Investigations and contemporary society : the deletion of zeros from the dinar .. Where to?
Of us who recall the process of switching categories of currencies of the former regime in 2004, currencies of new, and the concomitant difficulties of moving bags of flour by car and the emergence of large quantities of counterfeit ones, as well as the emergence of large quantities of the currency of origin (Swiss) and the resulting activity of the mediators and manipulators among the general public, banks and bribes that accompanied those processes ..
Despite the passage of years the circulation of the new currency, but the economic situation continued to suffer from the chaos and retreat, Blur and reflected on the case and the movement of the market and standard of living of citizens. Vocabulary and replaced daily trading revenues and financial income and the dollar and the shadow of the limited indicator of the numbers of new millionaires and billionaires and Altriolanat and returned the process of computerized personal use when calculating the local currency against the dollar and vice versa .. In trading operations and the sale of assets, transfer and exchange, and increased people’s fears of credit and debit transactions, transportation, and appeared gangs kidnapping and robbery to exercise its crimes in light of the precarious security situation, and the accompanying crimes of forgery, fraud and bribery inside and outside the official institutions and the civil and individuals ..
And replaced phrases (book) and the figures in the transactions and trading and trading at shops and merchants banking .. For the purpose of reconsidering the reality of financial and monetary, which appeared burdens bank announced the Iraqi Center for his proposal to reform the financial structure and cash and his project by deleting three zeros from the Iraqi dinar, and processing the vast amount of papers of the national currency and reduced to the operations of accounting and control of the traded against the dollar and preserve their value, as well as scalable expected inflation and the counting is suspended from the counterfeiting of currency and current work on organizing and restructuring the financial sector in government banks and give a greater role for private banks in the sectors of development and achieve a state of economic stability.
Details of the reform process and its impact on economic activity in general and the financial and monetary particular, and the opinion of economists and money in the pros and cons of the process and its relationship to the movement of money between individuals, institutions and banks, and the relationship existing with Saraf dollar exchange dinars and vice versa and the effectiveness of the performance of services, financial control, the stock market and foreign exchange and foreign investment in Iraq and others. And the lifting of the zeroes from the currency benefits and costs occur researcher Dr. Falah Hassan Thuwaini from the Faculty of Business and Economics Palmstansria MacKay referred the benefits anticipated by saying: It’s one of the justifications for the monetary authorities in control of the trends in money supply through its performance of its functions in the management of liquidity, monitoring and supervision of the national currency and its financial stability of the value of and absorption of the surplus that results from high rates of inflation, and therefore reduces the phenomenon of the illusion of monetary and inflationary expectations and also the process is necessary to keep pace with economic changes and policies of economic reform or part of the long-term strategy for monetary reform .. They also contribute to the national currency for the legal force and also contribute to the reduction of the process of dollarization in domestic economic activity, especially with the wasting of large segments of the local currency ..
The researcher adds benefits .. Reduce the cost of printing currency notes and coins in the medium term in the event of reduction of the money supply resulting from the issuance of banknotes of larger denominations currency .. Also lead to the simplification of the constraints in the accounting records and the ease of expressing monetary values through a substantial reduction in the volume of transactions also decreased the amounts in the records is also promoting the use of coins, and also to ensure efficiency in payment systems such as the use of ATMs ..And reduce the security risks associated with carrying large sums of money.
And is transmitted to the researcher Thuwaini the negative effects of the process of lifting the zeros fact that the process may return to the causes and factors and political variables that affect the adoption process to rename the currency ideologies, such as the ruling parties and the nature of the relationship between the executive and legislative branches, as well as join a certain political blocs .. And sometimes pose obstacles to foreign investors during the period of conversion to avoid the risk .. And the possibility of a temporary increase in prices and adapt to the new situation .. The costs also withdraw Champions Banknotes and coins old and also the costs of interpretation of laws and systems of accounting.
Reasons and justifications
The researcher Abdul Rahman al-Mashhadani, head of economic studies at the Center for Arabic Studies Mustansiriya and international has pointed out, inter alia, the objectives of the process and excitement of the expected positive economic process of change and delete the zeros, and also the justification process as agents of economic and technical .. Here, praised the efforts of the Central Bank and his tight monetary policy effective for the years 2006 2011 and achieved variables positive direction of the change process, was the stability of the exchange rate of Iraqi dinar, or the external value of the dinar and the high value of 25% during the years 2008 2011 and this stability has helped to control inflation, the foundation’s annual arrived to 3% in 2010 after it was 5.3% in 2006 and building a strong reserves of more than $ 60 billion is the dolly to the value of the currency and protect the integrity and balance of payments of the external shocks .. As well as on the status of the stability of the market and the proportion of commodity supply through flexible foreign exchange and promote trade and also control the Bank and the control of the dinar exchange rate through its daily auction .. And the justification for the deletion of zeros from the technical point shows the al-Mashhadani that the achievement of the economic indicators need to be addressed issues including: the existence of mass cash exporting a large number leaves 4 trillion paper and increase the value of 30 trillion dinars to the various groups which is a large block size and value in the economy is recovering day by day while the budget of 117 trillion dinars in 2012 how much you’ll need if its budget totaled $ 300 billion over the coming years ..!
He says al-Mashhadani: Currently, the largest category of cash is 25 thousand dinars, equivalent to $ 21 almost and this requires a larger great effort to settle the daily transactions in terms of time of counting, sorting, acceptance, safety and so we find the settlement of most of the daily transactions that increase Akiemha about 20 million are in dollars ..!! There are a large proportion of the damage to private currency in small denominations and inadmissible in circulation and one-third of the money supply and not to replace them almost out by the Central .. And also note the difficulty of holding accounts in light of figures Asfarha increase the number of 14 zero in practice, technical error occurred and the possibility of adding either zero or deleted .. Finally, try forgery gangs and constant currency pumped into the local market for the destruction of the national economy and that spread recently.
What about the Central Bank of Iraq?
The Deputy Governor of the Central Bank of appearance of Dr. Mohammed Saleh, of the need to initiate the restructuring of the Iraqi currency MacKay referred to the economic conditions and volatile financial and the pressures of inflation that has befallen our country previously and led to negative effects on the commercial market and the labor markets and production and the level of living of citizens, so the generated distortions many structures and economic relations, including the presence block cash many zeros of little value and not commensurate with the future developments in the present and the future of the Iraqi economy, which requires a solution to these conditions and their offal from these solutions the reform of management system currency through the structure and the deletion of zeros to control the flow and management of the money supply in a way represent .
He added that the trading block cash exporting over 30 trillion dinars in various categories and reflected by the number of securities traded $ 4 trillion paper money is the product of a long period of inflation and economic decline, for example, index of consumer prices foundation in 1993 from 100 to 200,000 in the middle of 2003 and means that item that was sold for 100 dinars became sold for 200,000 dinars, and so on and so under the circumstances and the deterioration of the value of the coin currency rose most of the 25 dinars to 25,000, which means that inflation is added, these zeros ..
Another example .. Before the outbreak of the Iran-Iraq war was a category of 25 dinars, equivalent to $ 75, the purchasing power of that time, or Iedha present 300 thousand dinars .. So said inflation for three decades to the zeros in the currency did not increase when the zeros of the purchasing power of the largest class of 25 thousand dinars, which is equal to $ 21 today.
Indicates Mohammed Saleh of the benefits of the reform of the payments system cash For the horizontal level (deleting three zeros) such as transforming (30) trillion dinars to (30) billion dollars and replace them with a new currency will make it easier to deal arithmetic with numbers are less numerous on the level of the federal budget and budgets of banks and companies as well as balancing family Cash (individuals) without incurring any change or alter the offer or monetary wealth of the people and not to its effects on the transactions and obligations, a so-called generating function sports homogeneous of degree zero as long as the amount of new money the smaller number covers the interchange package commodity itself in the old money of the largest number .. One advantage of the restructuring of the currency and installed as the level vertical shows the deputy governor said .. Currently category large (25000) JD form alone (two thirds of the amount of securities traded), the issuance of categories of the largest mean reduction of four trillion paper money in circulation and converted to a number equal to (2.8) billion banknotes any Stakhtzel large groups of the coin nearly 90% of the total groups exported to the circulation.Thus, the cost of cash transactions will fall inevitably in terms of the cost of counting and checking ..
Details and features of the lifting of the zeroes
From the currency
And the appearance of Dr. Mohammed Saleh, the details of the study on the mechanism of implementation of the restructuring of the currency and delete zeros and the three transactions cost. He noted that on replacement begins on the first of January of 2013 and continue the unity of the replacement of the coin the old El Jadida for a period of two years and through the banks defined for the purpose of inspection and audit in order to avoid counterfeit currency and after the expiration of the replacement process for two years we will continue the operation for ten years, but within a single window of the Bank will announce it later .. . any that can not be traded as currency old .. Leakage and guarantees and how to counterfeit currency detection of the branches of banks at the central deposit .. Said .. With the contracted services with modern technology scans the old currency in all categories and select branches of banks that are sent to a central where the devices after the screening and isolation of Ripper currency and counterfeit them and then returned to the bank, which came from and went to them penalties against negligent … The classes will be the new currency and the other metal, paper .. Valmadenah will be (25) fils (50) fils (100) fils (quarter of a dinar) (half a dinar) (one dinar) (Two Dinars) and paper knowledge Dinars (5) JD (10) JD (25) DT (50) dinars (100 ) dinars (200) DT also answered a question about the new currency, including in respect of technical specifications and symbols .. He said .. For I take any pictures of people but symbols containing historical and tourist, cultural, and important events such as school Mustansiriya, ziggurat, Babil, Mosul Dam, the Church of Our Lady of Deliverance, Bridge of Imams and others .. Will be charged phrases in Arabic, Kurdish and English .. And will be printed with the latest technologies to prevent warping or imitated in the future … On the emergence of problematic accounting figures between the old and the new transactions, said Mohammed Saleh .. in the old currency appeared to have difficulties and mistakes in reading and administration figures in trillions .. But when you delete (3) delete the zeros means (3) COMPUTER fields will be any change in the number of Securities set a new and assumed here that normalize large groups .. And on the willingness of the central bank to carry out an awareness campaign in the community before and during the replacement currency? He replied .. We will launch a public relations campaign to raise awareness and education among the various circles of community, coupled with illustrative images and information programs with a wide range of different media and banking institutions and official and private financial and professional .. As well as on the participation of regulatory agencies and follow-up and security field, including the development of prices of goods and materials presented in the currency markets, new .. It also answered the opposition of some experts to the project to delete the zeros and the replacement of the currency in the current circumstances .. He said .. There are those who wants us to go up to train recurrent evolution in peace ..But we want to train the rising rise of evolution and progress, because the central function to ensure efficient cash management system and a stable currency .. He said .. Sorry for curriculum development in Iraq failed .. Let us be bold initiative to reform ..Everyone is afraid and requests deferral reasons of the existence of counterfeit currency .. On the possibility of increasing the exchange rate of the new dinar to the dollar .. replied improve dinar depends on the form of inflation and its sources … and on the response depends on the surplus currency and central bank reserves and also depends on the form of inflation and confiscation .. . And on addressing the counterfeiting of currency .. He said it’s a national task but not limited to the activities of the central bank only is the mission of every public and private institutions and organizations, media, security and control.
Statements of experts between the rejection of the project and pro-
He sees Dr. Mahdi Al-Hafiz in an article published recently entitled (the essence of the deletion of zeros .. a technical or economic), and if we wish to offer on such a step we have to look at the economic reality and analyze it carefully, it’s economy is not uniform and suffers from gaps seriously .. He even When we take the monetary policy we have to work out an account of the situation in the field of banking, we have (7) state banks and close to (42) banks, civil strife and will not play .. monetary policy unless there is life sound banking. In fact, refers to the dominance of banks big possess 90% of bank deposits and otherwise, the 10% return the deposits of domestic banks are actually more like houses of private financial and this is a big problem for Iraq .. and wonder Hafiz .. Is the state dealing with private banks in a natural way as dealing with banks government? I think this does not exist now, which he referred to World Bank report issued last September on the status of the financial sector of Iraq on the status of the financial sector in Iraq, so I do not agree with the notion that the issue is technical .. how and you have the economy is not uniform and distorted structurally and institutions Broken and ineffective. And calls keeper to discuss what is the problem that arise relating to inflation and currency. But he answered them. I am the truth so far have not absorbed fully Inflation is not a case separate from the state of the economy because trade policy we have supported are now on the outside .. You can not now be moving in any field unless you think about the import of this item or that return, we note that domestic goods more expensive than imported goods such as fruits and vegetables and things similar. and even politics our business which fails to protect it without definitions Kmarkip complete a rarity in the world .. and even we can not exercise control over currency and that we announce the deliberations of cash is justified if it were not for your keys and clear to all the economic situation. Add to that our policy is now based on the financial expenditure in the first place because a guaranteed resources and derived from the oil and if there is any problem for the oil, the economy stops!
And the impact of Khzv zeros from the currency on the activity of the Securities Commission said Chairman Abdul Razzaq al-Saadi ..Iraq is not qualified economically to delete the zeros from the currency to the presence of a significant impact on financial trading in the stock market .. because some record companies less financial appropriation of the dinar and the deletion of zeros would make it the third volume of trading dinar, the Iraqi market for securities billion Iraqi dinars a day.
In what the government expresses its fears of the project because it will increase the phenomenon of money laundering, according to belief and supports the concerns of the Securities Commission for its impact negatively on the financial trading in the stock market.
But a member of the Economic Commission representative Abdul Hussein Abtan believes that the process will contribute to addressing economic inflation and include cooperation with banks and reduce disparities living community .. he said, adding that the process to change the currency will start next September 2012 in what He said his colleague MP Hussein Almrobei that the Economic Commission does not know a lot of information for the work of the Central Bank only publishes what the media refers to news of the high price of the dollar against the dinar, which impact negatively on the political situation and accused some neighboring countries as well as information that the existence of counterfeit currency.
Commenting on the Deputy Governor of the Central Bank to the media about the existence of measures to reduce the use is necessary for the currency or in order to combat money laundering and have asked the participants in the auction currency to provide the central bank with detailed information on all their customers .. appeared that most of the dealers to the dollar Aimitlkon accounts in this participating banks auction currency. which is contrary to the instructions of the Central .. He said Mohammed Saleh .. what influenced the work in the price of buying and selling of the dollar in the domestic market is the decline in the size of Central sales of foreign exchange by the demand of banks participating in the Mzhadath disclosures clients .. and show they are only traders currency do not have fixed assets of a bank, which caused lower sales volume .. and the appearance of counterfeit Iraqi currency, said Mohammed Saleh said .. there is a smear campaign terrifying presence of large quantities of them in the local market and perhaps behind this campaign, political disputes between the rival blocs, but the truth constitute a small percentage very He Statistics conducted by the Iraqi banks in 2011 with the magnitude of the money traded refers to the presence of (11) thousand paper forged from various categories and does not constitute something in front of the volume of funds in the market. with cast security authorities arrested the gangs operate forging currency and helped bring an end to this it .. For his part, chairman of the economy that the banks raise zeros is an urgent need to raise the value of the currency and maintain the balance in the market and the procedure needs a political decision .. The move did not involve any negative consequences arising from the intensity of criticism, one of the problems we have suffered the banking business …
The opinion of the citizen to the project?
Abdul-Hamid Zahir (retired teacher) expressed his concerns over the process of lifting the zeros from the currency and believes it will raise the problems between the citizen and the seller, government departments, banks, companies and private contracts and obligations with suspicion actively weak people in the promotion of rumors for the purpose of the graft as well as increased entry of counterfeit currency and the resort of some to the purchase of foreign currencies ..!
And disagreed (Mazen Abdul Ilah) an employee as an opportunity to get rid of the astronomical numbers in daily transactions and preempt the risk of fraud and forgery, fraud and theft .. and add .. the project an opportunity for a sense of citizen confidence Bammelth and strength and confidence to get out of without the need of the discharge when traveling and the signing of commercial contracts .. But we need for awareness campaigns in the community and at all levels for a long time.
The student (Souad dry), said it was concerned people to accept the details of the lifting of the zeroes in particular it was concerned people to accept the details of the lifting of the zeroes, especially with the circulation of coins and that prevailed twenty years ago.Change course and dry .. We accept the newcomer of our national currency and dismantling of restrictions on dollar transactions everyday .. Vhaoura despite my fears .. To be a move to treat the conditions of our country’s economic and social development