Deletion of zeros suggested by economic experts of Iraq instead issuing large banknotes
23 Jan 2014
A number of specialists in economic affairs of Iraq have advised that the government to apply the project to delete the zeros, instead of issuing large sections of the currency because it will lead to higher inflation.
It is noteworthy that the central bank decided after demanding the federal government to wait to apply the project to delete the zeros and get rid of the monetary mass lean in Iraqi currency by printing Bank notes category 50 thousand dinars, in addition to coins of small denominations during the year 2014, to facilitate the process of dealing and purchase between the citizen and local markets.
He saw a number of deputies and specialists in the matter of financial, that the issuance of currencies with groups as large as (50) thousand dinars is not feasible and will increase the inflation rates in the local market, and thus will lead to economic problems in the country. During a TV interview session, he stressed on the importance of the application project to delete the three zeroes from the currency, which has the advantages of economic benefit the economy and push towards facilitating the trading of the currency, with the need to control the process of switching the currency to reduce the incidence of fraud and forgery at the implementation of the project.
Economic expert Dargham Muhammad Ali, said that the application of project restructuring currency after deleting three zeros which is a necessity in light of inflation digital transfer of Iraq’s budget Alumblyaria to Altrliunah, and these figures are not commensurate with the value of the Iraqi budget and size, there is no justification for the issuance of currencies with large groups of perhaps will cause economic problems.
He further noted, “The project to delete the three zeroes includes finding values less than currently in circulation that does not solve the crisis, the Iraqi currency flabby digitally, which poses a scenario deletion of zeros balanced scenario in light of the stability of the currency.”
Continuing on the same issue, he further stated, “In the event of a fear of the transitional period can increase trading currencies new and old together, either to find alternatives to this project, issuing coins with large groups or small metal they are partial solutions, and prosthesis and a circumvention of the small by the big problem.”
For his part, Deputy Chairman of the Finance Committee MP Ahmed Faizullah, to: The decision to issue currency category 50 thousand dinars and small coins would cause great economic problems in terms of inflation and the impact on the exchange rate of the Iraqi dinar against the U.S. dollar.
He also told, “This proposal will not benefit the Iraqi economy, but something Sadharh, and thecentral bank is well aware that any impact on the market will reflect negatively on the stability of the dinar against the hard currencies.”
He further pointed out, “The central bank believes that the application of the project to delete the three zeroes from the currency during the current period will cause upheaval of the economy and the increase of inflation rates in the market through the issuance of currencies with multiple categories, what he refrained from applying it,” and added, “The project is large and sensitive to the needs and financial and economic stability in the country, so the Iraq during the current period and even the next few uninitialized to implement the project in spite of expectations to suggest that applied during the next two years.”
As a member of the Finance Committee MP Abdul Hussein al-Yasiri, said, “The current administration of the Central Bank has a proposal to issue Banknotes with large groups as 50 thousand dinars and 100 thousand dinars, in addition to coins of small denominations, to get rid of the money supply large in the Iraqi currency, as it linger from the application of the project to delete the three zeroes at the moment and confirmed that it is well suited for the application.”
Yasiri said, “This proposal will be one of the basic tools for the application of the national project to restructure the local currency after deleting three zeros of them, which is a prelude to the application of the project, saying it successful process through which the issue of currencies with large groups which the aspirations of the Bank Central to reduce the mass of large cash currency.”
The member of finance committee noted, “The central bank to speed up the issuance of these new currencies in preparation for the application of the project to delete the three zeroes from the national currency. The CBI, revealed previously expressed his intention to issue coins denominations are small, indicating that those currencies, which may be issued sometime in the next year, will bewritten in Arabic and Kurdish, confirming the presence of a proposal for issuing Banknotes large value of fifty thousand dinars.”
The governor of the Central Bank and the Agency Abdel Basset Turki said, “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 group of coins that are available now are the (25) thousand dinars and the purchasing power it does not exceed $ 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 also noted, “The central bank is also working on a version of small coins, the lack of these categories that facilitate the process of dealing and purchase between the citizen and the Iraqi market, which was dealing with the central bank,” noting that “Coins small will be in Arabic and Kurdish.”