Experts warn that the collapse of the local currency in case of deletion of zeros

Experts warn that the collapse of the local currency in case of deletion of zeros

On: Sun 07/29/2012 7:06

 Baghdad / range
warned economist reconcile inhibitor of the possible collapse of the national currency at the application of the deletion of the three zeroes from the currency, calling for an economic feasibility study for the project before its implementation.
said inhibitor in a press statement that the project re-structuring of the local currency by deleting three zeros

Which needs to be enough time for discussion by experts and specialists, study in detail to see the negative and positive results and the extent of its importance to the economy and its impact on the national currency. He suggested: Launch of the new currency along with the old currency for a period of not less than (10) years so as not to cause damage to the economy or a breach in the market, noting that Turkey fought experience and has seen an economic crisis as a result of launching a new currency for once with the withdrawal of the entire currency of the old. He added, must be careful before implementing the project to delete the zeros because a large project concerns the general public and its effects directly on the economy, whether positive or negative, calling to put a good mechanism to be applied to prevent the occurrence of probably cause in which a collapse of the local currency, a public placement, fraud, or something like that.
announced Central Bank earlier in the year 2013 will see the deletion of zeros and switch the currency, which warned him, officials and economists because of the presence of mafias currency is preparing to rig the trillions of Iraqi dinars to replace them in the light of the planned changes.
and demanded the prime minister’s central bank to wait a project delete the three zeroes from the local currency , saying he was a big project and needs to be enough time to apply it.
confirmed the parliamentary Finance Committee earlier that the process of replacing the currency and delete zeros of which will be gradually beginning next year, noting that the process takes two years to three. A member of the Committee Hassan Auzmn that the central bank will withdraw the current currency early next year, gradually and keep the trading currency current to give citizens enough time to replace the currency. ”
He Auzmn replacement of the currency and delete zeros experience a successful and useful for the Iraqi economy through their success in a number of other countries, pointing out “The operation will contribute to ease carrying banknotes to the citizen will not have any negative impact on the Iraqi economy (according to him). Announced that the Finance Committee of parliamentary early July being the budget next year 2013 will be the new currency after deleting three zeros from the current currency, saying that the reluctance of traders and companies from trading in Iraqi currency behind the adoption of the Central Bank of the project to delete the zeros.
According to some economists that Iraq is ready for the time being To delete the zeros of the Iraqi dinar, pointing out that the deletion needs to stabilize the security and political and economic stability. noting that deletion of zeros in the atmosphere is unstable to the Iraqi dinar exchange rate process do not matter either occurred in the current year or next year, and that Iraq does not need to replace the Iraqi currency scheduled for the coming year as it is needed to stabilize the oscillation made in the Iraqi dinar exchange rate against the dollar.
considered a member of the Committee of Economy and Investment Abdul Hussein Resan postponing the implementation of tariff for the fourth time “if negative”, you should pay attention to the government seriously .
said Resan told him press office that the citizen needs to be patient at the beginning of the application of this law with respect to government action or executive, adding that in future people can to reap the fruits and positives of the application of this law.
He added that they asked for the application of customs tariffs have justifications, but since the delay latter is the fourth of its kind for this law, the justifications are not active are acceptable, noting that if this delay is the first we were able to hear excuses and try to address them, either the fourth with the same justification shall be considered if negative should heed the Government to be addressed in earnest.
The Ministry of Finance has revealed that the main reason behind the request to postpone a law tariff is due to the lack of specialized staff to monitor the entry of goods, saying it takes a full year to end the rehabilitation project and the numbers of these cadres.
Source: almadapaper