seminars on currency

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seminars on currency

Post  Admin on Mon Sep 03, 2012 11:03 am

Heats up debate on the process of deletion of zeros from the currency

Post Admin on Sat 1 Sep 2012 - 16:57

02/09/2012 2:02 am

During a seminar held by the (morning)
BAGHDAD - Haider al-Rubaie Flaih - Hussein Tgb Tamimi

Discuss Economists process of deletion of zeros from the Iraqi currency, and the order of the positives that can be reflected on the overall economic activity in Iraq or cons able to affect the business operation and financial in general, and as Deputy Governor of the Central Bank that the disintegration of the monetary system in the country is vulnerable and clear to the overall political process, board Other specialists participated in the seminar that the process requires timelines testify during the economic reality of Iraq more stability, which otherwise is witnessing now, according to specialists.

The deputy governor of the Central Bank of the appearance of Dr. Mohammed Saleh during a seminar organized by the morning yesterday on the process of deletion of zeros from the currency and with it, it's pros or cons related to the overall economic process: that Iraq suffers from enormous power of the monetary mass estimated at 35.3 trillion JD inflation rates caused an increase to dangerous levels, which called for the initiation of change currency and deleting three zeros in order to shrink as it believes in the use of small cash categories.

Pointing out that the deletion will be produced by issuing classes cash small up to 25 fils in order to fill a need transactions small future, stressing that the Iraqi dinar currently covered well and cash value estimated at more than $ 60 billion, a cap could keep the value of the dinar from All economic variables that could face the country.

Saleh was who delivered Mahazerh first at the symposium had answered a number of questions that guide the participants in the same order, as explained during his answers to the financial value of the dinar after the change will maintain its position fully, denying that you get some imbalances in the process transactional to banks and banks with customers who deposited their money before the deletion of zeros.

Despite what was said in favor of the positives can be realized after the deletion, but the president of the Association of private banks Abdul Aziz Hassoun wondered about the feasibility of the change in value of financial standing after the deletion, saying at the same time: what will result from the deletion of zeros, from the comfort of the use of the currency, Will will that rest, economically successful.

In turn expressed an economic expert Dr Akram Abdel Aziz during Mhazertha on the sidelines of the seminar for lack its own absolute in times of time to process the deletion of zeros from the currency, wondering about the impact of the operation in enhancing the value of the currency and whether it will contribute to the positive impact on monetary indicators as well as the guarantee that can Saves the process from corruption.

Abdul Aziz believes that the adoption of a strategy for managing and structuring currency surround require all economic indicators, particularly the effectiveness of the real and service sectors of the economy and what is the percentage of its contribution to the gross domestic product.

She drew Abdul Aziz that enhance the value of the currency can not be achieved implicitly, pointing out that the reasons for this comes because the value of the dinar and the strength derived from the diversification of income sources and increase built sectoral and making them able to produce goods and services, criticizing a growing reliance on the oil sector in supplying the budgets the country's financial and influenced the stability of cash income from foreign currency assets enhanced the value of the currency, as well as that this matter can keep on unilateral export content and increasing import content with a wide range of external borrowing.

And participated in the seminar a number of experts and specialists in economic affairs appeared in many government and private agencies, and will be published an extensive report for the morning seminar in future issues.


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Re: seminars on currency

Post  Admin on Mon Sep 03, 2012 11:04 am

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Delete the zeros and the fate of the currency .. In the hands of the experts at the table (morning)

Post Admin Yesterday at 15:55

03/09/2012 12:00 am

BAGHDAD - Yasser incumbent - Haider al-Rubaie Flaih - Hussein Tgb Tamimi

Opened the round table organized by the Center for Strategic Studies in the morning newspaper in collaboration with the Economic Section Multi file deletion of zeros, which is the richest insights and analyzes the value and put points on the letters in decoding choking on a lack of understanding of the subject.

And reach a group of experts who participated in this table to the fact that such an important decision and dangerous at the core of the economic problem needs to law and legislation to ensure not to fall into mistakes incurred country moral and material losses large in Iraq indispensable.

For the first time in most, if not all previous economic seminars meet monetary and fiscal policies have on the table (morning) in this sporting spirit of understanding in order to solve the problem and thus contributing to the distance from the potential risks that may accompany the process of change or raise zeros.

The presentation was wonderful, deputy governor of the Central Bank of the appearance of Dr. Mohammed Saleh of historical overview of the money and its connections as a prelude to clarify participants had enriched everyone of the importance of lifting of the zeroes and convincingly striking contrast representative of the Ministry of Finance d.

Hilal Taan his vision on the procedure and despite the emergence of the intersection of the two views in the outwardly but inwardly meet monetary and fiscal policies have in one pot, but a careful to keep the national economy from additional shocks.

Taan focused on the obstruction, the only way to delete the zeros is the psychological aspect of a group Iraqi traders who have devoted culture of the state and rely on the dollar, while noting the experiences of countries Other reservations تجارهم in dependence on their way to currency strength of economic activity.

This analysis led to the crystallization of ideas converged on the timing of the deletion of zeros and receded in envelopes firstly provide legislative cover saves currency of qualitative behavior and secondly to create a culture of attention in the national currency and this is governed by a matter of time blaming media agencies to adopt this role.

Many of the participants all agreed on the need to provide a suitable environment for such a move is important, acknowledging its importance due to the fact that the currency represents infrastructure sober for the country's economy, and on the grounds that the country's economic strength stems from the power of her money.

The need to reform the payments system

Deputy Governor of the Central Bank of the appearance of Dr. Mohammed Saleh pointed out that under the price stability and optimism in Iraq Development, it became necessary radical reform on the system management of currency as well as the re-structure commensurate with the price structure new and different, stable and levels of wages and salaries, which differed significantly from the last thirty years, as well as handle the mass of large cash weak components so that it has become the largest category currency Atsawi only $ 21 U.S. at the present time. noting that the increase in gross domestic product of Iraq from $ 140 billion at year-end 2010 to more than 300 billion dollars at the end of 2015 will increase the money supply exporting of 30 trillion dinars to about 70 trillion dinars.

And weak structure in the currency structure as mentioned above may take adds cost called the cost of cash transactions in terms of trading, whether between individuals themselves, individuals and banks within the banking system itself.

Saleh said that in Sweden, for example, having now one of the best systems of cash payments in the world and despite that, the cost of trading cash counting, transmission and storage of the coin costing the national economy accounted for 4 percent of the gross domestic product of Sweden. Wondering how to compare that in a country like Iraq shall be managed so huge amounts of cash weak structure, adds the cost of cash transactions may reach 8 percent or more of GDP, a burden borne by the individual in his dealings which took reduces the efficiency of cash as an institution social support to various institutions of the economy, including the market as evidenced by the decline in cash transactions because of falling efficiency and installation of the current monetary bloc.

He noted that the multiplicity of zeros raises the denominations with declining purchasing power has enormous difficulties, including the difficulty of expression for the cash value as well as the difficulties monetary operations itself and technical problems in the recording of statistical data in the accounting books and changing accounting systems and systems adjustments as well as show prices figures long difficult counters or digital devices read Asfarha in gas stations or other digital devices.

He continued on this basis has become a need to reform the system of cash payments through several advantages foremost on the horizontal plane and is deleting three zeros any transfer 30 trillion dinars to 30 billion Dolaran by deleting three zeros from the current currency and replace new currency which facilitates handling arithmetic with numbers are less numerous in terms of accounts of the federal budget, the budgets of banks and companies as well as balancing family cash (individuals) without incurring any change or switch on the wealth of cash for natural persons and moral as well as non-depressing contracts and obligations between natural persons and all concerned.

Which is called generating mathematical function homogeneous of degree zero as long as the amount of new money younger figure covers merchandise in exchange package itself.

such as the transition from Roman numerals to Arabic numbers (the numbers in English now), that the transition to ايغير of the basic principles of science and math. High amounts of money leads to higher prices for the same without the impact's real economy results.

The level vertical any restructuring of the currency and fitted it to the category large amount of 25,000 dinars are alone (two thirds of the amount of securities traded), the issuance of larger groups mean reductase four billion banknotes in circulation now and converted to a number equal to (1.180) billion banknotes .

As Stakhtzel large groups of currency nearly 80 percent -90 percent of the total new categories exported to trading (such as 50, 100, 200 new dinars).

Said based on the foregoing, the cost of cash transactions between individuals and banks and between individuals themselves or natural morale will fall inevitably in terms of the costs of counting and checking.

If Maalmana, that banknotes traded eroded the average over a period of five years, which means replacing enormous mass weak structure and consequent costs typographical specifications high security is another burden borne by the issuing authority cash is a relic management system cash generated economic downturn former became not fit and stability and economic progress desired.

He said the money is anything agreed upon the community to become a medium of exchange and a store of value and unit account, the money (legal) issued by the monetary authority under the law and with the power of discharge of the receivables, seen as a social institution, where increasing the efficiency of the economy and its operations to move the exchange efficiently those social institution money, and vice versa.

Explaining that the constant inflation led to rising currency in circulation of 23 billion dinars in 1991 to about (30) trillion dinars over time. In this drawing new inflation figures for the currency traded add three zeros which increased the nominal amount of cash operations and consequent costs of producing large amounts of Maraafqatha, storage, and distribution operations, sorting and checking accompany her and doubling levels, the growing operational risks associated.

He concluded by saying that the reasons for changing the currency current reflects the fruit of economic stability and the success of policies CBI in maintaining stability and of the stability of the dinar and falling inflation to the rank of one decimal and build foreign reserves support of the Iraqi dinar levels never achieved during the Thirty Years' years, which is the cover of the Iraqi currency. In addition to improving the system of cash payments and make it leave actual adhesion combination for the past economic اختلالاته and rebuilt on the future of economic development and real and nominal givens.

Action needs to review minutes

As an economic expert Dr Akram Abdel Aziz began her several questions came in the forefront of any mechanisms that depend upon the implementation of this approach and implement the replacement process and ensures that there is no manipulation during the switching process in the sense of protecting this step of fraud?

She said the economic situation need to follow all his joints which are needed to promote it, as the money spent on switching process must achieve the goal. Continued its questions was to stop at fears that this process may increase the smuggling of money abroad, especially the process of deletion of zeros difficult and complex procedural and need accurate statistics and figures and must stand at their effects on the stock market.

They pointed out that this issue if it received extensive study and the quality of community, the process of subtraction will of the Iraqi market to imbalance and jerks just because the citizen can imagine that the deletion of zeros will affect the real value of the currency, stressing that the strategy proposed must correlate between the money market and the labor market, as she wondered whether that perception be comprehensive nature of inflation in terms of it's not the high cost of production and a series elevations price of interest joints much-needed citizen. said that direct this trend needs to be a thorough review of the reality of the Iraqi economy and its institutions of public and private and the extent of and the effectiveness of credit trends supporting the work of the private sector.

It showed that the basis of the success of any reform process and administrative needs radical treatment and serious fiscal and monetary imbalances and administrative constitute an obstacle to development cash development in Iraq.

Deficit financing the most prominent reasons for the low value of the currency

Although the process of deletion of zeros from the currency traces can be negative related operations forgery that will accompany it, but the economic expert, Dr. Hilal Taan said during his speech at the symposium opposite when he refers to the possibility of gains several behind changing the currency, is to provide strong cash flow and global Iraq, which is needed to large groups of cash in value and small in size perform the functions of money, as well as the deletion of zeros will play a positive role in business dealings, according to Taan who said that other positive which will be produced by changing the currency is the accompaniment to the growth stage and growing economic prosperity of Iraq, so the currency change is necessary and in line with this optimism to the future of the national economy.

He reviewed Taan some detail the chronology of the Iraqi dinar and witnessed volatility of price, explaining that in 1980 amounted to release cash in Iraq four billion dinars, and was then the highest denomination is 25 dinars, equivalent to the then $ 75, and reached this block in 1992 nearly 25 billion dinars, and increased in 2003 to reach six trillion dinars, and rose this block to reach now 35 trillion dinars.

Despite increasing the money supply in this way large compared with the year 1980, which was equal to the highest category of cash which is 25 dinars nearly $ 75, Taan For comparison pointed out that the highest category of cash now stands at 25 thousand dinars is it not worth only $ 22.

explaining that this shows the size of the collapse happening in the Iraqi currency and wrought by a series of factors do not stand Pferdha process deficit financing in the forefront of those factors but also contributed to other causes in a collapse of the structural changes that have occurred on the size of the budget after 2003, which led to the increase of cash, and this increase resulted in the high additional costs on the transaction, so in the case of deletion of zeros , these costs will decrease inevitably.

Taan hinted that Iraq since the eighties resorted to the use of deficit financing policy, and that policy in developed countries achieved positive effects unlike in developing countries, where the developed countries productive flexible device able to faces demand and therefore increase investment, savings and get the economy moving, either in developing countries When Released new cash gets to meet a large amount of money goods are few and services is low, and a productive is flexible and a rise in prices and the flight of capital, stressing that all these factors negative took place in Iraq, and increased rates of inflation, and these negatives according Taan can not be solved without deleting three zeros from the currency.

Turning Taan to the importance of the availability of a number of things he said was necessary to initiate the process of deletion of zeros, pointing out that there are factors to concrete and other significant impact material, and also said: that to change the currency prerequisites should be available before this, the first of the reserve strategic direct, any balance of gold and foreign currency, and I see that the Iraqi dinar covered with good foreign currency is, according to the Central Bank of 67 billion dollars

According Taan he Furthermore, the second factor that must be made available to initiate the process of deletion is in the size of the reserve strategic indirect, and intended to natural resources, and this is positive now, especially since Iraq has become the second country after Saudi Arabia in the volume of production and exports of oil to members OPEC, explaining that it the third factor psychological, any behaviors and activities to some wholesalers, who became not like to deal in Iraqi dinars, and preferred the dollar, despite the fact that the currency is a commodity, the greater the demand for that commodity value rises, and vice versa .

A number of experts and researchers interventions task enriched table ideas and solutions, including the Executive Director of the Association of private banks in Iraq Abdul Aziz Hassoun, and banking expert Abdul Hussein Mundhiri, and economic researcher Thamer Alheimus and economic analyst Dr Hussein Allawi, and a number of other businessmen including investor Hadi Hndas, and investor Ibrahim Jaber Hussein, and Ibrahim Mohamed Ali investor.


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