Economists: 50 000 dinars Is it a precautionary measure to raise the value of the ~
Economists: 50 000 dinars Is it a precautionary measure to raise the value of the dinar, or contrary to the idea of removing zeros?!
November 15, 2015 18:19
Baghdad / nina / dreams Furaiji:
50 000 Iraqi dinars last thing planned central bank raised new cash as a group to support trading in the Iraqi market and the aim of issuing a new category of cash, according to the bank is a comprehensive restructuring of the Iraqi currency and to reduce the control of the dollar on the internal business dealings, and which will be re-payments system including To avoid consumers to carry large cash amounts small Bakiem.
But despite the fact that the restructuring of the currency is one of the usual procedures in the economies of the world measures, but the sensitivity of the economic situation in Iraq raised questions about the timing and feasibility of put upper limit new class of Iraqi currency worth 50 000 dinars.
This procedure He saw it as some economists that it could lead to higher inflation in the other part he felt action to reduce the phenomenon of dollarization / relative to the dollar /.
Specialist in economic lion Mohammed Ali affairs, described the coin issuance of class 50 000 dinars as a step has been talking about it in advance and has been repeatedly postponed and that there is likely to issue a class 100 000 dinars.
Mr Mohamed Ali said in a statement to the Iraqi News / Nina / National Agency that the bank had already announced several years ago on the steps to restructure the currency not to delay the process came to cause swings own idea structuring between the higher version of the current categories specifically the 50 and 100 000 dinars, and the deletion of zeros and printing of banknotes category 100 and 50 dinars a same value for the current version and the proposed version.
"He pointed out that the issuance of the new categories will not affect the money supply but it reduces the number of securities traded on the local market of cash due to the high limit value Supreme. "
The economic expert Raad Twigg has confirmed that put cash / 50 / Category thousand dinars to the Iraqi money market poses great harm factor for the market, which contrasts with the idea of removing zeros. , he said Twigg to put up the cash / 50 / Category thousand dinars to the Iraqi money market contrasted with the idea of deletion of zeros, but is to add zeros and then will become the defense of the Iraqi dinar by asking more hard currency useless and becomes the loss two defeats.
"He added that" The last estimate pilgrimage monetary bloc in Iraq is 75-80 trillion dinars in 2013 but put this Category means doubling the width narrow cash and then expand the money supply volume by Maasdr of this currency especially if this bloc are the cause of most of the cash problems in Iraq.
"He stressed that" the currency has sparked inflationary and it was possible to be done to meet the cash needed to expand appropriate categories Small cash as 5,000 dinars and 10,000 dinars, indicating that the increase in money supply excessively will be accompanied by an increase in the demand for cash after the low value of the loop and continue to expand. While others count the new offering a partial solution to the problem of paper currency, after the central bank exchange of deleting three zeros from the local currency.
Expert in economic affairs on behalf of all Antoine, said that the issuance of monetary category of 50 thousand dinars will contribute to reducing the rate of inflation and the reduction of large cash paper money supply one facilitates business transactions and reduce the work to the dollar.
Aaid Antoine: "The 50 Thousand category, does not represent any economic crisis, but its effects are negligible, has been confined in a temporary high for two or three days in the dollar exchange rate, which is not due in which the Central Bank, as far back as speculators in dollars and the owners Chierfat, who take advantage of every opportunity to make an emergency profit.
He noted that "this category descend to trading without any fuss, there is no rise in prices, and the decline in the exchange rate, only sensation" virtual "fleeting. and issued the Iraqi Central Bank, last week banknote new class / 50 / thousand dinars, to complete Iraqi Banknote structure and the development of high-class value in trading.
The bank said in a statement that he was issuing banknotes category / 50 / thousand dinars to expel 65 mm wide, and 156 mm in length, and is dominated by light brown except Framework decorations that took bold color, "adding that" the purpose of the issuance is the completion of the Iraqi Securities monetary structure and the development of high-value category in circulation. "