Deleting the 3 zeros – IQD – Guru Franks video 7-17-24

“The project to delete zeros from the currency is still in place,” this was confirmed by the Governor of the Central Bank, Ali Al-Alaq, in his latest statements about the project to delete three zeros from the Iraqi dinar. So what does that mean? The policy of deleting zeros from the currency means, for example, that the value of a one-thousand note is 1,000 dinars, and will be replaced by a note worth one dinar of the new currency. Iraq is not the only country that resorts to the policy of deleting zeros from the currency. Rather, there are seventy 70 cases that the world has witnessed since the year one thousand nine hundred and sixty 1960, including Turkey: it deleted six 6 zeros from its currency in the year 2005 and Zimbabwe: it deleted twelve 12 zeros from its currency in the year Two thousand and nine 2009 and Venezuela: Five zeros were deleted in two thousand and eighteen 2018. But how will the Iraqi economy be affected by deleting the zeros if it is implemented? Although the actual value of the money that people own does not change after deleting the zeros, this step contributes to simplifying the buying and selling processes for individuals and companies, and makes the financial amounts simpler and more understandable. Instead of dealing with huge numbers such as one million 1,000,000 Iraqi dinars, they can be converted into one thousand 1,000. Dinar only after deleting three zeros. Removing zeros may also help in issuing small currencies such as coins, enabling small commodities to be repriced at lower prices. It gives a positive psychological boost to citizens that the Iraqi dinar can now buy more goods and services. Therefore, by deleting the zeros, countries aim to restore confidence in the local currency among citizens and investors so that demand for it increases, and the local currency becomes more competitive with foreign currencies and its exchange for other currencies becomes less. The policy of deleting zeros is often linked to broader economic reforms, such as raising interest rates on bank deposits, to encourage people to save within banks and benefit from high interest on their bank deposits, in an attempt to withdraw liquidity from the market, reduce consumption and decline in prices, and then exploit this liquidity to expand the economy. Productive projects, to attract local and foreign investments within the country and create many job opportunities to eventually revive the local economy. But on the other hand, deleting the zeros may cost Iraq money to print new banknotes to no avail. For example, after eliminating 3 zeros from the Iraqi dinar, when we talk about a 200 dinar banknote, it is actually equivalent to 200,000 dinars, and therefore, it may be necessary to print 4 notes. Another cash denomination of 50 dinars instead of the denomination of 50,000 dinars. However, this may not have a clear impact on improving the local economy if it is not part of an economic reform package that helps reduce the amount of money circulating among people and stimulate the economy, especially since Iraq’s economy is an oil economy that needs to stimulate other productive sectors to drive the movement of the local economy. Is it possible to delete Will the zeros of the Iraqi dinar be a real start to stimulate Iraq’s economy? #Iraq #Iraqi_Dinar