Flashback Article: Iraq Said To Be Planning Currency Overhaul, Redenomination (June 2011)
Raised the issue of deletion of zeros from the Iraqi dinar and promoted by the central bank in recent times a lot of talk among professionals about the economic feasibility and its impact on the Iraqi economy, has reported advisers at the central bank that the deletion of zeros will help to alleviate the Event inflation suffered by the Iraqi economy where This action will help to reduce the money supply in the country, which according to them is one of the causes of inflation arguing that the timing is so suitable for the stability of the Iraqi economy, which is experiencing a stable dinar exchange rate against foreign currencies.
Is Xavi on specialists in monetary policy, economists how dangerous this procedure on the Iraqi economy at this time, as the results that are expected to achieve a reduction of inflation do not need to delete the zeros, but you need to development work in the field of the real economy and not a placebo policies cash is a reflection of the reality the real economy, which is production of goods and services and when we want the reduction of limited inflation must look to the productive sectors in the country and help them obtain the salvation of the obstacles they face and live up by the local industry through the provision of support to them in addition to doing codified volume of goods and imported goods through taxes, tariffs, customs and other legislation and laws that guarantee prosperity for all sectors of local industry. We need authorized the reduction of inflation led to deliberate and sustainable development organization for all the real economy based facilities monetary policy and fiscal policy in turn through the coordination between the various policies and development plans.
A lot of concerns surrounding the process of deletion of zeros, if we look at the countries that have done so are the latest countries are Turkey, we find that it has a strong economy and stable and that this process has stages and the most important is the community’s understanding of this process in all its details and absorbed for the new currency, but if we do that there are a lot risks and concerns that must be put into consideration, including the possibility of confusing the economic lead to loss of confidence in the Iraqi dinar and the possibility of exchange rate changes in addition to the cost of the new currency and especially that Iraq did not possess Press private, but prints the currency in Britain, not to mention the difficulties related to balancing the state and investment plans debt and equities, bonds and other risks which may be caused by the move.
That the deletion of zeros from the currency is not a treatment, but comes as a necessity when the economy situation of the growth of a continuous and stable full, not stability, they are talking about is the stability of the exchange rate is stable and placebo because it is not based on economic power, when it is the process of removing zeros from the currency is necessary because it helps to coordinate between policy and give plans and clearer more with numbers understandable for all and contribute to the reduction of the money supply and more importantly that this process must be carried out at different stages according to a deliberate plan and that the process is educating for the new currency in all ways and methods to accommodate by the citizen and the investor.
When you take a closer look at the reality of the Iraqi economy, we find that the dependence on oil, primarily the basis for the financing of the state budget, in addition to loans and income from simple, and industrial and agricultural production and other sectors is negligible clear to us is that the so procedure does not achieve any growth of the national economy, but may contribute to reactions affect a negative impact on the general economic situation, and the reduction of limited inflation, a main justification for all this will not be achieved as soon as the deletion of zeros and that this process will not achieve any increase in the purchasing value of the Iraqi dinar frequency in the news lately about the process of deleting three zeros from the Iraqi currency under the pretext of reducing the amount of money in the markets and raise the value of the currency against the global foreign exchange, which reflects positively on the economic situation of the country and the return of Iraqi dinar to its former glory and glory before the first Gulf War
But reduce the amount of money is not a formal is the most effective solution to the problem of inflation and revive the country’s economic situation
Who became a yield economy depends mainly on what issued by the country of Petroleum.
But the problem lies in the difference between what is produced locally from goods and imports and work to reduce the madder between exports and imports so that the country produces Ihottagh of food agriculture local available merits of the wealth of water and muck only need to support the government as well as goods manufactured locally, which is produced in neighboring countries, less potential and wealth of material and human resources of Iraq, which is available where all means of development and this step, we have maintained the hard currency of migration out of the country and thus add real value of the Iraqi dinar and create jobs to support the economy and reduce unemployment
It must be noted that there are important steps should be taken before the replacement process, but it spread the culture of the Iraqi individual in how to deal with currency precedent and a new currency on the market and not to be drawn behind the rumors promoted by weakening the souls of beneficiaries that the old currency value
As happened in replacing the current currency after 2003 as well as to be government control of the bankers
The government and private banks and ensure impartiality and non-extortion for the simple citizen against the replacement of the old currency.
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