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 "Extenuating Circumstances" - Sat. PM KTFA Thoughts, News w/ Frank26 3/31/18 DinarDailyUpdates?bg=330099&fg=FFFFFF&anim=1

"Extenuating Circumstances" - Sat. PM KTFA Thoughts, News w/ Frank26 3/31/18

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 "Extenuating Circumstances" - Sat. PM KTFA Thoughts, News w/ Frank26 3/31/18 Empty "Extenuating Circumstances" - Sat. PM KTFA Thoughts, News w/ Frank26 3/31/18

Post by Ssmith on Sun Apr 01, 2018 9:31 am


Re: Frank and Delta Post "Exactly"

BelfastGurl » March 31st, 2018

Thank you Delta for sharing the LD article. It's such a God thing you found it before they took it down. (IMO) We are on such an exciting journey and it is getting better every day!

Freemanna » March 31st, 2018

Maybe the CBI puts the article up so the mosques can all pull from one source as they educate and then its removed?

How many times have we heard, “If it’s in print, then .....”(It’s Already Happened)

Doing the Happy Hallelujah Dance!

Thank you Delta, Walkingstick & Frank!

Dreamer13 » March 31st, 2018

The article that Delta posted ,that the cbi put up and then took down, could be educating Citizens,or could it be that they are showing those who are watching they are using Dr. Shab's plan and to show the LL what is coming at lightening speed?

Don961 » March 31st, 2018

An oldie but goody from Abadi's Adviser , The Appearance Mr. Saleh .... in his days as Deputy Governor of the CBI ... 5 years ago .... under Dr. Shabibi ... shortly before Abadi took office ... think his/these ideas/plans have changed ? ... or were they delayed due to extenuating circumstances ? ... perhaps they've even evolved and improved ... imo

Frank26 » March 31st, 2018


Dr..Appearance of Mohammed Saleh *: an economic point of view .. the project deleted the three zeros and cost transactions cash


In light of the volatile economic and financial conditions and the pressures of monetary inflation that have taken place in our country before and have led to negative effects on the regularity of the commercial market, labor markets, production and the standard of living of citizens,

Which included the presence of a mass of cash, many zeros, a small value, and in a manner not commensurate with future developments in the present and future of the Iraqi economy, which requires a solution to these circumstances and their consequences, including solutions to reform the system of cash management through the structure and delete zeros from them to control the Stream and manage the cost of the cash cluster optimally .

The circulation of the monetary bloc exported more than 37 trillion Iraqi dinars in various categories, reflected by the number of securities traded amounting to 4 billion banknotes is the product of a long period of inflation and economic deterioration, for example increased the consumer price index on the basis of 1993 from 100 to 200 thousand in the year 2003, which means that the commodity, which was sold by 100 dinars has been sold for 200 thousand dinars ... And so on. Under this circumstance and the deterioration of the value of the currency, the category of currency increased from 25 dinars to 25 thousand dinars, which means that inflation is added to these zeros .

* Current currency categories do not match the current and future economic situation . For example, just before the outbreak of the Iraq-Iran war, the JD25 category was equivalent to $ 75, with purchasing power, for that time or the equivalent of 300,000 dinars . Inflation in the country over the past three decades has added zeros to the currency, yet these zeros have not lifted the purchasing power of the largest category of the currency, the 25,000 dinars, which is now $ 21 . Today we need to restructure the currency.

Valafar large means a large monetary bloc in circulation today, about 30 trillion dinars, which requires direct cash circulation and a large cost in counting and sorting and the time and spatial and security characteristics. In the price system , the price is the value expressed in cash. Thus, the structure of costs, wage payments, salaries and transactions, all of which are not commensurate with the country's need for a monetary management system, is in line with the structure and price levels of the real sector . The country needs an easy-to-handle cash system and small and large categories that reflect the cost of that real structure. (See details in the next page margin ).

It should be noted that during the period 1990-2007 the consumer price index increased to 400000 % . In order to simplify, the commodity, which was sold for one hundred dinars before the start of the war in Kuwait in 1990 became sold at 400 thousand dinars in 2007. The value of the Iraqi dinar declined twice and strongly During the period 1990-1998 at a rate of more than 99% against the US dollar . The first decline was in 1990, the other decline was in 1997, and by 93.2 %, which made the total decline in the Iraqi dinar exchange rate against the dollar (minus 99.99%) that at the end of 1998, and during this period alone reached inflation in theindex For consumer prices 45000%.

As we know that inflation itself means high money prices on goods and services (how much money we need to exchange a certain package of goods and services .. The more money to exchange the package itself means that there is inflation or increase in money prices). Noting that the value of money is inversely proportional to the price of money, and that the price is the value of goods and services expressed in cash *.

(*) Social studies indicate that the monthly income of the Iraqi doctor was not equal to purchasing power in the nineties of the last century only to buy 30 eggs chicken and 20 pieces of bread that month, and the years of economic blockade. Also, many workers in various institutions have stopped working because the monthly return does not cover the cost of transportation to the workplace.

Do not forget how distorted markets were created in the country, trading used materials from furniture, durable goods, clothes to buy flour or sugar, and filling the minimum household needs for food. The agricultural sector itself as afood sector has deteriorated since the 1970s because of the deterioration of the rural population and the absorption of oil revenues in the public sector and the militarization of the country.

For instance, the annual growth rate in the agricultural sector was negative (1.1%).While the growth rate in that sector between 1962-1972 was 7.1% annually. With the supply ofall commodity sectors witnessed a deterioration in growth during the nineties, especially agriculture and industry .

Today, the average annual per capita income of the Iraqi population has risen to more than $ 5,300, up from $ 750 before 2003. The average income of the government employee is almost double the average per capita income of GDP, estimated at $ 10,000 Annually.

Money is anything that society agrees to become an intermediary of exchange, a storehouse of value and a unit of account. The money (legal) issued by the monetary authority under the law and with the power of discharge of receivables is seen as a social institution , That social institution ie money and vice versa.

Continuous inflation has led to a rise in the currency exchange rate from 23 billion dinars in 1991 to about 30 trillion dinars at the present time, and the largest currency category from 25 dinars to 25,000 dinars over time. Thus, inflation setnew figures for the currency in addition to three zeros, which increased the amount ofnominal cash operations and the cost of production of large quantities of them, accompanied by storage and distribution operations and the promise and screening and accompanying and, at double levels, helped to increase the operational risks associated with Operational Risk

In light of the price stability and optimism of the future of Iraq development, it is necessary to radical reform of the currency management system, restructuring structure commensurate with the new structure of different prices and stable wages and salaries, which differed significantly from the past thirty years, as well as dealing with a large critical mass weak in its components So that the largest currency category is worth only 21 US dollars at present.Noting that the rise of Iraq's gross domestic product from 140 billion dollars at the end of 2011 to more than 230 billion dollars by the end of 2015, will raise the cash export from 37 trillion dinars to about 70 trillion dinars. And the weak structure in the structure of the currency as mentioned above has been added to add a cost called the cost of cash transactions in terms of circulation, whether between individuals themselves, individuals and banks and within the banking system itself .

** The demand for the US dollar (especially the $ 100) is an urgent need to settle cash transactions in the local market outside the will of the monetary policy because the market is looking at transactions to the largest groups are not available now, but is reflected in the large US currency category for easy to carry and circulation to reduce the cost Cash trading or cash transactions. Therefore, the Iraqi monetary system is in urgent need of administrative reform of the system of cash payments to be there categories of cash, high purchasing power in circulation, easy to carry and possession, which facilitates the exchange of cash for the purposes of transactions or trading. He pointed out that the imbalance in the structure or composition of the current monetary units has deepened the problems of the (state), which arranged undesirable effects on the effectiveness and performance of monetary policy .

In Sweden, for example, which currently has one of the best cash payment systems in the world, however, the cost of cash circulation from counting, sorting, transporting and storing currency, costs the national economy at 4% of the GDP of Sweden. How can we compare this in a country such as Iraq that manages such huge amounts of money that are weak in structure, adding to the cost of monetary transactions that may reach 8% or more of GDP, a burden borne by the individual in its dealings, which reduces the efficiency of criticism as a social institution supporting the institutions of the economy Including the market. Proof of this is limited to large cash transactions to pay in US dollars , which means replacing the currency of another country in circulation to assign cash transactions due to the decline in efficiency and installation of the current cash mass .

The multiplicity of zeros on currency categories with low purchasing power have many difficulties, including the difficulty of expressing monetary value, as well as the difficulties of cash operations themselves and technical problems in the registration of statistical data and registration in accounting books and change computer systems and settlement systems, as well as showing prices with long figures sometimes difficult Even the meters or digital devices to read the yellowing at the gas stations or other digital devices .

On this basis, there has been a need to reform the monetary payments system through the following advantages :

I. At the horizontal level: delete the three zeros

- Transferring 37 trillion dinars to 37 billion dollars by deleting three zeros from the current currency and replacing them with a new currency, thus facilitating the computation of the calculations with the numbers are the least number in terms of federal budget accounts,budgets of banks and companies, as well as the family budget cash (individuals) without arranging Any change or change in the income or the monetary wealth of natural and moral persons, as well as its impact on the contracts and obligations between all natural and legal persons. This is called a Homogenous Function of Degree Zero , as long as the amount of new coins is a number that covers the exchange of the same commodity package in the old money with the largest number.

David Hume, a pioneer of pre-classical economics in his famous Political Discourse (1752), likened the effect of nominal price levels to the rise in the amount of money, such as moving from Roman numerals to Arabic numerals Now), that transition does not alter the basic principles of arithmetic or mathematics. The rise in money supply leads to higher prices for themselves without any impact on the results of the real economy.

Second: On the vertical level: Restructuring and composition of the currency

- Since the large category of 25 thousand dinars form alone (two-thirds of the amount of securities traded), the issuance of larger categories means reducing the four billion paper currently traded and converted to the number of (01.18) billion notes. Large categories of currency will cut 80 % -90% of the total new categories to be traded (such as 50, 100,200 new).

Based on the above, the cost of cash transactions between individuals and banks and individuals themselves is normal or significant, will inevitably decrease in terms of costs of counting, screening and auditing. If we know that the circulation of notes in circulation is eroded over the course of five years, which means the replacement of a huge mass of weak installation and arrange printing costs with high security specifications, which is another burden borne by the authority of monetary issuance, which is the remnants of a monetary management system . And the desired economic progress .

In conclusion, the reasons for changing the current currency reflect the result of economic stability and the success of the policies of the Central Bank of Iraq in maintaining stability, the stability of the exchange rate of the Iraqi dinar and the fall of inflation to the level of one-tenth and build foreign reserves supporting the Iraqi dinar levels that have not been achieved during the past thirty years, which The cover of the Iraqi currency.

In addition to improving the system of cash payments and make it leave the past adhesion and installation of the past and economic imbalances and reconstruction of the future of economic development and its real and nominal.Therefore, the CBI has prepared a long-term strategy that is feasible in the future when the appropriate opportunity is available gradually, in accordance with clear instructions and guidelines, providing protection for various rights and interests, in line with the stage of future prosperity and expected economic growth . More than once, and the economy will take steps towards progress, which requires reform of the remnants of the stages of inflation and may require some legislation in this regard .

*) Deputy Governor of the Central Bank

Al - Mada Newspaper


The Snod » March 31st, 2018

Frank, if you feel tempted to beat your chest like a Silverback, and say “ I told you so,...” I believe I could learn to forgive you.

Frank26 » March 31st, 2018

EXACTLY ................(smile)

Moke » March 31st, 2018

thanks samson for your tireless work. this one imo can NOT happen without a REAL RATE

Samson » March 31st, 2018

Including "Almasl" and shaving .. 14 tax awaits Iraqis with the entry into force of the budget

14:10 - 31/03/2018

The Parliamentary Finance Committee revealed on Saturday the entry of 14 new taxes into force immediately after the publication of the budget law in the official newspaper, noting that the government has been subject to the conditions of the International Monetary Fund to impose such taxes within the budget.

"With the entry into force of the budget law, 14 new taxes will come into force," Commission Rapporteur Ahmad Hama told Al-Mawloom. "The government has met the conditions set by the International Monetary Fund to impose taxes."

He added that "the budget includes the imposition of 10% on goods sold in malls and shopping centers and services provided in men's and women's barbershops and all hotels, as well as 20% of the tax on the sale of phones and cards, Internet and 15% for the import of cars.

"The government also imposed 12 percent as a tax on real estate and a similar percentage as income tax, in addition to imposing fees on airports, tickets for 25 thousand dinars on foreign trips and 10,000 dinars on internal tickets," he said, adding that "200% was imposed on cigarettes and honey Alcoholic beverages and 10 cents per liter of sweetened beverages. " LINK

Dylan867 » March 31st, 2018

Saturday: is a blue moon, the second in 3 months.

Normally blue moons (two full moons in the same month) happen once every 2.66 years on average. Hence the term "once in a blue moon". Here is more info from space.com.


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