Monday, November 4, 2024

LATEST UPDATE FROM DINARLAND @DINARREVALUATION

DINAR REVALUATION REPORT: Latest Developments in the Project to Delete Zeros from the Iraqi Dinar in 2024, 4 NOV

Latest Developments in the Project to Delete Zeros from the Iraqi Dinar in 2024

The project to delete zeros from the Iraqi Dinar (IQD) has been a topic of significant interest and debate in recent years. As of November 3, 2024, the Central Bank of Iraq (CBI) has been considering the redenomination of the currency, a process that involves removing a certain number of zeros from the nominal value of the dinar. This initiative aims to simplify financial transactions and enhance the stability of the currency.

Background and Rationale

The concept of redenomination, or removing zeros from the currency, is a common practice used by countries to address hyperinflation and the decline in the value of their local currency. In the case of Iraq, the idea is to make the currency more manageable and reduce the impracticality of handling large denominations in daily transactions. 1

Historical Context

The origins of the Iraqi Dinar scam can be traced back to the early 2000s, following the U.S.-led invasion of Iraq in 2003. After the overthrow of Saddam Hussein, the Iraqi economy was in turmoil, and the new government introduced a series of new banknotes to replace the old currency, which had become virtually worthless. The new Dinar, while more stable than its predecessor, was still valued at a fraction of a U.S. cent. 1

Current Status and Challenges

Economic Considerations

Economists and policymakers in Iraq have been divided over the feasibility and timing of the redenomination project. While some argue that removing zeros could enhance the currency's stability and improve the country's image before investors and the international community, others are concerned about the potential economic disruptions and the initial confusion it might cause among residents and consumers. 2

Technical and Logistical Challenges

The process of redenomination involves several technical and logistical challenges, including printing new currency, modifying accounting systems, and training individuals on how to use the new currency. These challenges require careful planning and implementation to ensure that the transition is smooth and does not lead to economic disruptions. 3

Public Perception

Public perception and trust in the currency are crucial factors in the success of the redenomination project. Previous attempts to delete zeros from the Iraqi Dinar have been met with skepticism and resistance due to the lack of preparation and the potential for economic instability. 3

International Examples

Several countries have successfully implemented redenomination in the past. For example, Turkey removed six zeros from its currency in 2005, Brazil did so on multiple occasions in the 1980s and 1990s, Zimbabwe removed twelve zeros in 2009, and Venezuela removed five zeros in 2018. These cases provide valuable lessons and insights for Iraq as it considers its own redenomination process. 4

Potential Benefits and Risks

Benefits

Simplified Transactions: Removing zeros can make financial transactions more manageable and reduce the impracticality of handling large denominations.Enhanced Stability: It can contribute to enhancing confidence in the national currency and improving the country’s image before investors and the international community. Accounting Efficiency: It can facilitate accounting operations and financial transactions.

Risks

Initial Confusion: The transition period may cause confusion among residents and consumers. Economic Disruptions: Poor planning and implementation can lead to economic disruptions and potential instability. Public Skepticism: Past failures and skepticism can undermine public trust in the currency.

Conclusion

As of November 3, 2024, the project to delete zeros from the Iraqi Dinar remains a topic of ongoing discussion and debate. While the potential benefits of redenomination are significant, the challenges and risks must be carefully considered and addressed. The success of this project will depend on thorough planning, clear communication, and the implementation of effective measures to ensure a smooth transition.

BANK STORY FROM MARKZ, 4 NOV

BANK STORY

MZ: We have a really fun bank story from someone that works at a bank. This is a banking employee and I cannot tell you which bank. They asked (outside of the bank) about Nesara. The other persons eyes got really big and their jaw dropped.

They said “How do you know anything about this?” The bank employee told what they know about Nesara and the other said….”We have been signing a lot of NDA’s in our preparation for this , all of the employees are under a gag order and cannot speak about it ……

and we will be transitioning to a Wealth Management location .” They also made the comment that “the new money comes out in November. “ They have completed their training and have a new DelaRue machine.

WOLVERINE: " I’ve just spoken to a high up contact. It’s defiantly here"...

DINAR REVALUATION REPORT: Latest Updates on Iraq Economic Monetary Reform Completion 2024, 4 NOV

Latest Updates on Iraq Economic Monetary Reform Completion 2024

Iraq has made significant strides in its economic and monetary reforms, with a focus on reducing oil dependence and enhancing fiscal sustainability. As of November 3, 2024, the country has achieved notable progress in several key areas, including banking reforms, non-oil revenue growth, and poverty reduction.

Banking Reforms and Financial Sector Modernization

Prime Minister Mohammed Shia Al-Sudani has emphasized the government's commitment to modernizing the financial sector and combatting money laundering. The Central Bank of Iraq (CBI) has completed 95% of banking transfers through an electronic platform, with the remaining 5% expected to be finalized by the end of 2024. 3 This transition to a fully electronic system is a crucial step in aligning Iraqi banks with global standards and fostering a more robust investment environment.

Non-Oil Revenue Growth and Economic Diversification

The Iraqi government has made significant progress in diversifying its revenue sources. According to Prime Minister Al-Sudani, non-oil revenues have increased by 6%, and the poverty rate has decreased by 17.6%. 4 These achievements are part of a broader strategy to reduce the country's reliance on oil and promote sustainable economic growth.

Fiscal Sustainability and Social Spending

Despite the challenges posed by oil price volatility, Iraq has taken steps to ensure fiscal sustainability. The International Monetary Fund (IMF) has recommended controlling the public wage bill and increasing non-oil tax revenues to protect critical social and investment spending. 6 The government has also initiated reforms in the pension and electricity sectors to enhance efficiency and reduce fiscal burdens.

International Support and Cooperation

The United States Treasury Department has reaffirmed its support for Iraq's economic reforms, praising the country's rapid progress. US Deputy Treasury Secretary Wally Adeyemo highlighted the 6% economic growth rate and expressed readiness for further cooperation to advance economic development. 3 This international support is crucial for Iraq's continued economic transformation.

Project Completion and Infrastructure Development

The Iraqi government has achieved 62% of its project targets across various sectors over the past two years, with a focus on infrastructure, wastewater treatment, and road and bridge projects. 4 These projects have not only improved living conditions but also contributed to economic growth and job creation.

In conclusion, Iraq's economic and monetary reforms have seen significant progress in 2024, with a focus on reducing oil dependence, increasing non-oil revenue, and modernizing the financial sector. While challenges remain, the country's commitment to these reforms, coupled with international support, positions it well for continued economic growth and stability.

FIREFLY: " THE DINAR SHOULD BE LINK TO A BASKET OF CURRENCIES" , 4 NOV

Frank26

[Iraq boots-on-the-ground report]

FIREFLY: Television is saying now the currency auctions were a mistake and the dinar should be link to a basket of currencies. They say it's the best thing for our economy.

FRANK: This monetary reform education is off the hook isn't it?! They're telling them constantly. It won't stop!

DINAR REVALUATION