The need for currency reform in Iraq

The need for currency reform in Iraq

Posted, 02 Nov 2013

A lot of discussions in Iraq are going on over the need for currency reform so that common citizens of Iraq can save themselves from evils of daily price rise in the commodity market. Moreover, recent disturbances in the US economy have also resulted in fluctuations in the Iraqi dinars. Economic experts and financial committee member of Iraqi government have urged for changing the base currency from the US dollar to some stable currency. On this regard, Chinese currency or Yuan has been proposed by many for brining stability in Iraqi dinars. However, this proposal of changing the base level currency from US dollar to Chinese Yuan has not been approved yet. Other economists have raised questions and opined doubts on this.

Sufferings and Suggestions of the Common Men

Fadel Hamid, a service man in Iraq, stated that the majority of Iraqi banks impose those currencies on account managers, who in turn distribute salaries among employees, who will suffer in the dispensing commands to later in market places where the currecies will face difficulties in acceptance.
Haidar Alwan, a taxi driver from Iraq, remarked, “Our currencies National made of paper is good, and print is good, which displays it to be damaged, sometimes we are forced to accept these currencies damaged citizens after the despair of the existence of other good, indicating that our situation if the rest of the as citizens do not accept these currencies during our dealings.”
Complained Nadia Mohamed (housewife) rejection of most of the shop owners and taxi receipt of some currencies under the pretext of damage to note that I obtained through Tdaa the needs of the home of one of them, the currency was imposed on us by the state did not announce expiration must be accepted to deal with whatever happens.
It has to be noted that recently Kuwait has converted its currency to the “plastic” and polymer material, resistance to heat, humidity and dust, and had thus proceeded by Canada, Australia and some other countries, due to several advantages enjoyed by them. The question is – should Iraq start thinking such currency production? The ability to resist damage plastic, which prolongs the life of the banknotes which are made of plastic material by more than two and a half times compared to those currently used, as well as low-cost of printing on plastic compared to the other.

Facing Difficulties due to Severe Damages

Director of the bank, Dr. Hilal Taan explained that the currency is currently composed of six categories: twenty-five, and ten thousand, five thousand, and this is very good not complain of any problems, but the imbalance is happening in the categories of Alpha and Alkhmsmih and two hundred and fifty dinars being smaller and frequent trading in them.
He further explained that the Iraqi currency printed by a foreign entity and difficult to forge, but the younger categories suffer rupture being the most in the deal, nor harm from dealing in these currencies as a general situation in all countries of the world and naturally used and accepted by everyone.
The complicity of some of Trustees of funds in bank branches with the staff of the accounts departments to receive salaries from groups large to get rid of small torn between in the event of a disruption of this kind in any branch of the bank branches can be reported abuser of the Office of the Inspector General in the Ministry of Finance and will take the right measures strict, but he also said the General Administration of banks provide their affiliates with all denominations meals evenly distributed among the beneficiaries, calling on banks to staff the respect of citizens and treat them well.

Handling the Foreign Dinars

Speaking about the Iraqi currency between our currencies denominated gold, the Iraqi central bank has more than 30 tons of gold and currency reserves of more than 76 billion instead of the balance of the coin.
In light of the problems caused by paper currency must be addressed to the coin that is missed byا Iraqi street for many years as a result of economic crises experienced by inflation, which began suffering, they are capable of solving the problem of wear and tear, but for those involved in other opinions in this aspect, as confirmed Director of the banks that the draft coin exists in all countries of the world, but in Iraq need to be a period of time to accustom citizen them again, as well as the implementation of the plan to delete the three zeroes, pointing out that in the earlier agreement was reached between concerned to postpone the project until the end of 2015, deleting zeros means “the currency’s strength in dealing small in size” becomes there is a need to launch a coin.

Need for Major Currencies

Finance Committee member MP Najiba Najib said, “It is necessary to restructure the Iraqi currency; because the existing currency is consistent with the size of state revenues and Iraqi currency in circulation and investment which will hopefully happen in the coming period, because traders, whether they are companies or people resort to deal in foreign currencies such as USD for easy portability and trading.”
She added that the biggest currency cash is from the category of “25″ thousand Iraqi dinars, which is not equivalent to inflation in the markets, we must provide large groups such as “200″ thousand or approximately “100″ dollars, as well as having the coin to cover all the requirements of market and the citizen.

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