ECLAC: delete zeros from the currency and restructuring is necessary to support the country's econom

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06-07-2013 01:14 PM
   

Baghdad (news) .. Demanded economic and investment commission parliamentary CBI, the need to delete the zeros from the currency, after the available floor exit of Iraq from Chapter VII.

And MP Khalil Mahma said in a joint conference with the members of the Committee on the economy and investment MPs Abdul Hussein Abtan and Abdul Salam al-Maliki: the central bank to start a restructuring of the currency being a purely economic issue, noting that the Iraqi economy is expected Mzaah we are out of Chapter VII at the economy level.

He added: that Iraq is not the only country that deletion of zeros from its currency Previously Turkey and Lebanon have succeeded to the stability of the economic situation sometimes deleted zeros from their currency. '

He pointed out: that the draft delete the zeros Old and the objections of the Central Bank and the Iraqi government demanded wait while providing an appropriate time and after coming out of Chapter VII Sagttaat of all the justifications for the implementation of this project. '

And: that the Iraqi constitution between the need to change and delete currency are required by the economic situation of the country, and for the benefit of the Iraqi people, calling on the parliament and the government to support the identity of the country's economic, expected to be budget next see an increase and prosperity after the entry of investment companies to Iraq. / End / b. X /


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okay, im still new but im gathering that people who see the zreo drop mean every million dinar becomes 1000 are lobsters, seeing only a 2500ish profit per 1000 spent, but i dont see any actual debate against it, just people seeing hey then sell sell sell, so its hard not to play crustashian :lol: :lol:
to be fair it is tough to see any country let a person spend 1000 and net over a million back for it, honoring the face of a million dinar as a million dinar, though it does sound just soo magnificent, especially with a RV around the corner, but the only defence for that outcome, or I think is a defense for that outcome, correct me if I am wrong as I do not want to but words in anybodys mouth! is what I found below posted by Neno, so all credit there, although again I may be reading this waaay off; anybody care to explain what actually happened here, since it has already happened and am assuming is all said and done?
 
"A Qualitative Cost Benefit Assessment Of The Redenomination Of The Naira

By

Dr. Emmanuel Ojameruaye

Phoenix, USA

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On August 4, 2007, the Governor of the Central Bank Nigeria (CBN) sent a shock wave across the country and the Nigerian Diaspora when he announced that the CBN plans to redenominate the naira in August 2008. According to Governor, “we intend to restructure the entire currency by dropping two zeroes or moving two decimal points to the left from the currency, and issuing more coin denominations. This would entail a total currency exchange and phasing-out of all the existing denominations from August 1, 2008. Effectively, at the current exchange rate, this policy would mean that the Naira/US dollar exchange rate would be around N1.25 to US$1 then. All Naira assets, prices and contracts will be re-denominated by dropping two zeroes or two decimal points to the left with effect from this date”. He enumerated the objectives of the redenomination exercise to include the following:

To restore the value of the Naira (in the short-term) close to what it was in 1985 before the commencement of the Structural"

I do hope my post is relevent to this thread since I'm talking about profit loss/gain but I'm centering it around this zeros topic, everything involving investors is seeming to ride on it! I understand that things have their place and must go in it, lol, I really do want to get involved and I want to go about it right :lol:

anything is possible but would like to see some good debate about this!

and this I worry about every now and then when I have a bad day! 

"though it does sound just soo magnificent"

so am i reading this right.......that zeroes have to be removed in order for the currency to revalue???

Remove the large note zeros.....replace with smaller denoms.....

but the changing the big notes for smaller still doesnt answer how our big notes will end up, will they give mill for mill just in smaller notes, or does our big notes become "less"? I mean fractional banking may apply to this but that is its own thing for another thread

The large notes will be used in bank transactions. You will not be getting smaller notes...only the people in Iraq who will be doing business daily. The notes you hold will be valued at whatever the revalue amount is 1 dinar = $1 or 1 dinar = $3.50(my choice) :lol:  Once you change your dinar for whatever currency choice you make...you're out of the 'dinar business' !!!

With all the work and away time I have had from my desk, its great to know that you all keep the rest of us in the loop of all the reading, deciphering, and explaining to the rest of us that cant spend the time like we used to in discovering the next steps and stages in this journey.

This website has been a tool in the timeline and its very much appreciated. 

Miss all of you, and I thank you for continuing to keep us informed and in the loop!

well stated zimi31, and it will be a happy day when i can get out of the dinar business for good!

CrackerJack wrote:but the changing the big notes for smaller still doesnt answer how our big notes will end up, will they give mill for mill just in smaller notes, or does our big notes become "less"? I mean fractional banking may apply to this but that is its own thing for another thread

 Generally speaking, foreign exchange is a collective definition for financial instruments allowing a particular country to calculate how much it owes to other countries. For instance before 1999, when the Bulgarian national currency, Lev, was pegged to the Deutsche Mark (DM) and subsequently to the common European currency, Euro, the country used to settle the amounts that were owed to its trade partners in foreign exchange, most commonly in US dollars.

Undeniably, export and foreign investments are among the main motors of a country’s economy, as well as major sources of foreign exchange. On the other hand, when a country imports goods and services, the government may use foreign exchange to pay for these imports.

Basically, foreign exchange becomes necessary when a country’s national [You must be registered and logged in to see this link.] is not strong enough, i.e. the currency is constantly loosing its value as a result of, say, deteriorating economy, to guarantee the payments on its foreign debts, as well as the payments to its trade partners.

As a result of international sanctions, Zimbabwe suffered hyperinflation, which practically killed the Zimbodollar. At one point, Zimbabweans had to pay for bus tickets with trillions of their national currency. In such severe cases, the remedy of foreign exchange is just not strong enough, so the government has opted for a multi-currency system, in which payments are executed with three foreign currencies – the US dollar, the South African rand, and the Botswana pula.

To be able to react adequately to internal or external factors threatening the stability of the national currency, the national banks hold foreign exchange reserves. Other reasons for maintaining foreign exchange reserves include the above mentioned payments on maturing foreign debts and import/export management. Foreign exchange reserves also serve as buffer against financial shocks and this is why the economies, holding significant foreign exchange reserves, are doing better in the current conditions of widening economic crisis.

Essentially, the [You must be registered and logged in to see this link.] hold gold reserves to guarantee the value of their national currencies. According to official reports at the beginning of 2005, the central banks were holding 19.5 percent of the available gold in reserve. One of the world’s largest lenders, the [You must be registered and logged in to see this link.], holds a gold reserve of over three thousand tonnes of gold.

In their report for 2009, the experts of World Gold Holding have calculated that the Eurozone is holding the largest gold reserve – over ten thousand tonnes of gold, followed by the Unites States with a reserve of slightly over eight thousand tonnes of gold. However, the gold reserve of the United States accounts for up to eighty-seven percent of their total foreign exchange reserves.

So as to achieve an effective and efficient management of their foreign exchange and gold reserves, the central banks take into consideration several factors. First and foremost, these reserves should be held in appropriate composition or, in other words, the central banks should choose financial instruments that are likely to preserve their value in the long run. So as to prevent devaluation of their official reserves, the central banks invest them in various sub-portfolios. To monitor this process, the governments rely on adequate information systems, which are assessing financial risks, such as external shocks and liquidity. Some countries use external managers of their reserves. For instance, the currency board may keep the national currency pegged to the euro and guarantees the stability of the national currency. This process entails setting benchmarks of budget surplus to be achieved by the government. This was the case before the outbreak of the global financial crisis, but it also limits some of the central bank’s fiscal operations.

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