Experts (range): Delete the zeros does not affect the purchasing power of consumers
On: Tuesday 13/3/2012 9:41
Baghdad / Mohamed Habib,
the whole number of economic experts that the process of deleting the zeroes do not affect the purchasing power, assuring it a bold step towards the restructuring of the local currency. The deputy governor of the Central Bank of Iraq the appearance of Mohammed Saleh (range): The mass circulation of cash exporting over 30 trillion Iraqi dinars to the various groups
And reflected by the number of securities traded $ 4 trillion paper money is the product of a long period of inflation and economic decline, where the index of consumer prices base 1993 from 100 to 200,000 in the midst of 2003, which means that the item that was sold for 100 dinars became sold for 200,000 dinars. Saleh added: In such a circumstances increased the coin larger than 25 dinars to 25000 dinars, which means that inflation is added, these zeros, at the time that inflation means rising prices of money on goods and services (ie, how much money we need to swap package of goods and services The more .. increase the amount of money allocated to the swap on the package itself mean that there is inflation or a rise in the price of money). He continued in favor: that the value of money is inversely proportional to their prices, especially if we know that price is the value of goods and services expressed in currency, and since the money is anything agreed upon by the community to become a medium of exchange and store of value and unit of account, the money (legal) issued by the Authority cash under the law with the power of discharge of the receivables and is seen as a social institution increases the efficiency of the economy and its economic in moving the exchange efficiency of the social institution or money, and vice versa.
and Saleh said the price stability and optimism in Iraq’s future development, it became necessary radical reform the system of management of the currency This re-structure commensurate with the new price structure is different and stable levels of wages and salaries, which differed significantly from the last thirty years, as well as handle large cash lump weak components so that the currency has become the largest category, but not worth $ 21 U.S. for the time being. As explained for the high gross domestic product of Iraq of $ 140 billion at year-end 2010 to more than $ 300 billion at the end of 2015, will increase the money supply exporting than 30 trillion dinars to about 70 trillion dinars.
He noted the benefit that Sweden, for example, where there is currently one of the best cash payments systems in the world, however, the cost of trading of cash counting and sorting, transport and storage of the coin cost the national economy, representing 4% of gross domestic product of Sweden. How can we compare the country such as Iraq shall be managed so amounts of cash tremendous weak structure, which adds the cost of cash transactions may have up to 8% or more of the gross domestic product, a burden borne by the individual in his dealings, which took reduces the efficiency of the exchange as a social institution support to institutions of various economic including market and evidence of this inventory transactions large cash payment in U.S. dollars.
For his part, said banking expert Abdul Aziz Goldfinch (range): The process of removing the zeros, according to experiences of other countries will see a state of imbalance is a natural condition, leading to osteoporosis is simple in prices due to lack of understanding of customers and used by some indicating that the block size of cash in Iraq, a massive and deal tired, noting that 30 trillion is a figure very large in the case was to delete the zeros will facilitate the counting process, transport and risk aversion, and even storage.
in turn, said the economist Ali gnathion NA (range ): The process of deleting the zeroes do not affect the purchasing power because the exchange rate is linked to the dollar, whether zeros exist or not exist, adding gnathion NA: The state is worried about the economic adjustment due to lack of visibility and there are many things must be done, but fear prevents them, stressing that reform require bold steps and success needs to be big steps.
For his part, the citizen just a gesture that the deletion of zeros under the conditions of volatile economic and security threaten the economic reality of the existence of mafia money lying in wait for the occurrence of such projects.
Meanwhile, a citizen Ali Kemash that the deletion of zeros will reduce the manipulation of numbers by adding zeros to the accounts in banks and thus reduce or eliminate the economic corruption banking, and home made sword shop owner Amer banking that the deletion of zeros will reduce the large numbers that contribute to facilitate the calculations.