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Decision to delete the zeros from the currency .. Ink on paper- Tuesday, November 6, 2012

Decision to delete the zeros from the currency .. Ink on paper

Al Mutar Magazine

translation:  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 less than the dinar categories such as (half a dinar) and (quarter of a dinar) and (50 fils) and (25 fils).


This is confirmed by financial and economic expert at the Central Bank Majid picture that sees no difficulty in implementing the decision because it will help in the process of reducing the trading volume of currency in transactions large and will lead to fee pricing policy more accurate in the future as long as it will be dealing thousands and millions rather than billions, as well as its role in detect fraud earlier because the central bank will impose on banks use very modern techniques to detect fraud. He adds, As the technologies that will be used in the printing of the new currency will be difficult to penetrate unless the gangs behind it or organization backed by the state because the precise specifications and styles to be set by the central bank will be very strict '.


In contrast warns economist Tawfiq inhibitor of the collapse of the national currency in the case of the application of the decision to delete the zeros three of them, pointing to the need to prolong the period of the currency exchange and not withdrawn the old currency and launch new direct, but do it together so it would not cause harm to the economy or any direct impact on living conditions of the citizens. On the other hand sees inhibitor that counterfeiting process is another reason to collapse and therefore warns that happens, especially as there are great bands and mafias currency capable of forging the biggest Iraqi currency.
Most citizens see the decision to delete the three zeros from the national currency look apprehension after their pockets used to carry large paper groups and accustomed stakeholders including dealing with hundreds of millions.


The 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.


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 as it is needed to control of the oscillation happening in the exchange rate of the dinar against the dollar. Abdul Jalil confirms that the lifting of the zeroes will cost the state budget large sums may open the door for financial corruption and waste of public money as well as failure to address the problem of inflation because the Iraqi market for all imported goods and services from abroad, which means a large drain of hard currency.


In response to these concerns, stresses, deputy 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. And in favor of the view that the Iraqi citizens need to raise awareness in the villages and towns and schools also require that students have a role in the media help citizens to receive the project.


The expert economic 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 the owners of interests until withdrawing the old currency fully, on condition also do a mass media campaign is overseen by the central bank and entities associated with it to educate citizen.

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