Delete The Zeros And Revalue The Iraqi Dinar
Economical 10/23/2024 Ali Daadoush Scientific concepts and nomenclature in economics vary according to the specialization and branches derived from it.
When talking about precise specialization, it is necessary to name economic variables by their scientific names, and one of these names is the term renaming the currency (Redenomination) or as it is called
(deleting zeros from the currency), and countries usually resort to it to deal with runaway inflation and the decline in the value of the local currency, as it is replaced by Exchange the old currency into a new currency at a fixed price by deleting at least 3 zeros from the old currency.
Currency revaluation, when it comes to hyperinflation, becomes necessary; Because it requires a very large number of old banknotes to facilitate trade exchange, especially in local markets, and small banknotes become useless, as
the individual needs millions of banknotes in exchange for purchasing simple or necessary household or food needs, and
an example of this is what happened in the year. 2006 when Zimbabwe renamed its currency at the rate of old (1000 Zimbabwean dollars) to a new Zimbabwean dollar. In addition,
(deleting zeros from the currency) may also occur when a country joins a monetary union, as happened in the eurozone, and begins using a currency such as the euro instead of its local currency.
When the euro was introduced in 1999, member states used the new currency for the first time.
Once in electronic payments and accounting, it then switched from its local banknotes and coins to the euro in 2002.
There are several reasons behind renaming the currency (deleting the zeros), and they can be summarized as (
controlling inflation,
trade and economic facilitation,
political factors such as changing governance, for example, as well as technical considerations such as
modernizing financial systems, which are usually part of a larger project to modernize financial systems in the country.
The state, such as converting to new digital systems for dealing with currency). From what has been reported, we find that
(deleting zeros) is not carried out randomly, but rather
is implemented after a comprehensive study of the economy and the challenges it faces,
and must be accompanied by other economic and financial measures to protect the economy from financial fluctuations, and
therefore, renaming the currency is a complex decision that requires study. Comprehensive of the country’s economy and politics, and must be implemented while minimizing potential negative impacts on the economy and citizens. https://alsabaah.iq/104624-.html
Three Obstacles Preventing Iraq From Joining The BRICS Group
Economy | |Baghdad today – Baghdad, Tuesday (October 22, 2024), Professor of International Economics Nawar Al-Saadi revealed the reasons for Iraq not joining the BRICS group.
Al-Saadi told “Baghdad Today” that
“Iraq has not joined the BRICS group yet for several reasons related to the current economic and political situation, in addition to the fact that
Iraq did not meet the conditions for joining, and the most prominent of these conditions is that it be among one of the economies.”
“But Iraq has a rentier economy par excellence and depends only on the export of oil as a main source of income, which makes its economy less diversified compared to the founding countries of the group, such as China and India.” He added:
“The second important question is that Iraq should have absolute financial sovereignty over its economy and not as it is now, where
it is subject to the rules and conditions of the US Federal Reserve in granting financial shares.” He explained,
“Also, Iraq’s trade relations with some BRICS members, such as Brazil and South Africa, are not strong enough to support it in this direction. In addition,
Iraqi foreign policy is still balanced between competing global powers, including the United States, which looks warily at… The expansion of BRICS and its geopolitical influence,” pointing out that
“in the future, these dynamics may change, especially if economic diversification is strengthened and internal political stability and absolute financial sovereignty are achieved.” He noted,
“If Iraq joins, it may benefit from expanding economic cooperation opportunities with countries such as China and Russia, including investments in infrastructure and non-oil sectors, and
this may help reduce dependence on oil and diversify sources of income.”
The professor of international economics concluded his statement by noting that
“there are some potential harms to Iraq joining BRICS, and entering into a bloc that challenges Western hegemony, especially the United States, which may lead to diplomatic or economic tensions with the West, which negatively affects Iraq’s current commercial and political relations.” With Western countries, and
dealing with some of the BRICS founding countries, such as Russia, which faces international sanctions, may put Iraq in sensitive positions on the international scene.”
BRICS is a group of nine countries: Saudi Arabia, Russia, China, South Africa, India, Brazil, the Emirates, Iran and Egypt.
The number of members of the bloc has increased, and
its work focuses on the economy before politics, and seeks to break Western “hegemony” over the international system, but
many factors make this a long and thorny path, according to what specialists see.
Russia, the founding country of the group, which is engaged in a fierce war with Ukraine, hosts more than 20 leaders at the annual summit, putting forward an ambitious agenda, the most important of which is “getting rid of dollarization” and developing alternative financial mechanisms.
https://baghdadtoday.news/260513-ثلاث-عقبات-تحول-دون-انضمام-العراق-لمجموعة-بريكس.html
Withdrawing The License Of Al-Mirbad Company To Mediate In The Buying And Selling Of Foreign Currencies
October 22, 2024 The Central Bank of Iraq decided to withdraw the license of the Al-Mirbad Company to mediate in the sale and purchase of foreign currencies, due to its violation of the provisions of the controls regulating the work of exchange companies and mediation in the sale and purchase of foreign currencies, amended No. (1) of 2022 .. For more , click here
https://cbi.iq/static/uploads/up/file-172958165418337.pdf
https://cbi.iq/news/view/2695
Withdrawal Of The License Of Al-Mubdaa Company And Al-Nawaeer Company To Mediate In The Buying And Selling Of Foreign Currencies
October 22, 2024
:diamonds: The Central Bank of Iraq decided to withdraw the license of Al-Mubdaa Company and Al-Nawaeer Company to mediate in the buying and selling of foreign currencies .. For more , click here
https://cbi.iq/static/uploads/up/file-172959272842638.pdf
https://cbi.iq/news/view/2696
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