Fears delete the zeros of the local currency
Fears delete the zeros of the local currency
25/02/2013 (23:00 pm)
BAGHDAD / agencies
Agreed politicians and economists that the process of deleting three zeros from the current currency risky because of the situation of the country and the lack of security and stability and the spread of corruption, where Iraq is seeking to reform the system of currency management and ease of use and reducing the number of banknotes of four billion to one billion and 800 million paper, by deleting three zeros and the issuance of a coin.
The decision of the Finance Committee in the House of Representatives MP Ahmed electrodes of the island that “Multi deletion of zeros from the local currency is still under study within the economic issues, not pending until now because of crises many experienced by the country, as well as problems that accompany the adoption of the financial budget for the current year .
He pointed out that this process is not possible at the present time because it will lead to a problem in the Iraqi economy.
The electrodes that “the Finance Committee inquired from the Iraqi Central Bank on its preparations to change the currency without getting fraud where, and expressed its readiness to this process, but the problems that have occurred in the country in addition to the crisis the central bank, which led to changes in leadership, stopped this process.
He pointed out that Iraq can not be doing the process now, and added, “We need to stabilize the general situation of the country, in order to prevent any attempt to exploit this procedure by the corrupt.”
Support monetary policy
For its part, said a member of the Finance Committee in the House of Representatives Najiba Najib said that “this project was in the time of former central bank governor Sinan al-Shabibi, has been studied by the parliament well, resulting in the latter to address the Council of Ministers to support this project, and there was a negotiation and dialogue with a number of international companies on the deletion of zeros, indicating that this process is a good step and help to support the country’s monetary policy. ”
She added that “this subject has no echoes currently in parliamentary community and senior in Iraq because of the dismissal former central bank governor and refer the matter to the Integrity Commission, explained that the project will succeed if given the government and the House of Representatives and all institutions supported because it will prevent fraud and removes fear if the procedures sound .
She explained that the country needs to restructure its currency, as there is no class more than 25 thousand dinars, as well as coins, which confirms that the current currency in line with state revenues, which have significant financial budgets.
Najiba confirmed that there is a lack for money on the market, and that change would have a currency with economic feasibility to take all legal precautions and necessary legislative and government, while making the timeframe up to one year to change the citizens their money, in addition to the increase in bank branches.
The economist said Raed al-Hashemi said that “the process of deletion of zeros is a necessary step and task comes within the country’s need to process administrative reform of the currency contributes to reduce transaction costs and trading cash in the economic process, and reduce the size of the money supply in the country and help facilitate the calculations and reduce the inflating numbers , if applied correctly and appropriate Baltoukitat.
He also added that “the issuance of small groups will facilitate accounts price policy, but the replacement currency will not affect the tackle inflation significantly. Cited countries that have applied this process such as Sudan, which delete zeros from its currency in 2007, and Turkey, which deleted six zeros from its currency in 2005, and omitted Zimbabwe in Africa ten zeros from its currency in 2008, and Bolivia deleted three zeros from its currency in 2008, and deleted all of Romania and Iran three zeros from its currency in 2005 and 2011, but did not improve the value of the currency in these countries significantly and remained Index inflation which conservative on the rise.
He pointed to two important matters in the application process of removing zeros are: first choice timely which the Iraqi economy in a state of stability, and the second is to create the economic environment is considered to apply the deletion process, and this needs to be procedures and financial decisions and banking taken financial authority in the country.
Hashimi concluded his speech by saying that the implementation of the resolution at this time is appropriate and is considered a significant risk to the unstable security situation and the country’s economic.