The project to remove zeros from the currency is still in place

by **wciappetta** Wed 17 Jul 2024, 10:30 am

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The project to remove zeros from the currency is still in place

by wciappetta Wed 17 Jul 2024, 10:30 am

The project to remove zeros from the currency is still in place

Most of us already have an understanding of how this is to work inside and outside the country. What I'm focusing on is the timing of this report showing up on a major Saudi investment reporting agency. Why now? Considering the deputy Prime minister just met with US Treasury and the CBI gov is currently in the US also meeting with Treasury Dept. We are already aware that the third stage of supporting and enhancing monetary stability initiative one [1] has 10 subsets and the only one left to engage is introduction of lower denominations. So again, notice the timing. I like it. BTW there we be no lop... Remember the US is holding $35 billion worth of dinar, if they were going to lop it, what benefit would there be for the US to hold it since they invented the plan. [the youtube video is the link to the material]

"The project to remove zeros from the currency is still in place," said the Governor of the Central Bank, Ali Al-Alaq, in his latest statements about the project to delete three zeros from the Iraqi dinar, so what does that mean?

The zeros policy means, for example, that the value of a banknote of 1,000 dinars will be exchanged for a note worth one dinar of the new currency. Iraq is not the only country that resorts to the policy of removing zeros from the currency, but there are seventy 70 cases that the world has witnessed since the year one thousand nine hundred and sixty 1960, including Turkey: Six 6 zeros were omitted from their currency in 2005 Zimbabwe: Twelve zeros were removed from its currency in 2009 And Venezuela: deleted five 5 zeros in two thousand and eighteen 2018

But how will the Iraqi economy be affected by the deletion of zeros if it is implemented? Although the actual value of money owned by people does not change after removing zeros, this step contributes to simplifying the buying and selling processes for individuals and companies. Instead of dealing with huge figures such as 1,000,000,000 Iraqi dinars, they can be converted to 1,000 dinars only after removing three zeros.

Removing zeros may also help issue small currencies such as coins, enabling small goods to be repriced at lower prices. It gives a positive psychological boost to citizens that the Iraqi dinar can now buy more goods and services. Therefore, countries aim by removing zeros to restore confidence in the local currency between citizens and investors. The demand for them increases, and the local currency becomes more competitive with foreign currencies and less is replaced by other currencies.

The zero-deleting policy is often linked to broader economic reforms, such as raising interest rates on bank deposits, to encourage people to save inside banks and take advantage of higher interest rates on their bank deposits, in an attempt to withdraw liquidity from the market, lower consumption and lower prices. Then exploiting this liquidity to expand productive projects, to attract local and foreign investments within the country and create many job opportunities to revive the local economy in the end.

But on the other hand, deleting zeros may cost Iraq money to print new denominations in vain, for example, after canceling 3 zeros from the Iraqi dinar, when we talk about a banknote of 200 dinars, it is actually equivalent to 200,000 dinars. Thus, it may be necessary to print 4 more 50 dinar banknotes instead of 50,000 dinars.

However, this may not have a clear impact on the improvement of the local economy if you are not part of an economic reform package that helps reduce the amount of money circulating among people and stimulate the economy. Especially since the Iraq economy is an oil economy that needs to stimulate other productive sectors to push the movement of the local economy Could removing zeros from the Iraqi dinar be a real start to stimulating Iraq's economy?

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