Thread: Monetary policy to delete the zeros of the Iraqi currency

Or, to make it clearer: supposed one of us owns 1,000,000 dinars, today they are worth USD 856.90. In the future they would be 1,000 dinars only, but as 3 digits of the exchange rate are removed those 1,000 would still be worth 856.90. Of course they would have to do this at the same time at which they introduce the smaller bills.

To me it's good news that the old bills will be withdrawed gradually and not be invalid immediately.

This step absolutely makes sense, and we will will lose nothing!!!

Ouch - of course it's "withdrawn", not "withdrawed" ...

Originally Posted by antjesz2

To me it's good news that the old bills will be withdrawed gradually and not be invalid immediately.

Something else to consider: Will a Revalue of the dinar come before or after the zeros are removed.

Originally Posted by livefree

Something else to consider: Will a Revalue of the dinar come before or after the zeros are removed.

Well, we know now that they have basically officially acknowledged smaller denoms in banks for immediate distribution. Seaview already posted this link on another thread, but in case you hadn't seen it

http://www.rferl.org/content/Iraq_Pl...n/1950504.html

I'm parroting others, but I agree, this is not just a lop. It would of course mean a RV at the same time, other wise, the people on the street, would have no reason to have the new small denoms, given that the 25k notes are still usable.

The Plot thickens!!

Financial describe the central bank attempts to remove the zeros from the currency as "useless"

February 7 (AKnews) - The Central Bank of Iraq that there is a plan to remove zeros from the Iraqi currency before the end of this year, while the Under-Minister of Finance of Iraq that such a step would not affect the physical and economic situation vs. Iraq.

In a statement issued by the Central Bank of Iraq that "this plan was developed five years ago and so far have been the end of 50% of the necessary preparations for its implementation, and we hope we can start implementation by the end of the year."

The statement added that "the objective of removing the zeroes of the Iraqi currency is to facilitate the use and trading them."

For his part, Undersecretary of the Ministry of Finance Fadhil prophet of the Kurdistan News Agency (AKnews) that "this move is useless in economic terms, since the value of the Iraqi currency against the dollar and the euro will remain as is" .. He explained by saying "the only benefit of this step may be psychologically for the citizens, and not in the economic and practical aspects."

http://translate.google.com/translat...ate.google.com

lol...ahhh....the only benefit is psychologically for the citizens...glad he clarified that for me....lol...does that mean if we own some dinars that we are citizens????....lol..i dunno anymore...as Seaview stated...the plot thickens....hahaha...GO DINARS...Pat....p.s. my saints won the super bowl....31-17...43 years of suffering have been answered.....it might be as good year....lol

Lop the zero's off, Not going to happen, do you realize how many investors world wide would come down on them if they did this, Cutting their nose to spite their face is what it would do.

If they were to remove zeros with no reval then the Iraq Dinar will be the biggest scam in history. I really hope it doesnt happen like that.

Looks like we will just have to wait and see. Everything will happen when it happens otherwise there would be chaos with dinar holders trying to maximize their position.

Iraqi Finance denies intention to delete the zeros of the national currency

U.S. Undersecretary of the Ministry of Finance and the Iraqi economy, the ministry's intention to delete the zeroes from the national currency of Iraq, adding that the Iraqi economy, do not complain about inflation, there is no need for the implementation of this strategy.

The Prophet told Fadel Kurdistan News (AKnews) that "the process of deleting the zeroes of the Iraqi currency has no economic gain, and any positive impact on the purchasing power of the process of Iraq, but will also create other problems, to issue coins of small denominations such as "10 money" and "50" penny quarter of a dinar and a half dinars."

He explained that "did not issue a formal decision on this matter, was not talking officially start work this fiscal policy to raise zeros from the Iraqi currency."

He noted that "the only win for the deletion of zeros from the currency is issued in small groups only, either in terms of their purchasing power will remain the same as dollar against foreign currencies and the euro, and there will be any increase or improvement".

For his part, said the economist is capable Rizgar that "if the replacement of the Iraqi currency, Nabgy we work to maintain the stability of buying and selling rates of the Iraqi currency against foreign currency, for a limited period, so the process does not cause loss of citizens who deal in buying and selling foreign currency, often What is this period of six months."

He said "the deletion of zeros does not help to increase the value of local currency, because the high value of the currency is linked to the security situation of the country, as well as the ability of local production and commercial activity and reduction of inflation rates in the country."

It is worth mentioning that the Central Bank of Iraq said in a statement issued on February 6 this year, announced a plan to delete the zeros of the Iraqi currency before the end of the year 2010, and has completed 50% of the preparations for the work according to this strategy. It is hoped to be completed this fiscal policy later this year.

http://translate.google.com/translat...F2%2F112476%2F