DELETE THE ZEROS
HELLO FOLKS, HOW IS EVERYONE DOING? TODAY I WANT TO TALK ABOUT HOW A CURRENCY REDENOMINATES.
THERE IS AN AWFUL LOT OF SPECULATION GOING ON RIGHT NOW ABOUT A FEW CURRENCIES AND THERE ARE A GROUP OF PEOPLE THAT ARE EXPECTING TO BECOME OVERNIGHT MILLIONAIRES WITH THIS SPECULATION. SO, LET’S JUMP RIGHT IN AND SEE IF WE CAN PUT THIS RUMOR MILL TO REST ONCE AND FOR ALL.
I WANT TO START BY SHOWING YOU SOMETHING FROM THE IMF. THIS IS THE OFFICIAL ADOPTED STEPS THAT NEED TO BE TAKEN TO COMPLETE A REDENOMINATION.
I NOTICED SOME OTHERS WERE USING THIS EXAMPLE INCORRECTLY AND WERE TRYING TO CONVINCE GOOD FOLKS THAT A HUGE RETURN WOULD BE REALIZED BASED ON THIS MODEL.
FOR THOSE THAT HAVE BEEN WITH ME A WHILE I INTRODUCED THIS OVER 5 YEARS AGO AND RE-CAPS CARRIED IT. SINCE THAT TIME OTHER COPY CATS HAVE BEEN USING IT TO PROVE THEIR NONSENSE AND GARBLE.
SO HERE FROM THE IMF. I’M GOING TO HILIGHT SOME POINTS BUT EVERYONE SHOULD CLICK THE LINK AND READ THE WHOLE THING. https://www.imf.org/external/pubs/ft/fandd/2013/12/lonnberg.htm
On occasion, a country must introduce a new currency. Turkmenistan, the former Soviet republic in central Asia, decided in 2008 to undertake a currency reform.
A major gap between the official exchange rate and the informal or market rate meant that Turkmenistan’s price system had become complex and inefficient.
This, in turn, created complexities in accounting and statistical reporting. So, the government decided to introduce a new currency before launching market-oriented reforms.
Introduction of a new currency comprises four phases. First, the necessary preconditions—sound macroeconomic policies and strong financial sector legislation—should ideally be in place or under way.
Next, careful preparation is required, setting up the policies and processes behind the reform and drafting a detailed budget for the entire currency reform (including the cost of printing and minting the new cash currency). Then comes production of the new currency, and finally the most challenging phase: implementation.
Important as all these preparations are, the success of a currency reform depends just as much on a successful public education campaign. The central bank needs to coordinate this campaign with other agencies, financial sector representatives, merchants, and the general public.
A delicate balance must be struck between providing sufficient public information and the need for confidentiality to avoid releasing clues to counterfeiters that could be used to undermine the integrity of the new currency.
The information campaign should encourage people to deposit their cash currency in accounts at banks. The campaign must make it clear that once the currency reform is initiated, account holders can withdraw their money in the form of new banknotes.
A second important point for the public education campaign is timely information on the stages of the currency reform to discourage a run on banks with temporary liquidity problems. IRAQ DID ALL THESE STEPS
Hyperinflation and exchange rate collapse slash the value of a national currency, forcing the issuance of banknotes in ever higher denominations. In Yugoslavia in 1993, a banknote reached 500 billion dinars, and Zimbabwe’s highest banknote issued was 100,000 trillion Zimbabwe dollars in 2008.
In such situations, a redenomination of the currency is not only appropriate but also necessary. Redenominating a currency means administratively changing its face value. In itself, a redenomination makes no one richer or poorer.
Technically most redenomination of currencies is undertaken by using factors of 10, 100, or 1,000 and simply moving the decimal point a certain number of steps to the left to establish a new value.
Such a change is simple to explain to the general public and easy for companies to implement. It also represents a clear way of monitoring whether price gouging is taking place.
ALRIGHT, SO FOR NOW THAT IS ENOUGH POINTS YOU CAN READ THE COMPLETE IMF WRITING IN YOUR OWN TIME.
I JUST WANT YOU TO UNDERSTAND THAT THERE WAS NO MONEY TO MADE WHEN TURKMENISTAN REDENOMINATED OR WHEN BELARUS REDENOMINATED OR TURKEY OR INDIA AND THE LIST GOES ON AND ON.
IRAQ IS GOING TO DROP THE ZEROS. WHAT DOES THAT SENTENCE MEAN TO YOU??? DROP ZEROS…CUT OFF ZEROS..REMOVE ZEROS SO ON EARTH CAN ANYONE SAY THAT IS NOT A LOP??? JUST SIMPLY READ THE WORDS PLEASE.
2 WEEKS AGO, THIS CAME OUT AND FOLKS WENT CRAZY.
Parliamentary Finance Committee intends to raise the price of the dinar against the dollar and give it strength among other currencies https://www.radionawa.com/all-detail.aspx?jimare=14065
DO YOU ALL UNDERSTAND WHAT THIS SAYS?? LET ME HELP THOSE THAT DON’T IT SAYS THAT THEY ARE GOING TO DELETE ZEROS (CUT, REMOVE, LOP) FROM THE CURRENCY.
THEN THEY ARE GOING TO INTRODUCE NEW CURRENCY EITHER COINS OR PAPER AND THEY ARE GOING TO RAISE THE VALUE AGAINST THE DOLLAR.
BASICALLY, THEY ARE GOING TO DO EXACTLY WHAT TURKMENASTAN DID IN THE STEPS OUTLINED ABOVE. IRAQ HAS RAISED THE VALUE OF THE DINAR AGAINST THE DOLLAR A FEW TIMES ALREADY.
LAST YEAR THE RATE WAS OVER 1200 NOW IT 1190 AND THE GOAL IS TO GET TO 1170 WHERE IT WAS 15 YEARS AGO. THAT IS A VERY BIG JUMP FOR A CURRENCY WHETHER YOU THINK SO OR NOT.
I AM GOING TO GIVE YOU A PAPER TO READ ABOUT DELETING ZEROS FROM A CURRENCY.
Dropping Zeros, Gaining Credibility? Currency Redenomination in Developing Nations
What is Redenomination?
Redenomination is the process whereby a country’s currency is recalibrated due to significant inflation and currency devaluation, or when a country adopts a new currency and needs to exchange the old currency for a new one at a fixed rate.
Redenomination is exchanging old currency for new currency or changing the face value of existing notes in circulation https://www.investopedia.com/terms/r/redenomination.asp
What is the difference between redenomination and revaluation?
AND THE LAST THING YOU READ FOR UNDERSTANDING IS THIS PAPER
International Journal of Economics and Financial Issues https://dergipark.org.tr/download/article-file/365348
SOME OF YOU WILL READ AND EDUCATE YOURSELVES ALTHOUGH MOST OF YOU WILL NOT. THOSE THAT DO NOT WANT TO READ WILL OPT INSTEAD TO KILL THE MESSENGER, AND I’M OK WITH THAT.
IRAQ IS NOT IN A VACUUM THEY WILL NOT MAKE INTERNATIONAL MOVES JUST BECAUSE THEY FEEL LIKE IT. THEY HAVE TOLD US FOR YEARS THEY WILL DROP THE ZEROS AND CHANGE THE CURRENCY.
THE QUESTION I HAVE FOR EVERYONE IS WHEN THAT HAPPENS HOW WILL YOU TRADE IN THE CURRENCY IN YOUR HAND FOR THE NEW CURRENCY???
THE VOICES IN THE VILLAGE HAVE THAT ANSWER AND ALL THE OTHER ANSWERS. THE ANSWERS THEY DON’T HAVE IS WHY IS IT I STEPPED AWAY FOR 2 YEARS AND I COME BACK AND STROLL DOWN THOSE SAME BS LADED STREETS AND THE VOICES ARE SAYING THE EXACT SAME THINGS THEY WERE ALMOST WORD FOR WORD 2 YEARS LATER…LOL..
PREPARE YOURSELVES FOR IRAQ TO DO THE EXACT SAME THING AS EVERY OTHER COUNTRY THAT DROPPED ZERO’S. THINGS ARE NOT GOING TO GO WELL FOR THE MASSES.
I WISH YOU WELL AS ALWAYS…LOVE TO ALL…ML & NOVA https://www.myladies.co/delete-the-zeros/