Expert, Deleting the IQD zeros will increase confidence in national currency to the new world and in Iraq internally.

03/4/2012 12: 00 am

Confirmed it won’t affect the real value of the dinar

Economist said that the deletion of zeros will not lead to the occurrence of collateral damage in the real value of the currency, and it will bear the negative consequences can affect the GDP, adding that monetary authorities resort to such action after reaching advanced stages of economic stability.

The process is designed by the Central Bank of Iraq to reduce the huge money supply, inflation reduction as the Bank (monetary inflation) due to increased cash pumped into the street, which advocates to walk to delete three zeros from the currency.

According to reliable sources mentioned in earlier times (morning) the deletion of zeros will be early next year, noting that the procedure would be gradually until absorption full old banknotes from the market completely, stating that current and new currencies will work in That one without reducing their value until full absorption or current currency which will be (old).,

Economist and head of economic studies at the Centre of Rajasthan Dr. Abdul Rahman Al-Mashhadani: that the deletion of zeros formality through which change the face value of currency without prejudice to their real value and there is no real economic effects that change the currency would not lead to an increase in the GDP of the country, adding that the process applied without any damage in many countries of the world 30 years of Bolivia in 1986, Russia 1998, Turkey 2005, North Korea 2009.

Called Al-Mashhadani to distinguish between real process of change to the currency exchange rate change mean for local currency compared to the currency as dollar illustrations and it is leadership leads to reassess prices for goods and services due to real change for the money like what happened in Iraq in 2007 when the Iraqi dinar rose against the US dollar to 1267 dinars after that was sold at a price 1475 dinars in 2006, such as what China has done when it devalued the Palace compared to other currencies to compete with Chinese goods and other goods Global markets are cheaper, and deletion of zeroes which means wish the true value of currency,

between expert inter pros where he said that the deletion of zeros to be the new currency, saying change currency will strengthen confidence in the symbols of the country’s national sovereignty, and can increase the confidence in the national currency to the citizen at home and abroad by the foreign investor, as well as reduce dollarization process using this currency as a store of value and measurement, as well as facilitating trade within the country and facilitate the process of converting dinar to other currencies.

Shows al-Mashhadani inter economic justification he realized that it would complete the deletion of zeros from the currency, noting that they have been achieved through the actions of the Central Bank, which could be delivered through a tight monetary policy players during the years 2006-2011 able to reap positive set of variables that push towards change and contribute to its success.

Pointing out that among those variables by the Central Bank is the stability of the exchange rate of the local currency or foreign value of the Iraqi dinar, and the high value of 25 percent during the years 2008-2011, as well as the stability of the internal value of the currency and inflation control integrity of the yearly basis which arrived 3 percent in 2010 after nearly 53 percent in 2006.

Stating that the monetary procedures established by the Central as well as worked on building strong reserves of more than 60 billion dollars is supported by currency devaluation and integrity and protection payments from external shocks.

And contributed to the stability of the commodity market and through flexible ratio and conversion to activate trade and easing the burden on fiscal policy and business. He also pointed out that among the measures that contributed to the stability of the dinar is the control the Central Bank and the exchange rate control through its auction of dollar-selling daily and shows the presence of Al-Mashhadani.

among technical factors that require rapid change currency and delete three zeros, asserting that there are significant exporters cash block with a foliage 4 trillion paper worth 30 trillion dinars in various categories, namely a large block size value in the economy is recovering day this could confuse the economic process in monetary and Large and lead to twice the value of the dinar off the rest of the Arabic and foreign currencies, which now holds, where the biggest actually class (25,000) cash is five and twenty thousand dinars, equivalent to approximately $ 21 and this requires great effort and size of daily transactions settlement in time for counting and sorting, acceptance and security therefore settle most daily transactions that increase one of 20 million are in dollars.

Is talking about raising the zeros care stakeholders and businessmen as well as other citizens in everyday transactions such as the sale and purchase of automobiles and real estate as well as debt and loans and other financial transactions, commonly called for the Central Bank to send more messages and reassuring signals which often reinforced by experts in their press releases.

Nature’s Healing Matrix
Expert, Deleting the IQD zeros will increase confidence in national currency to the new world and in Iraq internally.