Economists Criticize the Issuance of a New Currency Instead of the Implementation of the Deletion of Zeros
|September 28, 2014||Filled under Iraqi Dinar News|
Iraqi Dinar News -
Criticized a number of experts and specialists in the matter of financial and economic policy of the central bank for the issuance of new editions of large segments of the coin, as warned of this measure being will increase inflation, causing the case to confuse economic and stagflation in the domestic market.
They confirmed that during their talk, told / JD / on the importance of moving and speed up the implementation of the project to delete the three zeroes from the currency and not to resort to prosthetic solutions such as the issuance of new editions, the fact that this project will overhaul the currency and increases strength and improves its performance locally and regionally.
The central bank had earlier announced that the project to delete the zeros is still standing, but the date of its implementation is not specified, as revealed its intention to issue coins with large groups as a class (50) thousand dinars and (100) thousand dinars, and re-print the existing currency until the implementation of the project.
Expert in finance and banking Mohsen Ali, said: “The project to delete the three zeroes from the currency is one of the strategic projects and relied upon by the central bank, as it will overhaul the Iraqi currency again and reduces the mass of cash in circulation because it will reduce the numbers of large Kaltrliunat and billions and others.”
He added Ali told / JD /: “This project will serve the state in many ways, including, to create a balance in the rates of inflation, and facilitate the process of preparing the annual budgets for the State, ministries or provinces, and reduce errors in the financial accounts of large, as well as he would the Iraqi dinar to regional and global stature.”
He said: “The central bank when a promising project to delete the three zeroes from the currency goal was to reduce the blocks large cash and create a balance in the rates of inflation the market, it can not issue new editions with large groups, because it is considered solutions prosthesis not serve the country, but it would hurt the economy in terms of increasing stagflation in the market.”
While economic expert Dargham Muhammad Ali, pointed out: “The subject of restructuring the currency would be useless without the implementation of the project to delete the three zeroes from the currency for the purposes of legal, administrative and regulatory at the same time.”
He said Muhammad Ali in his speech to the IAEA / JD /: that “the issuance of a currency with a large class specifications high safety to discharge the need for the project to delete the zeros that would convey the budget of the box Alterellnah to block Alumblyaria, which are commensurate with the budgets of neighboring countries and reduce the differences between the dinar and regional currencies, including re-consideration mathematically and the value judgment of the Iraqi dinar.”
He said: “The processes of replacement and issuance of new categories considered structuring partial and incomplete for the currency but do not meet all the needs of the Iraqi market, but the urgent need for the implementation of the deletion of zeros, the fact that Iraqi dinar exchange rate relatively stable, what makes the ground smoothed for the issuance of new categories.”
He added: “delete the three zeroes from the currency has become a mature process and a proper climate, calling on the central bank to” speed up the implementation of the project to delete the zeros and not to issue editions of large groups because it would hurt the market.”
The decision of the Commission on the economy in the previous parliamentary session, former deputy Mahma Khalil, see “reason not to implement the project to delete the zeros by the Central Bank that the previous government stood against Tnfiel decision to this project under the pretext of fear of currency counterfeiting,” calling it “is not justified”, especially as the regional climate became appropriate after exit Iraq from Chapter VII and raced global investment companies to invest in Iraq, as well as the stability of the Iraqi dinar exchange rate.
He criticized Khalil in his speech to the IAEA / JD /: “measures the central bank’s new issuing editions and new paper with large groups, because it would hurt the Iraqi market in terms of increasing inflation, as well as hamper the process of implementation of the project restructure the Iraqi currency after deleting three zeros from them.”
Referred to the General Secretariat of the Council of Ministers announced (April 12, 2012), wait for the application process in the deletion of zeros from the national currency, which had to stop all actions relating to the operation mentioned until further notice.
The CBI, previously revealed his intention to issue Coins small groups, indicating that those currencies, will be written in both Arabic and Kurdish, confirming the presence of a proposal for issuing Banknotes great worth fifty thousand dinars.
The former central bank governor Abdul Basit Turki had said, earlier: that the central bank is currently working in accordance with the tables and under the supervision of specialized committees to issue new coins with large groups. And between Turkish that the largest category of coins available now are the (25) thousand dinars and purchasing power have no more than $ 23, so there is more of a proposal to the Central Bank, to put coins larger than the existing, such as issuing currency up to (50) thousand dinars.
He said that the Turkish Central Bank is also working on a version of small coins, the lack of these categories that facilitate the process of buying and dealing between the citizen and the Iraqi market, which was dealt with by the central bank.
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