March 12, 2012
The whole number of economic experts that the process of deleting the zeroes do not affect the purchasing power, stressing it a bold step towards the restructuring of the local currency. The deputy governor of the Central Bank of Iraq the appearance of Mohammed Saleh (range): The mass circulation of cash exporting over 30 trillion Iraqi dinars to the various groups
And reflected by the number of securities traded $ 4 trillion paper money is the product of a long period of inflation and economic decline, where the index of consumer prices base 1993 from 100 to 200,000 in the midst of 2003, which means that the item that was sold for 100 dinars became sold for 200,000 dinars. Saleh added: In such a circumstances increased the coin larger than 25 dinars to 25000 dinars, which means that inflation is added, these zeros, at the time that inflation means rising prices of money on goods and services (ie, how much money we need to swap package of goods and services The more .. increase the amount of money allocated to the swap on the package itself mean that there is inflation or a rise in the price of money). He continued in favor: that the value of money is inversely proportional to their prices, especially if we know that price is the value of goods and services expressed in currency, and since the money is anything agreed upon by the community to become a medium of exchange and store of value and unit of account, the money (legal) issued by the Authority cash under the law with the power of discharge of the receivables and is seen as a social institution increases the efficiency of the economy and its economic efficiency in moving the exchange of that social institution or money, and vice versa.
And Saleh said the price stability and optimism in Iraq's future development, it became necessary radical reform the system of management of the currency and the 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, as well as handle the mass of large cash weak in components so that the currency has become the largest category, but not worth $ 21 U.S. for the time being. Saleh also explained that the increase in gross domestic product of Iraq's $ 140 billion at year-end 2010 to more than $ 300 billion at the end of 2015 the money supply will raise the export of 30 trillion dinars to about 70 trillion dinars.
He noted the benefit that 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, representing 4% of gross domestic product of Sweden. How can we compare the country such as Iraq shall be managed so amounts of cash tremendous weak structure, which adds the cost of cash transactions may have up to 8% or more of the gross domestic product, a burden borne by the individual in his dealings, which took reduces the efficiency of the exchange as a social institution support to institutions of various economic including the market as evidenced by the large cash transaction limit for payment in U.S. dollars.
For his part, said banking expert Abdul Aziz Goldfinch (range): The process of removing the zeros, according to experiences of other countries will see a state of imbalance is a natural condition, leading to osteoporosis is simple in prices due to lack of understanding of customers and used by some indicating that the block size of cash in Iraq massive and deal tired, noting that 30 trillion figure is very large and if the zeros will be deleted to facilitate the counting process, transport and avoid the risks and even storage.
In turn, the economic expert Ali gnathion NA (range): The process of deleting the zeroes do not affect the purchasing power because the exchange rate is linked to the dollar, whether zeros exist or not exist, adding gnathion NA: The state is worried about the economic adjustment due to lack of visibility and there are many things must to be completed but fear prevents them, stressing that reform needs to be bold and success needs to be big steps.
For his part, the citizen just a gesture that the deletion of zeros under the conditions of volatile economic and security threaten the economic reality of the existence of financial mafias lie in wait for the occurrence of such projects.
Meanwhile, a citizen Ali Kemash that the deletion of zeros will reduce the manipulation of numbers by adding zeros to the accounts in banks and thus reduce or eliminate the economic corruption, banking, and made the home of Saif Amer shop owner for the franchise that the deletion of zeros will reduce the big numbers that contribute to facilitating the processes calculation.
