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18/08/2011
Warn of the effects of the new currency to be negative and strict procedures
BAGHDAD - morning
The Central Bank of Iraq is heading towards the printing of new currency after deleting three zeros had announced last year, bank expert warned of dire consequences may result from this process in the event of failure to take tough measures to reduce these effects.
It is useful to note that many countries already in Iraq go through such experience and has taken measures capable of maintaining the real value of cash Btabath ancient and modern, while stability of the edition of modern Turkey, Brazil and many countries of the world have experienced deleting three zeros, but managed to limit effects caused by the experience.
The expert said that the bank change the currency by removing three zeros will lead to disastrous effects if the monetary authority has not taken firm action to reduce them.
The executive director of the Association of Iraqi private banks Aziz Hassoun in an interview for (economic morning) that all the international experiences have passed this stage, such as Brazil and Trkiyao other countries, resulting in side effects and affected even the general level of prices towards the ascent, which led to the decline in the purchasing power of the currency.
He stressed the need for the Central Bank of Iraq to take strict measures to strengthen the capacity of the decision to maintain the value of the cash by creating the required balance in the value of cash between the two currencies.
Goldfinch warned of the instability of the exchange rate to act firmly to maintain the exchange rate equilibrium does not prejudice the value of currency in circulation of two currencies, and monitor the behavior of speculators who are trying to exploit the circumstances, as happened with the beginning of the occupation when you change the currency, where excelled others in the field of forging the new currency and the creation of differences between the categories of cash in the discharge and other tricks and manipulation, stressing that the experience was harsh and effects found so far by the launch of the decision to convert without follow-up time.
On the possibility of the banking sector in creating awareness about the value of the required cash said that the banking sector on Bakiem notify customers of their currencies at the time of entry into force of the decision.
He said it is important how to deal ministries and government departments and the private sector to the new situation and carry the responsibility of creating a citizen's confidence in a strong new currency and the new reality, through their actions and dealings with the new publication.
He stressed the need to study the reality of salaries and wages and maintenance of the required balance so as not to reflect the impact on the purchasing power of the citizen in case of a change of currency and without prejudice to acquired rights of staff and workers. He called the central bank to the need to control the exchange rate effective tool in achieving the required balance and maintain the value The real criticism of the new, stressing the need to address the counterfeiting of currency.
He concluded his speech (economic morning) the need for a CBI ability to perform not only make decisions and the formation of work teams have the ability to address all possible effects of treatment and their pace consistent and sustained follow-up implementation of the resolution and it may accommodate effects caused by the experience of the new edition after the occupation and painful effects that remain even now. The Iraqi Central Bank has approved a change the old currency after deleting three zeros and make them carry printed in three languages for the purpose of submitting them to the concerned authorities for approval and ratification, without specifying a date for circulation.
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18/08/2011
Warn of the effects of the new currency to be negative and strict procedures
BAGHDAD - morning
The Central Bank of Iraq is heading towards the printing of new currency after deleting three zeros had announced last year, bank expert warned of dire consequences may result from this process in the event of failure to take tough measures to reduce these effects.
It is useful to note that many countries already in Iraq go through such experience and has taken measures capable of maintaining the real value of cash Btabath ancient and modern, while stability of the edition of modern Turkey, Brazil and many countries of the world have experienced deleting three zeros, but managed to limit effects caused by the experience.
The expert said that the bank change the currency by removing three zeros will lead to disastrous effects if the monetary authority has not taken firm action to reduce them.
The executive director of the Association of Iraqi private banks Aziz Hassoun in an interview for (economic morning) that all the international experiences have passed this stage, such as Brazil and Trkiyao other countries, resulting in side effects and affected even the general level of prices towards the ascent, which led to the decline in the purchasing power of the currency.
He stressed the need for the Central Bank of Iraq to take strict measures to strengthen the capacity of the decision to maintain the value of the cash by creating the required balance in the value of cash between the two currencies.
Goldfinch warned of the instability of the exchange rate to act firmly to maintain the exchange rate equilibrium does not prejudice the value of currency in circulation of two currencies, and monitor the behavior of speculators who are trying to exploit the circumstances, as happened with the beginning of the occupation when you change the currency, where excelled others in the field of forging the new currency and the creation of differences between the categories of cash in the discharge and other tricks and manipulation, stressing that the experience was harsh and effects found so far by the launch of the decision to convert without follow-up time.
On the possibility of the banking sector in creating awareness about the value of the required cash said that the banking sector on Bakiem notify customers of their currencies at the time of entry into force of the decision.
He said it is important how to deal ministries and government departments and the private sector to the new situation and carry the responsibility of creating a citizen's confidence in a strong new currency and the new reality, through their actions and dealings with the new publication.
He stressed the need to study the reality of salaries and wages and maintenance of the required balance so as not to reflect the impact on the purchasing power of the citizen in case of a change of currency and without prejudice to acquired rights of staff and workers. He called the central bank to the need to control the exchange rate effective tool in achieving the required balance and maintain the value The real criticism of the new, stressing the need to address the counterfeiting of currency.
He concluded his speech (economic morning) the need for a CBI ability to perform not only make decisions and the formation of work teams have the ability to address all possible effects of treatment and their pace consistent and sustained follow-up implementation of the resolution and it may accommodate effects caused by the experience of the new edition after the occupation and painful effects that remain even now. The Iraqi Central Bank has approved a change the old currency after deleting three zeros and make them carry printed in three languages for the purpose of submitting them to the concerned authorities for approval and ratification, without specifying a date for circulation.
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