***** Reduction of dollarization is one means of monetary policy reform

2/17/2014 0:00

Baghdad, Mustafa al-Hashemi

Represents a reduction of dollarization in Iraq , one of the means of fixing and adjusting the payments system and strengthen the stability of the pillars of monetary policy in Iraq, which must be accompanied by clear instructions and stability in the non- volatile because it would also achieve economic stability .

And the subject matter of the reduction of dollarization strong local currency and the extent of public awareness of the use of payment methods from the most sophisticated way of cash instruments such as expanding handle banking and credit cards , while it was unlikely the deterioration of the value of the dinar in the current time to the presence of a cash reserve .

In this regard, the economic expert called for the appearance of Dr. Mohammed Saleh to take measures that will strengthen the stability of monetary policies in Iraq .

Saleh said in a statement to the (morning ) that these measures must be stable and consistent and is not exposed to fluctuations through the clarity of the instructions issued to the economic actors of both the public and private sectors , adding that it would modify the payments system in order to achieve economic stability .

Saleh pointed to that the issue of the reduction of dollarization is the other must be accompanied by the stability of monetary policy as the reduction of insider dollar requires the presence of more freedom in foreign remittances and grants citizens freedom of the acquisition and hoarding of the dollar and restrict him to handle foreign transactions such as travel , treatment and study.

He pointed out that the culture of the public still selected dealing cash ( Cache ) and limited slice of citizens dealing with cards of Finance or the (credit cards) is also added to encourage the continuation of dealing in foreign currency instead of the dinar.

 Explained that the panic and uncertainty inherited among the citizens of the former regime encouraged handle internal and business deals in foreign currency instead of the dinar , noting that measures to limit that requires the presence of freedom and liberal high and according to the law to ensure that it not be transfers abroad Kgusal money , and is limited to foreign dealings only in dollars.

Saleh said that the dollar coin was covered with reserves of gold since announcing a global currency after the end of World War II in the forties of the last century , explaining that the cover of the dollar from gold ended in August 1971 because of the dollar printing presses in huge quantities and adoption as a reserve in the world's central banks are summoned to the cancellation of its reserves of gold and convert the value to stability and economic strength the United States as a cover for the dollar substitute for gold .

he said 83 percent of the business dealings World are in dollars as well as he represents the percentage ranging from 55 to 60 percent as reserves official in the central banks of countries . , in turn , counting economic expert, Dr. Majid picture that confidence in Iraqi dinars is still strong at present , he enjoys reserve sovereign strong so degradation process value is difficult and they are received in the near future .

considered in a statement ( morning) : the phenomenon of dollarization in Iraq a natural thing , especially that all imports of external financial relating to oil is in U.S. dollars , so a link the national economy in this currency is very large because of all exports and imports in dollars.

added that the phenomenon of resorting to the dollar and Aktnazha linked to the weakness of the local currency and to go to a strong currency in which the trust to be saved , in addition to the possibility of escape of the local currency by buying dollars abroad , and the spread of the phenomenon of in order to achieve the import process on the one hand and to escape currency abroad for safer conditions Aostaqrara of Nahihakhary .

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