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Question and answer.. What are the pros and cons of deleting zeros from the Iraqi currency? What are the conditions for that?

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https://www.aljazeera.net/ebusiness/2021/7/12/سؤال-وجواب-ما-منافع-واضرار-حذف

Question and answer.. What are the pros and cons of deleting zeros from the Iraqi currency? What are the conditions for that?

Experts warned that deleting 3 zeros from the Iraqi currency may cause psychological disturbances in the Iraqi market.


The devaluation of the Iraqi dinar against the dollar is part of the government reforms paper (Reuters)
Ahmed Al-Dabbagh
12/7/2021|Last update: 7/12/202112:28 PM (Mecca) Mosul -
Iraq is witnessing a severe financial crisis that began with the outbreak of the Corona virus last year and the decline in global demand for oil, which represents nearly 91% of Iraq’s financial imports.

With the continuation of the financial crisis and the faltering payment of employee salaries.

Last year, the Iraqi government resorted to what was termed Iraqi as the government reform paper (the white paper), which included the devaluation of the Iraqi dinar against the US dollar, and the decision entered into force at the beginning of this year.


Read also
Deleting zeros or printing a new category?.. Iraqi government options to save the dinar from collapse
https://www.aljazeera.net/ebusiness/2021/1/14/حذف-الأصفار-أم-طبع-الفئة-الجديدة-ماذا

Iraq..Why did the Central Bank reduce the value of the dinar?
https://www.aljazeera.net/ebusiness/2020/12/20/العراق-لماذا-خفض-البنك-المركزي-قيمة

The devaluation of the dinar shocks the Iraqi street..and this Its repercussions
https://www.aljazeera.net/ebusiness/2020/12/21/تخفيض-قيمة-الدينار-تصدم-الشارع


With the rise in oil prices globally, the Iraqi government has been thinking about long-term financial strategies that may protect the country from falling into a financial crisis that may be more influential.

One of these strategies was put forward by Mazhar Muhammad Salih, the economic advisor to the Iraqi Prime Minister, which is In deleting 3 zeros from the Iraqi currency, without specifying a date for implementing this step.



Salih believes that deleting zeros from the currency is a necessary condition to reduce accounting numbers and facilitate arithmetic use (Al-Jazeera)

What are the conditions for deleting zeros?

Deleting zeros from the Iraqi currency requires the fulfillment of two conditions, according to Saleh, the

first is price stability within the country, which means the stability of the dollar exchange rate against the Iraqi dinar, which is still witnessing relative fluctuation after the Iraqi government decided Raising the value of the dollar at the beginning of this year.

As for the second condition, Salj adds in his speech to Al-Jazeera Net that it is represented by stability in political life inside Iraq, which is required to change the exchange rate from laws, political consensus, and so on.

Why Deletion?

In his interpretation of the reasons for deleting 3 zeros from the Iraqi currency (a dollar is equivalent to 1450 Iraqi dinars), Saleh comments, "The importance of deleting zeros from the currency and slimming its units as a necessary condition to reduce accounting numbers and facilitate arithmetic and the cost of managing new large numbers and the lack of Small numbers and fractions.”

He continues that the devaluation of coins comes because of their role in the sustainability of calculating huge numbers of financial values that are not absorbed by ordinary computers due to the large number of decimal places and the emergence of many accounting errors, especially when dealing with trillions, which means that the single numberIn front of him 12 decimal places.

On the importance of the deletion process and its realism, Salih indicated that the Central Bank of Iraq put a project to delete 3 zeros from the Iraqi currency the subject of research and study a long time ago, after reviewing 54 international experiences since the end of the World War The second so far, the last of which was in Iran and before that Turkey.



Rashid believes that the current economic situation in Iraq is not ready to delete zeros from the local currency (Al-Jazeera)

What are the effects?

on his part A member of the Finance Committee of the Iraqi Parliament, Ahmed Hama Rashid, confirmed that the current economic situation in Iraq is not ready to remove zeros from the local currency.

Hama Rashid continued in his speech to Al-Jazeera Net that this process means withdrawing the current currency denominations and printing new ones, which requires huge funds to be printed with technical specifications necessary to protect the currency from counterfeiting,

in addition to the fact that replacing the currency will destabilize the monetary system, which may cause Successive collapses, enslaving that the Central Bank of Iraq would take such a step.

Finance Committee member Jamal Cougar agrees with this proposal by assuring that this step is excluded in the next two years at least for several considerations, as he believes that deleting zeros is an impractical step., especially that the change in the exchange rate of the currency led to a shock to the Iraqi street, and therefore the Iraqis are not ready for another shock.

Cougar pointed out in an exclusive interview with Al-Jazeera Net that the Iraqi economy does not have its own decision, and that many countries are benefiting from the current Iraqi currency. In buying and selling transactions, and others.


Cougar: The fewer the number of currency numbers, the stronger its strength among currencies from the economic perspective (Al-Jazeera)

What are the benefits?

As for the benefits, Cougar sees that the fewer the number Currency numbers have strengthened among currencies from an economic perspective, but this requires consolation g The local economy inside the country and diversifying the sources of the Iraqi budget, including the strengthening of industry and agriculture as a preliminary condition for this step.

And about the extent of the benefit deriving from this change in restoring the Iraqi cash mass hoarded by the Iraqis or smuggled abroad, he explained that dealing The international currency in the Iraqi currency is not related to the number of zeros as much as it is related to the strength of investments inside the country and the size of the Iraqi product exported abroad.

Cougar gives an example of this that Turkey, which deleted zeros from its currency years ago, embarked on building a diverse and large economy and investments, and this is what It differs from the Iraqi situation, whose currency is not found in global currency exchanges so far

On the other hand, Professor of Economics at the Iraqi University Abdul Rahman al-Mashhadani believes that deleting zeros will save the state the costs of transferring the Iraqi currency between the central bank and government and private banks.

Al-Mashhadani continues in his speech to Al-Jazeera Net that deleting zeros may lead to a decline in Iraqis' demand for The dollar is for the sake of hoarding, as the Iraqis currently keep the dollar for easy preservation, while preserving the same value in the Iraqi currency requires a greater storage capacity,

pointing out that this is conditional on printing new cash denominations with a value higher than what is currently available, as if a denomination of 200 dinars (equivalent to 200 thousand) was printed. Dinar in the current currency), which requires 4 banknotes of a category (50 thousand).



Al-Shamaa believes that deleting zeros from the currency will not provide anything for the Iraqi economy (Al-Jazeera)

Who is the loser?

Each economic equation calculates the ratio of profit and loss, which is indicated by the economist Hammam Al-Shammaa that this ratio will not be equally present in the equation, warning of the occurrence of psychological disorders in the Iraqi market in the event of deleting zeros.

Deleting zeros from the currency will not do anything for the Iraqi economy, but rather that It will cost the Iraqi state huge sums of money to print a new currency without this having a clear impact on the local economy.”

Al-Shammaa points out that the competitiveness of Iraqi goods against imported ones will not witness a positive change inside the country, especially since international transactions are made in US dollars in the ratio The greatest of them.

This is confirmed by the professor of economics at the Iraqi University, Abdul Rahman Al-Mashhadani, and adds that competitiveness with imported goods depends on the local product and its strength, pointing out that Iraq does not have industries that can compete with imported ones and overcome them in terms of quality, price and protection.

The state has it, he said.

Returning to Ahmed Hama Rashid, where it is believed that deleting zeros from the currency will not be in the interest of the government currently, inferring that Iraq has 80 trillion Iraqi dinars from multiple monetary categories, and that printing 5 trillion dinars from the category (50 thousand) cost

The Iraqi government 60 million dollars at that time, and therefore the cost for the rest of the cash denominations will be much greater, given that printing each denomination costs approximately (6 US cents) on average, according to his opinion.

Who is the winner?

In contrast to the losing party, Al-Shammaa believes that the government may obtain limited benefits from deleting zeros, which is that the government and the central bank will face fewer problems in the accounting system and final accounts with limited zeros and small accounting numbers.

It was revealed by the economic advisor to the Prime Minister that the hyperinflation that hit the Iraqi economy in the nineties of the last century added 3 numbers to the Iraqi monetary unit, while the small categories disappeared from circulation completely, as the category (250 dinars) became the smallest monetary unit in daily circulation. Inside the country, which raised the cost of micro-transactions, as well The inflation caused by the huge numbers circulating in the accounting system inside the country.

Source: Al-Jazeera

ANOTHER TRANSLATION –

Q & A .. What pros and cons of deletion of zeros from the Iraqi currency? What is the terms of that?

Experts warned that the deletion of 3 zeros from the Iraqi currency could cause psychological disorders in the Iraqi market.


Reducing the value of the Iraqi dinar against the dollar is part of the government reform paper (Reuters)
Ahmed al-Dabbagh
12/7/2021 | Last Updated: 12/7/202112: 28 PM (Makkah)
Connector -
Iraq is witnessing a sharp financial crisis that has begun with the outbreak of Corona virus last year and fell global demand for oil, which represents nearly 91% of Iraq's financial imports.

As the financial crisis continues and the payment of employee salaries last year, the Iraqi government has resorted to what an Iraqis called on an Iraqi government reforms (the white paper), including the reduction of the value of the Iraqi dinar against the US dollar, and the resolution entered into force the beginning of this year.


Read also
Delete zeros or print new category? .. Iraqi government options to save the dinar from collapse
https://www.aljazeera.net/ebusiness/2021/1/14/حذف-الأصفار-أم-طبع-الفئة-الجديدة-ماذا

Iraq .. Why cut the central bank value?
https://www.aljazeera.net/ebusiness/2020/12/20/العراق-لماذا-خفض-البنك-المركزي-قيمة

Reducing the value of the dinar shocked the Iraqi street .. These are its implications
https://www.aljazeera.net/ebusiness/2020/12/21/تخفيض-قيمة-الدينار-تصدم-الشارع


With the rise in oil prices worldwide, the Iraqi government has not thought about long-term financial strategies.

The country has evaluated the risks of falling into a financial crisis that may be more influential, one of these strategies asked by the appearance of Mohammed Saleh's economic adviser to the Iraqi prime minister, and is deleted 3 zero from the Iraqi currency, Without determining a date to apply this step.



Saleh believes that the deletion of zeros from the currency is a necessary condition for reducing accounting numbers and facilitating arithmetic abuse (island)

What are the conditions for deleting zeros?

Deleting the zeros from the Iraqi currency requires two conditions, according to Saleh, the

first is the first stability within the country, including the stability of the dollar exchange rate against the Iraqi dinar, which is still relative after the Iraqi government decided to raise the value of the dollar early this year.

The second condition, a hood in his speech to the island, is stable in political life within Iraq, which is required to change the exchange rate of political laws and approvals and otherwise.

why deleting?


In his interpretation of the necessary reasons to delete 3 zeros from the Iraqi currency (Dollar equivalent to 1450 Iraqis), Saleh comes.

It continues to choose cash from its role in the sustainability of enormous numbers for financial values that are not absorbed by normal computers due to the frequent decimal mattress and the emergence of many accounting errors, particularly when dealing with perilites, which means that one figure is 12.

On the importance of the process of deletion and its reality, Saleh pointed out that the Central Bank of Iraq was setting up a project to delete 3 zeros from the Iraqi currency and a long-standing study, after reviewing 54 international traders since the end of World War II so far, and he was the last in Iran and by Turkey.



Rachid believes that the current economic situation in Iraq is unimported to delete zeros from the local currency (island)

What effects?

For his part, Member of the Finance Committee of the Iraqi parliament Ahmed Hama Rashid said that the current economic situation in Iraq is not prepared to delete zeros from the local currency.

In his speech, Rashid said this process means withdrawal of existing currency and new printing categories, which requires enormous funds for printing with technical specifications necessary to protect the currency from fraud, as well as replacing the currency to destabilize the monetary system, which could cause consecutive collapses, The Central Bank of Iraq offers such a step.

The Member of the Finance Committee Jamal Kujar emphasizes its confirmation that this step is excluded in the past two years at the very least considerations, as the deletion of zeros is not applicable, in particular that changing the exchange rate has led to a shock at the Iraqi street, and then Iraqis are not Ready for other shock.

The Iraqi economy does not have its decision, and many countries are advantage of the current Iraqi currency in sales, purchase and others.



Cougar: Whenever the number of currency numbers strengthens its strength between currencies in the economic perspective (island)

What benefits?


Ferri-kujar benefits, whenever the number of currencies has strengthened its strength between currencies in an economic perspective, this requires strengthening the domestic economy within the country and diversifying the Iraqi budget sources, as required by industry and agriculture as a preliminary condition of this step.

On the extent of the benefit of this change in restoring the Iraqi cash cluster of Iraqis or smuggled abroad, he explained that international dealing with the Iraqi currency is not about the number of zeros as much as the investments inside the country and the size of the Iraqi product abroad.

Kujar is an example that Turkey, which deleted the zeros of its currency, has begun to build a varied economy and investments, which is different from the Iraqi situation, which has no work in global currency stocks so far.

On the other hand, professor of Economics at the Iraqi University Abdul Rahman Al Mashhadani see the deletion of the zeros will provide the state to transport the Iraqi currency between the central bank and banks and the government.

Mashhadani follows his speech to delete the zeros could lead to the decline in Iraqis on the dollar for the dollar. New with a higher value than currently exists as if the class of 200 dinars (equivalent to 200 thousand dinars in the current currency) requires 4 cash (50 thousand).[/b]


The Seafish sees that the deletion of zeros from the currency will not submit anything to the Iraqi economy (Al Jazeera)

Of the loser?

In each economic equation, the profit and loss ratio, which indicates the economic expert Hammam al-Shamma, that this ratio will not be equally present in the equation, its psychological disorders in the Iraqi market if the zeros are deleted.

"Deleting the zeros from the currency will not submit anything to the Iraqi economy, but it will cost the Iraqi state to print a new currency without a clear impact on the local economy," he said.

The shameful that the competitiveness of Iraqi goods in front of imported will not see a positive change within the country, in particular that international transactions are made in the majority of the US dollars.

This is confirmed by the economist at the Iraqi University Abdul Rahman Al Mashhadani and adds that competitiveness with imported goods depends on the local product and its strength,

pointing out that Iraq does not have industries that could compete imported and overcome in terms of quality, price and state protection.

And return to Ahmed Hama Rashid, where the deletion of the zeros is not in the interest of the government, he will not be in the interest of the government.

He has an 80 trillion Iraqi Dinars from multiple cash categories and that printing 5 trillion dinars (50 thousand) has cost $60 million At that time, and then cost for the rest of the cash will be much greater in mind that printing each cash category cost approximately (6 US cents) on average, according to his opinion.

who is the winner?

In contrast to the Loser Party, the body is believed that the government may receive limited benefits from deleting zeros, is that the government and the central bank will face less trouble in the accounting system and final accounts with limited zeros and micro-accounts.

The recent subtraction with the prime minister's economic adviser revealed that the universal inflation hit the Iraqi economy in the 1990s added 3 digits on the Iraqi monetary unit, while small groups disappeared completely, became a category (250 dinars) A monetary unit in the daily trading within the country, raising the cost of micro-transactions, as well as inflation from the emergence of massive numbers traded in the accounting system within the country.

Source: Al Jazeera

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