Post emailed to Recaps
Enorrste: Article: "Economists are demanding action against the Central Bank to intervene and call for respect for its resolutions" [Shabibi's statement:] "the process of deletion of zeros is not an economic process, so it does not affect inflation," explaining that "what affects inflation is monetary policy, and that the deletion of zeros does not fall within the monetary policy, which is not of their tools."
When Shabibi says that the removal of the three zeros is not an "economic process" he is simply saying that the actual removal of the large notes from circulation has nothing to do with "economic policy".
Enorrste: However, the removal of the three zero notes, in itself, is NOT a part of their monetary policy. Therefore, this has nothing whatsoever to do with a LOP.
To further prove the point, all we have to do is read this quote from the article itself: "He continued by saying, 'It was supposed to be a project to raise zeros culmination of the efforts of the Central Bank, to put us in front of the completion of a historical era important in the monetary history of contemporary Iraqi," Clearly a LOP is not a major historic event.
Countries have done it many times over with no appreciable effect worldwide.
However, THIS project is different in that it will put Iraq at the "front" of the line, so to speak.
In short, this article has nothing to do with a LOP while at the same time re-affirming what we already know: that the removal of the three zero notes will lead to a major rise in the value of the dinar.