Don961: 2 years ago …. reminder … just … studying
Raising the three zeros of the Iraqi currency and the interim evaluation
Sunday, November 20, 2016
The value of the Iraqi dinar was 7 grams of gold at the beginning of its issuance according to the issuance law in 1931. In 1959 a new law was issued for the Iraqi national currency
The Iraqi monetary and banking system continued to develop, and the value of the Iraqi dinar reached (3.3) dollars until the beginning of the war with Iran, which led to a major collapse in the Iraqi currency
In 2004, the former Governing Council replaced the previous currency, which was the former regime, in a new currency, which is currently traded and is dealing in a currency of seven categories: 50, 250, 500, 1000, 10,000 and 25,000 dinars.
Unlike Arab countries, there have been no money in Iraq for 25 years.
It was scheduled to be the draft delete the three zeros in 2011 was not completed
And then postponed to 2013 .. And then postponed to 2015 .. And now the two decisions implemented the plan in early 2017
Note that deletion of zeros occurred in several countries.Three zeros from the Zimbabwe dollar were deleted in 2006 and Romania was wiped out by four zeros from its currency in 2005. Bolivia eliminated three zeros from its currency in 2008. Turkey removed six zeros from its currency in 2005. Sudan deleted two zeros from its currency in 2007
“The central bank has started the first steps of the project by choosing the designs, the companies and the country where the currencies will be printed,“ said Central Bank Director Mahdi Al-Alak. He pointed out that “the introduction of the new currency does not mean the destruction of the old currencies, but will continue to circulate for about ten years,” pointing out that “this period will enable the central bank to withdraw the old currency in accordance with the dynamic known to maintain liquidity in the market.”
Justification of the replacement process
1. The existence of 30 trillion dinars a large block of cash with a total of 4 billion sheets
2. Currently, the largest category of cash is 25 thousand dinars and is equivalent to about 21 dollars and this requires considerable size and effort to settle the daily transactions, so the amounts that exceed the amount of 20 million dollars.
3. There is a large percentage of the damage of the currency especially the small categories and their illegality in circulation and constitute one-third of the cash mass
4. The difficulty of conducting calculations with numbers that are more than zero zero from the practical and technical point of view and the probability of the error occurring by adding or deleting a zero.
Benefits of the replacement process
1. Security .. Reduces the risk of carrying large sums.
2. The costs of counting, screening and auditing will be reduced
3. Raising zeros will create a psychological impact on the citizen by strengthening his currency and adopting it more broadly instead of foreign currency
4. The inclusion of the Iraqi dinar within the basket of international currencies and dealing officially in the stock exchanges of the world and financial markets.
5. The possibility of concluding economic agreements to deal with the national currency and this will cover a very large part of foreign transfers, which is the waste of national wealth of hard currency.
6. The manipulation of the currency exchange market will be eliminated
- The corrupt work of the suspicious banks and their agents will be stopped and controlled
8. A higher ceiling will be set for amounts transferred abroad from the active exchange currency to ensure that the currency is not smuggled.
9. Currency change affects the psychological side of a desire for a currency with a high exchange rate. This rise brings the joy of the dinar’s return to its rich past.
Cons of replacement process:
1. The emergence of a mathematical problem between the old and new figures in transactions and in reading and managing numbers in trillion.
2. Need to print large categories
3. The foreign exchange stocks will fall to 20% because the foreign investor believes that changing the currency will reduce profits.
4. Deleting three zeros from the currency may contribute to creating a state of monetary illusion
5. The budget of the state will cost large sums of money to be a door to financial corruption, as well as not to address the problem of inflation because the Iraqi market imported all goods and services from abroad, which means depletion of hard currency.
6. There is no official data on the cost of Iraqi banknotes. Note that the cost of the banknote in Britain is 7 US cents. It is enough to know the number of papers in circulation to give an idea of the total cost.
7. Four billion paper. Thus costing $ 289 million. This amount is useful
8. Add to this another amount to stick metal pieces, not to mention the funds necessary to meet the consequences of deleting zeros as a replacement of postage stamps and finances.
9. Feeling poverty: Deleting zeros leads to one’s feeling of poverty, who had ten million dinars, but only 10,000
10. Expect higher prices.
11. In front of the inevitability of the introduction of the Kurdish language into the first issuance of the currency after the entry into force of the new constitution, it is necessary to benefit from the experiences of other currencies. For example, the euro is the currency of many people in Europe, but there is no language but symbols, numbers and pictures only.
Amer Abadi 15/11/2016 link
Samson: Saleh begins Gulf tour of Kuwait tomorrow
10th November, 2018
President Barham Saleh will start a Gulf tour on Sunday in response to official invitations from Kuwait.
“The president of the republic Barham Salih will start a Gulf tour on Sunday, the first since he took office, in response to official invitations addressed to the President of the leaders and leaders of a number of Gulf countries,” the presidency said in a statement.
“Saleh will open his tour from the State of Kuwait at the invitation of the Amir of Kuwait Sheikh Sabah Al-Ahmad Al-Sabah. “The tour will include the sisterly United Arab Emirates and a number of neighboring countries,” she said.
“Saleh’s tour is aimed at seeking Iraq to build the best relations with its Arab and Gulf depth and to cooperate with its brothers in establishing good-neighborliness, economic and developmental integration and common cultural advancement to serve the people of the region and promote international cooperation,” she said. LINK
Tink: Coffee On The Wall
I sat with my friend in a well-known coffee shop in a neighboring town of Venice, Italy, the city of lights and water.
As we enjoyed our coffee, a man entered and sat at an empty table beside us. He called the waiter and placed his order saying, “Two cups of coffee, one of them there on the wall.”
We heard this order with rather interest and observed that he was served with one cup of coffee but he paid for two.
When he left, the waiter put a piece of paper on the wall saying “A Cup of Coffee”.
While we were still there, two other men entered and ordered three cups of coffee, two on the table and one on the wall. They had two cups of coffee but paid for three and left. This time also, the waiter did the same; he put a piece of paper on the wall saying, “A Cup of Coffee”.
It was something unique and perplexing for us. We finished our coffee, paid the bill and left.
After a few days, we had a chance to go to this coffee shop again. While we were enjoying our coffee, a man poorly dressed entered. As he seated himself, he looked at the wall and said, “One cup of coffee from the wall.”
The waiter served coffee to this man with the customary respect and dignity. The man had his coffee and left without paying.
We were amazed to watch all this, as the waiter took off a piece of paper from the wall and threw it in the trash bin.
Now it was no surprise for us – the matter was very clear. The great respect for the needy shown by the inhabitants of this town made our eyes well up in tears.
Ponder upon the need of what this man wanted. He enters the coffee shop without having to lower his self-esteem… he has no need to ask for a free cup of coffee… without asking or knowing about the one who is giving this cup of coffee to him… he only looked at the wall, placed an order for himself, enjoyed his coffee and left.
A truly beautiful thought. Probably the most beautiful wall you may ever see anywhere!
X22 Report Spotlight: Published on Nov 10, 2018
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