So recently someone finally published a video from Iraqi TV explaining the dinar swap out and in part how it will work. So, this is FACTUAL information as we can watch and interpret the video and see it is real. I have included the video below. Please take some time to watch it. I have already confirmed with my CBI contact that this is one of the videos produced from her team to coordinate the Project to Delete the Zeros. I was also told there is coming yet another similar video that actually shows the newer lower denominations in more detail. I was told the CBI does not want to publish pictures of these new notes yet due to caution that someone might try to counterfeit them ahead of the process. They will have security features in them that make them nearly impossible to duplicate, however they always try their best to duplicate them anyhow. Even though all the features may not be present, citizens do not know this unless they are educated to check them. This is why the education process of the newer notes will be very important. So the education process has begun and we need to relax and just let it progress at the pace as designated by the CBI.
Note: You can read the English translation of the Video below. (Translation is in red)
The project to delete zeros from the currency is still in place.” This was confirmed by the Governor of the Central Bank, Ali Al-Alaq, in his latest statements about the project to delete.
Three 3 zeros of the Iraqi dinar, so what does that mean?
The policy of deleting zeros from the currency means, for example, that the value of a one-thousand note is 1,000 dinars, and will be replaced by a note worth one dinar of the new currency. One of the new currency.
Iraq is not the only country that resorts to the policy of deleting zeros from the currency, but there are seventy-70 cases that the world has witnessed since the year one thousand nine hundred and sixty 1960, including
Türkiye: Deleted six zeros from its currency in 2005
Zimbabwe: deleted twelve 12 zeros from its currency in 2009.
And Venezuela: Five zeros were deleted in 2018
But how will the Iraqi economy be affected by deleting the zeros if it is implemented? Although the actual value of the money that people own does not change after deleting the zeros, this step contributes to simplifying the buying and selling processes for individuals and companies.
It makes financial amounts simpler and more understandable. Instead of dealing with huge numbers such as one million 1,000,000 Iraqi dinars, they can be converted into one thousand 1,000 dinars only after deleting three zeros.
Removing zeros may also help in issuing small currencies such as coins, enabling small commodities to be repriced at lower prices. It gives a positive psychological boost to citizens that the Iraqi dinar can now buy more goods and services.
Therefore, countries aim by deleting the zeros to restore confidence in the local currency among citizens and investors
The demand for it increases, and the local currency becomes more competitive with foreign currencies and its exchange for other currencies decreases.
The policy of deleting zeros is often linked to broader economic reforms, such as raising interest rates on bank deposits, to encourage people to save within banks and benefit from high interest on their bank deposits, in an attempt to withdraw liquidity from the market, reduce consumption and decline in prices.
Then exploit this liquidity to expand productive projects, attract local and foreign investments within the country and create many job opportunities to eventually revive the local economy.
But on the other hand, deleting the zeros may cost Iraq money to print new banknotes to no avail. For example, after eliminating 3 zeros from the Iraqi dinar, when we talk about a 200 dinar banknote, it is actually equivalent to 200,000 dinars.
Therefore, it may be necessary to print 4 more 50 dinar notes instead of the 50,000 dinar note.
However, this may not have a clear impact on improving the local economy if it is not part of an economic reform package that helps reduce the amount of money circulating among people and stimulate the economy.
Especially since Iraq’s economy is an oil economy that needs to stimulate other productive sectors to drive the local economy
Could deleting the zeros from the Iraqi dinar be a real start to stimulating Iraq’s economy?
