Calls for economic reforms before you start deleting zeros from currency

9/4/2013

Experts: Revenue various sectors raise the value of the Iraqi dinar

Baghdad – Farah pumice
experts called for wide reforms in the economy such as begin the process of deletion of zeros from the national currency, stressing the importance of diversifying the local economy with all his joints and sectors.

Comes at a time which saw it as the Finance Committee representative to the process of deleting the zeros will have the effect of a positive, as it will lead to improvement in the economy, low inflation and ease of trading currency.

economic expert Dr Akram Abdel Aziz told the (morning):

“This approach makes the acquisition of securities easy , carrying monetary union and conduct transactions billing, accounting and ease of trading.”

Practically accounting Abdul Aziz said that the process of deletion of zeros from the currency will not reflect the strength of their value in the future because it is an accounting only, noting that the currency’s strength derives from the diversity of the economy in all sectors so that the fiscal revenue derived from such sectors is a permanent revaluation and not rely on economic unilaterally .

It needs financial resources that may be expensive while the country needs to state resources can be served in the directions of development, indicating that inflation is currently located has several reasons including that “Iraq importing country, as the goods come with a margin from the exporting country, as well as some industries and services reflected in the economic inflation because they suffer from high cost of production.

Abdul Aziz drew production varied and that Iraq’s position is reinforced strongly when he has the production and diversify and tourism , accompanied by stability in the economic environment.



Indicated that the Central Bank of Iraq has revealed in August 2011 seeking to raise three zeros from the currency, noting that was conducted an extensive study concluded that this process will strengthen the value of the Iraqi currency, but the General Secretariat of the Council of Ministers announced in April 2012, to wait in the application process to delete the zeros from the national currency, which had to stop action all relating to the operation mentioned until further notice.

Necessary parliamentary preparations, According to a member of the Finance Committee MP Jaber Al Jabri need to conduct a study and prepare for this process, and the central bank has taken steps in this direction, especially that there are previous experience in this area and at the level of neighboring countries and countries worldwide.

Jabri said in his speech for the (morning), “in the long term will have (the process of deletion of zeros) positive impact on the Iraqi economy because previous experiments led to positive effect , including improving economy and low inflation and easy exchange trading, and all it requires courage in the decision.

Stressed member of the Committee that this process is accompanied by economic reform and reform of the banking system, as it must be to start proceedings the fact that in order to be no negative impact on the local economy. between Jabri’s Fund IMF supports this decision, but for its impact on personal interests, saying that currently are not allowed to take this step because of the proximity of legislative elections.

Justifications fell in turn, said the decision of the Commission of Economy and Investment parliamentary Mahma Khalil: “The project to delete the zeros Old and there were objections, and the government demanded to wait until the provision of an appropriate time, and after coming out of Chapter VII fell all the justifications for the implementation of this project.

Khelil said that “Iraq is not the only country that deletion of zeros from its currency Turkey succeeded stability and economic status when you delete the zeros from its currency.”

Economic identity Khalil said that “the Constitution between the need to change and delete currency are required by the economic situation of the country, and for the benefit of the Iraqi people,” calling on parliament and the government to support the identity of the country’s economy, expected at the same time that the witness next budgets increase and prosperity after the entry of investment companies to Iraq.

Head of Department of Banking and Finance at the Faculty of Management and Economics at the University of Mosul negative effects ..

Bashar Alchukrgi said in a press statement: “The application of the decision to delete the zeros from the currency of Iraq in the shadow of the current circumstances of the country would have a big negative impact in the Iraqi economy,” adding that this decision will address inflation, the economic and financial happening in the country are pro forma.

” Alchukrgi said to delete the zeros will not contribute to re-evaluate the Iraqi dinar to what it was before 1980, when it was equal to the U.S. dollar, pointing out that the resolution will increase the rate of inflation rates, unexpected and significant beyond the ability of the central bank The Iraqi government and ordinary citizen.

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