Economists: Class 50 Alpha will increase inflation

News Source: Ali Abd al-Salman

November 19, 2015 9:36

Said experts in economic affairs, that the issuance of the new currency of the category of the 50 000 dinars are among the steps taken by the Central Bank of Iraq to repair the economic situation in the country, while others called for a long-term reform of the local economy strategic plans.

She said an economic expert Akram Abdel Aziz Al-Aqil, that "the issuance of a class of 50 000 dinars can contribute to reducing the liquidity ratio traded between individuals."

She added that "the trend towards the issuance of this coin comes from reforms pursued by the central bank in the recent restructuring of the local currency, especially as Category Big traded in a relatively small market, and naturally that the measure arithmetic can him that facilitates financial transactions in the local market with respect to the banking aspects.

She said Al-Aqil that" there is no impact of this currency to the rate of inflation so as to control several aspects, led by what the size demand for the commodity supply, as well as security and life lived variables The rate of inflation is subject to the relationship between the cash market and the real market and the labor market ".

It showed that" delete or raise zeros action pursued by the monetary authority to influence the money supply and monitoring currency trends and liquidity management and have a significant influence on the stability of the value of the currency as well to contain liquidity and control.

"She noted that" the action taken can have him simplify cash transactions and ease the financial settling accounts and possession and carrying of money measures, and has cons can crystallize in the aspects of financial and administrative corruption and enters in the contexts of laundering money in light of the current situation of the country. "

In turn, the economist said Abbas Ibrahim Bahadli, said that" a central bank containing 50 coin thousand dinars raised would contribute to the rise in the domestic market inflation, already high, despite erroneous reports presented by the Ministry of Planning. "

He added that" initial indications indicate that the domestic market will decrease gradually to categories of small currencies as a result of trading the new currency is causing cash problems with the owners of the shops that sell materials retail as well as to owners of private transport because the citizen when paying 50 000 dinars will make the driver or the owner shops at a loss on how to return the remaining funds ".

He said Bahadli that" the process of deleting the zeros shorten a lot of steps that contribute to the strengthening of the national currency against other currencies and is working to reduce the liquidity in the domestic market what helps in controlling banking transactions between individuals and institutions of the different state. "

He said the" trend towards exchange electronic funds such as ATM and Visa card contributes to reducing the cash trading groups paper and enhances the confidence of citizens towards the national currency, as the case in economically developed countries. "

He asked Bahadli for" the existence of plans Stratejp previous governments developed to guide the country's economy about power, not just non-performing and non-Steps well thought contributed to the delay and confuse the local market. "

He noted that" the country has a cash reserve well be his response to the financial crisis, but it needs to manage solid and efficient able to economic file management according to the evolving data away from political influences. "

The Central Bank of Iraq, Wednesday (November 11, 2015) to issue banknotes category (50) thousand dinars, and as pointed out that the new category is dominated by light brown with included a number of security and technical signs, confirmed that the paper included photographs planning to paddle wheel Euphrates and the marshes of Iraq.

The central bank said, It is "for the purpose of completing the Iraqi banknotes structure and the development of high-class value in circulation, the Central Bank of Iraq is pleased to announce to the public the Holy issuing banknotes category (50000) dinars (fifty thousand dinars) dimensions of 65 mm width 0.156 mm length, predominantly brown color light except Framework motifs taken bold color, "noting that" banknote was printed using high-quality printing paper quality with a number of security and artistic marks. "

He said the central bank in its statement that" the new banknote include dates Hijri and Gregorian, and the signature of the Governor CBI Agency (Ali Mohsen Ismail), as well as the serial number of the paper consists of break includes rugs letter Z and primarily sequence edition, in addition to the sheet sequence in decimal and put the figure on the right side vertically at the bottom of the left side of the paper horizontally " .

The statement pointed out that "the face of the paper included schematic picture of a paddle wheel Euphrates and palm trees in the middle of the paper and a picture of a Kurdistan Falls on the right side of the paper, as well as the presence of a security tag has printed magnetic ink variable color (Spark) in color from blue to change to green when the note is tilted . "

The statement, that" the other side of the paper contains a graphic image of the Iraqi Marshlands, includes a reed house and a number of fishermen and a group of animals (buffaloes and birds) and images of palm Iraq with Tigris and Euphrates rivers planning within the map of Iraq, "adding that" it was the paper coating Cash protective coating so as to extend the life of the paper and protect it from dirt and dust. "