Tuesday, September 24, 2024
IMPORTANT IRAQ NEWS: REMOVING ZEROS FROM THE IRAQI DINAR IS BACK IN THE SPOTLIGHT..STRENGTHENING THE CURRENCY OR JUST CHANGING ITS FORM? BY MNT GOAT, 25 SEPT
REMOVING ZEROS FROM THE IRAQI DINAR IS BACK IN THE SPOTLIGHT..STRENGTHENING THE CURRENCY OR JUST CHANGING ITS FORM?
Talk has returned again about the process of removing zeros from the local Iraqi currency, as the Central Bank of Iraq confirmed that the project to remove zeros from the dinar is subject to 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.
The central banks of these countries usually issue a new currency, equal in value to one hundred thousand or one million of the old currency, with the old currency gradually being withdrawn from the markets, after a period in which the two currencies are allowed to be used side by side. The most famous countries that have implemented this process, more than once, successfully were Turkey and the former Yugoslavia.
In his statements, Ali Mohsen Al-Alaq, Governor of the Central Bank of Iraq, considered that the 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 pointed out that the Central Bank of Iraq increased its holdings of foreign exchange and gold reserves to strengthen the country’s financial position and stability, in order to enhance its ability to confront potential economic crises.
Commenting on this, economic researcher Ali Daadoush said in an interview with Al-Mada, “The process of deleting zeros is linked to the Central Bank of Iraq,” indicating that “the issue is not new and was previously discussed about 14 years ago. “
(What they don’t want you to know is this has been the plan since very start to eventually delete the zeros, but only once they were done stealing enough. Having this currency auction in place allowed for massive corruption and up to a trillion dollars worth of oil revenues were stolen and never made it to the people of Iraq for the benefit of the people of Iraq.)
Daadoush pointed out that “the process of deleting prices is psychological, as the commodity worth a thousand dinars will be worth one dinar and remain at the same value.”
(I told you so…. 😊 No one in Iraq is going to get rich over the RV… Get it now! Yes, all you TNT idiot followers)
The economic researcher pointed out that “removing zeros leads to flexible dealing with the local currency and strengthens it, and may lead to increased production and diversification of the economy, and thus enhance the value of the Iraqi dinar.”
For his part, economic affairs expert Mustafa Hantoush said in an interview with Al-Mada, “The issue of removing zeros from the Iraqi currency is only arithmetic and keeps the currency at the same value. That is, when you sell a house for 100 million, it will be sold for 100 thousand.”
Hantoush added that “countries resort to deleting zeros when there is an expansion in the value of the printed currency and problems occur in the book value and accounting entries, for the purpose of restoring accounting balances.”
The economic researcher went on to say, “ Iraq is currently suffering from problems with the exchange rate,” indicating that “the value of printing and replacing the currency costs Iraq time, effort and millions of dollars.”
(Get to 80% digital banking, shrink the monetary mass by 2/3, collect the 3 zero notes, issue new currency to replace up to only 1/3 of the monetary mass and these issues go away. This is recipe for a VERY strong currency///)
Hantoush said, “The situation now requires focusing on how to maintain the value of the Iraqi currency against foreign currencies.”
According to the latest data, the Central Bank of Iraq’s foreign reserves cover 83.62% of the broad money supply, which covers the cost of importing 15 months, while the global standard rate is 20%, covering 6 months of importing.
(WOW! WOW! What country can make this statement and brag about it? 😊 )
Foreign exchange reserves are a tool used by all central banks to maintain the stability of the local currency exchange rate against foreign currencies, as well as to reduce exposure to external crises by maintaining liquidity in foreign currency to absorb shocks in times of crisis.
The Iraqi currency is under great pressure, which has caused its price to decline against the dollar during the past period, including the increase in the Iraqi budget deficit. Two weeks ago, Mazhar Salih, financial advisor to Iraqi Prime Minister Mohammed Shia al-Sudani, said that Iraq will face a budget crisis in 2025 due to the decline in oil prices, the country’s main source of revenue. Salih said in an interview with Reuters: “We do not expect major problems in 2024, but we need stricter financial discipline in 2025.”
RV UPDATE BY MARKZ, 25 SEPT
MarkZ
[via PDK] We have Sudani in New York and Al Alak (Governor of the CBI) is openly discussing deleting the zeros- which is kind of a first for him. And we have HCL movement in Iraq.
There is big stuff going on.
Article: ”Tomorrow the launch of employees salary financing”
That came out yesterday so it is today. Today they are getting paid. This is HCL (Hydro Carbon Law) stuff going on.
Article: “Kurdistan deposits nearly 100 Billion dinars of its non-oil revenues in the Baghdad Treasury”
IMO they would not be doing this if they were not done with HCL...Look for an announcement at any moment.
In Iraq: Pay attention to this one. “Al Alaq –We are constantly reviewing the deletion of dinar zeros and there are no restrictions on the balances in America”
That part “No restrictions” is telling us that Iraq is in charge of its own money. In this article when you do a deep dive in it - they are doing exactly what they did in Kuwait with the terminology and phrasing and telling us it’s time to remove those zeros.
In Kuwait they greatly increased the value…they had to turn them in for lower denomination notes or deposit them in banks….
Question: So we have to exchange our 25k notes for lower denoms before we exchange?
MarkZ: No…That is how it worked in Kuwait.
"KURDISTAN KNOWS... YOU KNOW... THE WORLD KNOWS, THAT IT'S NO SECRET." BY FRANK26, 25 SEPT
KTFA
FRANK26: "KURDISTAN KNOWS... YOU KNOW... THE WORLD KNOWS, THAT IT'S NO SECRET.".........F26
Iraq Plans Currency Redenomination Amid Economic Challenges
9/23/2024
ERBIL — The Central Bank of Iraq (CBI) has announced that discussions regarding the project to remove zeros from the Iraqi dinar are ongoing, with assessments continuing. The bank also noted a reduction in reliance on the US dollar for trade transactions.
Ali Mohsen al-Alaq, Governor of Iraq's Central Bank, stated that the bank is facing global economic challenges, such as rising energy and raw material prices.
To address these issues, it has amended some monetary policies in line with the international situation, aiming to increase confidence in the Iraqi dinar and prevent a significant decline in its value.
The central bank has also increased its holdings of foreign currency and gold reserves to enhance the country's financial stability and its ability to cope with economic crises in any situation, he added.
Many countries remove zeros from their currencies to revalue the national currency and facilitate financial transactions. This process involves eliminating a certain number of zeros from the nominal value of the currency, making it less inflationary and more stable.
Earlier this year, the Iraqi federal government decided to postpone a plan to remove three zeros from the nominal value of its currency notes, citing that the current economic climate is not suitable. (KTFA FAMILY... WE ALL EXPECTED IT AT THE BEGINNING OF THE YEAR... BUT NOW WE EXPECT IT BEFORE THE END OF THE YEAR, IMO -F26)
Last year, the central bank indicated plans to redenominate the Iraqi dinar to simplify financial transactions in an economy that remains heavily centralized and oil-dominated, where deals are often conducted in cash.
RV UPDATE BY CLARE, 24 SEPT
Clare
Article: "Iraq Plans Currency Redenomination Amid Economic Challenges" Quote: "Many countries remove zeros from their currencies to revalue the national currency and facilitate financial transactions. This process involves eliminating a certain number of zeros from the nominal value of the currency, making it less inflationary and more stable."
Clare
Article: "Al-Sudani heads to New York to participate in UN General Assembly meetings" Quote: " Prime Minister Mohammed Shia Al-Sudani will head to New York...Saturday, to participate in the meetings of the 79th session of the United Nations General Assembly."
Article: ”Al-Sudani leaves for New York early next week to participate in the UN General Assembly meetings"
Article: "The judiciary and the State Council confirm that the Governor of the Central Bank of Iraq is subject to the legal retirement age (documents)" Quote: "The two councils confirmed in documents...that the legal age for retirement is 60 years, and upon reaching it, the duties of the official assigned to it end."
https://dinarevaluation.blogspot.com/2024/09/latest-from-clare-22-sept.html