Wide acceptance for the issuance of large cash categories

5/5/2015 0:00

Excluding impact on the purchasing power
BAGHDAD - the joy of pumice

Met printing large cash categories of project by the Central Bank acclaimed by experts in the economy, Adin him part of the monetary reforms that support the country's economy.

The Governor of the Central Bank had announced during Tadhaifa by the economic and investment commission in Parliament yesterday that the bank in the process of printing new financial category value of 50 000 dinars to enhance the efficiency of the payments system.

The Economic expert d. The appearance of Mohammed in favor of this approach, noting that the country needs large cash price categories because of the configuration in Iraq, as it is dealt format (10) 12, any deal trillions, as well as handle very large blocks of cash in the country any cash payments represented more than monetary instruments and cards and electronic payment. According to Saleh in his statement the "morning" that these trends are not related to monetary policy, but rather to increase the efficiency of the payments system management (cash management policy), where he will be short of money amounts, especially as the large categories account for 90 percent of the money supply in circulation.

He explained how put these large groups, saying it is asking the same monthly amount of the money supply to the market, but in different categories, either small groups or large, and not increase the amount of the original, considering that this project is part of the reforms that support the economic side in Iraq.

As for the fear of some of the cause in the case of inflation due to the introduction of new monetary categories, Fastbad favor of it, explaining that the central bank "does not lend" the government, either in the event of lending it to the government and the issuance of large cash categories could cause inflation and the decline in prices, as the country suffering from a contraction in liquidity for the currencies of the dinar and the dollar, especially as the currency bloc in Iraq less than 40 trillion Danar.otsud beliefs in the community impact of printed denominations in purchasing power and rising commodity and freight rates, but the observers and specialists economists refuted these beliefs, stressing that no a direct impact on the citizens, but rather improves the efficiency of the payments system is in the interest of the country economically, especially in light of the circumstances that are currently going through.


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