Printing new currency notes or deleting 3 zeros .. Expert: There is a problem for the "Iraqis" that prevents going to the two options

by **claud39** Sat Mar 20, 2021 6:52 pm

There is a saying never to smoke without fires, why I say this, and that is still my personal opinion, and I am not a guru.

Just someone who shares news, and I just trust myself, that on the gurus, I only share with you what I see in the news, simply !!

my understanding is that the government has already said that it would borrow from the population if necessary;

it goes up the values on the products with the exchange of the currency which I see anyway !!

The people want them to go back to the old rate, since groceries and the like are costing them more, right now.

In my opinion, he will get the money that the people did not put in the banks, so we force the people to hand over their old money to deliver the new money that has already been printed, and especially this to use the electronic system to better control fraud, and borders, and this is not fair for iraq, the financial inclusion project is an imf project for the rest of the planet like africa for example, the project is from here 2030 to make all of this happen !!

Good evening to all !!

To each our opinion on the subject !!

Claud (Moose)

Printing new currency notes or deleting 3 zeros .. Expert: There is a problem for the "Iraqis" that prevents going to the two options

20/03/2021

Printing new currency notes or deleting 3 zeros .. Expert: There is a problem for the "Iraqis" that prevents going to the two options 151465

Baghdad today -

Diyala Economic expert Rasem Al-Akidi said, today, Saturday, that printing more Iraqi currency notes, or canceling three zeros of them, will not support the budget of Iraq, which suffers from lack of liquidity

Al-Aqidi said in an interview with (Baghdad Today), "I do not imagine that printing more currency denominations, pumping more currency notes, or canceling 3 zeros will benefit the Iraqi financial situation, in light of the current crisis, as it does not support the budget."

And that "printing the currency is not a solution to the economic crisis in Iraq, because the main problem is the lack of state control over the monetary mass."

Al-Aqidi added, "80% of those who receive salaries or benefits, or who work in the private sector, have their monthly income earmarked for their full spending, that is, they do not save."

He added, "There is only 20% of the Iraqi population saving large sums of currency represented by merchants, importers and contractors, who have large activities, and the largest proportion of those who have savings are in private banks, affiliated with political blocs and managed by partners, men of money and hopes."

He pointed out that "any process of printing more Iraqi dinar notes will contribute to increasing the leakage of the monetary mass, in the same way."

He said, "The process of raising the zeros from the Iraqi currency will eventually reduce its value."

He warned that "there are no controls from the World Bank, or from the International Fund in determining the amount of printed currency in any country, including Iraq, but printing more will lead to inflation, meaning the devaluation of the currency."

He pointed out, "Therefore, countries adhere to 3 basic criteria when thinking about any attempt to print, which is the monetary mass, the volume of transactions, and the volume of circulation, and many countries adopt the electronic payment card, governance and automation, in the process of cash movement and control of funds, because it is an important method that enables any country to pay The salaries of its employees, the wages and entitlements of the private sector, regardless of its financial crisis.

A few days ago, proposals were put forward to reduce the effects of reducing the value of the dinar against the dollar, which was set by a decision of the Ministry of Finance, which fixed the exchange rate at 1470 dinars against the dollar after it had stabilized for more than 15 years, up to 1,200 dinars, which had bad effects on citizens, raising the prices of basic materials and reducing the value of salaries.

A member of the Parliamentary Finance Committee, MP Abd al-Hadi al-Saadawi, revealed the opinion of his committee about deleting 3 zeros from the Iraqi currency, according to the proposals presented.

Al-Saadawi said in an interview with (Baghdad Today), that "the monetary policy in Iraq is one of the exclusive powers of the Central Bank and the financial policy is subject to the authority of the Ministry of Finance and the government, which is concerned with it, and it is not the prerogatives of the House of Representatives and the Finance Committee, meaning that changing the exchange rate or deleting zeros from the currency is not relevant." The House of Representatives absolutely does not. "

Al-Saadawi added, "We do not see any tendency at the present time to delete zeros from the Iraqi currency by the central bank," pointing out that "even the exchange rate of the dollar is subject to the powers of the central bank and was recently raised after a decision within the bank. up to her "

turn, Safwan Qusay economic expert in an interview (Baghdad says today), said that" there is no urgent need for the issuance of paper currency a new category of 100 thousand Iraqi dinars or more, and the proposal to delete the zeros needs to be a bank effort and the withdrawal of currency in circulation. "

On the other hand, he added, "the level of circulation of the Iraqi dinar is very easy, therefore printing a large currency in denominations of 100 thousand Iraqi dinars or more will facilitate the process of large financial exchange," noting that "the responsibility and task of issuing these categories of currencies rests with the Central Bank."

He continued, "The process of issuing money needs financial cover in hard currency or gold, in addition to the market’s need for time to absorb the level of devaluation of the local dinar that the government has recently undertaken.

Qusay pointed out that "the step of deleting zeros from the currency raises the level of confidence in the dinar and reduces the burden of transferring cash as well as calculations, but conducting it now may confuse the market because it needs to withdraw the dinar from traders and inject a new currency."

https://baghdadtoday.news/ar/news/148818/%D8%B7%D8%A8%D8%A7%D8%B9%D8%A9-%D8%A3%D9%88%D8%B1%D8%A7%D9%82-%D8%B9%D9%85%D9%84%D8%A9-%D8%AC%D8%AF%D9%8A%D8%AF%D8%A9-%D8%A3

by **claud39** Sat Mar 20, 2021 7:25 pm

Deleting 3 zeros or printing 100 thousand dinars denominations ... Experts determine the best to reduce the repercussions of changing the exchange rate - urgent

Jan 9,2021

Printing new currency notes or deleting 3 zeros .. Expert: There is a problem for the "Iraqis" that prevents going to the two options 144735

Printing new currency notes or deleting 3 zeros .. Expert: There is a problem for the "Iraqis" that prevents going to the two options 144735

Baghdad today - special
A few days ago, two proposals have been put forward to reduce the effects of the devaluation of the dinar against the dollar, which was determined by a decision of the Ministry of Finance to fix the exchange rate at 1470 dinars against the dollar after it stabilized for more than 15 years, up to 1200 dinars, which caused bad effects on citizens, raising the prices of basic materials and reducing the value of salaries.

Parliament finances clarify its position

A member of the Parliamentary Finance Committee, MP Abd al-Hadi al-Saadawi, revealed, on Saturday, his committee’s opinion about deleting 3 zeros from the Iraqi currency, according to the proposals presented.

Al-Saadawi said in an interview with (Baghdad Today), that "the monetary policy in Iraq is one of the exclusive powers of the Central Bank and the financial policy is subject to the authority of the Ministry of Finance and the government, which is concerned with it, and it is not from the powers of the House of Representatives and the Finance Committee, meaning that changing the exchange rate or removing zeros from the currency is not relevant." By the House of Representatives absolutely. "

Al-Saadawi added, "We do not see any tendency at the present time to delete zeros from the Iraqi currency by the central bank," pointing out that "even the exchange rate of the dollar is subject to the powers of the central bank and was recently raised after a decision within the bank, and if the government has another opinion about the exchange rate, then this matter." Up to her

Expert: There are pros and cons

In turn, economist Safwan Qusay said in an interview with (Baghdad Today), that "there is no urgent need to issue a new paper currency with a denomination of 100 thousand Iraqi dinars or more, and that the proposal to delete the zeros requires a bank effort and withdraw the circulating currency."
On the other hand, he added, "the level of circulation of the Iraqi dinar is very easy, therefore printing a large currency in denominations of 100 thousand Iraqi dinars or more will facilitate the process of large financial exchange," noting that "the responsibility and task of issuing these categories of currencies rests with the Central Bank."

He continued, "The process of issuing money needs a financial cover in hard currency or gold, in addition to the market’s need for time to absorb the level of devaluation of the local dinar that the government has recently undertaken."

Qusay pointed out that "the step of deleting zeros from the currency raises the level of confidence in the dinar and reduces the burden of transferring money as well as calculations, but conducting it now may confuse the market because it needs to withdraw the dinar from traders and inject a new currency."

Turn

Earlier, the former budget director at the Ministry of Finance, Hazem Hadi, confirmed that the devaluation of the local currency in the country caused a shock in the market, while the shock that occurred was necessary to finance the budget deficit instead of endangering state sovereignty, as he described it.

Hazem Hadi said, in a televised interview with (Baghdad Today), that the advantages of the financial budget for the next year are "saving money and avoiding borrowing, because the size of the debt to Iraq has become very large and reached 160 trillion dinars, including internal and external loans."

Hadi added, "The internal debt decreased automatically with the rise in the value of the dollar against the dinar," indicating that "the shock that occurred in the market was inevitable, because covering the financial deficit by borrowing includes major disadvantages, including the loss of state sovereignty."

He pointed out that "the failure of the economic policy in the country in the past years has made Iraq a market for imported goods and the Iraqi market has been flooded with these commodities, and also led to a decrease in revenues due to the decline in the price and production of oil, and all these factors caused a major financial crisis for the Iraqi economy."

Since the collapse of oil prices earlier this year, Iraq is facing an unprecedented liquidity crisis, the government of Prime Minister Mustafa Al-Kazemi has had to borrow from the reserves of the Central Bank to pay nearly $ 5 billion a month, representing public sector salaries and pensions.

The Iraqi local markets in Baghdad and other provinces have been turbulent since last week, after the decision to devalue the currency to compensate for the deficit in the 2021 budget.

The decision sparked a wave of anger in the Iraqi street, but Al-Kazemi defended his government's move and said that he had two options: "Either the collapse of the regime and enter into complete chaos, or we enter into a Caesarean section for reform."

Al-Kazemi cited during his speech at the Iraqi Council of Ministers session held last Saturday, in several countries, including South Korea and Singapore, when they had previously taken "difficult decisions" in order to reform the economy.