Editorial: Decision to delete the zeros from the currency .. Ink on paper
Posted: September 6, 2012 in Iraqi Dinar/Politics
Long ago, announced near the implementation of the decision of the deletion of three zeros from the Iraqi currency, and that the project will be launched early next year and will continue for two to three years. He then appeared other comments announces lingered government to the implementation of this resolution and postponed to another date ..
So is the project will remain a dead letter, as described by the Deputy Director of the Central Bank of the appearance of Mohammed Saleh? …. And received the decision to delete the zeros from the Iraqi currency a lot of opinions pro and con, there Economists believe that the decision will lead to the collapse of the national currency and see some last he would return to the country benefit the country It is unfortunate patient in its implementation because it is a joint venture between the government and the central bank. As long as the government seeks to postponed due to security concerns, it can not be implemented in this year or the year after that – according to deputy director of the Central Bank – Timing is very important in this case is also implemented, they must coincide with the beginning of the fiscal year, so you will not find space for implementation inevitably through this year .. And regrets for the postponement of the project because it is economic benefit to the country as long as improve the efficiency of the currency and reduce the impact of large numbers, then dealing with cash needs into categories cash large and small, as will be dealt again categories such as (50 dinars) and (100 dinars) and (200 dinars) in addition to classes less than dinar (such as half a dinar) and (quarter of a dinar) and (50 fils) and (25 fils).
which is confirmed by financial and economic expert at the Central Bank Majid picture that does not see the difficulty in implementing the decision because it will help in the process of reducing trading volume large currency transactions and would draw more accurate pricing policy in the future as long as the will handle the thousands and millions, rather than billions, as well as its role in the detection of fraud earlier because the central bank will impose on banks use very modern techniques to detect fraud. He adds «also techniques that will be used in the printing of the new currency will be difficult to penetrate, but if behind that organized gangs or backed by the state because the specifications minutes and styles to be established by the central bank will be very strict«.
contrast warns economist Tawfiq inhibitor of the collapse of the national currency in the case of application of the decision to delete the zeros three of them, pointing to the need to prolong the period of currency switch and not withdrawing the old currency and launch new direct, but work together so that it would not cause harm to the economy or any direct impact on the living conditions of the citizens. On the other hand sees inhibitor that process counterfeit currency is another reason to collapse and therefore warns that happens, especially as there are great bands and mafias currency capable of forging greater currency in Iraq.
seen most citizens to decision deleting three zeros from the national currency look apprehension after accustomed pockets Download large paper groups and accustomed stakeholders including dealing with hundreds of millions.
businessman believes weighted in favor of deletion of zeros would hurt the level of share trading in the Iraqi market for securities, because there shares will be lost in case of deletion of zeros. And works weighted in stock since 2005 and increased his passion for them when evolved using screens electronic, but does not hide his fear of failure dealing with them, especially since stocks foreign exchange reduced the lead to block the signing of agreements with companies of foreign investment, which believes that the change of currency will reduce profits.
of For his part, sees Adel Abdul Jalil / assistant professor at the Faculty of Administration and Economics / that Iraq is ready now for the deletion of zeros from the dinar, because it needs to stabilize security, political and economic, and that Iraq – in his opinion – no need to replace the currency is as much a need to control lie in volatility in the exchange rate of the dinar against the dollar. And Abdul-Jalil said lifting of the zeroes will cost the state budget large sums may open a door for financial corruption and waste of public money as well as failure to address the problem of inflation because the Iraqi market are imported for all goods and services from abroad means draining large hard currency.
response to these concerns, confirms Vice Director of the Central Bank «the power of the Iraqi dinar, which became like a hard currency thanks to the policy of the central bank in control of the cash raised in the local market ‘. He pointed to the existence of a large cash reserve of hard currency is kept to face the difficult circumstances that may occur in the country gives the strength of the dinar against foreign currencies. The central bank’s policy is aimed – according to the benefit – to the stability of the exchange rate of the dinar against the U.S. dollar, likely equal to the price of the Iraqi dinar against the U.S. dollar during the next two years after the implementation of the project to delete three zeros from the Iraqi currency. According to Saleh, said that the Iraqi citizens need to educate in the villages and towns and school students also and be the media role in helping citizens to receive the project.
emphasizes economic expert Majid picture this view, explaining that the circulation of the new currency would be gradual so as not exposed citizen to any defect or blackmail from stakeholders until the withdrawal of the old currency in full, on condition also do a big media campaign supervised by the Central Bank and its related entities to educate citizens.