11-10-2011 | (Voice of Iraq)
I had mentioned in a previous article on the following link:
http://bit.ly/p06Nxj
Entitled “Iraqi dinar between the present and future,”
To the need to move forward with the project important cash of deleting three zeros from the Danarena Iraq, and it is encouraging that the Central Bank of Iraq seems serious and determined to move forward with this matter after a thorough study of the consequences of this action on the Iraqi market and the strength of the currency of Iraq and then provide proposed to the House of Representatives for decision and ratification and adoption, has been described in my previous article above that benefits the great return to the status of the Iraqi dinar and the strength and credibility after the adoption of this procedure is important cash, and of curbing inflation in the local market in Iraq and facilitate the handling of cash and financial transactions Iraqi and restored (prestige), the Iraqi dinar and the reduction of the magnitude of the current Iraqi mass cash and the reduction of the phenomenon (dollarization) that still dominate the large cash transactions in the current Iraqi market.
But very happy people do not realize, and every idea is supported by opposed, and both teams have reasonable arguments in this regard. So, I would like to touch on in this article to the “health” of the views of opposition to the adoption of this procedure is important that I consider myself an enthusiastic supporter of him and his defenders. I would like to touch on in this article for some of the arguments of opponents of this idea in good faith (the arguments of ill-intentioned opponents of each idea that optimization of the Iraqi reality a little or a lot, there is no need to discuss it because those are not the benefit of discussion with them already, you will not accept you. “Baathists and Salafis” until you follow their religion), with a pink profile on each of the points which I will address below:
First:
Opponents of this idea that the process of improving the Iraqi economy and the fight against inflation should be made through the plans and development projects, real for the advancement of industry and agriculture of Iraq and the service sector (semi-inactivated we have in today’s Iraq), etc., and not just “Vzlkh” delete three zeros from the Iraqi currency current . The Japanese do not see the need to remove two zeros from the yen exchange rate to become comparable to the U.S. dollar, and Zimbabwe did not stop the inflation did not satisfy people hungry after that removed six zeros from its currency.
Answer:
Who said that originally dropped three zeros from the currency obviates the need to develop plans and projects to promote the real development actually the Iraqi economy? The deletion of three zeros is the process will work to reduce the magnitude of the cash block traded and thus facilitate the deal the state and citizens with financial transactions and large amounts of cash and to remind the Iraqis psychologically past (bright) to Danarhm Iraq, which is not a substitute for nor preclude the necessity advancement of the Iraqi economy through other means, which is understood by economists.
Second:
Opponents say that the process of deleting three zeros will lead to breakdowns and confusion in the local market and the spread of the phenomenon of “monetary illusion” because of the existence of “two currencies” old and new traders and would play into the prices of goods and commodities.
Answer:
This speech, Ward and possible if the process of converting to numbers is regular (as happened when the transition from the Deutsche mark or French franc, for example to the euro exchange rate of fractional complex), exploited merchants of this calculation to raise prices and gain higher money at the expense of the citizens, but in the Iraq operation is is just (remove / add) three zeros to convert between the expense of the Iraqi dinar old and new, and does not require any complex financial calculation, to distinguish between the price of the commodity business and the old dinar dinar new price. I do not think that there is one in Iraq today is capable of hitting any number divided by a thousand or a thousand in less than one second!
Third:
Opponents say that the process of replacing the currency will lead to the occurrence of chaos in the street because the Iraqi people stand in queues at the gates of new banks to replace the current Iraqi banknotes with those of the new banknotes. And established the phenomenon of black market speculators, taking advantage of the chaos that would arise from a changing of the currency.
Answer:
This will not happen again. The process of standing in queues at the gates of the banks to replace the currency occurred during the revolution of July 14, 1958 to replace the currency in the currency of the new republic property. In our case, the contemporary of this, there will be a “transitional period” determined by the Central Bank of Iraq a few years, in which both currencies old and new two windows, while the central bank gradually to absorb the currency notes of old pump leaves the new currency to the market, just like what happened in the European countries decided to join the currency “euro”. To this day, in the Czech Republic, for example, still crown the Czech currency, the euro both of two windows and the prices are written with both currencies (although the calculation of complex unlike the case of Iraq), while the ultimate goal is to get rid of the crown of the Czech and the adoption of the euro currency in full at the end in 2012 .
Fourth:
Some opponents say that the idea was good in the basis that the timing is not appropriate because of the recession and widespread unemployment, a process that would cost the state large sums of money to print a new currency.
Answer:
Economic recession and the concept of relative not absolute. Even the richest countries in the world and the most freedom and development, such as Japan and the United States complain press is always a recession or depression by comparison with the previous figures for subjects of comparison and of the complaint, while proud of the media’s totalitarian state Stalinism of its people hungry and the slave, such as North Korea’s economic prosperity under the leadership of the “party”, for example. Thus, there is no clear definition of the parameters we have to decide which is absolutely good that the economic situation has become a favorable time to take this step. And my view that the timing is very appropriate now, and can not be regarded as the Iraqi economy today, “stagnant” or “Kassado” compared with the phase of the unjust economic blockade, which ended the fall of the idol and liberate Iraq from the grip of the former regime.
The question should be printing a new currency (and being a costly operation), they are of a necessity (as I mentioned in my previous article on the link above), an opportunity to hit several birds with one stone, some of which get rid of those three zeros unpleasant, including normalize currency of the latest and the most beautiful and the benefits of stronger security and more, including work on the introduction of the Kurdish language (the second official language of the Republic of Iraq) on the paper money as we did in the passports, and other government documents.
Whatever the cost of printing the new currency security features more powerful and disobedience to the fraud (with interest accruing to the state and its currency in the long run), it is less than the cost incurred by the state because of the fraud the current Iraqi currency (and in particular the category of 10 thousand dinars to be the largest value and easier to fraud class of 25 thousand dinars), and the Central Bank of Iraq was already in all cases that prints banknotes for the new pump in the domestic market, either with or without the three zeros, this is the main function.
Fifth:
At which point the most important and most sensitive at all, with opponents saying that the counterfeiters and (mafias) money laundering and smugglers of currency will take advantage of the new situation in the “wash” of Iraqi dinars old forged and replaced by new or the smuggling of Iraqi dinars a real out of the country for the purposes of terrorism and organized crime, it which will lead to lethality economic security of Iraq.
Answer:
As I noted above, the replacement process will not be immediate, but will gradually transition over a certain period of years determined by the Central Bank of Iraq. If counterfeiters can use the current Iraqi Dnanaarham counterfeit in the Iraqi market, local damage is already existing and will not appear after the launch of the new currency, and the phenomenon of counterfeiting is a phenomenon found in all the countries of the world. It will be the Iraqi currency printed new currency stronger and wiser in terms of security using the latest technologies used in printing currency and banknotes in the printing world specialized and, therefore, put the new currency security features more and more powerful is that would make the process of counterfeiting, money laundering and kill the local economy is more difficult on counterfeiters and black market traders who are in every time and place originally. And not, as opposed to the idea of fear.
As for those who work on the smuggling of the old Iraqi currency, they will lose their validity at all after the end of the transition period to switch between the two currencies, and then leaves will become worthless, and then working on the smuggler currency (Tnqaaha) and drinking its water! It wants to spend from his own pocket to buy Iraqi currency current and out of Iraq to reduce the number of Iraqi dinars traded in the domestic market, and thus increase its value while he keeps stacks of paper the old to make them cushions sleeps, is a person who should thank him for his support of the Iraqi economy, not be afraid of it anyway!
Whatever the concerns above real, including the face in particular, currency smuggling and counterfeiting, money laundering, each state procedures cash to combat these phenomena, as well as with the CBI its own procedures already, and will not be affected by the importance or usefulness of these measures negatively or positively, the process of replacing currency, does not mean the process of replacing the currency and should be abandoned for these precautions, it is meant that work to strengthen and increase the effectiveness and efficiency, it is where the fear then? Where is the problem and gentlemen customers in deleting three zeros from the current Iraqi dinar (consider the many benefits of this process in return)?
So the idea of deleting three zeros from the Iraqi dinar current idea of a good and necessary in my opinion and benefits than disadvantages and must move forward through as soon as possible (taking into account the reasonableness of the two periods preparatory and transitional), a matter of time is a must, and God knows what is right anyway.
Munaf Winner – Abu Dhabi
Supplement to the article
The denominations of the Iraqi dinar current (and future old) are as follows:
Mineral groups: no (was introduced two categories of 25 and 100 dinars in the year 2004, but it did not work was withdrawn from the market in 2008).
Categories of paper: 50 dinars (become little use today because of high prices and lack of value), 250 dinars, 500 dinars, 1000 dinars .5000 dinars, 10,000 dinars 0.25000 dinars (which is the highest denomination of the Iraqi dinar, is currently not sufficient to manage the enormous mass of cash from Dnanerna Iraq now, they are not equivalent to only $ 21).
I suggest (and I expect) to become denominations of the new Iraqi dinars (current and future) are as follows:
Mineral groups: 50 fils, 100 fils, quarter of a dinar, half dinar, one dinar (like the old days).
Categories of paper: 5, JD 10, JD 25 JD 0.50 dinars (perhaps 100 dinars, not to be in circulation in the local market, such as the 50 dinars, because the class of the JD 100 is also working to facilitate spending and rising inflation), and must be groups of 25, 50, 100 dinars printed on paper security features are very strong to prevent fraud, as are those security features followed in most world currencies currently (see class 20 or £ 50 as an example of the security features powerful and anti-fraud, but if the O rings fraud and money laundering we have in Iraq, “Ohtr” than in Britain, and that is not my belief).
