Don961: Economists call for the issuance of a new Iraqi currency
Economists called for issuing a new currency for Iraq and linking it to a basket of currencies to maintain the stability of its exchange rate, without the need to remove zeros from the current Iraqi dinar.
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, confirmed today, Sunday, that the Central Bank of Iraq has developed a project to delete three zeros from the Iraqi currency in order to reform the cash payments system, pointing out that the implementation of the project needs two conditions, the first is price stability and global economic growth, and the second is appropriate stability in Political life.
Economic analyst Mazen Al-Ashikar, in an interview with PUKmedia , said that the idea is not to remove zeros from the dinar. We want to issue a new Iraqi currency, and the new dinar could be equivalent to 1000 dinars of the current dinar or more, and this is not a condition that it be linked to deleting zeros.
He added, "A new currency must be issued for Iraq that is linked to a basket of currencies, as is the case in several countries in the Middle East, in the UAE, for example, the dirham has been linked to the dollar and its price has been fixed for about 20 years," noting that they suggested that the price of the new dinar be equal to 50 cents of the dollar, and 25 A penny from the Australian pound, and 25 cents from the euro and is linked to the euro, sterling and dollar basket, and in this case, the higher the price of these currencies, the higher the price of the Iraqi dinar, and the dinar will turn into a hard currency, and all government contracts will be signed in dinar and there will be no need for a currency auction that witnesses corruption and thefts.”
Al-Eshaiker stressed that it is necessary to issue a new process to stop waste and corruption, and it is not necessary how much its price will be compared to the current dinar price, but the important thing is that it be linked to a basket of currencies, pointing out that “the implementation of this idea is difficult today because there is corruption, but when an honest person comes who manages The country, it can be implemented," stressing that "issuing the new dinar and canceling the currency shrine is a blow to the corrupt, and therefore it is difficult to implement this now."
For his part, economic expert Hammam Shammaa said that the removal of zeros does not achieve economic benefit, noting that the only benefit is to reduce the amount of banknotes in circulation.
Al-Shammaa added in an interview with PUKmedia , that removing zeros does not change the exchange rate system, suppose that 3 zeros were removed from the current currency, then each and a half dinar equals one dollar instead of 1500 dinars equivalent to one dollar, stressing that there is no economic return to removing zeros only achieves Ease of dealings, describing those who demand the removal of zeros in the patriarchs, indicating that the removal of zeros means an increase in costs for the state by issuing new currency notes, and the matter does not need to be done as long as things are going normal. LINK
MilitiaMan: Lets see what the day brings.. This looks to be an announcement!! imo lol ~ MM
"Today is Thursday, banks are closed."~ Petra ....
"This looks to be a doozy." ~ Pompey Peter..
ATPinfinity: EDUCATION HERE; IT IS A 2 STEP (BOTH STEPS ARE REQUIRED FOR SUCCESS)IMO
1.)"...a new currency for Iraq and linking it to a basket of currencies
the higher the price of these currencies, the higher the price of the Iraqi dinar, and the dinar will turn into a hard currency, and all government contracts will be signed in dinar and there will be no need for a currency auction
2.)that removing zeros does not change the exchange rate system (THE INTERNATIONAL SYSTEM)
DCDriver: This is from the Financial Advisor to the Prime Minister. No slouch! IMO they have to keep everyone guessing till the last minute. But it is now out there to link to a basket of currencies and not delete the zero's from the currency.
OlLar: I think the point he is making is that if they only remove the zeros, the currency will only be worth about $0.50 per IQD. So they need to add value and remove the zeros.
OurCoin: Just thinking out loud but could they be referring to NSCN's working side by side with the 3 Zero notes (the ones we have)? Do this until all of the 3 Zero notes are collected and withdrawn from day to day use?
Pete2001: OurCoin...I believe that is exactly what they are saying!!!
Samson: The Central Bank of Mosul Branch organizes an introductory lecture on the dangers of counterfeiting
23rd June, 2021
The Central Bank of Iraq, Mosul Branch, organized an introductory lecture titled (The Risks of Counterfeiting Currency and the Role of the Central Bank of Iraq in Reducing them). The lecture was delivered in the presence of a group of branch employees.
The lecture focused on introducing the specifications of real currency, the difference between real and counterfeit currency, and the legal procedures when discovering them. LINK
MilitiaMan: I sure like the timing of this. It may or may not be a precursor to what we expect in respect to the new small category notes. Why would they be holding meetings again on the large notes? They have been in circulation for long enough just about everyone and there brother knows what to look for by now.. lol But, with new currency, that is another ball park.. imo.. ~ MM
Samson: A government advisor reveals the goal of the 5 trillion initiative for the Central Bank
23rd June, 2021
The financial advisor to the Prime Minister, Mazhar Muhammad Salih, announced, on Wednesday, the importance of the recent Central Bank initiative, and indicated that it aims to finance housing complexes for low-income classes, stressing that the initiative represents a strategic goal by moving the labor market.
Saleh said, according to the official agency, that "the monetary policy of the Central Bank of Iraq in recent years has accompanied the changes in monetary policies in the whole world, especially in the face of the long-term economic and technological stagnation that hit the economies of the world," noting that "the objectives of monetary policies have expanded in the world."
In general, and the Central Bank of Iraq in particular, towards moving the real economy instead of focusing on the symbolic economy.” He added, "The double crisis that Iraq witnessed in the war on ISIS terrorism and the decline in oil revenues between the years 2014 to 2017, prompted the Central Bank of Iraq to present a $5 billion initiative to support the real sectors (real estate, industrial and agricultural), including youth loans, with concessional financing terms. Long-term and low interest rates, which have recently reached the level of cancellation, especially for real estate loans.
Saleh pointed out that "fighting economic stagnation and unemployment has become at the core of the current monetary policy of the Central Bank of Iraq and is no less important than fighting the problems of hyperinflation that the bank adopted during the first decade of the third millennium," noting that "inflation and stagnation exhaust the national economy and lead to serious deviations in the economy." The issues of production and investment on the one hand and the distribution of income on the other hand."
Saleh pointed out that "the Central Bank's initiative today focuses on financing the construction of housing complexes for low-income classes within the framework of systematic urban planning for future cities, away from the pressure of existing cities and the problems they may cause in the escalation of real estate rents and pressure on existing infrastructure networks." He continued, "The focus on real estate financing represents a strategic objective for monetary policy in moving the labor market, as the construction sector embraces a percentage of no less than 18 percent of the labor force, and it can move two hundred different work paragraphs at the same time." He explained, "The back and front links of the housing finance sector from the monetary policy side are a carefully studied issue in addressing the crises of economic stagnation and unemployment in the national economy on the one hand, and the provision of housing supply within the goals of sustainable development on the other hand."
Yesterday, Tuesday, Central Bank Governor Mustafa Ghaleb Makheef revealed the launch of an initiative worth 5 trillion, in addition to contributing to moving the housing sector to complete the residential complexes that were suspended, as well as the imminent issuance of bonds that enable citizens to invest their money. LINK
MilitiaMan: This is telling me that the CBI is fully aware of the global monetary polices and circumstances affecting the world and have a plan to help with those.
They know the "rot" that is sloshing around like a whirl pool of debt and they know they are a pivotal figure in the future of the worlds economies. To move a real economy takes being international and able to work on a level playing field.
With what we are reading of late from the PMs advisor about the reasons they devalued in the past and what to expect in the future, reeks of gearing to make a change and one that will help alleviate some of the stresses or shocks that the last few years or more have had on the world.
They even mention the past hyperinflation in this piece above, just as the advisor has done more than once this week, imo.. The root of the past was to add zeros to the currency during that period of hyperinflation.
Well now the opposite appears to be looking to be in our face and is about to happen. The PMs advisor mentions the good, the bad and the ugly by adding and subtracting zeros from the currency. There is no reason to talk about deleting the zeros at this time if that was not to be on the table right now.
Iraq is not besieged any longer. They don't have the hyper inflation like the previous decades, nor do the have the DEBT!!!. Getting to a market economy requires a level playing field. A program rate with out being Article 8 compliant in totality is not going to level that field.
A reinstatement based of current fundamentals will and can make it happen. Being fully article 8 will be show time.. imo..
Bonds for the citizens with new purchase power, that comes from being in compliance with article 8 will add even more value to them imo.. Having support from having an internationally acceptable currency is imo part of the plan. They need to be successful.
The world is imo relying on if not requiring it to happen, peripherally anyway, imo. It sure looks like what we are seeing is the stage is set and they reconstruction expo if you will is the weekend.. Fascinating times we are in.. imo ~ MM