Economist: clinging to the security and economic situation to delay the lifting of the zeroes from the currency, “a lame excuse”
Monday, September 17 / September 2012 11:33
Description economic expert on behalf of Jamil, invoke the security and economic situation, and work to delay the process of lifting the zeros from the currency arguments “flimsy.”
Said Jamil told all of Iraq [where] today, that “everything in Iraq has become a subject of political decisions and moods, pointing out that” one of the paragraphs of the Central Bank Act, allows him to print and change the currency. “
He added that “the Iraqi currency ago by eight years, and Ntgah inflation monetary and frequent banknotes in Balasouk and consumption is part of the currency and the difficulty of the calculation, the deletion of zeros from the currency conveniently very present, and the central bank formatted officially more than a year for this process, which do not affect the purchasing power, but would ease the process of state intervention in the market purchasing, also will give the dinar moral force, and remains the dinar is the main currency in circulation. “
Jamil said that “the lifting of the zeroes from the currency will serve the foreign investor, and the use of the Iraqi dinar in foreign dealings, rather than the dollar, noting that he” does not have any damage, but will be reflected positively on the government banks. “
The economist pointed out that “the currency will be printed in a competent presses has been given forms to accept fraud at the Central Bank.”
The Cabinet decided in its meeting held last April 10 to wait in the application process of deletion of zeros from the national currency until further notice.
The Central Bank of Iraq, and on the lips of bank adviser appearance of Mohammed Saleh, has confirmed to [where], need for Iraq to process administrative reform of the currency cash, and that the project to delete the zeros is a step comes as part of the country’s need to process administrative reform of the currency, in order to reduce transaction costs cash in the economic process, in addition to the need to provide small denominations coins used in daily circulation of small transactions.
The officials at the central bank, as well as some politicians and economists, urged the government to delete the zeros from the currency, and the issuance of a new currency denominations large cash, in addition to a small Coins.
Observers say the government really intends to delete the zeros from the currency as a step towards improving the purchasing power of the Iraqi dinar, but economists played down the importance of this step, considering that the cost of raising the zeros will be greater than the benefit expected from the lifting of zeros.