Article: Amer al-AbadiPublished on: Thursday, 12:34
It seemed worth the value of the Iraqi dinar (7) grams of gold at the beginning of the release issued by the law in 1931, and in 1959 was issued a new law of the Iraqi national currency
Iraqi monetary and banking system continued to evolve, and reached the value of the Iraqi dinar to (3.3) billion until the beginning of the war with Iran, which led to a significant breakdown in Iraqi currency
In 2004, the former Governing Council to replace the previous currency, which was a symbol of the former regime are currently in circulation a new currency is to deal in the currency of the seven categories: 50, 250, 500 and 1,000 and 10,000 and 25,000 dinars.
Unlike the Arab countries do not exist in Iraq about 25 years since the coins.
It was scheduled to be the project to delete the three zeroes in 2011 and did not perform
And then postponed to 2013 .. then postponed to 2015 .. and now the decisions implemented early 2017 plan
Note that the process of deleting the zeros have occurred in several countries. Delete the three zeroes from the Zimbabwe dollar in 2006 and Romania omitted four zeros from its currency in 2005. Bolivia deleted three zeros from its currency in 2008. Turkey removed six zeros from its currency in 2005. Sudan delete the zeros from its currency in 2007
Central Bank director Mahdi Keywords, said, “The central bank began the first steps of the project through the selection of designs, companies and the country that will be printed currency.” He pointed out that “the new currency entry does not mean the destruction of ancient coins, but will continue to trade for about ten years,” pointing out that “this period will enable the central bank to withdraw the old currency in accordance with the known dynamic in order to preserve liquidity in the market.”
Justification for the replacement process
The presence worth 30 trillion dinars cluster of large cash the number of leaves 4 billion paper
Currently the largest category of cash is 25,000 dinars, equivalent to about $ 21 and this requires larger and significant effort to settle the daily transaction therefore became the amounts in excess Akiemha for the 20 million are in dollars.
There is no damage large proportion of private small groups and inadmissible currency in circulation and make up almost a third of the money supply
The difficulty of making the calculations under the numbers increase the number of Ocefarha 14 zero in practice, technical and probability of error occurred either by adding a zero or delete it.
The benefits of the replacement process
.. Reduce security risks that have to carry large sums of money.
Drop counting costs and Altdeghiq.ma issued biggest categories
The lifting of zeros will create a psychological effect among citizens through the strengthening of its currency and adopted more broadly rather than foreign currency
Aldenarabraghi inclusion within the global currency basket and handle it officially the world’s stock exchanges and financial markets.
Possibility of economic agreements to deal in national currency and this will cover a very large part of the foreign remittances that are squandering of national wealth from foreign exchange.
It will be disposed of manipulating the currency exchange market
Action will depend corrupt suspicious of banks and their agents and Smaserthm
It will be determined by the roof top of the sums transferred abroad from active currency exchange to ensure that no currency smuggling.
Aatherngairalamlh of the desire of a high exchange rate of the currency psychological aspect. This rise enters the joy of the return of the dinar to the rich past.
Cons replacement process:
The emergence of the problem of calculation between the old and new numbers in trading in reading and managing their trillion figures ..
Need to print large groups
Foreign stock exchange to fall to 20% on foreign investment because the thought that a change in currency will reduce profits.
Write-off of three zeros from the currency may contribute to creating a state of monetary illusion
It will cost the state budget large sums Z such that the sections of financial corruption, besides the lack of addressing the problem of inflation because the Iraqi market importer of all goods and services from abroad, which means the depletion of hard currency.
No official data on the cost of the Iraqi banknotes there. Note that the cost of the banknote in Britain 7 US cents. Enough to know the number of traded securities permission to give an idea of the total cost.
Four billion paper. Thus the cost of becoming a printed $ 289 million. This amount is pointless
Add to that a further Stamping metal pieces not to mention all the money needed to cope with the consequences of removing zeros as replacing postal and fiscal stamps.
The feeling of poverty: the deletion of zeros leads to the feeling of poverty, it had a ten million dinars Pat does not have only ten thousand of them
The expectation of rising prices.
In front of the inevitability of the Kurdish language in the introduction to the first version of the coin after the entry into force of the new constitution must benefit from the experiences of other currencies. For example the euro many folks in Europe, but not in it any language but symbols, numbers, and pictures only exist.