Delete the zeros from the IQD: the fear of inflation and ove

[Stillw8n]

Delete the zeros from the IQD: the fear of inflation and overloading of the shoulders of the citizen

Mutnon expressed concern about the project to delete three zeros from the Iraqi currency, which called for by the Central Bank of Iraq recently, saying that «the project would put particular strain the shoulders of the Iraqi citizens and raise the price of materials, particularly of food in the market is not subject to any control».

While the central bank recently said that «the three categories consist of 200 dinars, which is equal to 200 thousand dinars at the present time and a 100 dinars, which is equal to 100 thousand dinars, and the category of 50 dinars, which is equal to 50 thousand dinars, in addition to the coin of the category of the dinar and Dinarin as well as half and quarter dinars and 100 fils and dirham».

But the citizens feared «re-experience the abolition currency small and put in place of another currency, and that was parallel to it, most likely, will not be dealt with at the level of traders, which leads to weakening and then cancel at the level of trading between citizens and between small traders and others» , confirming that the »Delete the zeros will cancel the usual small currency in circulation by the local class (250) such as rent, for example, transfer».

Pointing out that «the category of (250) is one of the categories the task and traded heavily in the vegetable market of Iraq in particular», noting that they they adopt in the purchase of vegetables, seasonal «For example, the price per kg of tomatoes was recently (750) dinars, and like the islands, but onion has reached its price (500) BD », according to the saying.

Member of the Finance Committee in the Iraqi Council of Representatives confirmed this by saying «the project to delete three zeros from the currency, according to the Parliamentary Finance Committee, will not lead to increase the value of the Iraqi currency, but the project was accompanied by significant inflation in the country, which would put particular strain the shoulders of the Iraqi citizen».

And called on the Attorney Najiba Najib to find the means and studies in order to strengthen the Iraqi currency, noting that the project to delete the zeros of the three will accompany high inflation in the country does not lead to the strengthening of the currency.

Noting that the Central Bank of Iraq is determined to implement the project under the pretext of restructuring, wondering about the feasibility of re-structuring of currency without increasing its value, citing the need to lay the foundations and studies by the Central Bank in order to increase the value of the Iraqi dinar against foreign currencies.

And demanded that the parliamentary finance committee of the Central Bank to provide full studies on the project to delete three zeros to determine the negative and positive aspects of this project, in addition to that he needs new legislation and submitted to the House of Representatives for a vote, as a matter of the draft of the Iraqi people.

Najib said that «the project needs to have plenty of time to implement it, and must develop a new mechanism and accurate by the central bank to ease the currency switch to the Iraqi people.

Some economists believe that Iraq is ready for the time being to delete the zeros of the Iraqi dinar, pointing out that the project needs to be political and security stability as well as economic stability, but the Central Bank of Iraq, he had revealed his intention to put forward three categories significantly after deleting three zeros from the Iraqi dinar, pointing out that the process of replacing the currency will take two years and is committed to withdrawing them from circulation three stages.

Deputy Governor of the Central Bank of the appearance of Mohammed Saleh told a press, said that «the Bank will present three classes a great addition to the categories of mineral (metal), after the deletion of three zeros from the Iraqi dinar», indicating that «the process of switching would reform the system of currency management and ease of use» , and drew for that «the deletion of three zeros from the Iraqi dinar would shorten the number of banknotes of four billion and paper, which is equal to 30 trillion dinars exist in the Iraqi market to one billion and 800 million paper only», stressing that «the currency exchange will not affect the per capita income or wealth, or its contractual obligations».

Saleh pointed out that «the Board of Directors has approved the decision to delete the zeros after the completion of designs currency bearing the legacy of Iraq and its history and civilizations, as well as for discussion by the Financial and Economic Committee of the Council of Ministers», stating that «the bank waiting for approval by the Council to begin the replacement of the new currency and which must be with the new financial year and proposed by the Bank with the beginning of the year 2013».

Salih stressed that «the process of replacing the currency will take two years to prevent any disruption in the process of delivery and receipt», pointing out that «the banks will continue to receive the old currency for ten years as rights, not for trading», and considered the Adviser to the Prime Minister for Economic Affairs in August 2011, that the lifting of zeros for Currency is the biggest corruption in Iraq if it was during this period, and fall under the name of tampering with the economic.

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