Experts: Delete the zeros project needs to be catalysts for success

Experts: Delete the zeros project needs to be catalysts for success




BAGHDAD - Farah pumice - Mustafa al-Hashemi
agreed the views of experts and specialists on the importance of the project to delete the zeros from the currency, despite the objections put up by some of the impact on the market at the moment.
described competent Jihad al-Khalidi delete the zeros step reform, but it will not come to fruition positive is partial unless accompanied by reforms radical other.
also stressed the importance of making changes in the banking system in order to cope with the rapid changes and policies and banking systems and credit Haditha, according to sophisticated mechanisms for hiring and capital investment government and private banks.
indicated that the project's central bank proposed to delete the three zeroes from the currency (the dinar) for the purpose of restructuring of the currency and its management has sparked heated debate between the circles all, and this is what filled government officials, economists and financial, but in spite of this controversy broad not everyone agrees on determining the time limit set for the implementation of this project, which led to split these into two supporters and opponents. According to Khalidi, Van what encourage the central bank to implement this project and there are applications for the successful testing of a number of states, for example: Turkey, which achieved positive results reflected in the purchasing power of their national currencies (lira), as well as Germany.
while noting "the need to find radical solutions to address the imbalances in the system Economic issuing legislation and economic laws and rehabilitation of basic infrastructure, as well as work on the re-sectors and factories productivity and agricultural government and private production and development of Iraqi exports, which continue to suffer from neglect and decline and begin the practical steps. "He Khalidi:" to legalize imports of unnecessary and luxury and reduce damage in Politics dumping of the commodity (unequal) exercised by the states and foreign companies and reduce the exit of foreign currencies for the purpose of investment to finance development programs and projects in order to fit in with the requirements of the new phase and the success of the project to delete the zeros ", so the current stage requires sincere efforts and bold than any other time such as the return of our national economy to normal to commensurate with the potential of the country and its natural resources, mineral and human resources and its geographical location strategic to interact with its regional and international levels. "
in turn, confirms the researcher Louay Hamidawi that "According to the constitution, the cabinet is painted Economic Policy upper of the country which is responsible for improving the purchasing power of the Iraqi people." The proposed mechanism for the deletion of zeros by reducing the price of the dollar against the dinar gradually, to ensure that no damage retention dollar, as central bank begins to reduction by ten dinars at each reduction from 1180 dinars to the dollar to 1170 and then to 1160.1150, and so during the short period of time to reach its exchange rate to 1,000 dinars, and proves this price as a first stage because the basis for the next step, adding that he will improve the purchasing power of the Iraqi people by 20 percent.

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I did Google Turkeys revaluation & did not like the way it read, in 2005 they dropped 6 zeros & exchanged at a rate of 1,000,000 old to 1 new, which sounds like a lop to me!, someone correct me if I'm wrong, (I hope I am!), I surely don't want this going that way, just keeping an open mind & saying what I read!

Been thru it for years. Yes Turkey was a lop.

Turkey was suffering fron serious hype-inflation an was the only option to lop, but iraq doesnt suffer from inflation

Wayne Irby wrote:I did Google Turkeys revaluation & did not like the way it read, in 2005 they dropped 6 zeros & exchanged at a rate of 1,000,000 old to 1 new, which sounds like a lop to me!, someone correct me if I'm wrong, (I hope I am!), I surely don't want this going that way, just keeping an open mind & saying what I read!

Turkey's a terrible comparison and shouldn't even be in the discussion especially with the mention of Germany which according to the Truman Library had a revaluation with the introduction of the Deutsche Mark and a one for one exchange of the old currency. The date for the currency reform was set for Sunday, June 20, 1948, with the official announcement to be made on Friday, June 18 after the banks closed for the weekend. 

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Yet the last third of the above report is interesting in that clearly what is described is anything but a lop. what he is describing is a phased revaluation process:

The proposed mechanism for the deletion of zeros by reducing the price of the dollar against the dinar gradually, to ensure that no damage retention dollar, as central bank begins to reduction by ten dinars at each reduction from 1180 dinars to the dollar to 1170 and then to 1160.1150, and so during the short period of time to reach its exchange rate to 1,000 dinars, and proves this price as a first stage because the basis for the next step, adding that he will improve the purchasing power of the Iraqi people by 20 percent.

Now though my understanding is that of an overnight  change however this  explanation is similar to what the CBI did when they improved the exchange rate over a period of a few months from 1485 to 1170 [currently 1166] in any case the introduction of Turkey into the conversation was simply an errant comment once one peels away the details of Germany and this  subsequent description.

. Every inhabitant was permitted to exchange a per capita quota of RM 60 at a 1 to 1 ratio. Of this sum DM 40 were to be paid out at once and the remaining DM 20 within 60 days. 


Ah! Only limited exchanged at 1:1! Interesting!

Yes and the rest at 1/10

The point boys is it was a revaluation and not a lop. also the limited one to one  exchange and  1/10th thereafter probably related to limited assets to back it ... I guess they didn't sit on an ocean of hydrocarbons like some nations...