View Full Version : Central Bank: completion of 50% of the project to delete the zeros from currency

03-22-2010, 02:21 PM
BAGHDAD - Abdul Ghani Al-Saidi: the central bank said that the project to delete the zeros of strategic projects that were to start putting steps in place since 2007, was part of reconstruction of the currency management system and facilitate the national payments system, with the Ministry of Finance denied the intention to delete the zeros of the national currency during the period adding that the future of the Iraqi economy does not suffer from inflation, there is no need for its implementation.

Adviser, said the CBI appearance of Mohammed Saleh, said that the project to delete the zeroes will start the strategy of the new Iraqi economy.

Adding that the bank has completed 50% of the preparations of the project to delete the zeros from the currency.

Saleh pointed out that the strategy is based on the principle of gradual substitution of the Iraqi currency with another is lower than in the nominal value, indicating that the positives of this strategy is that it will be less expensive and easier to trade.

He added that the project to delete the zeros came after the study and a broad debate with the Economic Committee of the Council of Ministers and the Commission on the currency in the CBI and the study project and its results have been approved in principle after that set the basic framework for substantive progress in the process when start-up, and the process will be approved if will not affect the obligations between the state and the private sector such as construction and supply contracts and others, and the addition of contractors and will not be affected based on what one organized by the Central Bank through the instructions and mechanisms established by of the economic process in Iraq.

He noted that the central bank is committed to the stated strategy and its projects with special reference to the deletion of zeros from the currency, which comes within the framework of promoting economic Balrafhep Iraq, saying that despite the technical and logistical preparations for the deletion of zeros, the theme of this project in the near future to Ainasrv to assess the economic aspects only, but will relate aspects Assembly and related security, in particular, being a multi-dimensional issue extensive field.

The economists agreed that the draft long-term deletion of zeros, which purports to implement the central bank needs to economic stability in Iraq is not available currently.

He said economic expert, Dr. Mohsen Ali Hassan said that the process of deleting the zeroes and Monetary Reform will start operation in all countries of the world when inflation takes off, and accelerated trading Bmdiat the top and keep the money becomes a loss for the people driven to replace the cash assets of the real assets, leading to sharp rises in prices more than the increase in the amount of money, unwanted and therefore must be adapted daily wages and may replace foreign currencies.

With the exception of Muhammad Sharif, an economist the process of deleting the zeroes of the Iraqi currency as the new cash will be given the power of the currency in circulation in the Iraqi market, which means that it will add a huge amount of goods and services that the government and the central bank obliged to pay to traders in those currencies.

The Sheriff indicates that there is an important factor must be viewed with extreme precision, which is that the process of deleting the zeroes should be carried out quietly because the accelerated implementation of this process will have negative effects and that the first of the transfer of currency from circulation in the coffers of the central bank, a situation greatly harm the Iraqi economy as well as will be confusion in the case of Iraq's business dealings, which are at the beginning of the transition to a market economy, indicating that this Aibadna on the fundamental issue that the process of deleting the zeroes will more or less if inflation were hiding in Iraq, considering that the money supply will be less.

The application of the process of deleting the zeroes now will resort to a burden on the balance of payments, as well as the burden on the trade balance is therefore necessary to read the pros and cons of the application to delete the zeroes starters because lack of scrutiny on this issue will have a large and heavy consequences on the Iraqi economy and the issue of balance of payments, which is a balance completely deranged economic work.

The economic researcher Abdul Karim Hilfi believes that the central bank's decision to delete the three zeroes on the long-term resolution is not new in the economic arena, several countries have preceded us to that, most notably the Germany.

He added that the economic situation of the Iraqi Ataatovr the objective conditions for deletion because Iraq is suffering from structural economic problems and inflation rates as well as a strong high unemployment rates, how will the deletion of zeros from the dinar, which is basically non-existent.

And that Iraq is not able to move forward with this decision either in the short term or long-alike, noting that it is possible to delete the zeroes when production is strong and the Department of UNAMID as well as the absence of structural imbalances or inflation and unemployment rates are less than 10%, indicating The decision can not be implemented only after a long time, even if carried out within a year or two it will be a negative impact because the economy is in recession now.