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Economist: Replace the currency of the positive benefits of Aaakhlu

12/31/2015 0:00

BAGHDAD - Imad emirate
adopt the monetary authority decision in the process of replacing the currency on the approach to costs and benefits, as a change of the Iraqi dinar and the deletion of zeros is an important step on the road to monetary reform, and the reform of the currency management system through structured to control the flow and management of the cost of the money supply in a manner optimized using Model «Mosley» the most comprehensive, which does not stop at the borders of the costs and benefits but includes economic, social and political environment variables.

This is what started his speech by economist d. Abdul-Hussein Abdul Jalil Ghalibi »Sabah», pointing out: that the ideas can be raised in this area, from the process of deleting the zeros and replace currency terms would be too costly to the Iraqi economy and society, from the cost lawsuits and compensation, as well as cost support the economy during and after the the replacement process.

He stressed that no one denies that the process of changing the dinar require the costs to complete, but the discussion of these costs come from several directions, the first being that maintaining the dinar generates community ongoing costs in accounting fields and procedural counting, sorting, storage and others.

He said that these costs can be saved When you change currency and reduced to a minimum, and the second direction that is secreted by the costs is the issue of paper currency printed and punching the coin, and here it can be said: The huge number currently in the Iraqi
economy, which amounts to 4 billion paper needs to be replaced operations damaged leaves and shredded and consumed him .

And that old deliberative banknote no more than ten years, but it is in conditions of heavy use, as is the case in Iraq, which hit the currency rate in circulation to money supply which about 90 percent of the old could be up to five years.

He Ghalibi So These costs are already unspent along with the replacement will reduce the number of banknotes issued to the gain of 70 percent from the previous issue, and therefore the costs also will be reduced by more than this percentage because the old Deliberative new paper will be longer than the previous two reasons. First, the coins will reduce the burden to use it, and that large banknotes will be the speed to use less.

He said that the second reason is that the quality of the paper better and more tolerant than the current paper, which was issued in 2003, the mission of the developments that have occurred in printing money the field.

He continued: The reference to the cost of compensation and claims there is nothing to do with the process of replacement as well as support the economy cost also nothing to do with this, as the government support of economic activity is affected by the process of changing the currency because what determines the amount of support and direction is the government in the financial policies.

He explained Ghalibi Changing the currency and the deletion of zeros does not reduce the source of paper, and with the relevance of this opinion and his health, what taken it is that the currency (the dinar) does not stop the replacement limits of the same categories, but will be Asaddarviat monetary larger so that the total number of papers will reach 1.18 billion paper instead of 4 billion paper, Mmaakhvd number of leaves significantly along with increase the range of categories used is not Top only, but from the bottom to issue coins.