********** Economist: the replacement of the currency is not without its positive benefits

12/31/2015 0:00
BAGHDAD - Imad emirate



The adoption of the monetary authority decision in the process of replacing the currency on the approach to costs and benefits, as a change of the Iraqi dinar and the deletion of zeros is an important step on the road to monetary reform, and the reform of the currency management system through structured to control the flow and management of the cost of the money supply in a manner optimized and using a form «Mosley» the most comprehensive, which does not stop at the borders of the costs and benefits but includes economic, social and political environment variables.

This is what started his speech by economist d. Abdul-Hussein Abdul Jalil Ghalibi »Sabah», pointing out: that the ideas can be raised in this area, from the process of deleting the zeros and replace currency terms would be too costly to the Iraqi economy and society, from the cost lawsuits and compensation, as well as cost support the economy during and after the the replacement process.

He stressed that no one denies that the process of changing the dinar require the costs to complete, but the discussion of these costs come from several directions, the first being that maintaining the dinar generates community ongoing costs in accounting fields and procedural counting, sorting, storage and others.

He said that these costs could be saved when changing currency and reduced to a minimum, and the second direction that is secreted by the costs is the issue of paper currency printed and punching the coin, and here it can be said: The huge number currently in the Iraqi economy, Which amounts to 4 billion paper needs to be replaced operations damaged and torn and consumed him for the papers.



The old and the deliberative banknote no more than ten years, but it is in heavy use conditions as is the case in Iraq, which hit the currency in circulation to the proportion of the money supply which about 90 percent of the old could be up to five years.

He Ghalibi So these costs are already unspent along with the replacement will reduce the number of banknotes issued to the gain of 70 percent from the previous issue, and therefore the costs also will be reduced by more than this percentage because the old Deliberative new paper will be longer than the previous two reasons. First, the coins will be reduced from Use the burden on them, and that large banknotes will be used less speed.

He said that the second reason is that the quality of the paper better and more tolerant than the current paper, which was issued in 2003, the mission of the developments that have occurred in the field of printing money.

He continued: The reference to the cost of compensation and claims there is nothing to do with the process of replacement as well as cost support the economy also nothing to do with this, as the government support of economic activity is affected by the process of changing the currency because what determines the amount of support and direction is the government in the financial policies.

He explained Ghalibi Changing the currency and the deletion of zeros does not reduce the source of paper, and with the relevance of this opinion and his health, what is taken it is that the currency (the dinar) does not stop the replacement limits of the same categories, but will be Asaddarviat monetary larger so that the total number of papers will reach 1.18 billion paper instead of 4 billion paper, Mmaakhvd number of leaves significantly along with an increase over the categories used not only from the top but from the bottom to issue coins.

http://www.alsabaah.iq/ArticleShow.aspx?ID=107297

Economist: Replace the currency and the deletion of zeros is an important step for monetary reform


January 2, 2016 0:55



The adoption of the monetary authority decision in the process of replacing the currency on the approach to costs and benefits, as a change of the Iraqi dinar and the deletion of zeros is an important step on the road to monetary reform, and the reform of the currency management system through structured to control the flow and management of the cost of the money supply in a manner optimized and using a form «Mosley» the most comprehensive, which does not stop at the borders of the costs and benefits but includes economic, social and political environment variables.

He said economic expert d. Abdul-Hussein Abdul Jalil Ghalibi according to »Sabah» that "ideas can be raised in this area, from the process of deleting the zeros and replace currency terms would be too costly to the Iraqi economy and society, from the cost lawsuits and compensation, as well as support the economy commissioned during and after the process substitution.

He stressed that no one denies that the process of changing the dinar require the costs to complete, but the discussion of these costs come from several directions, the first being to maintain the dinar generates community ongoing costs in accounting and procedural fields of counting and sorting, storage and others.

He explained that "these costs could be saved when changing currency and reduced to a minimum, and the second direction that is secreted by the costs is the issue of paper currency printed and punching the coin, and here it can be said that the huge number currently in the Iraqi economy, which amounts to 4 billion paper needs to operations replace the damaged and torn and consumed him for the papers.

And that old deliberative banknote no more than ten years, but it is in heavy use conditions as is the case in Iraq, which hit the currency in circulation to the proportion of the money supply which about 90 percent of the old could be up to five years.

He said therefore, these costs are already unspent along with the replacement will reduce the number of banknotes issued to the gain of 70 percent from the previous issue, and therefore the costs also will be reduced by more than this percentage because the old Deliberative new paper will be longer than the previous two reasons. First, the coins will reduce the burden of Use them, and that large banknotes will be used less speed.

Ghalibi He said that the second reason is that the quality of the paper better and more tolerant than the current paper, which was issued in 2003, the mission of the developments that have occurred in the field of printing money.

The reference to the cost of compensation suits have nothing to do with the process of replacement as well as support the economy also cost nothing to do with this, as the government support of economic activity is affected by the process of changing the currency because what determines the amount of support and trends are within the government's fiscal policies.

He explained that the change of currency and the deletion of zeros does not reduce the source of paper, and with the relevance of this opinion and his health, what is taken it is that the currency (the dinar) does not stop the replacement limits of the same categories, but will be issued the largest monetary categories so that the total number of papers will reach 1.18 billion paper instead of 4 billion paper, number of leaves, which significantly reduces the side to increase the range of categories used not only from the top but from the bottom to issue coins.

http://burathanews.com/news/283235.html