Expert: delete the zeros will increase confidence in national currency, the new
03/04/2012 01:37 PM
BAGHDAD - Babinaoz (Reuters) - He is an economist that the process of deletion of zeros will not lead to the occurrence of collateral damage in the real value of the coin, and it will not bear negative effects can affect in GDP, explaining that the monetary authorities resort to such a procedure after reaching the economy stages advanced stability.
The operation according to the Iraqi Central Bank to reduce the money supply enormous, and the alleviation of inflation, which he considered the bank (monetary inflation) due to increased amounts of cash pumped into the street, which invited him to the foot to the deletion of three zeros from the currency. According to sources Reliable mentioned in the earlier times (morning), the process of deleting the zeroes will be early next year, noting that the measure would be gradually until the absorption of the entire Old Banknotes of the market completely, the memory that the two currencies existing and new will work at the same time without reducing the value of any of them until the absorption of the entire current currency, or which will be the (old) time., says economist and head of economic studies at the Center for Mustansiriya Dr. Abdul Rahman al-Mashhadani: The process of deleting the zeros formality through which change the nominal value of the currency, without prejudice to the value true and there is have raised the real economic, because changing the currency will not lead to an increase in GDP of the country, explaining that the process is applied without any damage in many countries of the world during the last thirty years, including Bolivia in 1986, Russia 1998, Turkey 2005, North Korea, 2009.
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called al-Mashhadani to the need to distinguish between the process of change in real currency, which means changing the exchange rate of the local currency compared to currencies of leadership as dollar Mthelaoho is lead to the re-evaluation of prices of goods and services due to the change the real value of Amlhmthel what happened in Iraq in 2007, when the value of Iraqi dinar against the U.S. dollar to 1267 dinars after that was sold at the price of 1475 dinars in 2006, and like what was done by China when it devalued its currency iwan compared to other currencies to compete with Chinese goods, other goods in international markets as it is cheaper, and the process of deleting the zeroes, which means keep them real value of the currency. and the expert a number of pros He said that the process of deletion of zeros will be provided by the new currency, considering changing the currency thing will work to strengthen the confidence with one of the symbols of national sovereignty of the country, and can increase confidence in the national currency with the citizen at home and the foreign investor abroad, as well as reducing the process of dollarization using the currency as a store of value and measurement, as well as facilitate trade within the country, and to facilitate the process of converting Dinar to other currencies.
shows the al-Mashhadani, a number of economic justification achieved, which indicated that it was capable of completing the process of removing the zeros from the currency, noting that it achieved thanks to the measures the central bank which could be performed from through a tight monetary policy effective in the years 2006-2011 to be able to derive a set of positive changes that are driving the change process and contribute to Banjahaa.
pointing out that among those variables that achieved by the central bank is to stabilize the exchange rate of the local currency or the external value of the Iraqi dinar, and the high value by 25 percent over the past 2008-2011, as well as the stability of the internal value of the currency and integrity control of the inflation YoY basis, who arrived to 3 percent in 2010 after it was nearly 53 percent in 2006.
saying that the measures cash used by the Central worked as well as to build reserves, a strong more than $ 60 billion is the dolly to the value of the currency and protect the integrity and balance of payments of external shocks.
and contributed to the stability of the market and the proportion of commodity supply through flexible foreign exchange and promote trade and ease the burden on fiscal policy and trade. He also said that among the measures that have contributed to the stability of the dinar exchange rate is to control the Central Bank and control over the exchange rate through its daily auction to sell the dollar. Shows the al-Mashhadani, a number of technical factors that require speed to change the currency, and deleting three zeros of them, stressing that there is a mass of cash exporter large the number of leaves 4 trillion paper and increase the value of 30 trillion dinars to the various groups which is a large block size and value in the economy is recovering daily and this is a can confuse the process of economic and monetary significantly and lead to twice the value of the dinar off the rest of the Arab and foreign currencies, which holds now, actually, as the largest category of cash is (25000) Twenty-five thousand dinars, equivalent to $ 21 almost and this requires a larger and effort to settle the daily transactions in terms of time of counting, sorting, and acceptance and security so the settlement of most of the daily transactions that increase Akiemha for the 20 million are in dollars.
and acquire modern for lifting of the zeroes care and attention of stakeholders and businessmen as well as the rest of the citizens in their daily such as selling cars, buying and real estate as well as debts and advances and other financial transactions common reason the central bank to send more messages and signals reassuring that are often reinforced by experts in their statements, press releases .