Exchange Centers are off premises bank facilities to prevent excess traffic at bank branches. It is illegal to have different rates at different places. Remember the Law of One Price.
Fnu Lnu
I do not buy this "Education Program" nor do I buy the "Adjusting of the Parallel Market". The education is taking too long to be effective and it isn't government's job to adjust black markets. These are stall tactics while they placate the masses. But why?...
When you drag out the "Education" as long as the GOI and CBI has been doing, nothing sticks. If it is not in practice, then it is just words from the mouths of bureaucrats. Iraq has had more than enough of that and they do not pay attention.
They will become educated when it means something to them, like the cost of goods and services, and buying power, and velocity of money. This is all obfuscation and I don't believe a word of it. Logic tells me they are stalling the people.
The $64,000.00 dollar question is why? What's the real plan?
Central Bank of Iraq's Plan to Remove Zeros from the Dinar
As of September 22, 2024, the Central Bank of Iraq is studying the feasibility of removing zeros from the Iraqi dinar. This move is part of a strategic plan aimed at simplifying financial transactions and reducing transaction costs, which was first announced in 2011. The plan, once complete, will be passed to the ministerial council and Parliament for approval.
Reasons for Removing Zeros
The primary reason for deleting zeros from the currency is to combat inflation and enhance confidence in the national currency. This process can simplify accounting operations and financial transactions, potentially improving the country's image before investors and the international community.
Potential Challenges
Removing zeros from the currency involves challenges such as printing new currency, modifying accounting systems, and training people on how to use the new currency.
This process may initially cause confusion among residents and consumers and requires careful planning to avoid economic disruptions.
Precedents
Countries like Turkey, Brazil, Zimbabwe, and Venezuela have previously removed zeros from their currencies. For example, Turkey removed six zeros from its currency in 2005, Brazil undertook similar measures in the 1980s and 1990s, Zimbabwe removed twelve zeros in 2009, and Venezuela removed five zeros in 2018.
Impact of Removing Zeros on Balances in America
The removal of zeros from the dinar does not indicate any restrictions on the Central Bank of Iraq's balances in America.
However, the effects on international transactions and the dinar's exchange rate will depend on how well the process is executed and the state of Iraq's economy at the time of implementation.
Conclusion
The Central Bank of Iraq's plan to remove zeros from the dinar is a significant step toward simplifying financial transactions and enhancing the currency's stability. However, careful planning and execution are necessary to ensure the process is successful and does not lead to economic disruptions.
The Central Bank of Iraq reduced, on Sunday, its reliance on the US dollar in commercial transactions, adding that the project to remove zeros in Iraq is under continuous review and study.
Countries remove zeros from their currency to revalue their national currency and simplify financial transactions. This is done by removing a specific number of zeros from the nominal value of the currency, making it appear less inflationary and more stable.
In this context, the Governor of the Central Bank of Iraq, Ali Mohsen Al-Alaq, confirmed that the Central Bank responded to global economic challenges such as rising energy and raw material prices, by amending some monetary policies in line with the international situation and to enhance confidence in the Iraqi dinar and prevent a sharp decline in its value.
Al-Alaq added that the Central Bank of Iraq increased its holdings of foreign exchange and gold reserves to enhance the country's financial position and stability, in order to enhance its ability to confront potential economic crises. LINK
They're going to remove the 3 zeros soon... In 1990 Kuwait did the same thing...If you go back in that time and you find the article, you can read it, it's the same article come out, the big bills are going to be the same than the small bills...25,000 dinars they're going to count like 25.
What they did was the opposite, the whole opposite, the 25,000 become 25,000. They stayed 25,000.
When you go change your money [Iraqi dinars] this is what's going to having...You'll have three weeks to find a way to exchange your money to small category dinar. Once you change your money to small categories you guys safe. That's how it's going to work..
The Prime Minister’s Advisor for Banking Affairs, Saleh Mahoud, stressed on Sunday the importance of cooperation between the public and private sectors to develop the technological infrastructure in Iraq, while pointing out that the Iraqi government has taken 8 strategic steps to improve the technology sector in the country, stressing the existence of serious government efforts to achieve leadership in the field of digital innovation.
Mahoud said, in his speech during the opening of the Iraq International Exhibition and Conference for Information and Communication Technology (ITEX), followed by “Economy News”, “We express our happiness to represent the Prime Minister in attending the conference, and we inform you of his greetings and high appreciation, as he praises this conference and blesses his efforts.”
He added that “the conference provides an opportunity for cooperation between the public and private sectors, which encourages the establishment of strategic companies that contribute to the development of a strong technological infrastructure.”
He pointed out that “the organization and activation of such conferences is an urgent necessity, as the Iraqi government, led by Prime Minister Mohammed Shia Al-Sudani, looks forward to the importance of this event being a suitable opportunity to discuss the exchange of experiences and ideas to achieve sustainable development and prosperity for our great people, which enhances Iraq’s place as a leading country in the field of digital innovation.”
He stressed that “digital transformation has become an inevitable necessity in recent years in the government and private sector fields, even in our daily lives.”
He added that “this conference comes at an important time, as the Iraqi government seeks to achieve a clear vision on how to use technology to improve the quality of services and promote transparency and community participation.”
He pointed out that “the current Iraqi government, since the beginning of its tasks at the end of 2022, has worked to develop the information and communication technology sector, in coordination with the relevant local and international sectors.”
He pointed out that “the Iraqi government has taken a number of important steps in the field of information and communication technology development, including: 1- Establishing laws and legislation to provide a suitable environment for investment in information and communication technology, aimed at encouraging innovation and protecting the rights of investors.
Improving infrastructure, including supporting efforts to increase Internet speed and expand networks in all regions of Iraq.
3- Achieving investment, as the Iraqi government encourages local and foreign investment in the information technology sector by providing bank incentives, including financial support for emerging projects in this field. Partnerships with the private sector to accelerate technological development. 5- Implementing a national digitization plan to improve digital conversion in government institutions. This includes digital platforms to provide government services to citizens such as document registration, payment of taxes and complaints, in order to facilitate procedures and reduce time and effort, which facilitates the services provided to citizens and increases the efficiency of government performance. 6- Training and rehabilitation programs for youth and professionals in the fields of information technology, in addition to holding workshops and lectures to enhance digital skills. 7- Supporting startups, through the availability of financial support to encourage entrepreneurs to innovate and expand. 8- Cooperation with international companies to bring new expertise and technology to Iraq.
“These steps mentioned above are important indicators of the trend towards sustainable economic and social development,” Mahoud explained.
He stressed “the government’s readiness to exert all efforts to provide support to all local and international authorities, institutions and companies in order to develop the information and communication technology sector.”
He concluded by saying: “We urge all institutions and the private sector based on the conference to use all challenges as an opportunity to succeed in future plans.”