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RAED al-Hashimi: deletion of zeroes lead to queues in banks to replace banknotes

Baghdad-Salam Zidane

Leading economist emphasized, that the deletion of zeros from the local currency needs political stability, security and economic, that the u.s. currency will lead to the u.s. economy and facilitates the payment system and raises the value of the currency.

Al-Hashemi said in an interview with the (Journal), that "the economic environment needed to create a thoughtful application of the deletion process through actions and decisions of financial and banking financial authority in the country."

* Raise zeros from the Iraqi currency has the benefit of the Iraqi economy?

That the deletion of zeros is a necessary step and an important part of the need for administrative reform process to contribute to currency-if applied correctly with the appropriate time-reduce transaction costs and cash transactions in the economic process, and reduce the size of a country's monetary bloc and facilitate calculations and reduce the inflating figures, not to mention the version of the small groups will facilitate accounts pricing policy.

* What are the proper mechanisms to follow up the process of raising zeros?

There are several mechanisms including choosing appropriate timing when the Iraqi economy (one-sided) in stable economic environment and thoughtfully to apply the deletion process and this requires actions and decisions of financial and banking financial authority in the country, and the need to create an information society and psychologically to accept such a decision through intensive media campaigns before implementation, and the implementation of the resolution on the stages and time enough for fear of confusing events in the Iraqi market.

* What are the fears of the adoption process raise zeros?

Many economists finds that the deletion of three zeros will muddle and confusion in the local market and the phenomenon of "cash" illusion because there is "old" and new currencies and traders will exploit her for raising the prices of goods and commodities.

As well as apprehension of occurring chaos in the Iraqi Street and stand in queues at the doors of the new banks to replace the current Iraqi banknotes with those of new banknotes. Which will contribute to the emergence of a black market speculators taking advantage of the chaos that would result from the currency switch. There is also a fear that counterfeiters and (mafia) money laundering and currency smugglers who will exploit new situation in laundering counterfeit old Iraqi dinars and replace it with a new or the smuggling of Iraqi dinars to abroad for terrorism and organized crime, which will destroy the economic security.

* Do you think that raising zeros will affect the economy and social stability?

Yes it will affect by u.s. currency and thus lead to u.s. economy and facilitates the Iraqi payments system and raises the value of the currency, even partially, will slow the process of creating and working myself technician could play a positive role in promoting the Iraqi dinar on condition that is associated with the adoption of a package of measures the harmonious and rational policies between monetary and fiscal authorities and other seminars on the economy.