Delete the zeros of the national currency

February 15, 2010 · Posted in NEWS
News and reports: Delete the zeros of the national currency. Among those considered progressive policy and sees absurdity

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Aswat al-Iraq: Iraqi Central Bank defended its policy to withdraw cash for inflation by the deletion of zeros from the currency in front of his critics as a policy of “progressive” long-term, with most critics consider to be unit, which the Economic Adviser to the Prime Minister.

Policy “absurd” the budget will cost a lot to no avail real. This is because the appearance of the central bank adviser Muhammed Salih Al-economic policy of the central bank for withdrawing cash from the local market to “inflation suffered by the money supply, which rose from 25 billion dinars in 1980 to 23 trillion dinars, now it is important to reduce,” noting that the process of lifting the zeroes are “long-term policy adopted by the Iraqi government and the central bank, which will direct the project as soon as the development of the Iraqi economy and this may be this year or next and will probably require more time, depending mainly on the stability for the operation.” Saleh added that “there is no need to rush the process at the moment but at the same time is required because the subject of reform will not change the value of the currency, but anything to make them smaller,” stressing that Iraq “During the next few years and applied to the new development plan will raise its oil production and increase resources significantly and we therefore need a strong currency and low at the sametime and easy to handle. ” On Alontkadt being sent to the Central Bank because of his announcement to change the currency, Saleh said he viewed the economic future of Iraq “in an optimistic either the failures of the present and the situation is stable, it is something that will not last forever, but the situation is constantlyimproving,” adding that the central ideas of “progressive ideas facing the reactionary want to go back Iraq to thirty years ago.” Criticize the economic adviser to Prime Minister Abdel Hussein, the Iraqi Central Anbuge vision of the nature of inflation in Iraq, and regards as “a misconception of the nature ofinflation in Iraq, which he considers the central result of the increased money supply, which is directly linked to the purchasing power of the currency and the ability of per capita income for goods and services”, wondering If the “delete the zeros will increase the purchasing powerof the citizen? Is that the zeroes are the trap, which was the increase? “.
He said this action “could have come from a luxury, not economic for a country full of economic problems, her first and do not have another, go to solutions, paper and fake” and that the deletion event scheduled, it “will leave little impact onset where there will be a cash they would not get the level of improvement living and thus begin to calculate the new rates of inflation. “The solution of the problem of inflation Ferry Anbuge should come from” The fact that inflation Iraqi boat comes because of the high costs and the existence of the needs of unsaturated and structural imbalance “is passed through the” operation and investment and rebuilding of structures destroyed and production management reflected positively on the standard of living of the individual, either to be deleted is the futility of the zeroes will cost the budget a lot and has no justificationfor the time being. ” And stresses businessman Jassim Al-Aradi the importance of “non-launch the process of deleting zeros from the currency only after clarifying the concept and its way through the media extensively to educate citizens about the rules and deletions to prevent exploitation by some operations on the black marketbecause of lack of awareness,” adding that the operation “will not change the force per capita purchasing power will not affect the general situation in Iraq.” Aradi and hit the ideals of “the Turkish experience in the deletion of zeros, which came after the country experienced economic crises, followed by a boom became looking for the strengthening of its currency, especially after the desire to enter the European Union,” adding that the operation in Iraq “needs a more stable economic situation than it is now. “As for how it sees the entire process of deletion Aradi noted that it” is being gradually by injecting a certain amount of criticism is thecategory of dinars, equivalent to one thousand dinars to declare clearly that it would not be of value above or below AZ of dinars to the Atstgl on the black market because of the ignorance of citizens so “in addition to that the deletions” are within a few years to withdraw the same amount that was issued but a new currency to be changed completely, “a process” slow and gradual, not like changing the currency because we’re not going to new version, but just delete the zeros only.