Raising three zeros from the nominal value of the Iraqi dinar

Another opinion on the dinar.

D. Ahmed Al-Wazzan: Raising three zeros from the nominal value of the Iraqi dinar

Sunday, 10 Oct 2010

After for a long time has become for us to claim the existence of a monetary authority Iraqi enjoy full independence under a special law CBI contains all elements of independence, according to international standards known, and as we followed the arguments of those objecting to the decision to raise three zeroes from the Iraqi dinar value nominal, we have fellowship that say that our arguments as supporters of this resolution.

Provides some of the opponents of the resolution sarcastically, is not acceptable objective, some of the definitions, one of the axioms of monetary theory, which put in front of senior professors monetary theory of policy-makers the central bank, such as: that the central bank aimed at the events (the cash) to the public and Sestdrj emotional feelings about the sense of improvement in nominal value of the dinar is not real, and it is not right for a great merit of this argument by virtue of the availability of scientific expertise and advanced process for staff in the Central.

We see with our own eyes the successes the central shadow of the harshest conditions and most confused about (reducing the rate of increase in the overall level of prices a year), the intention was patently the authors of the monetary policy of his arrival to the levels of the rate of natural increase, and this also represents a response to ask the opponents who believe that the function of the central (return prices) to an earlier era, and this is what will contribute to the stability of the overall level of prices and thus stabilize the monetary system as a whole.

In the same skill made makers of monetary policy proposals with the utmost objectivity regarding the issue of raising the three zeroes from the Iraqi dinar, and the scientific evidence does not placebo Aguenona the availability of the intention to take this important resolution and sensitive, and we believe that by extrapolating the accuracy of the words used by the Central to provide comments about this subject, such as: give a signal pre-primary to the public that the Bank intends to do so and will not startles one, and in that wisdom dente aware of its implications those with specialization and Itojsha business and money, state institutions and markets in order to avoid any confusion may occur if the central startle the public the decision of the sudden, what would climate proactive the absence of an any confusion in the capital market or in the movement of the renewed commitments or contractual receivables, which was held between the parties, or with less try to mitigate as if there were, in the framework of the vision and consciously aware that the monetary policy for the time-average and far must have been under pressure from uncertainty.

Experts said the Central that the process of bringing new currency to replace the corollary old will be in the context of (strategic gradual long-term), so as to allow the coexistence of both currencies in the context of adorable lets bring fine coin replaced by a new old as not to embarrass the impact of traumatic forces of interaction in the financial markets or the truth, but it is hoped that this will contribute to bringing a similar replacement for the romantic feelings of the people about the prestige of the national currency, which is one of the symbols of sovereignty. We recall that the Europeans desperate Alchpt Bamlathm national currency and euro even though they were Bmdrick the usefulness of the economic unification of the currency, let alone the CBE board who deserves all the support if he just wants to hold the replacement public feelings about the prestige of the currency? That alone is worth cordial respect.

The lifting of the zeroes will - among other things, cause - to put pressure suppresses the inflation of the cash block with recall dealing in coins, which deprived the public for a certain length of time to deal with it, after that we were Kjmhor ashamed of our national currency as we go together with bags of paper to buy how modest of goods, as it must contribute to the cancellation of part of the margin of the inflation that resulted from that block and has been limited, and here will be less inevitably cost of transactions and improve movement, after settling for what time.

Will have a central role of the historian if promoted (Donrp economic transactions) so to speak and Ahlha replace phenomenon (Dollar) disturbing psychological impact and practical, will not be swayed by the central deserved independence to the ends of Finance and the state budget that you want to psychology, as indicated by Professor Dr. appearance of Mohammed Saleh, who is senior experts of the Central and professor of Critical Theory Able down the exchange rate of the dinar to acquire more funds, and it is natural that contradict the intentions of Finance with the intentions of the central Sometimes, as the Central always sought to maintain the dinar's exchange rate and stabilize the economy, and that to understand the Bmahep results which would have good on his quest to improve the exchange rate later. And we can only mention the legitimacy of the Iraqi monetary authorities to withhold money from the treasury of the Central Government, as that is not functioning and financing growth directly, but it is one of the core functions of Finance.

I have used the central wisdom signals exchange rate as an instrument of cash to curb the growth rates of inflation and therefore Amataatp to fuel expectations that lead to stagger trading and markets, to add the central achievement Ahlalia new, as it resolved a foster stability Bthalutha known (improved value of the dinar after stability - improved exchange rate after stability - Curb growth rates in the general level of prices, I had the opportunity) would replace an incubator speculative and inflationary automatically solve the real investment for investment financial speculator.

And so will be well-deserved change the management system of currency and payment system mechanism for quiet smooth objective wary speculators and fit any harmony with the economic trends but also new political and approved by the constitutional requirements of a market economy and the independence of the Central which was to be not for Tgierssayas Fate happen weld those golden opportunity.

By the end note to say that the alternatives for each decision will not be competing for one of the right to deny the central and its senior management to choose the least expensive alternative resolution.

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