Wednesday Evening Iraq CBI News Highlights 1-25-23
The Project To Delete The Zeros Of The Local Iraqi Currency Between The Timing And Feasibility
SEP 24 by dggoldjax Poll: Qasim flavor still Tributary Sadiq / Union / Baghdad 09.24.2011 12:26:29
Raised the project to delete the zeros of the local currency, which was announced the CBI on June 22 last debate between the economic and financial circles, at the time raised the reactions of the popular wondering about the timing and economic feasibility of the process that could cost millions of dollars and spoke upheaval in the domestic market.
(Union) polled a number of experts and academics on the dialectic of the deletion of zeros from the local currency over the following survey:
Ready To Erase The Zeros
Iraqi Central Bank confirms its willingness to delete the zeros of the local currency pointing at the same time that those zeros that are added to the Iraqi currency during the last period formed a cluster of large cash hit (27) trillion dinars, and said the appearance of Mohammed Salih, adviser to the Iraqi Central Bank:
This step is jobs strategy of the Bank, and the zeros that are added to the Iraqi currency during the last period formed a cluster of large cash amounted to more than four trillion paper reviews categories of the Iraqi currency value of financial Bgt (27) trillion Iraqi dinars after it was (25) billion dinars in 1980
He pointed out: that Iraq is unable to manage this block because it is a small country where the large number of money circulating in the Iraqi market has led to a confusion in business dealings in the work of the huge banks ..
Adding that the bank has fully prepared for the deletion of zeros from Iraqi dinar and that the deletion of zeros is a national issue and may need to special legislation, although the Central Bank of Iraq is the reform of management system of currency from the heart of his work and that the deletion of zeros is one of the strategic functions of the Central Bank of Iraq, noting : that the bank was able during the last period to reduce the level of inflation to the level of one decimal after the passage of more than twenty years ..
Indicating: that Iraq was able for the first time to reduce inflation to 2%, which reflects the success of Iraq’s monetary policy.
Fear Of Counterfeit Currency
The economic researcher Abdul Salam Jumaili he says that the project to delete the zeros regulating mechanism for lifting the three zeroes to promote the value of local currency in circulation economic, external and internal which is a strategic project aimed at reducing the rates of inflation experienced by the Iraqi market, as it will free the Iraqi economy from the restrictions and damaged the value of the Iraqi dinar the World Bank’s fund ..
Adding: when we want to buy dollars in 1200 dinars, we buy at one dinar and 200 fils, while the researcher says economic Mohammed Hatem Al-Kaabi on the subject: that most of the speakers with him from supporters and opponents disagree on the subject of hand out a good idea or not so good,
everyone has the conviction that the deletion of zeros to be that is one day, but the objectors whom I am standing on the timing and feasibility of the process could cost millions of dollars may occur upheaval in the domestic market, which obviously he does not need a case of confusion,
New point: that this amount is higher than the money, according to reports of the Central Bank of Iraq four trillion banknote is difficult to alter without constraints, the question arises how will change the currency, and alter the currency and to ensure the absence of manipulation during the switch, it is a matter numbers and zeros lift the zero set zero of sin, and confirms Al Kaabi said the draft of zeros and delete them in this way is a green light the mafias counterfeiting to put forged banknotes can be lost from the process of exchange coordination and purchase of receivables
As for the priorities do not say more than what specialists in this area because the economic situation need to follow the structural and the money that will be spent on the switch I see that the sectors of interest to the citizen first, such as the health sector and education and increase the productive capacity of the country and the adoption of incomes of a new alternative for oil will run dry one day and we will find ourselves in the desert where no water, no green in the face of good I do not think that the story is far from the political, there are those who want to say I made the dinar as the dollar and this phrase will go on citizen unnoticed.
Risks to the economic security
The economic adviser in the government Hussain Anbuge: The process of deletion of zeros from the currency will increase the phenomenon of money laundering and the government is working to convince the central bank need to stop work on the implementation of the project, indicating: that the government had informed the Central Bank of the existence of a risk to economic security in the event insisted the bank to delete the the zeros of the local currency ..
He continued by saying that this process costs time and effort of the government and the central bank raises the level of fraud, some terrorist groups to carry out the smuggling of money out of the country, either the stock market in Iraq,
in turn, will be affected by the process of deletion of zeros from Iraqi dinar, according to a member of the Federation of Iraqi mediators Mohammed Ismail, who said:
that in the case of deletion of zeros from the currency will drop capital companies proportions of zeros and that, for example, if the company’s capital of three billion will be three million dinars, and in this case will be in front of the stage must be where the market closed for a certain period for the issuance of certificates of new shares to holders with the remaining number of shares on the situation and to draw:
that the process of removing the zeros economic process difficult and complex needs numbers and accurate statistics for all economic activities, not Iraq has like, banking offices, in turn expressed their discontent with the process and said that Ahmed Rikabi the banking alligator in the Karrada district, who refused to portray his place explanation: that the situation the security situation being experienced by banking offices how the country has proved to the world that he is unable to protect its banks and its markets and banking offices in which to replace its currency,
removing the zeros in the light of ignorance of the concrete of the ordinary citizen of what is happening in the financial transactions and where to go the budget years that exceeded the barrier of $ 300 billion either for offices Banking and says:
All I fear is the increasing numbers of banknotes counterfeit, and it certainly will dominate the market and spread the idea of change, and delete the zeros indicating: that the project to delete the zeros from the currency will negatively affect the Iraqi economy that has not been made by careful examination by specialists in financial matters The cash is certain: if the monetary mass that remained unchanged no value to the project to delete the zeros ..
As for Dr. Bassem Jamil Antoine Vice-President of the Federation of Iraqi businessmen, he said: In fact, the meaning of the process of removing the zeros is to reduce the currency’s size I do not think that this step will be an impact on the Iraqi economy, which is noted by the recession and lack of economic growth and this process if I want her to bear fruit must be economic steps,
accompanied by economic plans are clear and the whole process needs to create and to keep logistics through seminars, meetings and workshops for Iraqi banks for the ordinary citizen to be aware of the move, so do not be fooled and be easy prey to gangs, extortion and laugh at the simple citizen,
and I think The issue needs to study more than one year so satisfying topic of research and educate all segments of the community and listen to all opinions noting: that the Iraqi currency is divided into two parts:.
the first in the banks, and the second when the citizen so we need to tightened security measures along with significant economic gains can be switched dinar from local currency to a global currency ..
And inflation and its relationship to Balasfar said inflation does not address in this way never, but addresses the scientific studies that can promote the private sector and eliminate unemployment and do the industrial sector, government and civil and promote the agricultural sector,
it is not hidden on the events of 80 percent of the basket of Iraq are imported from abroad, and this means that out of hard currency clarity the day, this with reference to the seven million Iraqis are living below the poverty line, and draws Antoine that this experience is not the result of Iraqi thought and came before them, Italy and Turkey when Khzvt zeros six but vary the timing and the necessities of phase, while the researcher believes the economic Karim Hilfi:
The Bank’s decision Central deletion of three zeroes in the long term, not a new decision on the economic scene has preceded us several countries to the special mention of Germany, adding that the situation in Iraq where there are no objective conditions for deletion, because Iraq is suffering from problems of structural economic and inflation is strong as well as high rates of How unemployment will be the deletion of zeros from the dinar, which is basically non-existent ..
And between: that Iraq is able to move forward with this decision either short or long, both saying that the explanation: it is possible to delete the zeros when the output strong and Jlth Department in addition to the absence of structural imbalances or inflation, and unemployment is less than 10 % noting:
the decision can not be implemented only after a long time, even if carried out within a year or two it will be a negative impact because the economy is in recession now.
In turn, drew the academic researcher Hilal Taan: that the project to delete the zeros is a project proposed by former Finance Minister Bayan Jabr, and can be applied and studied as a medium or long term, can not be applied only after the stability of the economic situation and improve the Iraqi dinar exchange rate ..
He Taan: The project has several requirements the most important he needs a stable economy in some respects, and needs substantial financial resources in addition to supporting the Iraqi dinar, foreign stocks, and it could be applied during the last period but for the effects of the global financial crisis on the Iraqi economy ..
Considered the economic and safety expert: The process of deletion of zeros from currency is a good step, but requires more efforts of the media of economic efforts and attributed the reason is that the market will be exposed to vibration as soon as the citizen’s belief that the deletion of zeros will affect negatively on the real value of the coin ..
She added that the real value of the coin is the value of goods received by the individual and that on the strength of the national economy, saying: These things can be achieved stability of the security situation in addition to the media a major economic effort to educate citizens about the positive results of the process of removing the zeros.
Ali Faraj, 35, says that the process of deletion of zeros from the currency will contribute to raising the purchasing power, and also that efforts to raise the zeros and change the current currency contributes to the creation of a state of confusion in the monetary policy, compared to no changes in the value of purchasing real currency ..
Adding that there is a risk of leakage of foreign currency abroad after the ratification of the policy of freedom of exchange, especially as the auctions the central bank of the dollar contributed to the exit of large amounts of foreign currency from Iraq,
while he says Muhannad Salem employees that the process of deletion of zeros from the local currency’s decision is not feasible and will not contribute to raise the value of the Iraqi dinar, while cause when applied to problems of multi-dimensional added to the problems suffered by the Iraqi economy, including confusion and disorganization of the market in buying and selling and debt among citizens as well as confuse the mental state that Stantab the citizen as a result of the emergence of a new phenomenon require adaptation by the are of the view of Hamza Hussein :
that the project and before applying it requires coinage small denominations of currency, which represent parts of the dinar, and that these currencies would cost the state large sums eight project does not enhance the value of Iraqi Dinar where it will remain a value as it is and the results are equal, is certain:
the need to deal with this project with caution because it may cause economic problems in the Iraqi Central Bank as well as presenting the project to specialists in economics to indicate their opinion on the subject before the application and noted citizen Hassan Hamid to the approval of a project that aims to raise the value of the Iraqi dinar to its former value to return is equal to $ 3.33 U.S. through several measures, including a review of the proposed import because it drains excess foreign currency and deposited with the Central Bank of Iraq as well as reducing public spending to the state and its departments with regard to import of expensive furniture can be obtained through the local market.