It is interesting with each article they are going to delete zero's we get articles that state they are not ready to do it......so far the not ready's have won out.
Do not be fooled the deletion of zero's is about re dominating their currency. Not unusual for a country to mull over RD's and go back and forth on it. Japan brings it up now and again, but usually decides it does not want to. Good reason to think twice about the procedure imo.
Some make RD's sound so simple, easy but the risk is great if it fails. If it fails, they may have to do it all over again, and the expense and time involved is no laughing matter, not to mention if the people see the new restructured currency as worthless if not more than the older will continue to use the dollar, and resume their need for the dollar.
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Turkey whom they mention often really is not a great example of a successful RD, I am sure for the "not so fast" group. Turkey is not a deal breaker to RD the dinar. This is good for us.
The country is unstable, economically, structurally and politically. Not good for either and RD or RV. They whine about counterfeiting, well Iraq tends to exaggerate stuff, it might be a ploy to stop the RD group. It would not be great for an RV either.
So what is going on in Iraq really? I really do not know. They are expert at propaganda, and many articles have been no more reliable than the guru's here. One of the things I do know is they have not applied for a new ISO code,
I would think it would be first on the agenda if they were indeed progressing to printing a new currency. No real efforts to educate the populace except to confuse them with their hot and cold articles.
We do know they have these smart or KI cards waiting to be loaded. Personally I think the cards are what we watch for. They can extinguish so much trouble, counterfeiting, money laundering, and even oversight of the Iraqi people. A cashless society is exactly what Iraq is shooting for.
I don't know but it seems reasonable to me, with these cards they can bring people to the banks, open accounts and will receive the KI cards. The cards will increase personal safety for people, because no one can rob them of them, because no one can use them except the card holder.
That in itself is very enticing to Iraqi people. As opposed to educating the people of new currency, I see more education of the KI cards, which stands out to me. I want to add the only way they can get these cards is via the bank.
I am curious if they can delete the three zero's via the cards, I suppose they could. It makes more sense to me than if they printed new currency. The banks keep the dinar of old and put it in their holdings for banking purposes.
This would be the first cashless country economically speaking I believe and they have stated, Iraq will set a precedence for other countries. Just some thoughts.....and as always we will see. Zigmeister