Expert: Canceling 3 zeros from the currency will lead to the collapse of the process ... Iraq needs a `` rescue plan ''

by **claud39** Fri Feb 05, 2021 1:46 pm

11 hours ago

Baghdad Today - Special

Economic expert Rasim al-Akidi warned against the step of dropping zeros from the country's currency, indicating that this step may lead to the collapse of the Iraqi dinar.

Al-Aqidi said in an interview with (Baghdad Today), that "dropping zeros from the Iraqi currency is not feasible at the present time, especially since the government and its financial instruments are not in control of the monetary mass that the country possesses."

He added that "the decision to drop zeros from the currency must be preceded by a series of important matters, including state control over the largest monetary mass, so as not to accumulate hard currencies at the central bank."

He pointed out that "raising the zeros without controlling the greater proportion of the monetary mass may lead to the collapse of the dinar, because the state does not control cash for the clubs of neighboring countries, companies and banks, and whoever controls the economy may resort to a game that leads to its collapse, which leads to a double loss of its value against the dollar."

The economic expert, Rasim al-Aqidi, identified earlier, about 4 negatives that would emerge at once if the Iraqi government went to float the Iraqi dinar.

Al-Aqidi said in an interview with (Baghdad Today), "The floating of the dollar, or what is known as the liberalization of the exchange rate, takes place through two methods, the first is pure or free, and the second is the controlled or controlled method, and in both cases the price of the dollar will rise against the Iraqi dinar and will lead to the withdrawal of a large amount of the monetary mass in the markets. ".

He added, "Withdrawing a large monetary block offset by 4 drawbacks at the same time will arise and the affected will be large segments, including the increase in prices in the markets in addition to the factories’ reluctance to produce because the value of profits will decrease in front of costs in addition to the absorption of per capita income and the increase in rental prices, so the interest will be limited compared to other damages. ".

Al-Aqidi pointed out that "Iraq needs an economic rescue plan that starts from maximizing non-oil revenues, which are many and keeping the influential authorities away from them because a large part of the financial resources does not go to the state treasury, and this is part of the causes of the current financial crisis in the country."

https://alrafidain.news/News/8084530/خبير-إلغاء-3-أصفار-من-العملة-سيؤدي-الى-انهيار-العملية..-العراق-بحاجة-لـ’’خطة-انقاذ’

by **claud39** Fri Feb 05, 2021 1:56 pm

Deleting zeros from the Iraqi currency ... An imminent economic collapse

February 05, 2021

Expert: Canceling 3 zeros from the currency will lead to the collapse of the process ... Iraq needs a `` rescue plan '' The-Iraqi-dinar-scaled

The financial and economic situation in Iraq is constantly worsening, in the absence of high oil prices, in addition to the continued embezzlement and control of hard currency by the parties in the country.

The remedies do not seem close, especially since Iran is tightening its grip on Iraqi resources, without taking into account the real crisis in Mesopotamia. However, activists and experts have talked about the possibility of resorting to "deleting zeros."

But the economic expert, Rasem Al-Aqidi, warned against the step of dropping zeros from the country's currency, as it could lead to the collapse of the Iraqi dinar.

Al-Akidi said in a press statement, that "dropping zeros from the Iraqi currency is not of use at the present time, especially since the government and its financial tools do not control the monetary mass that the country possesses."

Adding that «the decision to drop the zeros from the currency must be preceded by a series of important things, including the state’s control of the largest monetary mass, so that hard currencies do not accumulate at the central bank.

Al-Aqidi pointed out that "raising the zeros without controlling the greater proportion of the monetary mass may lead to the collapse of the dinar because the state is not in control of the currency."

Also, "the neighboring countries, companies, banks, and those who control the economy may resort to a game that leads to its collapse, which also leads to a double loss of the dinar's value against the dollar," according to the expert.

Iraq has been suffering for about a year from an economic downturn that has threatened the financial security of the Iraqis, specifically the segment of employees, and the spread of the " Corona " virus caused a decrease in the prices of oil, which is the source of the treasury of Mesopotamia.

Political conflicts also led to the suspension of the approval of the fiscal budget for the current year 2021, which is indicated to be the service of the parties loyal to Iran, and not the Iraqi people who are waiting for services and a decent life.

https://7al.net/2021/02/05/حذف-الأصفار-من-العملة-العراقية-انهيار