Delete the zeros and the fate of the currency .. In the hands of the experts at the table (morning)

Delete the zeros and the fate of the currency .. In the hands of the experts at the table (morning)

03/09/2012 12:00 am

BAGHDAD – Yasser incumbent – Haider al-Rubaie Flaih – Hussein Tgb Tamimi
opened the round table organized by the Center for Strategic Studies in the morning newspaper in collaboration with the Economic Section Multi file deletion of zeros, which is the richest insights and analyzes the value and put points on the letters in decoding choking on a lack of understanding subject .
and reach a group of experts who participated in this table to the fact that such an important decision and dangerous at the core of the economic problem needs to law and legislation to ensure not falling mistakes incurred country moral and material losses large in Iraq indispensable.
For the first time in the most if not all seminars previous economic converge policies have monetary and fiscal table (morning) this sporting spirit of understanding in order to solve the problem and thus contributing to the distance from the potential risks that may accompany the process of change or raise zeros.
was submitted magnificent deputy central bank governor the appearance of Dr. Mohammed Saleh historical overview of money and commitments as a prelude to clarify participants had enriched everyone of the importance of lifting of the zeroes and convincingly and striking contrast representative of the Ministry of Finance d.
Hilal Taan vision on the action and despite the emergence of intersection in the two views in the apparent but in sub converge policies have cash financial and in one pot, but a careful to keep the national economy from additional shocks. Taan focused on the obstruction, the only way to delete the zeros is the psychological aspect of a group of Iraqi businessmen who have devoted culture of the state and rely on the dollar, while noting the experiences of other countries reservations تجارهم to rely on is their currency and a way to force their economic activity.
This analysis led to the development of ideas converged on the timing of the deletion of zeros and receded in the availability of envelopes firstly cover legislative saves currency from acting qualitative and secondly create a culture of attention in the national currency and this is governed by a matter of time blaming devices media responsibility to adopt this role.
Many of the participants all agreed on the need to provide a suitable environment for such a move is important, acknowledging its importance due to the fact that the currency represents infrastructure sober for the country’s economy, and on the grounds that the country’s economic strength stems from the power of her money. need to reform the system of payments deputy central bank governor the appearance of Dr. Mohammed Saleh pointed out that under the price stability and optimism in Iraq Development, it became necessary radical reform on the system management of currency as well as the re-structure commensurate with the price structure new and different, stable and levels of wages and salaries, which differed significantly from the last thirty years, as well as handle the mass of large cash weak components so that it has become the largest category currency Atsawi only $ 21 U.S. at the present time. noting that the increase in gross domestic product of Iraq from $ 140 billion at year-end 2010 to more than $ 300 billion at the end of 2015, will raise the money supply exporting of 30 trillion dinars to about 70 trillion dinars. And weak structure in the currency structure as mentioned above may take adds cost called the cost of cash transactions in terms of trading, whether between individuals themselves, individuals and banks within the banking system itself. Saleh said that in Sweden, for example, having now one of the best systems of cash payments in the world and despite that, the cost of trading cash counting, transmission and storage of the coin costing the national economy accounted for 4 percent of the gross domestic product of Sweden. Wondering how to compare that in a country like Iraq shall be managed so huge amounts of cash weak structure, adds the cost of cash transactions may reach 8 percent or more of GDP, a burden borne by the individual in his dealings which took reduces the efficiency of cash as an institution social support to institutions economy different, including the market as evidenced by the decline in cash transactions because of falling efficiency and installation of the money supply current. and pointed out that the multiplicity of zeros raises the denominations with declining purchasing power has enormous difficulties, including the difficulty of expression for the cash value as well as the same difficulties of monetary operations and technical problems in the recording of statistical data in the accounting books and changing accounting systems and settlement systems, as well as prices figures show long difficult counters or digital devices read Asfarha in gas stations or other digital devices. and continued on this basis has become a need to reform the system of cash payments through several advantages, the first on the horizontal plane and is deleting three zeros any transfer 30 trillion dinars to 30 billion Dolaran by deleting three zeros from the current currency and replace it with a new currency making it easier to handle arithmetic with numbers are less numerous in terms of accounts the federal budget, the budgets of banks and companies as well as balancing family cash (individuals) without incurring any change or switch on the wealth of cash for natural persons and moral as well as non-depressing contracts and obligations between natural persons and all concerned. , which called generating function sports political debate or political debate of the world (1752) Effect of nominal price levels with a high amount of money, such as the transition from Roman numerals to Arabic numbers (the numbers in English now), that the transition to ايغير of the basic principles of science and math. High amounts of money leads to higher prices for the same without the impact’s real economy results. The level vertical any restructuring of the currency and fitted it to the category large amount of 25,000 dinars are alone (two thirds of the amount of securities traded), the issuance of larger groups mean reductase four billion banknotes in circulation now and converted to a number equal to (1.180) billion paper cash. As Stakhtzel large groups of currency nearly 80 percent -90 percent of the total new categories exported to trading (such as 50, 100, 200 new dinars). Said based on the foregoing, the cost of cash transactions between individuals and banks and between individuals themselves or natural moral fall inevitably in terms of the costs of counting and checking. If Maalmana, that banknotes traded eroded the average over a period of five years, which means replacing enormous mass weak structure and consequent costs typographical specifications high security is another burden borne by the issuing authority cash is a relic Management System cash generated economic downturn former became not fit, stability and economic progress desired. said that money is anything agreed upon the community to become a medium of exchange and a store of value and unit account, the money (legal) issued by the monetary authority under the law and with the power of discharge of accounts receivable, seen as a social institution, where increasing the efficiency of the economy and its operations in moving efficiently exchange those social institution money, and vice versa. explaining that continuous inflation led to rising currency of 23 billion dinars in 1991 to about (30) trillion dinars over time. In this drawing new inflation figures for the currency traded add three zeros which increased the nominal amount of cash operations and consequent costs of producing large amounts of Maraafqatha, storage, and distribution operations, sorting and checking accompany her and doubling levels, the growing operational risks associated. And concluded by saying that the reasons for changing the currency current reflects the fruit of economic stability and the success of policies CBI in maintaining stability and of the stability of the dinar and falling inflation to the rank of one decimal and build foreign reserves support of the Iraqi dinar levels never achieved during the thirty years, which is the cover of the Iraqi currency. In addition to improving the system of cash payments and make it leave actual adhesion combination for the past economic اختلالاته and rebuilt on the future of economic development and real and nominal givens. Action needs to review minutes either an economic expert Dr Akram Abdel Aziz began her several questions came in the forefront of any mechanisms that depend upon the implementation of this approach and implement the replacement process and ensures that there is no manipulation during the switching process in the sense of protecting this step of fraud ? And added that the economic situation need to follow all his joints which are needed to promote it, as the money spent on switching process must achieve the goal. Continued its questions you were to stop at concerns and that this process may increase smuggling money abroad, especially that the process of deletion of zeros procedural difficult and complex and require statistics and accurate figures and must stand at the effects on the stock market. They pointed out that this issue if has not been studied extensively and the quality of community, the process of subtraction will of the Iraqi market to imbalance and jerks just because the citizen can imagine that the deletion of zeros will affect the real value of the currency, stressing that the strategy proposed must correlate between the money market and the labor market, as she wondered whether that outlook be comprehensive nature of inflation in terms of it’s not the high cost of production and a series elevations price of interest joints much-needed citizen. said that direct this trend needs to be a thorough review of the reality of the Iraqi economy and its institutions of public and private and the extent and effectiveness trends credit support for the work of the private sector . It showed that the basis of the success of any reform process and administrative needs radical treatment and serious fiscal imbalances, monetary and administrative constitute an obstacle to development cash development in Iraq. deficit financing most prominent reasons for the low value of the currency and despite the fact that the process of deletion of zeros from the currency traces can be negative on counterfeiting operations that will accompany it, but the economic expert, Dr. Hilal Taan said during his speech at the symposium opposite when he pointed to the possibility of several gains from behind changing the currency, is to provide a strong cash flow and global Iraq, which is needed to large groups of cash in value and small in size perform functions of money, as well as the deletion of zeros will play a positive role in business dealings, according to Taan who said that other positive which will be produced by changing the currency is escorted to the stage of economic growth and prosperity growing for Iraq, therefore, change the currency is essential This is in line with this optimism in the national economy. reviewed Taan some detail the chronology of the Iraqi dinar and witnessed volatility of price, explaining that in 1980 amounted to release cash in Iraq four billion dinars, and was then the highest denomination is 25 dinars, equivalent to then $ 75, and reached the bloc in 1992 about 25 billion dinars, and increased in 2003 to reach six trillion dinars, and rose this block to reach now 35 trillion dinars. Despite increasing the money supply in this way large compared with the year 1980, which was equal to the highest category of cash which is 25 dinars about $ 75, the Taan For comparison pointed out that the highest category of cash now stands at 25 thousand dinars is it not worth only $ 22. explaining that this shows the size of the collapse happening in the Iraqi currency The wrought by a series of factors do not stand Pferdha deficit financing process in the forefront of those factors but also contributed to other causes in a collapse of the structural changes that have occurred on the size of the budget after 2003, which led to the increase of cash, and this increase resulted in the higher costs Additional transactions, so in the case of deletion of zeros, these costs will decrease inevitably. Taan hinted that Iraq since the eighties resorted to the use of deficit financing policy, and that policy in developed countries achieved positive effects unlike in developing countries, where the States have developed a device productive flexible able to face demand and therefore increase investment, savings and get the economy moving, either in developing countries When Released new cash gets to meet a large amount of money goods are few and services is low, and a productive is flexible and a rise in prices and the flight of capital, stressing that all these negative factors took place in Iraq, and increased rates of inflation, and these negatives according Taan can not be solved without deleting three zeros from the currency. Turning Taan to the importance of the availability of a number of things he said was necessary to initiate the process of deletion of zeros, pointing out that there are factors to concrete and other significant impact material, and also said: that to change the currency prerequisites should be available before this, the first of the reserve strategic direct, any balance of gold and foreign currency, and I see that the dinar Iraqi covered with good foreign currency is according to the Central Bank of 67 billion dollars. believes Taan he Furthermore, the second factor that must be made available to initiate the process of deletion is in the size of the reserve strategic indirect, and intended to natural resources, and this is positive now, especially since Iraq has become the second country after Saudi Arabia in the volume of production and exports of oil to OPEC members, explaining that the third thing is the factor psychological, any behaviors and activities to some wholesalers, who became not like to deal in Iraqi dinars, and preferred the dollar, despite the fact that The currency is a commodity, the greater the demand for that commodity value rises, and vice versa. has provided a number of experts and researchers interventions task enriched table ideas and solutions, including the Executive Director of the Association of private banks in Iraq Abdul Aziz Hassoun, and banking expert Abdul Hussein Mundhiri, and economic researcher Thamir Alheimus and economic analyst, Dr. Hussein Allawi, and a number of other businessmen, including investor Hadi Hndas, and investor Ibrahim Jaber Hussein, and Ibrahim Mohamed Ali investor.
Source: alsabaah