Prof. Nabil al-Janabi, Mehdi *: Effects of the issuance of the Iraqi Central Bank to the category of the fifty thousand dinars - and personal point of view (3 Articles)

Prof. Nabil al-Janabi, Mehdi *: Effects of the issuance of the Iraqi Central Bank to the category of the fifty thousand dinars - and personal point of view




11/14/2015


Central Bank of Iraq announced, Wednesday, November 11, 2015, for issuing a new banknote fifty thousand Dinars category, attributing this to the completion of the Iraqi Securities monetary structure and the development of high-class value in the [...]

Central Bank of Iraq announced, Wednesday, November 11, 2015, for issuing a new banknote fifty thousand Dinars category, attributing this to the completion of the Iraqi Securities monetary structure and the development of high-value category in circulation,

Some think of analysts and economists "to sell the dollar at the central bank auction of the same amount and the introduction of the category of the 50 000 new dinars to the market without the withdrawal of the equivalent of the dinar would lead to the collapse of the last"

It is my view that there is a relationship between the central bank auction, which is a fixed nominal rate of the dinar exchange rate against the dollar and the introduction of the fifty-class thousand dinars to be traded in the local market the collapse of the dinar, but the effect will be to increase the number of times the monetary union trading (dinar) within the economy any increase speed money circulation in the Iraqi economy. According to economic theory, the process of printing a large new categories mean an increase in the money supply ratios (liquidity) which fits be directly proportional to the increase of money rotational speed (the speed of trading) that speed of trading, which is directly proportional to the speed of inflation Output higher prices resulting from the increase in new demand on the supply of goods and services due to the increase of that cash, as if the demand for domestic goods increased, the displayed quasi-static at the moment of the lack of production of a multitude or, comparable to a foreigner so that the local product and in particular the industrial fill the increasing gap demand desirable purchased, as well as there are no modern techniques of agricultural production even provides a new view of the agricultural product fills what it needs the consumer thereby increasing trend consumer demand to foreign product, which means that the merchant to increase the import of products foreign to fill the shortage of what supply goods imported from in front of the new demand resulting from the increased liquidity, which means an increase of Iraqi imports from abroad it means that increases of imports increased dollar absorption from inside Iraq to the outside, which means to increase the desire of traders and speculators on their access to the dollar from auctions of the Central Bank and the increase that desire means raising the price Dollar within those auctions Batalli to increase the proportion of declining value of the Iraqi dinar against other currencies, including the dollar, which increases the desire of speculators at this time to get a dollar, even at a price higher than the previous price within Iraq to the expectation of the depreciation of the dinar at a higher rate from the current time and the high value of the dollar.

This economic analysis may apply to any growing economy, but Iraq Velho privacy There is no economic theory that could explain the work of the Iraqi economy, Our economy is going ability of the Almighty, only the good Lord knows how to walk the Iraqi economy because it is led by ignorant all that means this sense of the word, On the one hand, on the other hand that the money supply in the economy in excess of 40 trillion dinars her cover of foreign reserves at the Central Bank and a half times curb this moment any no fear of occurrence of exposure to cover the currency as well as despite the large size of the money supply, but the rolling of which does not exceed by an estimated 25 trillion dinars, the Anchar phenomenon compactness within the economy, and signs the recession experienced by the Iraqi economy during the other two years, reflecting the scarcity of liquidity in the local market with Mnkhvs inflation rate does not exceed more than 1%. And I believe that the issuance of the fifty thousand dinars category will increase the velocity of money circulation, which have a positive impact on moving the stagnant water (hoarder cash) in the case of the Central Bank of Iraq and set the filtering auction currency.

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Parliamentary economy for "light": the issuance of 50 thousand dinars category will not cause inflation in the economy




14 2 October / November 2015



Light News / Baghdad

The Commission on the economy by Rep beautiful al-Obeidi said the central bank issued 50 thousand dinars category will not cause inflation in the national economy, which reduces handle small currencies due to the existence of financial cover of hard currency.

He said al-Obeidi told "light News" that "the issuance of large denominations will contribute to the facilitation of transport operations in cases of sale and facilitate the transfer of large sums of money in big business deals."

She added that the MP "category of (50) thousand dinars have many benefits in the event of the development of appropriate mechanisms have to ensure that no inflation or the collapse of the local currency issue."

The Central Bank of Iraq announced the issuance of new banknote fifty thousand Dinars category, attributing this to the completion of the Iraqi Securities monetary structure and the development of high-value category in circulation, as he emphasized that they contain structures against counterfeiting attempts Balastantsak.


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Abadi adviser explains the pros put the category of 50 000 dinars Sunday




11/15/2015



Economic Adviser to the Prime Minister said the appearance of Mohammed Saleh, that Iraq needs a central bank issuing cash paper of 50 thousand dinars category, to shorten the transaction, given that the country is dealing cash payments and no credit cards in circulation in the West Kalveza CARD or MasterCard and other cards and instruments.
And Saleh, in an exclusive interview with Radio tow, that the issuance of the largest category of cash, is a financial project put forward since 2006 at the Economic Commission (in the cabinet), which is currently equivalent to about $ 46 (depending on the exchange rate), explaining that the major Iraqi currency accounted for 90% of banknotes, so the issuance of 50 thousand class will strengthen those currencies and contributes to the shortcut transactions.
And a project to delete the zeros and repair system of cash payments, Economic Adviser to the Prime Minister said, he has seen bickering prevented obtaining the support and recognition of the Council of Ministers in 2012.
He believed that the new currency version of the 50 dinars category, will reduce the cash currency carry on the citizen, as it reduces the count sorting and storage operations in the banks and therefore the consequent cost private said it was "very high", adding that it would push for raising the efficiency of the system of cash payments .
Saleh expressed surprise at the criticism directed some resolution version of this new category, and called on them to not to dwell in the affairs is not their specialty, and expected formally awarded within the circulation and salaries early next year.

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