The future of the Iraqi currency

The future of the Iraqi currency



    Zia Rahim Mohsen
    Civilized dialogue-number: 4158-13/7/19-20: 54
    Topic: business and Economics   

    The money, the source document and the State emblem and reflects its political and religious philosophy. Compared with the writing of history, the authentication across currencies cannot be questioned or challenged by being real and tangible document to a certain era, and has benefited greatly in human history civilizations through their study and mskokatha

    Compare discover to discover the currency printing, being facilitated exchanges between people and traders alike, is the currency of a major market, without which there can be no sale and purchase

    Prior to the British occupation forces in October 1914 was the currency in circulation among people is the Ottoman lira, after British occupation authorities introduced the Indian rupee as currency, the first Council was established after the independence of the Iraqi currency issued in 1931, have been linked to the Iraqi dinar to British pound, after the revolution of July 14, 1958 in dinars has been delinking and linking it to pound US dollar

    The Central Bank of Iraq to issue new currency notes and coins, bearing the emblem of the new Republic. The new versions of the paper currency in 1971 and 1973 and 1978. The Iraqi dinar has suffered from the continued deterioration of its value after the Iran-Iraq war began, the price dropped from $ 3.3 in 1980 to about 4 dinars to the dollar in 1988.

    As a result of the invasion of Kuwait and the decisions of the Security Council to impose sanctions, and the deterioration of the value of the Iraqi dinar, Iraqi Central Bank was forced to issue coins not in circulation, issued banknotes of 50 and 100 dinars, followed in 1995, issued a paper of 250 dinars, and in 2000 issued banknotes carry a class 10,000 dinars, and all those carrying on her image of former President Saddam Hussein. Was carrying huge bundles of simple needs, buys you only eating and drinking

    After the fall of the former regime, with the competence to consider how to bring the spirit of the Iraqi dinar, and remove the heavy legacy of shouldering the Iraqi economy, fabdao with the idea of removing three zeros from the current currency

    Know the deletion of zeros (of zero) as a process whereby the nominal value of the currency because of the high inflation and devaluation, from countries where such a process is Brazil and Argentina (South America), Yugoslavia and Poland (countries were moving in the orbit of the Soviet Union) Germany and Ireland (due to join the European Monetary Union) and is different from the process of devaluation (Devaluation)

    But you could actually implement such a procedure? What are the advantages and disadvantages on the economic movement in Iraq? And you could actually help in reducing inflation rates? Finally, what is the proper timing for him?

    This process remains controversial in government cash, businessmen and professionals, some see that such a process will prompt further corruption and tampering with public money, because what happens in the process of changing the currency, it would create chaos and confusion in the compacts, internally and externally, so that it would not change anything of the reality, the quantity of exported documents will remain the same

    While the team is optimistic that the process will lead to the restoration of the prestige of the Iraqi dinar, if connected with improvement of the dinar exchange rate, and the accounts in various areas will be less complex and are simply

    We do not deny that the deletion of zeros is a necessary step and an important part of the country's administrative reform process to reduce transaction costs and cash transactions in the economic process, and reduce the size of the money supply in the country and help facilitate calculations and reduce the inflated numbers, if applied correctly and in a timely manner. But must be introductions to that process, including the selection of appropriate timing when the Iraqi economy in a State of stability, the economic environment then thoughtfully apply deletion, this needs to actions and decisions taken by financial and banking financial authority in the country.

    That the replacement "was" it would cost the State budget $ 172 billion dinars (150 million dollars), a significant amount, if maadavna his effort by Bank staff and the time that would be lost as a result of the switch, and can't forget trying to visually souls who will try to profit from that process by various means and methods!

    It is true that this process will not have an impact on purchasing power, the fact that you will get is Exchange one currency for another currency, a kind of shock may occur in the market as a result of the switchover, but temporary shock. No harm in many tests on its currency, such as Turkey, which replaced the currency changeover has for four years, the Turkish currency trading remained the old with the new currency that was withdrawn from the market without market entangleth himself

    The main drawbacks that will accompany the process of deleting zeros is illusion, as three zeros from the currency, deletion of the Iraqi citizen will be signed under the illusion, which is the main drawbacks that can infect the Iraqi citizen be delete three zeros from the current currency and the impact of ICH, it all would be as a result of colliding with the new currency after deletion, leading him to believe that the value of its assets fell by divided on three zeros.

    The Iraqi citizens would like to see a strong currency, thus raising the zeros will raise the value of the currency and reduce the demand on foreign currency with force, would restore balance between local and foreign currency and will give market power at home and abroad, which could lead to Iraqi currency appreciation against the dollar, for example, the employee who receives 1.2 million dinars when Exchange rate 1200 be purchasing dollar $ 1000 if the strengthening of the dinar is equivalent to For example 500 dinars to the dollar will be purchasing $ 2,400 instead of $ 1000

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The Iraqi citizens would like to see a strong currency, thus raising the zeros will raise the value of the currency and reduce the demand on foreign currency with force, would restore balance between local and foreign currency and will give market power at home and abroad, which could lead to Iraqi currency appreciation against the dollar, for example, the employee who receives 1.2 million dinars when Exchange rate 1200 be purchasing dollar $ 1000 if the strengthening of the dinar is equivalent to For example 500 dinars to the dollar will be purchasing $ 2,400 instead of $ 1000 wrote:

This figuring alone I agree will confuse even the best of us NOT!! It is so simple to use it but to use it at a 1:3.50 is even easier and better over a 1200:1 (or even the 500:1) and major old day purchasing power as Kuwait today... ;)

The Future of the Iraqi Currency The Process of Deleting the Zeros


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Diaa Mohsen is money and document represent the state, a symbol and express its political and religious philosophy of its own compared to a personal history, the documentation via currency can not be questioned or challenged as a fact and document concrete period of time, has benefited mankind so much to identify the history of civilizations through study their currencies and Meskukatha coincides discovery currency with the discovery of printing, being facilitated exchanges between the people and traders alike, and is the currency of the elements of the main market; since without it can not be any process of buying and selling to before entering the British occupation forces,

in October 1914 The currency traded among people is the lira Ottoman Empire, then introduced the authorities of the British occupation of the Indian rupee currency trading, and after independence, established the first board for the issuance of the Iraqi currency in 1931, has been linked to the Iraqi dinar in pounds sterling, and after the revolution of July 14, 1958 was delinking the dinar pound and link U.S. dollar and the Iraqi Central Bank to issue new currency notes and coins, bearing the logo of the new republic.

Has released new versions of the paper currency in 1971 and 1973 and 1978. And has suffered the Iraqi dinar deterioration continues for its value after began Iran-Iraq war, dropping its price from 3.3 dollars to dinars in 1980 to about 4 dinars to the dollar in 1988 as a result of the invasion of Kuwait and the issuance of Security Council resolutions imposing the blockade it, and the deterioration of the value of the Iraqi dinar, forcing the Central Bank Iraq to issue coins were not in circulation before, he issued papers cash class 50 and 100 dinars, followed in 1995 issued a paper of class 250 dinars, and in 2000 issued a banknote bearing a class 10,000 dinars, and noted that all of these groups was carrying on her face image of former President Saddam Hussein.

The citizen carries packets massive buying by the needs Statistics, which does not exceed the eating and drinking after the fall of the former regime, he began to persons with competence thinking about how to restore the spirit of the Iraqi dinar, and remove legacy heavy burden on the Iraqi economy, introduced the idea of removing three zeros from the current currency, known as the "process of deleting the zeros" (Delete of zero) as the process whereby the modified nominal value of the coin because of rising inflation and currency devaluation, and the countries visited, such as the operation of Brazil and Argentina (South America) Yugoslavia and Poland (countries that were moving in the orbit of the Soviet Union ), Germany, Ireland (because of their accession to the European monetary union), a procedure that differs from the process of the devaluation of the currency (Devaluation) but you can actually implement such a procedure? What are the pros and cons on the economic movement in Iraq?

Is it possible to actually help in reducing the rate of inflation? Finally, what is the proper time for him? This process is still a matter of debate in government circles, monetary and businessmen and professionals, some felt that doing such so the process will push further into corruption and tampering with public money, because of what is happening in the process of changing the currency, and it will create a state of chaos and confusion in the contracts both internally and externally, and that it will not change anything from the reality of the situation quantity of securities issued will remain the same in the time that sees the team is optimistic that this process will pay to restore the prestige of the Iraqi dinar, if the correlation with the improvement of the dinar exchange rate, and the process of accounts in various fields will be less complex and are simply.

We do not deny that the process of deletion of zeros is a necessary step and the task comes as part of the country's need to the process of administrative reform of the currency contributes to reduce transaction costs and trading cash in the economic process, and reduce the size of the money supply in the country and help facilitate the calculations and reduce inflate the numbers, if applied correctly and the occasion. But there must be introductions to the process, including the selection of appropriate timing when the Iraqi economy is in a state of stability, and then create the economic environment is thoughtfully for the application of the deletion process, and this needs to be procedures and decisions of the banking and financial taken by the financial authority in the country. The replacement process that "whether has" it would cost the state budget the amount of 172 billion dinars ($ 150 million) a large sum not insignificant, if Madva his effort by staff banking and time that would be lost as a result of the switch that can not be forget trying to visually souls who try to profit from the process by various means and ways!

It is true that this process will not have an impact on the purchasing power of the citizen, that will happen is the replacement of one currency for another, there may be a kind of shock in the market as a result of the switch process, but a temporary shock. No harm in viewing the experiences of many countries replaced its currency, such as Turkey, which continued the process of switching the currency has for four years, it remained the Turks are trading the old currency with a new currency that have all been withdrawn from the market without that confused the market. The most significant negatives that accompany the process of deleting the zeros are monetary illusion, since deleting three zeros from the Iraqi currency will sign a citizen under penalty of monetary illusion, which is the most prominent negatives that can infect the Iraqi citizens in the event of deleting three zeros from the current currency is the impact of moral, all it will be as a result of colliding with the value of the new currency after deletion, which leads him to believe that the value of its assets fell by dividing the three zeros.

The Iraqi people would like to see its currency strong, so the process of lifting the zeros will contribute to raise the value of the currency, and reduce the proportion of the demand for hard currency which is distinguished by force, and will lead to restore the balance between the value of local and foreign currency and give it market power at home and abroad, which of could lead to a rise in the value of the Iraqi currency against the U.S. dollar, for example, that the employee who receives 1200000 Dinars at the exchange rate in 1200 to be its purchasing power in dollars $ 1,000 and if the strengthening of the dinar to the equivalent, for example 500 dinars to the dollar will become its purchasing power $ 2,400 instead of $ 1,000.

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Can someone here who is good at deciphering arabish & math break down the last paragraph for a country boy where he can understand it?, One, this looks like something you could be good at!

The way I read this it appears they want to take three 0s off the notes & RV @ $4.20, correct me if that's not how it reads to you!

Wayne Irby wrote:The way I read this it appears they want to take three 0s off the notes & RV @ $4.20, correct me if that's not how it reads to you!

Merged this to the older thread of the same thing posted 5 days ago so you may get what your looking for maybe. If you need further thoughts from the replies above, just ask.. ;)

BTW, you are corrected (There is no way to figure what you did by this to get $4.20 lol) as they are using the rate of 1200:1 which is correct at $1000.00 for 1.2million dinars. It is a great example with this guys thoughts of a move to 500:1 which means the 1.2 million is now worth $2400.00 but as I said above, the figuring will be like 1:3.50... ;)