Iraq: Economists fear the process of lifting the zeros of the Iraqi currency

25/03/2012 14:01

Baghdad, March 25 / March (Rn) - The number of Iraqi economists to start deleting the zeros would hinder the development of the Iraqi market for securities because it will cause the reduction of foreign equity to 20% after it experienced during the current year 80%.

He said an economist and professor at the University of Mustansiriya Radi al-Husseini, told the Kurdish news agency (Rn) that "the stock of Foreign Affairs of the Stock Exchange will drop to 20% if the Iraqi Central Bank to raise three zeroes from the local currency, because it is not something organizationally, but beyond that where it causes obstruction financial transactions, including block the signing of an agreement with the brokerage firm, in addition to delay the signing of authorization form with the brokerage firm because foreign investors believe that the change of currency will reduce profits. "

"The central bank has to choose the right time to delete the zeros of the local currency in coordination with the Iraqi market for securities to avoid any confusion regarding the lifting of banking transactions."

Authority announced the Iraq Stock Exchange yesterday that the deletion of three zeros from the local currency will not affect the level of equity investment of external and internal.

In turn, the director of the economy and Iraq's oil Abdul Halim Kazem's (Rn) announced today that "the decision of the Central Bank of identifying the first of next year's date for the flow of the new Iraqi dinar is reason to wonder, as he did not use any coordination with the Iraq Stock Exchange regarding the selection of the time to start pumping dinar new. "

He added that "the Iraq Stock Exchange where the shares have risen this year by 85%, which is good, and this increase comes because of the regulatory policy pursued in attracting foreign equity and the development of the banking sector."

He pointed out that "talk that is not true organizational being included in the infrastructure of the financial dealings and particularly the foreign investors and may cause delay in the development of the opening of financial markets in other provinces of Basra and Arbil."

And announced that the Securities Commission for enforcement of stop starting from today until next Thursday in response to the holiday announced by the Iraqi government.

According to Executive Director Abdul Razzaq al-Saadi (Rn) that "the deletion of zeros from the local currency no more than is organizational and it will not affect the level of trading stock investment foreign and domestic," noting that "the continuous coordination with the Central Bank to regulate the process of deleting the zeros and confidence that he will not affect the level of internal and external trading of the shares of stock. "

He pointed out that "the Iraqi market for securities has similar specifications to international standards, which represents investor confidence, which contributes to strengthening the Iraqi market for securities in achieving economic development."

And started the Iraq Stock Exchange initial preparations for membership of the global market, has also announced the initiation of e-filing for companies foreign and domestic investment, rather than filing paperwork.

The Stock Exchange of Iraq has started operation in 2004, and shifted from manual trading to the use of screens handle electronic in 2009 and open for trading two hours a day five days a week, and the banking sector is the largest in the exchange, which also includes the shares of industrial companies and insurance companies, hotels and agricultural companies.

The central bank says it completed a road map to get rid of the three zeroes.

Also announced that the Economic Committee in the Iraqi Parliament, last Thursday, they formed the Central Bank of Iraq with a joint committee to begin the process of deletion of zeros from the local currency.

And stresses the Securities Commission of the government's position to delete the zeros and says that adversely affect the financial trading in the stock market.
It is worth mentioning that the Central Bank of Iraq's 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 Iraq issued on the sixth of March / March 2004, which is responsible to maintain price stability and the implementation of monetary policy, including exchange rate policies and management foreign reserves and the issuance of currency management, as well as to regulate the banking sector.

The main tasks of the Central Bank in managing monetary policy in the country and raise the level of the value of Iraqi dinar and tackle inflation.

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