Steps To Revaluation & Floating on Forex Market:-
1. Move to Market Economy with a market-driven currency rate floating on foreign currency exchange market.
2. Supplement note denominations to support the growing value, as well as whatever the rate adjusts to rapidly to start with.
3. As large three zero notes become too large, begin removing from market circulation.
4. As rate continues to grow, continue to release the entire set of remaining lower note denominations.
5. De-dollarization, removing USD completely from local market circulation.
Commission of economy and investment representative, on Friday announced the arrival of Swiss devices for the printing of currency for Iraq, noting that all Iraqi currency being printed in Switzerland.
Member of the committee MP Abdul Salam al-Maliki told / information /, that “all Iraqi currency, which is printed in Switzerland reinforce Iraq’s stock of gold and the dollar.”
Maliki referred to “access devices to Iraq for the printing of the currency.”
The central bank announced (April 11, 2016), that the Iraqi dinar current techniques ahead of many European countries, indicating that the bank is in development and the search for the best technologies in the issuance of paper or changes continuously.
Article quote: "the Governor of the Central Bank and the agency on the Keywords, said a former time, that " the project to delete the zeros will be implemented in early 2017, noting that the bank" began to develop the first project steps."
To begin to remove the zeros beyond shrinking the supply that has already been taking place over the past few years, the dinar will need to be usable to the people, that can happen by adding value and as a result, adding smaller denoms eventually decreasing the need for the dollar.
So if we are to expect a move to a market economy with a market-driven floating rate, that will need to be in place before they activate actually removing the 3 zero notes...they are usable now due to the poor rate but in order to remove them, there must be incentive via a higher purchasing power, ie more value...so, this is a process, it will take time.
So if the three zero notes being removed early next year, this process to get to that stage will need to start earlier...the process of having a rate that gives enough purchasing power to exceed the usefulness of the three zero notes because they will be too large.
The Monetary Reform was spelled out in the LOI from the CBI to the IMF six months ago. The final review scheduled in the LOI is the end of May.
Combine this with Intel that the BIS and WB have signed off on the RV, along with Abadi and Biden. The bond, loans and credit rating agreement that was started in April with Jack Lew is expected to be finalized this month.
98% of the banking reform is complete. Abadi has stated that he has eliminated the Proxy positions, allowing him to appoint a new Gov of the CBI. The Board of Directors have already been replaced. So, the Monetary Reform has really progressed and is falling into place.