Economists fear the process of lifting the zeros from the Iraqi currency
Date: Monday 26/3/2012 7:09
Baghdad / term
A number of Iraqi economists to start deleting the zeros would hinder the development of the Iraqi market for securities because it will cause the reduction of foreign equity to 20% after it witnessed during the current year 80%.
He said an economist and professor at the University of Mustansiriya Radi al-Husseini that “the stock of Foreign Affairs of the Stock Exchange will drop to 20% if the Iraqi Central Bank to raise three zeros from the local currency, because.. it is not something organizationally, but beyond that where it causes obstruction of financial transactions, including block the signing of an agreement with the brokerage firm, in addition to delay the signing of authorization form with the brokerage firm because foreign investors believe that changing the currency will reduce profits. ”
and added that “the central bank has to choose the right time to delete the zeros of the local currency in coordination with the Iraqi market for securities to avoid any confusion with regard to lifting of trading bank. ”
and declared the Iraq Stock Exchange yesterday that the deletion of three zeros from the local currency will not affect the level of equity investment of external and internal.
In turn, the director of the economy and Iraq’s oil Abdul Halim Kazem’s (Rn) yesterday, said that “Central Bank’s decision by selecting the first of next year’s date for the flow of the new Iraqi dinar is a matter of surprise, as he did not use any coordination with the Iraq Stock Exchange regarding the selection of the time to start pumping new dinar.”
and added that “the Iraq Stock Exchange rose to the stock during the year by 85%, which is good, comes the rise because of the political organizational pursued to attract shares of State and the development of the banking sector. ”
He pointed out that “talk that is regulatory is not true as it enters the fundamental structure of financial transactions, and particularly the foreign investors and may cause delay in the process of the development of the opening of other financial markets in the provinces of Basra and Erbil. ”
and announced that the Securities Commission for stop enforcement of from yesterday until next Thursday in response to the holiday announced by the Iraqi government.
, says CEO Abdul Razzaq al-Saadi (Rn) that “the deletion of zeros from the currency Local no more than is organizational and it will not affect the level of trading stock investment foreign and domestic, “noting that” the continuous coordination with the Central Bank to regulate the process of deleting the zeros and confidence that it would not affect the level of trading domestic and foreign shares of stock. ”
and pointed out that “the Iraqi market Securities has specifications similar to international standards, which represents investor confidence, which contributes to strengthening the Iraqi market for securities in achieving economic development. ”
and started the Iraq Stock Exchange preparations preliminary to gain membership in the global market, has also announced the initiation of electronic filing of corporate foreign investment and local Instead of filing paperwork.
The Stock Exchange of Iraq has started operation in 2004, and shifted from manual trading to the use of screens handle electronic in 2009 and open for trading two hours a day five days a week, and the banking sector is the largest in the exchange, which also includes the shares of industrial companies and insurance companies and hotels and agricultural companies.
central bank says it completed a road map to get rid of three zeros.
also announced the Economic Committee in the Iraqi Council of Representatives, last Thursday, it formed with the Central Bank of Iraq to a joint committee to begin the process of deleting the zeros of the local currency.
confirms the Securities Commission the government’s position to delete the zeros and says that adversely affect the financial trading in the stock market.
It is worth mentioning that the Central Bank of Iraq’s four branches in Basra and Sulaymaniyah, Erbil and Mosul, which was established as a bank independent Iraqi under the law of the Central Bank of Iraq issued on the sixth of March / March 2004, who is responsible to maintain price stability and the implementation of monetary policy, including exchange rate policies and the management of foreign reserves and the issuance of currency management, as well as the organization of the banking sector.
The main tasks of the Central Bank in managing monetary policy in the country and raise the level of the value of Iraqi dinar and tackle inflation.