Printing new currency notes or deleting 3 zeros .. Expert: There is a problem for the “Iraqis” that prevents going to the two options

709 Economie 2021/03/20 23:27

 Baghdad today – Diyala

, economic expert Rasem Al-Akidi said, today, Saturday, that printing more Iraqi currency notes, or canceling three zeros of them, will not support the budget of Iraq, which suffers from lack of liquidity.

Al-Aqidi said in an interview with (Baghdad Today), “I do not imagine that printing more currency denominations, pumping more currency notes, or canceling 3 zeros will benefit the Iraqi financial situation, in light of the current crisis, as it does not support the budget.”

And that “printing the currency is not a solution to the economic crisis in Iraq, because the main problem is the lack of state control over the monetary mass.”

Al-Aqidi added, “80% of those who receive salaries or subsidies or who work in the private sector have their monthly income earmarked for their full spending, meaning that they do not save.”

He added, “There is only 20% of the Iraqi population saving large sums of currency represented by merchants, importers and contractors, who have large activities, and the largest proportion of those who have savings are in private banks, affiliated with political blocs and managed by partners, men of money and hopes.”

 He pointed out that “any process of printing more Iraqi dinar notes will contribute to increasing the leakage of the monetary mass, in the same way.”

He said, “The process of raising the zeros from the Iraqi currency will eventually reduce its value.”

He cautioned that “there are no controls from the World Bank, or from the International Fund, in determining the amount of printed currency in any country, including Iraq, but printing more will lead to inflation, meaning the devaluation of the currency.”

He pointed out, “Therefore, countries adhere to 3 basic criteria when thinking about any attempt to print, which is the monetary mass, the volume of transactions, and the volume of circulation, and many countries adopt the electronic payment card, governance and automation, in the process of cash movement and control of funds, because it is an important method that enables any country to pay The salaries of its employees, the wages and entitlements of the private sector, regardless of the financial crisis.

A few days ago, proposals were put forward to reduce the effects of reducing the value of the dinar against the dollar, which was set by a decision of the Ministry of Finance, which fixed the exchange rate at 1470 dinars against the dollar, after it had stabilized for more than 15 years, up to 1,200 dinars, which had bad effects on citizens. It raised the prices of basic materials and reduced the value of salaries.

A member of the Parliamentary Finance Committee, MP Abd al-Hadi al-Saadawi, revealed earlier, the opinion of his committee about deleting 3 zeros from the Iraqi currency, according to the proposals presented.

Al-Saadawi said in an interview with (Baghdad Today), that “the monetary policy in Iraq is one of the exclusive powers of the Central Bank and the financial policy is subject to the authority of the Ministry of Finance and the government, which is concerned with it, and it is not the prerogatives of the House of Representatives and the Finance Committee, meaning that changing the exchange rate or deleting zeros from the currency is not relevant.” The House of Representatives absolutely does not. ”

Al-Saadawi added, “We do not see any tendency at the present time to delete zeros from the Iraqi currency by the central bank,” pointing out that “even the exchange rate of the dollar is subject to the powers of the central bank and was recently raised after a decision within the bank. up to her ”

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s