Iraqi Dinar Is Trying to Get Rid of the Zeros … But!!
|April 30, 2011||Filled under Iraq Daily News|
Baghdad- Fear economic researcher Qasim Jabbar from the tyranny of monetary illusion in the event of psychological delete three zeros from the Iraqi currency, considering that the general situation does not allow it now.
Iraqi dinar, which began his career in the thirties of last century and equated during the seventies three dollars, after the deterioration of Iraq’s invasion of Kuwait in 1990 and the imposition of United Nations economic embargo tough, to lose its value rapidly and up to 3000 dinars per dollar mid-nineties.
And after it had been Iraq’s currency is printed outside the Government launched the Iraqi inherently internally, in an attempt to accommodate the cash the huge been issued new bank notes worth up and after that was 25 dinars figure the Great, was printed paper reviews the category of 250 dinars, which were not equal, in fact, more than 25 fils JD from the seventies.
After the year 2003 issued new Iraqi dinar denominations larger to facilitate the daily transactions, making the 25 thousand dinars, the biggest Iraqi currency now (the U.S. dollar is equal to 1120 dinars), but this price is still far from the ambition of the Iraqi citizen, is the deletion of zeros, the fastest way to raise the exchange value of local currency against the dollar.
And justifies the powerful position the negative toward the deletion of zeros of the Iraqi currency to “the need for political stability, economic and legal capacity to control the overall situation during the transition to the new currency”, to ensure non-exploitation “because of the corruption rampant not only in government departments but also in society in general.”
The monetary illusion psychological “Vsirkz that the value of the currency will vary in terms of number and not the real value, and will highlight the problems of high price level because there is no power able to rein in the Iraqi market,” On the other hand, “the person who has the ten million would think that he has lost this amount After you delete Asfarh.”
And varied views of economists interviewed by “talk” between welcome the decision because it is not new in the economic arena, but rather “has preceded us, several countries such as Germany and Turkey,” according to economic researcher cream Hilfi.
But this does not mean that cloning experiments are those countries where it is supposed that “the objective conditions are provided for the implementation of the process,” because Iraq is “suffering from structural economic problems and high rates of unemployment, these problems can be solved only in the long run.”
Iraq today is suffering from significant problems have negatively affected the economy in case the zeros of the banknote with a thousand dinars will turn into a category of one dinar, and in this case, the change will be negative and positive directions.
What he sees as the first adviser to the CBI the appearance of Mohammed Saleh is to “reduce the mass of the large cash amounting to about 27 today trillion Iraqi dinars,” a negative impact on people’s daily trading and banking.”
The second comes from the effect of reducing the money supply and therefore the return of the Iraqi trader to carry the currency of his country that finds it difficult to trade, “is contrary to what is happening now in the domestic market” where they are trading goods in the wholesale market in the U.S. currency while the equality of paper percent dollars to about 118 000 Iraqi dinars. “
Saleh denies that the transition quickly as some people think it will not only “economic terms that reduce the size of the inflation, after a thorough study write in the form of law brought to the Council of Ministers and then to the House of Representatives, who will decide the implementation or not,” indicating that the central deal with this issue “cautiously and carefully as it may cause economic problems in case of hasty implementation.”
Iraqi street, in turn, is closely watching the movements during the last period Dinarh exchange rate against the dollar and encourage high value against other currencies, but at the same time, fear of losing as a result of the deletion process.
Seller food markets of Baghdad, one would prefer not to deal in Iraqi dinars in its dealings with wholesalers in Iraqi dinars, he would prefer to carry the American dollar being smaller. “Lack of volume of foreign currency,” says Abdul Amir “is the reason behind the preferential deal in the event of large deals that require millions of dinars,” and not deal daily routine, either raise the zeros do not find the answer immediately on the subject, only more questions about the size of the expected loss
Will there be a control on the market to ensure stability.
The employee in one state departments morning David conditioned the project feasibility study on the citizens first before it is direct it, raising further questions P “Will raise the value of the Iraqi currency against the dollar is real?” And also “Do I get the same real value of the salary that you Get it zeros and without it? “.
It appears from where we stand today that the Iraqi dinar is willing to disarm Ocefarh which overwhelmed, but the road remains long, Vartdae dress inflation and the deterioration of the value needs to be a long time to change gown prosperity.
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