Tuesday, January 31, 2012

Central studying the process of removing zeros

Tuesday 1/31/2012

Central studying the process of removing zeros

Baghdad, Central Bank announced it had begun to study the need of the project to delete the zeros to submit a bill to the House of Representatives for the purpose of its own legislation, setting out the mechanisms and controls the process of removing three zeroes from the local currency, stressing that its law gives him the powers of a change in their local currency. The deputy governor of the Central Bank of the appearance of Mohammed According to Saleh (Rn) that the bank submitted a working paper for the project to delete the zeros of the local currency to the Council of Ministers for the involvement of ministries and agencies

Requirements in the process of deleting the zeros to prevent harm from the process."

Saleh added that the proposed deletion of zeros from the currency and the need to educate the public and the development of national regulations to limit the phenomenon of currency manipulation during the period of replacement. "

He continued that "the central bank is considering sending a bill to the House or not because the law gives the Central Bank of implied powers to delete the zeros of the local currency."

While the Finance Committee confirmed earlier that the Central Bank of tarry in the provision of a bill to delete the zeros from the currency to the Committee for the purpose of his study, confirming the same time that the adoption of the law would give Iraq an opportunity to address inflation.

And inflation is the excessive rise in the general level of prices and higher cash income, as well as high costs and create excessive cash balances.

It is expected to increase inflation in the budget in 2012 due to continued attention to the operational aspects at the expense of the investment part of the budget.

The Iraqi government says that the process of removing zeros from the local currency will increase the phenomenon of money laundering, and is working to convince the central bank need to stop work on the project.

The Central Bank has four branches in Basra and Sulaymaniyah, Erbil and Mosul, which was established as a bank independent Iraqi under the law of the Central Bank of the sixth of March 2004, which is responsible for maintaining price stability and the implementation of monetary policy, including exchange rate policies and the management of foreign reserves and the issuance of currency management, as well to regulate the banking sector.

The data of the Ministry of Oil to the production levels prior to entering into these contracts in 2009 ranging from 600. 1 million to 900.1 million barrels per day, increased during the past year 2011 to about 300.million barrels, and arrived early this year to 900. 2 2 million barrels per day.

According to the jeweler that these increases in the levels of production and export will be reflected positively on the various economic sectors, in terms of funding of the budgets of public and stimulate the investment process and the subsequent treatment process of the negative phenomena inherent in the dynamics of the economic landscape such as unemployment, inflation and imbalances price and recalcitrant toward consumption, as well as to address the scourge financial and administrative corruption rampant in government institutions.

Link

No comments: