 2022, stringent US measures have been in place to curb the diversion of US dollars to Iran, Syria, and Lebanon via Iraq's Central Bank foreign currency auction. 2 These actions have contributed to the fluctuating black market exchange rate and increased demand for dollars in Iraq. 2 The US Federal Reserve has also blacklisted several Iraqi banks suspected of money laundering and suspicious transactions.  6

Iraq's Response to Currency Instability

In response to the currency instability, Iraq has taken steps to strengthen its financial system and counter illicit finance. 3 The CBI has increased overseas dollar transactions through the official global SWIFT system, which has resulted in a significant rise in regulated transactions. 4 The central bank's vice governor, Ammar Khalaf, reported that transactions through the electronic platform have grown from 200 million, which reflects the size of Iraq's economy. 4

Money Changers' Strike

Iraqi money changers have responded to these restrictions by initiating a nationwide strike earlier this month, protesting the central bank's policies. 5 The Coordination Committee for Money Exchange demanded that the central bank rescind limitations on foreign currency trading and provide greater industry support. 5

Outlook for IQD's Forex Market Presence

The future of the IQD in the Forex market remains uncertain. 1 The CBI's ongoing efforts to control the black market and stabilize the dinar's value may eventually lead to a change in restrictions and a potential increase in the currency's liquidity. 1 However, as of August 30, 2024, no official announcements have been made regarding any changes to the current restrictions on IQD trading in the Forex market. 1

"THE CBI IMPLEMENTED RESTRICTION ON THE EXCHANGE AND TRADING OF THE IQD" BY SANDY INGRAM, 30 AUGUST

 Sandy Ingram 

 ...Important reason the IQD is not on the Forex Market is that the Central Bank of Iraq has implemented certain restriction on the exchange and trading of the Iraqi dinar, making it less accessible for Forex Traders...Will the CBI change these restrictions and allow the IQD to be traded in the Forex market?  

[We] do not have an answer to this question.  We hope so.

Sandy Ingram  

 Building and growing your financial bases will be easier when you have money...The name of the game to replenish your wealth means that you invest in positive cash flow business ventures even if you go out and buy a Pizza Hut just as long as it has a positive cash flow to help support your lifestyle that you would like to live in.  

You replenish your wealth by investing in business ventures that will bring you more monthly income.  That's how you maintain and generate and grow your wealth.

---

Sandy Ingram 

 Iraq just delayed the US group exit.  It's a big deal.  Iraq has chosen to delay the announcement of a departure date for the US-led military coalition. 

 This comes amidst escalating tensions between Israel and Iran...Currently around 2,500 US troops remain in Iraq...This delay in setting a withdrawal date underscores the Iraqi government's challenging position amidst internal and external pressures.  Stay tuned for more updates as this situation continues to unfold.

Sandy Ingram 

 Research says 70% of all lottery winners are broke within 3 to 5 years after they win the lottery.  These numbers are almost as high for ex-NFL football players who once they are no longer playing football go broke...  They're doing exactly what I am strongly recommending you don't do.  They are living off their winnings.  You want to get into a mindset of replenishing your wealth.  It will be easier to build more wealth once you have wealth.  Money begot money.  Money attracts money.

Sandy Ingram 

 The news from the Middle East has gone haywire.  There appears to be consistent and organized misinformation coming out of the Middle East.  [I] will do everything in [my] power to report correct and confirmed news reports...

 Sandy Ingram  

 Iraq did not follow Kuwait's revalue path.  The Untied States pulled back on financial support for Iraq's revalue shortly after the invasion was over when they made the decision that were not in alignment with economic growth for Iraq.  It's been 20 years and the currency still has not been revalued...

We are learning more about why including issues like the IMF will not support a currency adjustment until the county has more income streams outside the oil industry, implementing banking reform that ties into international banking standards and providing housing for the hundred of thousands of people who have been misplaced due to decades of war, not to mention...corruption.

Sandy Ingram  

 Question: "How is Iraq going to do business in the international market with such a low currency rate?"  

This is why Iraq will need to increase the value of its currency.  Currency values... act as a silent force influencing a country's global competitiveness.  When a country's currency value is low it can impact it's ability to compete...Iraq's top trading partners are China, India, South Korea and on the sidelines Iran.  However things are about to change and fast.  The development road project places Iraq right in the middle of the global financial markets.  [We] have little doubt the Iraqi dinar will increase in value but we don't know when or how much.

A major financial change in Vietnam...Decree 52 regulates non-cash payment in Vietnam and will significantly alter Vietnam's financial landscape...Decree 52 marks a significant milestone in Vietnam's journey towards a cashless economy.  If you have VND bank notes you will need to find out how you can comply with Decree 52 as a foreigner.  [We] will research the topic and report back as soon as we understand the procedure.  According to the news report the banks have 24 months to comply...

https://dinarevaluation.blogspot.com/2024/07/rv-update-by-sandy-ingram-20-july.html

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ALAQ CONFIRMS 3 ZEROS NOTES TO COEXIST FOR A DECADE 2024