Now keep in mind this is just a thought!!!!!
Economic Expert: The process of deletion of zeros from the currency is an important step will lead to economic recovery
Originally Posted by MartyChubbs
Posted: November 21, 2010
Between academic and an economist at the University of Karbala, said that the process of deleting three zeros from the Iraqi currency will lead to currency appreciation and to increase the purchasing power of citizens, ……… The deletion of three zeroes from the Iraqi currency, which intends to apply the Central Bank of Iraq became a target and a national demand as a benefit of the Iraqi economy.
He added: Iraqi currency must be stabilized and take its place with the power of the Iraqi economy ……… pointing out that the central bank’s move is a step towards the correct solution of the Iraqi currency and the Iraqi dinar ……. noting that the first steps is to issue two classes of currency and one paper of a class of one and the second category of a thousand dinars….. but not more than this step for the year or two ……
He explained that the citizen has to know that the deletion of zeros would have been useful and beneficial because it will carry papers, reviews are few and raise the value of the currency and increase purchasing power and restore confidence in Iraqi dinars, policy of balanced economic and financial, as will step into an increase in the national currency,
Following are a couple of partial articles I have found searching IIF postings….
The statement said Mr. Zubaidi. The value of the Iraqi dinar is related to the monetary policy and the political responsibility of the Iraqi Central Bank and the Ministry of Finance responsible for fiscal policy.
He added, but I proposed to Mr. Governor of the Central Bank, Dr. Sinan Shabibi need to raise the value of the Iraqi dinar and return to normal through the raising of three zeroes him!
Voadeni governor well in the expanded meeting would be held next month to study the proposal by experts in this area of the Iraqi Central Bank, Ministry of Finance and the Commercial Bank to the effect that the proponents get equal value of the Iraqi dinar to the American dollar and this goal we will strive to achieve that, God willing
The Ministry of Finance together with the Central Bank are studying a proposal to raise the value of the Iraqi dinar in order to return it to previous levels where one Iraqi dinar was valued at 3.33 US dollars. This was pre 1980 before Iraq became involved in three destructive wars that at one time led to the currency's value dropping to a level of 3,000 Iraqi dinars to one US dollar. The proposal has the support and approval of the World Bank.
A statement by B.J. AL Zubaidi, the Minister of Finance, in which he said that he had suggested to the Chairman of the Central Bank, Dr. Sinan AL Shibibi, that three zeros be taken from the Iraqi Dinar in order to raise its value so that one Dinar be equal to a Dollar. He explained that the financial authorities were set on holding a meeting next month to discuss the matter. The meeting is to be attended by experts and specialists from the Ministry of Finance, the Iraqi Central Bank and the Commercial Bank .
Just a thought, …… are they saying in these articles that they are going to have two sets of bank notes (for a time period the rest of this year and next year). One set will have the power of 1, meaning the new lower denomination, say a 25 banknote is 25 dinars….. the second set (1,000) is the already existing 25,000 banknote which is in the second class as stated above and the 3 zeros deleted makes it also 25 dinars, same with the 10,000 = 10 / 5,000 = 5 / 1,000 = 1, until the 000 notes are all taken out of circulation, which will take some time to do so (2010 –2011), …. At the same time they are going to raise the three zeros from the value…. Today it is (1 divided by 1170 = 0.0008547) raise the three zeros from the value and you have 0.8547 making it more valuable…. 25 dinars (@ .00008547) = $0.02 vs 25 dinars (@ 0.8547) = $21.37. Over the years they have been stating they want the dinar to be par with the USD. This is only 15 cents ± difference. I have also read about 3 or 4 years ago, (and some of you old timers might remember this) that the CBI (Shabibi) and MOF in an interview wanted to return the value of the dinar to the citizens and in the same article said “delete the 3 zeros from the banknotes raise the 3 zeros from the value” (don’t remember the exact wording) this was sometimes made in the same statement in an article, at the time it was confusing because of translation, “delete – raise”, but now it seems to be making more sense with more info being released…..
These articles say remove 3 zeros (1,000 to 1) making 25,000 banknote 25 dinars. At the same time increasing the value of the dinar….. What?????? This doesn’t increase its value, and its buying power for the citizens……. Unless you raise the 3 zeros from the value also….. (interpretation remove, taken, raise, delete: all meaning the same thing?) 25,000 banknote = 25 dinar and 0.0008547 value equals 0.8547 after raising the 3 zeros….. so 1,000,000 dinar now 1,000 dinar equals $854.70...... , average income of an Iraqi worker is 5,000,000 dinar per year remove 3 zeros 5,000 X 0.8547 = $4273.50 US…… (Today’s 5,000,000 X 0.0008547 = $4273.50 US) Par to the dollar….
And there’s more:
News Alaguetsadipalmsdr: Dar Al Hayat - 20/11/2010
it stressed that the cancellation of zeros from currency is a national project strategically to reform the system of currency Iraqi ……..He said the Executive Director of the Association of Iraqi private banks Abdul Aziz Hassoun told «life», that the intention of the Central Bank of the deletion of three zeroes from the national currency requires careful consideration, in order to avoid chaos and confusion in the commercial market,
Delete three zeros from Iraqi dinar
November 22, 2010
The newspaper quoted "life" of London for a Chief executive's Bank "guidance," Abdul Aziz al-Hassoun, the job step, referring to the "it needs to be studied carefully in order to avoid chaos and confusion in the market,
Remove 3 zeros from the dinar (1,000,000 divided by 1000 = 1,000) and from the economy and traders confusing to the people of iraq, as stated in some of the articles…… 25,000 banknotes now are 25 dinar (after 25,000 divided by 1,000), now it effects the economy and traders causing confusion……
As stated in the article posted here by scooby, the exchange will not affect the incomes and wealth. Using the info above from the articles combined: today’s loaf of bread in the open market is 12 dinar (1 cent US), so its effect on confusing the economy and traders meaning they also would have to delete 3 zeros from their prices, making a loaf of bread 12 divided by 1000 = 0.012 dinar a loaf. 0.012 dinar X (applying the above) 0.8547 = 0.01 cent US making it par with the US dollar,…. gas is about 60 dinars per gallon (5 cents US), making gas 60 divided by 1000 = 0.06 dinar per gallon. 0.06 dinar X 18 gallons = 1.08 dinar, 1.08 dinar X (applying the above) 0.8547 = 92 cents US to fill their tanks, notice that 60 dinar (5 cents) X 18 gallons = 0.90 cents US, making the dinar par with the US dollar….. an other example a coke or pepsi is about 375 dinar in open markets (32 cents US), so its effect on confusing the economy and traders meaning they also would have to delete 3 zeros from their prices, making coke or pepsi 375 divided by 1000 = 0.375 dinar per….. 0.375 dinar X (applying the above) 0.8547 = 32 cents US, making the dinar par with the US dollar ….. making 1,000,000 dinar divided by 1,000 = 1,000….. 1,000 X (apply the above) 0.8547 = $854.70 US….. now Iraq keeps its reserve and does not go broke paying out to an RV and slowly raise the dinar back to $3.33 per 1 dinar…. Making 1,000,000 dinar divided by 1,000 = 1,000….. 1,000 X 3.33 = $3,330 US….. Iraq saves ($854,700 – 3,330 =) $851,370 per million dinar in payout….. and the people of Iraq are back to 1 dinar = $3.33 as pre-war market….. We still make money just not the millions we wanted…….
if this is not done with the economy and traders also, then a loaf of bread would be (1 to 1) 12 dinar / $12 a loaf, also a gallon of gas would be (1 to 1) 60 dinars / $60 USD a gallon, or a coke / pepsi would be (1 to 1) 375 dinar / $375 USD…..
Don’t bash me, Tell me I am wrong and tell me why…… just trying to look at all options and scenarios
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