Zig’s Place Chatroom News Monday Afternoon 7-12-21

Zig’s Place Chatroom News Monday Afternoon 7-12-21

 Zig:  Welcome to zig's place, a chat room for dinar speculators and others....discuss any topic that you wish here

Dave  butterfly Confidence in the Iraqi dinar is eroding… and the prospect of removing zeros

Dave   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 the economic advisor to the Prime Minister, Mazhar Muhammad Salih, and is represented in deleting 3 zeros from the Iraqi currency, Without specifying a date for the implementation of this step.

In every economic equation, the ratio of profit and loss is calculated, which is indicated by the economist Hammam Al-Shamma that this ratio will not be equally present in the equation, warning of psychological disturbances in the Iraqi market in the event of deleting zeros.

In contrast to the losing party, Al-Shammaa believes that the government may derive 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.

On Sunday, June 20, 2021, the financial advisor to the Prime Minister, Mazhar Muhammad Salih, set two conditions for deleting 3 zeros from the currency, while stressing that the option to delete is proposed as part of the strategies for reforming the currency and cash payments system in Iraq.

Saleh told the Obelisk, “The Central Bank of Iraq developed a project to delete three zeros from the Iraqi currency in order to reform the cash payments system, which has become burdened with the insomnia of the economic blockade imposed in the nineties of the last century, and put it into research and study long ago,

after looking at about 54 An international experience from the end of the Second World War until the second decade of the twenty-first century, which took place in various countries of the world, in which the monetary payment systems were reformed and made to work more efficiently, the last of which was the Islamic Republic of Iran and before that, Turkey.

Dave  He added that “the phenomenon of increasing zeros in the monetary unit or adding zeros to a single monetary unit usually comes due to the exposure of economies to unruly waves of inflation or continuous sharp rises for years in the price level due to wars, sieges and conflicts, which lead to financing the deficit of government budgets through cash issuance.” .

And because the price means the value of goods and services expressed in cash, the continuous rise in prices without stopping leads to the erosion of the value of the monetary unit, which requires the issuance of larger monetary categories due to the lack of value of the smaller monetary groups and the disappearance of their ability to cover transactions and exchanges of high monetary value in the market.

He continued, “Accordingly, the monetary value of things or tangible assets and others inflates, and when inflation ends, according to which prices have increased to three decimal places, or more or less, according to the nature of each economy, countries resort to reducing the artificial reproduction in numbers, especially in the numbers of accounts books, budgets and various numbers of tools Accountability, after two conditions are met.

He continued, “The first condition is price stability and global economic growth, and the second is appropriate stability in political life, so the importance of deleting zeros from the currency and slimming currency units as a necessary condition for reducing accounting numbers and facilitating arithmetic handling and the cost of managing new large numbers and the absence of small numbers and fractions, as it is noted that slimming currencies Cash comes because of its 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 dealing in trillions, which means that one number in front of it has 12 decimal places.

Dave   He concluded by saying, “The project to delete zeros in Iraq is still technically prepared by the Central Bank of Iraq, which is the official sectoral authority and the monetary authority concerned with this matter and in cooperation with all three state agencies and authorities, but the project is postponed at the present time until the appropriate conditions are achieved and remains part of the currency system reform strategies. and cash payments in Iraq.   Obelisk   LINK

Dave   i suppose they have not forgotten about deleting 3 zeros........!

butterfly  Iraqi Dinar/US Dollar auction results for tomorrow 7-13-2021 executed today 7-12-2021

United States DollarThe results of the foreign currency sale window for Tuesday 7/13/2021 and implemented today   Announcement No. (4449)   Sale date – Tuesday 7/13/2021 and executed today  the details  the amount

Total sale for the purposes of strengthening balances abroad (remittances, credits)  145,935,972

Total cash sale  77,910,000   Total total sales  223,845,97297

Note that:  The selling price of the amounts transferred to bank accounts abroad is ( 1460 ) dinars per dollar. The cash sale price is ( 1460 ) dinars per dollar.    cbi.iq/currency_auction/view/1065

butterfly   Iraq seeks to join the World Trade Organization

Monday, July 12, 2021 – 3:28 PM  Iraq seeks to join the World Trade OrganizationBaghdad, 12th July, WAM/The Permanent Representative of Iraq to the United Nations discussed overcoming obstacles to his country’s accession to the World Trade Organization.

A spokesman for the Iraqi Ministry of Foreign Affairs, Ahmed Al-Sahhaf, said in a statement that the Permanent Representative of the Republic of Iraq to the United Nations Office in Geneva, Abdul Karim Hashim Mustafa, met the Deputy Director-General of the World Trade Organization, Chinese Ambassador Zhang Xiangchen, and discussed ways to activate the file of Iraq’s accession to the organization.

The meeting stressed the importance of continuing work on completing technical documents to complete the requirements for accession, and to overcome obstacles and challenges facing the accession process.  wam.ae

butterfly  ANOTHER ARTICLE/OPINION....................... Question and answer.. What are the pros and cons of deleting zeros from the Iraqi currency? And what are the conditions for that?

12/7/2021  Question and answer.. What are the pros and cons of deleting zeros from the Iraqi currency And what are the conditions for thatExperts have warned that deleting 3 zeros from the Iraqi currency may cause psychological disturbances in the Iraqi market.

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 failure to pay the salaries of employees last year, the Iraqi government resorted to what was called the Iraqi 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.

Deleting zeros or printing a new category?.. Iraqi government options to save the dinar from collapse من

Iraq .. Why did the Central Bank reduce the value of the dinar?

The devaluation of the dinar shocks the Iraqi street..    and these are its repercussions

With the rise in oil prices globally, the Iraqi government has been thinking about long-term financial strategies that may protect the country from the risks of falling into a financial crisis that may be more influential. , without specifying a date for the implementation of this step.

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

What are the conditions for deleting zeros?

butterfly   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 volatility after the Iraqi government decided to raise 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 what is required to change the exchange rate from laws and political consensus and so on.

why deleting?

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 absence of small numbers and fractions.”

He continues that the slimming of coins comes because of their role in sustaining the calculation of 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 one number in front of it has 12 decimal places.

Regarding the importance of the deletion process and the extent of its realism, Saleh 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 World War II until now, the last of which was in Iran and before it. Turkey.

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

butterfly   What effects?

For his part, a member of the Iraqi Parliament’s Finance Committee, Ahmed Hama Rashid, confirmed that the current economic situation in Iraq is not ready to delete 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 print them 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 takes such a step.

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

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

Cougar: The lower the number of currency numbers, the greater its strength among currencies in the economic perspective (Al-Jazeera)

butterfly  What are the benefits?

As for the benefits, Cougar believes that the smaller the number of currency numbers, the greater its strength among currencies in the economic perspective. However, this requires strengthening the local economy inside the country and diversifying the sources of the Iraqi budget, which requires strengthening 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 block hoarded by the Iraqis or smuggled abroad, he explained that the international deal in the Iraqi currency is not related to the number of zeros as much as it relates 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, has embarked on building a diverse and large economy and investments, and this is different from the Iraqi situation, whose currency is not found on the global currency exchanges so far.

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

butterfly   Al-Mashhadani continues in his speech to Al-Jazeera Net that deleting zeros may lead to a decline in Iraqis’ demand for the dollar for the sake of hoarding, as the Iraqis currently keep the dollar for ease of preservation, while preserving the same value in the Iraqi currency requires greater storage capacity, pointing out that this is conditional on printing cash denominations.

A new denomination with a value higher than what is currently in existence, such as printing a denomination of 200 dinars (equivalent to 200 thousand dinars in the current currency), which requires 4 banknotes of a denomination of 50 thousand.

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

Who is the loser?

In every economic equation, the ratio of profit and loss is calculated, which is what the economist Hammam Al-Shamma points out that this ratio will not be equally present in the equation, warning of psychological disturbances in the Iraqi market if zeros are deleted.

Al-Shamma comments to Al-Jazeera Net, “Deleting zeros from the currency will not provide anything for the Iraqi economy, but rather 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.”

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

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

Returning to Ahmed Hama Rashid, where he believes 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, the cost of the rest of the denominations will be much greater, given that printing each denomination costs approximately (6 US cents) on average, according to him.

who is the winner?

In contrast to the losing party, Al-Shammaa believes that the government may derive 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.

The last proposition is consistent with what 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 smaller. A monetary unit in daily circulation inside the country, which raised the cost of micro-transactions, as well as the inflation caused by the appearance of the huge numbers circulating in the accounting system inside the country.

butterfly   whew that is one long article.

butterfly   The “Iraqi resistance” declares an “open war” against the Americans: there is no new truce

2021-07-12 03:54   The Iraqi resistance declares an open war against the Americans - there is no new truceShafaq News/ The “Asa’ib Ahl al-Haq” movement confirmed on Monday the refusal of the “Iraqi resistance factions” to grant a new truce with the US forces, noting the start of an “open war with specific operations.”

A member of the movement’s political bureau, Saad Al-Saadi, told Shafaq News, “The resistance factions announced the end of the truce, and they have started qualitative operations against American interests in Iraq.”

Al-Saadi added that “there is no truce with the occupation,” stressing that “the resistance will continue in an open war to confront the American occupation until the exit.”

He pointed out that “some political blocs revolve in the American orbit and their interests are linked to the existence of the occupation,” adding that “these prefer the private interest over the public interest of the country.”

He also added that “the national situation rejects the presence of the occupation in Iraq,” stressing the necessity of “implementing the Iraqi parliament’s decision, the reference and the popular will to expel foreign forces from the country.”

An informed source told Shafaq News Agency, on February 25, 2021, that the leaders of seven Shiite factions decided, during a meeting, to end the armistice with the US forces in Iraq.

On October 10, 2020, a group calling itself the “Iraqi Resistance” announced that it had halted its operations against foreign forces and interests, especially the US, in Iraq, to ​​allow them to withdraw from the country.

The “Iraqi Resistance” is an unknown party, and it is believed that it includes armed Shiite factions close to Iran, including the Iraqi Hezbollah Brigades, Asa’ib Ahl al-Haq and Harakat al-Nujaba.   shafaq.com

butterfly   Another rise in the dollar exchange rate in local markets

Monday 12 July 2021 | 10:39 am   USD-Iraqi dinarThe exchange rates of the dollar against the Iraqi dinar on a daily basis, according to the variables of the currency exchange market in the capital, Baghdad, and the provinces of the country .

The selling price of the dollar is 148,000 dinars per $100, while it was yesterday (147,700 per $100 ).

The purchase price of the dollar is 147,900 dinars per $100, while it was yesterday (147,600 per $100 ).

It is noteworthy that the dollar exchange rates yesterday rose by 400 dinars compared to yesterday, Saturday.

aynaliraqnews.com

butterfly   The signed agreement aims to strengthen the bonds of friendship and understanding between the industrial sector in both countries, develop cooperation in the industrial and commercial fields, and establish partnerships.

Supporting cooperation between the two countries in the field of supervising trade missions, receiving businessmen and industrialists, and encouraging industrialists in both countries to participate in temporary and permanent trade fairs that are held in the two countries and others.

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