Iraqi Central heading into a large printed banknotes

Iraqi Central heading into a large printed banknotes

05/10/2015 10:50:00

25k Iraqi Dinar notesSaid Advisor to the Prime Minister of Iraq for Economic Affairs, the appearance of Mohammed Saleh in a statement to «life», that the draft Print Central Bank of Iraq large cash categories, an important step on the road to monetary reform, which supports the country’s economy, pointing to a market need for large denominations, and that handle very large monetary blocs in Iraq, especially that cash payments outweigh the instruments to deal cards and electronic payments.

He pointed out that printed large cash categories not related to monetary policy but the payments system project management, pointing out that this plan will be condensed amounts of money, especially large groups that make up 90 percent of the money supply in circulation.

He explained that the launch of these large groups is to put the same amount of monthly money supply in the market but different categories, and not increase the original amount. He ruled out the potential for inflation by the implementation of the project, pointing out that the «Central» does not lend the government and said: «in case of lending to the government and the issuance of large cash categories can get price inflation (…) the country is suffering a contraction in liquidity both in dinars or in dollars with Abalg money supply in Iraq size less than 40 trillion dinars »(about $ 31 billion).

The traders in the currency market fears of a new high amounts of cash currency issue, pointing out that such a measure would lead to the loss of monetary value, as it is imperative that any action aimed at revitalizing economic sectors.

He quoted economist described the policy now in Iraq with «Deflationary», and this issue needs to be process of balance in the exchange rate can not be spending on the investment side because of a lack of imports and mismanagement of funds in the last period and the absence of productive sectors, also warned the continuation of the wrong policies on the monetary policy level, calling on government officials to recognize the importance of the subject in connection with all economic sectors.

He ruled out the economic expert contrary goldsmith feet «Central» on the Iraqi process of removing zeros from the currency in the current circumstances due to the economic situation is stable, and therefore such a procedure does not lead to increased economic activity because the cash value comes from the size of the country Activity in sectors that contribute supporting the exchange force.

The governor of the Central Bank announced before the economic and investment commission in the House of Representatives that the bank in the process of printing new securities category of 50 thousand dinars to enhance the efficiency of the payments system.