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Central: Iraq mass of large cash deals, but weak
14/03/2012
Said that the deletion of zeros will not affect trading
BAGHDAD - Haidar al-Rubaie Filaih
Economic expert said that the economic and financial conditions and volatile inflation pressure on Iraq, which has been previously generated negative effect on the regularity of the commercial market and the labor markets and production and the level of living of citizens.
Indicating that these conditions combined led to many distortions in the structures and economic relations among which was the presence of many zeros monetary mass of little value and in a manner not commensurate with the future developments in the present and the future of the national economy.
Iraq has suffered from a mass of cash tremendous over 30 trillion Iraqi dinars, for more than four trillion paper money, the longer it as a disruption of a large negative impact on monetary policy, according to many stakeholders who have supported in the light of this process to delete the zeros initiated by the Central Bank of study since the Not so.
He announced the Central last month that early next year will put the new currency that will be deleted, including three zeros, indicating in a statement to the administrator when the move was aimed at reviving the financial policy in the country side, and to equality dinar to the dollar on the other, as well as good economic other of Elimination on inflation.
According to Deputy Governor of the Central Bank of Iraq appearance of Dr. Mohammed Saleh: The circulation of four trillion paper money is the product of a long period of inflation and economic decline, rising, for example, the index of consumer prices foundation 1993 year from 100 to 200,000 in the middle of 2003, which means that the item which was sold for 100 dinars became sold for 200,000 thousand dinars ... And so on. It is noteworthy that the benefit under such circumstances and the deterioration of the value of the coin currency rose most of the 25 dinars to 25000 dinars, which means that inflation is added, these zeros.
And knows the benefit of inflation mean that the money prices of goods and services (ie, how much money we need to swap it for a specific package of goods and services .. The more increase the amount of money allocated to the swap on the package itself means that there is inflation or a rise in the price of money).
Cons of the money supply large
The resulting inflation continued to rise no currency in circulation of 23 billion dinars in 1991 to about (30) trillion dinars at the present time, high top class currency of 25 dinars to 25000 dinars over time, and the light that indicates the benefit that inflation fee in accordance with of that data figures for the new currency traded by adding three zeros, increasing the amount of cash operations and arranged for the nominal cost of producing large quantities of them accompanied by storage, and distribution operations of the promise and the counting and auditing standards and escort them to double, helped to increase the operational risks associated.
In the opinion of the deputy governor of the central bank said in light of price stability and optimism in Iraq's future development, it became necessary radical reform the system of management of the currency by re-structure commensurate with the structure of prices, the new different and stable levels of wages and salaries, which differed significantly from the last thirty years.
And could result in action (deletion of zeros) to increase the value of Iraqi dinar, without affecting the rate of exchange, especially as the largest category of cash Iraq now is not worth only $ 21, according to Saleh, who said in this regard: that Iraq is dealing now block large cash but is weak in its components so that the currency has become the largest category of Atsawi only $ 21 U.S. for the time being. Therefore, the high gross domestic product of Iraq of $ 140 billion at year-end 2010 to more than $ 300 billion at the end of 2015, will increase the money supply exported from the 30 trillion dinars to about 70 trillion dinars, adding that the installation weak in the structure of the currency took the added cost is called the cost of cash transactions in terms of trading between individuals and by individuals, banks and the banking system.
Indicates the benefit to Sweden (for example), where there is currently one of the best systems of cash payments in the world, however, the cost of trading cash counting and sorting, transport and storage of the coin cost the national economy, there is a rate of 4 percent of gross domestic product of Sweden , and on this basis gives the deputy governor of the Central Bank, for example in regards to Iraq, who said he shall be managed so amounts of cash tremendous weak structure, which means that the country will add the cost of cash transactions may have up to 8 percent or more of the gross domestic product, a burden that confirmed the benefit that the individual will bear in his dealings, and this reduced the opinion of the Deputy Governor of the Central Bank of the efficiency of the exchange as a social institution support to institutions of various economic, including the market and the proof is that cash transactions large limited to payment in U.S. dollars, which means bringing currency other country in the circulation for the award of cash transactions because of decline in the efficiency of the money supply and installation of the current.
The value of the new currency
She was born the process of deleting the zeros in many people's fears about whether the delete operation will reduce the total value of the earned or Ictenze citizens of money, or may affect the value of financial transactions large or in the contracts, buying and selling real estate, cars, and this is denied by fully Deputy Central Bank Governor when he said that turning 30 trillion dinars to 30 billion will not arrange any changes or shift of income or monetary wealth of the people, the natural and the moral as well as the lack of impact on the contracts and commitments between natural persons and legal entities all, as long as the amount of new money the younger set cover in exchange package of goods in the same old money with the number bigger.
Shows the benefit that the replacement of the Iraqi currency of current and deleted three zeros which demonstrates the fruit of economic stability and success of the policies of the central bank to maintain stability and of stability of the Iraqi dinar exchange rate and lower inflation to the level of one decimal place and build reserves of foreign support of the Iraqi dinar at levels not previously achieved during the last thirty years which is the cover of the Iraqi currency.
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14/03/2012
Said that the deletion of zeros will not affect trading
BAGHDAD - Haidar al-Rubaie Filaih
Economic expert said that the economic and financial conditions and volatile inflation pressure on Iraq, which has been previously generated negative effect on the regularity of the commercial market and the labor markets and production and the level of living of citizens.
Indicating that these conditions combined led to many distortions in the structures and economic relations among which was the presence of many zeros monetary mass of little value and in a manner not commensurate with the future developments in the present and the future of the national economy.
Iraq has suffered from a mass of cash tremendous over 30 trillion Iraqi dinars, for more than four trillion paper money, the longer it as a disruption of a large negative impact on monetary policy, according to many stakeholders who have supported in the light of this process to delete the zeros initiated by the Central Bank of study since the Not so.
He announced the Central last month that early next year will put the new currency that will be deleted, including three zeros, indicating in a statement to the administrator when the move was aimed at reviving the financial policy in the country side, and to equality dinar to the dollar on the other, as well as good economic other of Elimination on inflation.
According to Deputy Governor of the Central Bank of Iraq appearance of Dr. Mohammed Saleh: The circulation of four trillion paper money is the product of a long period of inflation and economic decline, rising, for example, the index of consumer prices foundation 1993 year from 100 to 200,000 in the middle of 2003, which means that the item which was sold for 100 dinars became sold for 200,000 thousand dinars ... And so on. It is noteworthy that the benefit under such circumstances and the deterioration of the value of the coin currency rose most of the 25 dinars to 25000 dinars, which means that inflation is added, these zeros.
And knows the benefit of inflation mean that the money prices of goods and services (ie, how much money we need to swap it for a specific package of goods and services .. The more increase the amount of money allocated to the swap on the package itself means that there is inflation or a rise in the price of money).
Cons of the money supply large
The resulting inflation continued to rise no currency in circulation of 23 billion dinars in 1991 to about (30) trillion dinars at the present time, high top class currency of 25 dinars to 25000 dinars over time, and the light that indicates the benefit that inflation fee in accordance with of that data figures for the new currency traded by adding three zeros, increasing the amount of cash operations and arranged for the nominal cost of producing large quantities of them accompanied by storage, and distribution operations of the promise and the counting and auditing standards and escort them to double, helped to increase the operational risks associated.
In the opinion of the deputy governor of the central bank said in light of price stability and optimism in Iraq's future development, it became necessary radical reform the system of management of the currency by re-structure commensurate with the structure of prices, the new different and stable levels of wages and salaries, which differed significantly from the last thirty years.
And could result in action (deletion of zeros) to increase the value of Iraqi dinar, without affecting the rate of exchange, especially as the largest category of cash Iraq now is not worth only $ 21, according to Saleh, who said in this regard: that Iraq is dealing now block large cash but is weak in its components so that the currency has become the largest category of Atsawi only $ 21 U.S. for the time being. Therefore, the high gross domestic product of Iraq of $ 140 billion at year-end 2010 to more than $ 300 billion at the end of 2015, will increase the money supply exported from the 30 trillion dinars to about 70 trillion dinars, adding that the installation weak in the structure of the currency took the added cost is called the cost of cash transactions in terms of trading between individuals and by individuals, banks and the banking system.
Indicates the benefit to Sweden (for example), where there is currently one of the best systems of cash payments in the world, however, the cost of trading cash counting and sorting, transport and storage of the coin cost the national economy, there is a rate of 4 percent of gross domestic product of Sweden , and on this basis gives the deputy governor of the Central Bank, for example in regards to Iraq, who said he shall be managed so amounts of cash tremendous weak structure, which means that the country will add the cost of cash transactions may have up to 8 percent or more of the gross domestic product, a burden that confirmed the benefit that the individual will bear in his dealings, and this reduced the opinion of the Deputy Governor of the Central Bank of the efficiency of the exchange as a social institution support to institutions of various economic, including the market and the proof is that cash transactions large limited to payment in U.S. dollars, which means bringing currency other country in the circulation for the award of cash transactions because of decline in the efficiency of the money supply and installation of the current.
The value of the new currency
She was born the process of deleting the zeros in many people's fears about whether the delete operation will reduce the total value of the earned or Ictenze citizens of money, or may affect the value of financial transactions large or in the contracts, buying and selling real estate, cars, and this is denied by fully Deputy Central Bank Governor when he said that turning 30 trillion dinars to 30 billion will not arrange any changes or shift of income or monetary wealth of the people, the natural and the moral as well as the lack of impact on the contracts and commitments between natural persons and legal entities all, as long as the amount of new money the younger set cover in exchange package of goods in the same old money with the number bigger.
Shows the benefit that the replacement of the Iraqi currency of current and deleted three zeros which demonstrates the fruit of economic stability and success of the policies of the central bank to maintain stability and of stability of the Iraqi dinar exchange rate and lower inflation to the level of one decimal place and build reserves of foreign support of the Iraqi dinar at levels not previously achieved during the last thirty years which is the cover of the Iraqi currency.
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