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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

Many Topics Including The Oldest Dinar Community. Copyright © 2006-2020


    Pros and cons.. Why doesn't the Central Bank remove 3 zeros from the Iraqi currency?

    Rocky
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    Pros and cons.. Why doesn't the Central Bank remove 3 zeros from the Iraqi currency? Empty Pros and cons.. Why doesn't the Central Bank remove 3 zeros from the Iraqi currency?

    Post by Rocky Today at 7:01 am

    [size=35][size=35]Pros and cons.. Why doesn't the Central Bank remove 3 zeros from the Iraqi currency?[/size]
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    2024-09-24 | 05:30
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    [You must be registered and logged in to see this link.]News - Economy

    Economic expert Nabil Al-Marsoumi said,[You must be registered and logged in to see this link.]Tuesday, the process of removing zeros from the currency means replacing the old currency with a new currency in order to simplify the accounting process between consumers, and it is often resorted to by countries that suffer from high inflation and have become unable to deal with paper currencies of very low value.


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    Al-Mawsumi said in a blog post that I followed:[You must be registered and logged in to see this link.]News that it has already been applied 54[You must be registered and logged in to see this link.]At various times, it has removed a number of zeros from its local currencies due to some positive aspects of such a measure, such as revaluing the currency.[You must be registered and logged in to see this link.]Simplify and streamline financial transactions[You must be registered and logged in to see this link.]Currency as a necessary condition to reduce accounting figures and facilitate accounting dealings and cost[You must be registered and logged in to see this link.]Big numbers[You must be registered and logged in to see this link.]And the lack of small numbers.



    He added, "Although the issue of deleting 3 zeros from the Iraqi currency has received attention and study from the Central Bank since 2007, the bank has not yet taken such a measure due to the lack of two important conditions, the first of which is the instability of the dollar exchange rate against the dinar."[You must be registered and logged in to see this link.]The second is related to political instability. In addition to the disadvantages and risks that result from it:

    First: The process of deleting zeros is not a magic solution to the problem of inflation, but rather a formal procedure aimed at giving momentum to the economy.[You must be registered and logged in to see this link.]

    Second: The impact on the behavior of consumers and producers, economic variables, and economic relations between them .[You must be registered and logged in to see this link.]And other countries.

    Third: Deleting zeros is an imaginary change in the value of the currency and does not change its purchasing power.

    Fourth: People may panic and abandon their dollar savings and replace them with dinars.[You must be registered and logged in to see this link.]Which leads to a large and sudden growth in[You must be registered and logged in to see this link.]Cash undermines monetary stability.

    Fifth: The high costs of printing Iraqi currency.[You must be registered and logged in to see this link.]Sixth :

    The emergence of corruption in the process of disposing of the old currency or the entry of counterfeit currencies and attempts to replace them with the new currency, in addition to the occurrence of money laundering operations.

    Seventh: The decision will not affect the competitiveness of Iraqi goods against foreign goods because the majority of transactions are conducted in dollars.

    Eighth: Deleting zeros will create social problems at this stage due to the inability to convince the public to accept the decrease in the size of[You must be registered and logged in to see this link.]Cash, while acknowledging that the real value of cash is not affected, the issue is related to the mind and memory retention of large amounts, in addition to the difficulty of settling commercial and personal contracts and agreements.
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