News About The 3 Zeros II

Assurances of completion and readiness of the project to delete the zeros
Posted: June 3, 2012

Date: Monday 04/06/2012 1:08

Deputy Governor of the Central Bank of the appearance of Mohammed Saleh, the readiness of the bank to start the process of removing three zeroes from the currency, noting that the objections [are incorrect] on that just Cecchekat is incorrect.

Saleh said (of the Agency news): The project is integrated and all concerned in the government support him and there is no one against him, and who object to this project is skeptical of the ability of the central bank to implement it.

He added that the central bank will be ready to implement the decision without hesitation if the government decided that, pointing out, it will reduce the money supply large and cumbersome and that’s what Aamlh the Iraqi people to achieve progress, freedom and prosperity.

He explained that the project needs to delete the zeros to the approval of the government and the House of Representatives for its success.

The Central Bank of Iraq announced (29 September 2011) that the year 2013 will see the deletion of zeros and switch the currency, which warned him, officials and economists because of the presence of mafias currency is preparing to rig the trillions of Iraqi dinars to replace them in the light of the upcoming changes.

http://bit.ly/LVR3ha



Saleh: CBI is ready to delete the zeros; Government supports it and no one against it. However needs approval by GOI and House
Posted: May 31, 2012 

Deputy Governor of the Central Bank of the appearance of Mohammed Saleh, the readiness of the bank to start the process of removing three zeros from the currency, noting that the objection on that just is incorrect.

Saleh said in a press statement Project is integrated and all concerned in the government support him and there is no one against him, and who object to this project is skeptical of the ability of the central bank to implement it «.

He added that the central bank will be ready to implement the decision without hesitation if the government decided that, pointing out, it will reduce the money supply large and cumbersome and that’s what Aamlh the Iraqi people to achieve progress, freedom and prosperity.

He explained: that the draft deletion of zeros needs to the approval of the government and the House of Representatives for its success.

The Central Bank of Iraq announced (29 September 2011) that the year 2013 will see the deletion of zeros and switch the currency, which warned him, officials and economists because of the presence of mafias currency is preparing to rig the trillions of Iraqi dinars to replace them in the light of the upcoming changes.

The Central Bank of Iraq accused the government agencies to disrupt monetary reform and vowed that it was persecuting the interests of the country’s financial risk.

http://bit.ly/JZaQew


Saleh: CBI reveals formation of a committee to make a decision to delete the zeros of the dinar

Posted: May 31, 2012 

Revealed Advisor and Deputy Governor of the Central Bank of Iraq the appearance of Mohammed Saleh, a proposal made by the aim to form a committee consisting of a number of deputies and representatives of the Council of Ministers and the Central Bank, to study the process of deleting the zeros of the Iraqi currency.

Saleh pointed out in a statement to PUKmedia , Wednesday, that the committee will be in the same time, the decision-maker in the case study and its agreement regarding the deletion of three zeros from the Iraqi currency, indicating that the deletion of zeros is the restructuring of the currency and reduce the amount of circulation, saying it would reduce the throwing order arithmetic In addition to reducing the number of leaves.

Salih noted that it must issue a new currency commensurate with the new phase, because Iraq is over a period of conflict and war, stressing the need to reduce inflation in the new phase, in addition to that the banks have become not bear the amount of money and the account, noting the lack of coins and small metal long for old paper and up to 30 years.

It is noteworthy that some economists believe that Iraq is ready for the time being to delete the zeros of the dinar, pointing out that the deletion needs to be a security and political stability as well as economic stability.

The Finance Committee of the House of Representatives has revealed for PUKmedia , as for the General Secretariat of the Council of Ministers called on the central bank to wait in the issue of replacing the Iraqi dinar.

She said committee member Najiba Najib in an earlier statement PUKmedia , the central bank at the last meeting with the Finance Committee confirmed the completion of preparations to alter the currency, noting that the bank received a letter from the General Secretariat of the Council of Ministers invites him to wait and without setting a date certain.

Najib added that the Secretariat of the reasons attributed to patient demand factors, notably the rise of the dollar, and the need to maintain currency stability and lack of effect on the replacement market and the total inflation.

This was the central bank has said fixing the exchange rate of the dinar against the dollar at 1189 dinars to the dollar after the addition of 13 dinars, the bank commission and profit banking companies ten dinars to the dollar.

The committee of economy and investment in the House of Representatives for the PUKmedia , that the installation of the Central Bank exchange rate of the dinar against the dollar to 1189 dinars to the dollar in proportion to the real value of the dinar, noting that the exchange rate at 1000 dinars to the dollar takes time. As stressed that the process of switching the currency needs to legislation.

The member of the Committee Deputy Qusai al-Abadi said in a statement earlier PUKmedia , that the real value of the dinar match the price set by the Bank in light of improved economic conditions and witnessed by the Iraqi market of recovery, stressing that the exchange rate at 1000 dinars to the dollar needs a longer time, denied that Central Bank has set a date for the process of determining the price for a thousand.

The Abadi, that the client switch currency need to be legislation, noting that it has not been raised formally at the House of Representatives so far, pointing out that if it were just standing on the deletion of zeros as needed to the legislation, but the switch currency means a new structure it needs to be legislation to do so.

http://bit.ly/JZ7nfP


CBI introduces new steps to raise IQD to the USD; Proceed with dropping of the zeros

Posted: May 29, 2012 in Iraqi Dinar/Politics
Tags: , , , , , , , , ,

05/29/2012

Central Bank announced new steps that will raise the value of Iraqi dinar against the dollar.

The deputy governor of the Central Bank of the appearance of Mohammed in a statement to the reporter (JD) that the central bank began to implement a new strategic equation will come out even where the dinar and the dollar if it is available the appropriate atmosphere.

Saleh added that the new strategy will work to increase the capacity of the Iraqi dinar as a step in the way of reform of the financial system in Iraq and stimulate the economy, and then proceed with a project to delete the zeros of the exit equation equal to the Iraqi dinar with the dollar and this requires the availability of several factors Kalnhod the agricultural sector, industrial and services sector and investment.

He said the current situation cause for optimism about the future of the economy and the value of the currency and its purchasing power.

http://bit.ly/JKwYzI


CBI: Currency in state of deconstruction; Requires acceleration of dropping zeros

Posted: May 29, 2012 in Iraqi Dinar/Politics
Tags: , , , , , , ,

All zero phase in the currency in the destruction of the economy

Date: May 29, 2012

Central Bank of Iraq said that every zero in the Iraqi currency is a stage in the destruction of the Iraqi economy, and that the removal of zeros from the currency and a national duty.

The deputy governor of the Bank, the appearance of Mohammed, in a press statement yesterday, said that the Iraqi currency re prestige to what it was before the Iran-Iraq war and a national duty, we have to be met through the implementation of the project to delete the zeros.

He stated that Iraq is trading locally four billion banknotes in different categories, regardless of value, offset 34 trillion dinars cash reserves, will double to about 90 trillion dinars in 2017, to increase the national product, and said: This requires us to accelerate the implementation of the project to delete the zeros, before of evil consequences.

He added that the cost of switching the currency is a quarter of its value the truth, they bear a strong cover of 63 billion dollars.

The new benefit of his call to form a committee and the legislation a special law on the consequences and requirements to change the currency, that the Committee shall be the competent authorities, Kdioan financial control, parliamentary committees, and the Federation of Accountants, as well as civil society organizations, and others, to decide the fate of the project.

http://bit.ly/KDx7BF


Editorial: Dropping the three zeros

Posted: May 27, 2012 

On: Sun 27/05/2012 7:02

From time to time ask the Central Bank of the idea of lifting the three zeroes from the Iraqi currency, announced that he almost completed the finalization of the drafting of the law to regulate the lift in order to send it to the prime minister and then to the House of Representatives to decide whether there is a need to raise the zeros of the three Iraqi currency.

And the latest news in this regard, the Central Bank of Iraq reiterated the need to delete the zeros and the issuance of a new currency, and in three languages: Arabic, Kurdish and English, said the deputy governor of the Central Bank of the installation of the current currency which the defect is that the largest category of the Iraqi currency is now equal to (21) dollars , and therefore resort traders and senior securities dealers U.S. monetary to the category of percent dollar in particular, has given an example of this is that the category of (10) dollars do not deal with, and added the Deputy Governor that this issue if it continues this way with the development of the economy and its growth, there will be obstacles, and thus must be restructured currency and delete zeros at the same time, and added that there is a need for small denominations of currency represented by coin for transactions of small and large groups to meet the cash transactions large, this was considered the project a strategic project aimed at reducing inflation experienced by the Iraqi market.

Also supported the Ministry of Finance implemented the idea and the fact that the deletion process will liberate the Iraqi economy from the constraints and enhance the value of the dinar in the Fund, the World Bank.

On the other hand different and opposed to the idea of lifting the three zeroes from the Iraqi currency, announced Adviser to the Prime Minister for Economic Affairs to stop action to change the currency and delete zeros of them, and this signal by the government not to accept the principle of the deletion of zeros, where will be established (mafias currency is preparing to rig the Trallonat dinars untapped change currency ), with evidence that the Iraqi Central Bank approved the project owner that there are mafias predicted the emergence of counterfeit currency, which called on the government to take action to protect the Iraqi currency of specialized mafias may Btzaifaa to block the re-structuring of the currency.

The government has denied making any change to the local currency this year in order to reduce inflation, this is the last statement of Prime Minister Nuri al-Maliki on raising the zeros said: we need to study the strategy and plans to implement this project and it is not correct to apply in a short period so as not to happens to the money laundering of some bad apples.

We believe that raising project three zeros from the Iraqi currency is not working and not raise the value of Iraqi dinar, and when applied will add another problem, a multi-dimensional to the many problems experienced by the Iraqi economy is deteriorating, and this problem is the confusion and confuse the market in buying and selling and debt among the citizens, as well as confusion mental state that will haunt the Iraqi citizens as a result of the emergence of a new phenomenon requires the intellectual and psychological stress of the back and accept it. On the other hand, requires the project and before applying SEC small denominations of currency are parts of the dinar, which will be worth a penny, knowing that the minting these coins small will cost the state large sums of money, and that the project does not enhance the value of Iraqi dinar ((says the Ministry of Finance)) where it will remain value as ((If you put equal amounts of the other equal results are equal)).

In a statement different from the CBI that the process of raising three zeros from the local currency is a complex process and needs to study the economic thorough, explained adviser to the CBI as well: we have to deal with this issue cautiously and carefully because it may cause economic problems in the event of rush or do anything else confuses the economic situation in Iraq.

We do our part – to guard and to pay the occurrence of such problems – see the best and most effective of presenting the project to the Iraqi public with a call to specialists in economics to indicate their opinion and familiarity with it before sending it to the prime minister and parliament.

And promises to start see the futility of the project as we believe it does not lead to raise the value of Iraqi dinar,, we aspire to embrace the Iraqi Central Bank and economists project that aims to raise the value of Iraqi dinar to its previous value and return equal to (3.33) U.S. $ through a package of procedures and bold decisions the first to review the process import wrong and reducing them to a certain extent necessities, as the import open the floodgates draining surplus of hard currency and deposited with the Central Bank of Iraq in support of the Iraqi currency, and not put up for sale by public auction for those wishing to by the Iraqi traders to cover Astiradathm of goods, as well as the review in order to reduce public spending to the state and its departments in terms of import furniture is expensive, which can be obtained from the local market, which encourages and supports the sector of local industry and provide jobs for the unemployed, also support the development of the agriculture sector by helping farmers with seeds and agricultural machinery to increase the production of agricultural crops.

http://bit.ly/KkpQrA


Increase in dinar value is due to central bank’s regulatory procedures, says parliamentary committee

Posted: May 25, 2012 

BAGHDAD, May 24 (AKnews) – The Iraqi parliament’s finance committee stated yesterday that applying its proposal submitted to the Central Bank of Iraq (ICB) about increasing the number of agencies responsible for the sale of hard currency has contributed to raising the value of the dinar against the US dollar

The presence of Rafidain and Rasheed banks has increased the number of agencies responsible for the sale of hard currency.

Finance committee member Hadi Amin said: “This action contributed to raising the value of the Iraqi dinar against the dollar and the central bank will keep, in its procedures, the stability of this state.”

The ICB acknowledged earlier the presence of an imbalance in the Iraqi dinar exchange rate and confirmed its quest to unify the exchange rate between it and the local markets. The ICB at the same time denied any deterioration in the value of Iraqi dinar.

The price of the Iraqi dinar witnessed a decline during the last few weeks, with the exchange rate reaching about 1,127 dinars for one US dollar in the local market.

Officials in local banks attributed this to the ICB’s further procedures in the auction sale of foreign currency.

Local media reports stated that the issue of smuggling hard currency from Iraq to Syria and Iran on the border crossing points is increasing but this was not confirmed by the ICB.

 

http://bit.ly/JQ9Sqo


Finance Committee: Deleting the zeros depends on the CBI’s control over the dinar exchange rate; Calls for adoption of new monetary policies before implementation

Posted: May 25, 2012 

FRIDAY, MAY 25 / MAY 2012

Confirmed to the parliamentary Finance Committee, on Friday, that the implementation of the project to delete the zeros of the Iraqi currency and restructuring depends on the extent of control and control of the Central Bank of the exchange rate of the dinar against the dollar, as called for the adoption of new monetary policies before the implementation of the project.

A member of the Finance Committee Najiba Najib in an interview with “Twilight News” that “the project to delete the zeros and the restructuring of the currency made by the central bank depends on the extent of implementation of control and control of the Iraqi dinar exchange rate against the dollar.”

Najib said that “the central bank and government in the event will allow them to take action and contribute to a new monetary policies to control prices of the Iraqi dinar against the dollar, they will be able to cancel the wait and start deleting the zeros and the restructuring of the currency.”

The Cabinet decided, in the middle of the month of April last, be patient in the application of the deletion of zeros from the national currency.

She Najib that “the central bank is still working to control the lifting of the Iraqi dinar exchange rate against the dollar,” afterthought by saying that “political and security situation and economic development at the present time does not help to delete the zeros and the restructuring of the Iraqi currency.”

The Central Bank of Iraq began to modify the search categories dinar, last year, and is still a large part of the payments being in cash due to the evolution of the banking system.

http://bit.ly/KTmQ2C


MPs Push for Removal of Zeros on Iraqi Banknotes

Posted: May 24, 2012

24/05/2012
ERBIL, Kurdistan Region- Kurdish members of Iraqi Parliament’s Finance Committee have denied that there is currently any proposed law regarding the removal of zeros on the Iraqi banknote.

Ahmad Faizulla, an MP from the Kurdistan alliance in Iraqi parliament and member of the finance committee, dismissed claims that their committee has prepared and drafted a law to alter the currency.

“The finance committee cannot make such a decision,” he said. “We can only suggest projects. The drafted projects will be presented to parliament for discussions for voting. This is something that must go through legal channels.”

Heitham Jiburry, a member of the finance committee, announced last week that eliminating zeros on Iraqi banknotes will be implemented early next year. “It is expected that the process of printing new currency will start next August,” he said.

Jiburry also remarked, “The process of replacing the old currency to the new one will continue throughout next year. The old currency will completely be gone in the first 6 months of 2014.”

In April, the chief of staff of Iraqi Council of Ministries suspended the process indefinitely.

Fazil Nabi, Iraq’s deputy finance minister, previously told Rudaw that eliminating zeros on Iraq’s currency will not increase the value of Iraqi dinars.

However, Jiburry said, the process will make the Iraqi dinar more stable and reduce demands for foreign currency among people.

Nabi told Rudaw, “Implementing this process is related to the central bank. I always believed that this wouldn’t work at least at this stage.”

Economists believe Iraq is not ready to eliminate zeros on its currency, and that for the process to be successful security, political and economic stability is needed.

But Shorsh Haji, an Iraqi MP from the Change Movement (Gorran) maintained that there is indeed a proposal to modify the currency.

“Such an idea to eliminate zeros on Iraqi currency does exist,” Haji said. “The process of withdrawing all the old bills and replacing them with new ones needs a special budget, which was not designated from the 2012 budget. It is believed that this budget will be designated in 2013.”

Regarding possible economic benefits of a currency change, Haji said, “The benefit would be more in appearance. Currently, the value of the Iraqi dinar has dropped and is unstable. After removing zeros instead of saying 123,000 IQD is equal to US$100 we will say 123 Dinars is equal to US$100. It is just to show that Iraq has a strong economy.”

Making changes in Iraq’s banknotes may add to already heightened tensions between Baghdad and Erbil. Kurdish MPs in Baghdad say that if such a law is passed in parliament, the new bills must have Kurdish alongside Arabic script on them, as stipulated by the constitution.

“So far, there has not been any designs for the new bills,” Haji noted. “Without a doubt, having Kurdish written on the new bills will be our pre-condition.”

According to Article 4 of the Constitution, Kurdish and Arabic are the official languages of Iraq and both languages must appear on Iraqi banknotes.

Section two of the article says, “Use of both languages is enjoined by the principle of equality such as banknotes, passports, and stamps.”

Haji is optimistic about the future use of the Kurdish language on Iraqi official documents.

“I don’t expect that this constitutional right will be ignored or cause more tensions between Baghdad and Erbil,” he said. “This is a legal and constitutional subject. There are also Kurdish-Arabic interpreters in Parliament. Kurdish MPs can speak Kurdish if they want. However, it has become a habit for them to speak Arabic in the Parliament.”

MP Faizulla is more skeptical, saying, “Many constitutional articles and rights have already been violated. This will depend on agreements between the political parties. If the political parties don’t agree, it most likely won’t happen.”

http://bit.ly/Lswx78


CBI’s Saleh: Dropping zeros from currency represents progress, freedom, and propserity

Posted: May 23, 2012 

Central: Open the windows of the Rafidain and Rasheed reduce the exchange rate of the dinar against the dollar to 4%
23/05/2012 PM

Reduced the open windows of selling the dollar in the Rafidain and Rasheed of the low exchange rate of the dinar against the dollar to 4 percent, compared to the exchange rate difference of about two weeks ago.

He was a senior official at the Central Bank in the hope that the difference up to 2 percent on the price of the auction.

The two banks will sell each citizen Aovernmaan 10 thousand dollars up to a maximum.

The central bank announced yesterday, the largest direct banks in Iraq to sell one U.S. dollar for the citizens at 1189 dinars.

In an extensive interview with the “world” on Tuesday, said the appearance of Mohammed Saleh, deputy central bank governor, said that “our procedures last to authorize a bank Rafidain and Rasheed to sell the dollar, the impact of a positive lower price. And the dinar fell about 7 percent in the previous days, and today (yesterday) arrived decline to 4 percent. ” He expressed the hope that “up the difference between the auction and the market to 2 percent, a figure that is acceptable globally and natural differences in price.”

According to Saleh, “the central bank is looking forward in the coming months, to be equal to the 1000 dinars, one dollar, and we are coming to raise the dinar exchange rate in proportion to its strength.”

He explained that “the two banks of government Sasudan every citizen wants hard currency with 10 thousand dollars only, and this is one of the instructions and monitoring agency funds, which obliges the citizen not to carry cash of foreign currency more than 10 thousand dollars, and this is the case in all the world, as well as in airports , and for that to be increased by transfer or credit card. “

Saleh said that “windows will sell and not in cash transfers, because transfers carried out by the auction.” He pointed out that “the central bank provides about 50 per week with 250 thousand dollars for each bank, and 40 money transfer company with 75 thousand dollars each week, and 300 foreign exchange company with 75 thousand dollars a week as well.” “We assume these to sell at auction to the citizens, a 1179 commission plus 10 dinars.”

Saleh expressed his deep regret about the “transformation of banks and remittance companies and banking from brokers to buyers end-of the auction, sellers end-to the customer, and they started to impose price monopoly, which represents the prices of the parallel market which have a role in, and remained the bubble price continues for the benefit of monopoly.”

He attributed the benefit of open windows to sell the dollar bankers in government to “create a market monopoly competition against our law is forbidden.” He continued, “we have introduced the Rafidain and Rasheed, two of the largest banks in Iraq and Isthoman to 86 percent of the banking activity in Iraq, and their branches constitute 50 percent of bank branches in Iraq Adkhalnahma in the sale of foreign currency at the official rate of the Central Bank plus the commission is simple, for the benefit of the Iraqi citizen.”

Salih stressed, “We get the foreign currency more than we sell, and cash reserves at the central bank between $ 62 and $ 63 billion, the highest in the history of Iraq, monetary and financial.”

And on the developments of the project to delete the zeros of the Iraqi currency, Saleh said, “I suggested that healed with a decision of the Committee of the House of Representatives and the government and the central bank and decides to delete the zeros start date.”

He expressed the belief that “scientific and economic project, and all those concerned in the government support him, and who speaks against him question the Toukatadth, and the extent of its potential, and whether we are capable of it.” However, “these questions objectively.”

He noted the benefit “if the Commission met at any time and any decision to proceed has decided to delete the zeros of work, we are ready to begin.”

He stressed that “the deletion of zeros as a project and infrastructure and create the foundations of incomplete and concepts, which is different from issuing a new class of currency, with the consequent deletion of three ranks of calculation from the accounts of the Republic of Iraq starting from the family budget and ending the public budget of the State”.

He cautioned that “such a project needs to be concerted efforts of both the central bank, parliament, government, and the approval of the last two on the project is important for its success.”

And returned in favor of the project’s importance also to “reduce the computational reproduction, which has become a troublesome and tired, so there are operational risks because of the large numbers that are the product of an earlier stage.”

He believed that the “zeros currency of the three added 3 decades of economic decline in Iraq, and each contract is zero, holding Iran-Iraq war has a zero, and the holding of the blockade has zero, and the events of 2003 have zero, and these three zeroes represent the pain of the Iraqi people, and delete it represents the hopes of the Iraqi people in progress, freedom and prosperity.

And the controversy that has occurred between the government and parliament on the central bank said the benefit that “there is a leap of faith from the government and parliament, the independence of the central bank, but there is a lack of understanding or a blur in the partnership.”

He stressed “I do not value the independence of the Central Bank unless a partner of the government, because the government is large in Iraq, and we are custodians of public funds.” “What is the level of partnership?”. And “We understand the partnership as our membership of the Committee on Economic Affairs, and it seems that the framework of the partnership is not enough.”

And showed his belief that “the partnership must take another framework, and the level of partnership with the government should grow up, does not mean government intervention in the Central Bank, because they do not want to interfere, but the government wants to know about the central bank a lot of things, and it seems to me that there is poor organization , and we need to continue to ring with the government or a point of understanding because we miss this. “

He emphasized the benefit, “as we meet with the Economic Committee in Parliament, it must meet with the government on the part of a broader, and this strengthens us not weaken our independence is not an infringement of the government to the central bank, and there must be an atmosphere of mutual understanding in the public interest.”

On the high Altdhm in the country, Saleh said, “The inflation today, according to the month of April is 7.6 percent.

This basis adopted by the Central Bank”. “It is true there is inflation up to 8 percent, but it deleted some of the variables of emergency is not worrying.” He explained that “there are two main factors behind inflation are the fluctuations that have occurred in the Iraqi dinar exchange rate against the dollar, and the housing sector.” He added that “Housing is running almost 31 percent of the money in circulation, and this is a problem in Iraq, and that the high rents and electricity prices also impact on inflation.”

Salih stressed that “the main objective and the basis in the law of the central bank cut rates, and response of inflation, and one of the policies to address inflation, raising the dinar exchange rate to match the balance of payments surplus of Iraq, particularly in the current account.”

http://bit.ly/JHKFyt


CBI calls for the formation of a joint coordination committee to resolve the problem of deletion of zeros

Posted: May 14, 2012 

05/15/2012

CNH: BAGHDAD / .. called on the Iraqi Central Bank to set up a joint coordination committee of the parliament and the government to resolve the issue of the project to delete the zeros of the Iraqi currency.

The deputy governor of Bank of the appearance of Mohammed to the reporter and the agency / JD / delete the zeros that the draft project is a radical change includes modification of accounting systems for all aspects of the state and is not easy.

He added that the main problem in the delay of the project lies in the fear of many officials of the project, noting that this fear caused by lack of knowledge of the benefits of the project and its effectiveness in supporting the Iraqi economy. And that while the benefit to Oakd meeting of the Joint Committee, the decisions will be binding for all.

He noted there is a problem of timing, as the opinion of the Council of Ministers on the patient in the project due to the timing may not be appropriate to start such a move, because similar projects carried out in a more stable political conditions.

The Central Bank of Iraq plans to make a radical change in monetary policy through a deletion of three zeros from the monetary issuance, which is estimated at 32 trillion offset 4 billion banknotes and different categories and this number is large, either in the case of application of the new system, it will provide for the issuance and printing of 4 one billion paper currency of the new categories of old, where damage to ancient coins every 5 years and new Ataatlv so quickly so the project is very economic.

The main task of the Iraqi Central Bank to maintain price stability and the implementation of monetary policy, including exchange rate policies and the management of foreign currency reserves and the organization of the banking sector.

http://bit.ly/Jr7AP3



Finance Committee calls for the central bank initiative to send a draft of its plan to delete the zeros from the currency to study

Posted: May 9, 2012 

Tuesday May 8, 2012

Hosted by the Finance Committee under the chairmanship of Deputy Chairman of the Committee Haider Abadi, on Sunday, 6/5/2012 Dr. Shabibi Central Bank Governor and the delegation accompanying him in the presence of members of the committee and its advisers.

During the meeting, discuss the issues contained in the agenda and the most important measures the central bank to keep the Iraqi dinar exchange rate and currency Auction and the fight against money laundering and instructions relating to banking agencies and the mechanism for granted.

Also addressed the meeting to discuss the draft law on the status of training the monetary and banking has been considered the Commission sent to the Central Bank of Iraq to study it and take the view taken by them, as well as discussion of the draft to delete the zeros and asked the Committee to send the full program for the process to delete the zeros prepared by the Central Bank of Iraq to review it and take the opinion of the Government the House of Representatives after demanding to wait in its own legislation, it was agreed to continue to hold meetings with the Central Bank to address the problems of Iraqi currency and maintain the non-volatility in exchange rates and constant quest to keep the price of the Iraqi dinar in world markets.

At the conclusion of the meeting, directed the President and members of the committee to thank the Governor of the Central Bank and his accompanying delegation for their attendance and asked to answer questions and queries.

http://bit.ly/JeapiB


النائب عن ائتلاف الكتل الكردستانية محما خليل، عن تعاقد البنك المركزي العراقي مع (4)شركات عالمية معروفة لطبع العملات الجديدة لطبع العملة الوطنية الجديدة بعد حذف الاصفار منها، واصفاً مشروع حذف الاصفار الثلاث من العملة بـ"الناجح" والوقت المحدد مثالي لاستبدالها.وقال خليل (للوكالة الاخبارية للانباء) امس الاحد: MP from Kurdistan Alliance bloc Mahma Khalil, for contracting the Iraqi Central Bank with (4) known international companies for the printing of new currency for the printing of the new national currency after you delete the zeros of which, describing the project to delete the three zeroes from the currency as "successful" and the time is ideal for replacing them. Khalil (of the Agency news) on Sunday:

إن مشروع حذف الاصفار الثلاث من العملة المحلية يعد من المشاريع المهمة وعلى جميع الأصعدة سواء الاقتصادية أو الأمنية بالنسبة الى البلد، مشيراً إلى أن البرنامج الموضوع من قبل البنك المركزي جيد والوقت المحدد لاستبدال العملة مثالي والذي سيتم مطلع العام المقبل. The project to delete three zeros from the local currency is one of the important projects and at all levels, whether for economic or security to the country, pointing out that the topic of the program by the central bank and a good time to replace the ideal currency, which will be early next year. ولفت الى: أن البنك المركزي تعاقد مع (4) شركات عالمية معروفة ورصينة في مجال طبع العملات الدولية دون أن يذكر أسماءها أو جنسياتها، مؤكداً: ان الوقت مازال مبكراً للإعلان عن جنسيات تلك الشركات. He pointed out: that the central bank has contracted with (4) well-known international companies, and solid in the field of international currency printing, without giving their names or nationalities, saying: that it is too early to announce the nationalities of those companies. وأضاف خليل: ان العملة الجديدة ستكون عالية المواصفات وتحتوي على خواص أمنية عالية جداً ليس بالسهولة ان يتم تزويرها، إضافة الى ان الحكومة الاتحادية تمتلك (25) جهازاً ذا تحسسية عالية ويميز العملات الجديدة المزيفة من الصالحة فضلاً عن استيراد (25) جهازاً آخر من قبل البنك المركزي لكشف العملات المزورة، داعياً الى إسناد ودعم هذا المشروع كونه سيقوم بإصلاح العملة العراقية من خلال تقليل الكتلة النقدية المطروحة في الأسواق المحلية. Khalil added: The new currency will be a high specification and have the properties of security is very high is not as easy to be forged, in addition to the federal government has (25) organ The allergic and high distinguishes new currency counterfeit of good as well as import (25) another ATM by the central bank to detect counterfeit currency, calling for attribution and support this project because it will reform the Iraqi currency by reducing the money supply raised in the local markets. وذكر النائب خليل: ان العملة الجديدة ستتكون من الفئات (1 و2 و5 و10 و25 و50 و100 و200)دينار، فضلاً عن الفئات المعدنية الصغيرة (50 و 250)فلساً. The Attorney-Khalil: The new currency will consist of the categories (1, 2, 5, 10, 25 and 50, 100, 200) dinars, as well as small metal groups (50 and 250) fils. فيما كشف نائب محافظ البنك المركزي مظهر محمد صالح عن وجود خواص أمان عالية وذات تقنية علمية متطورة في العملة العراقية الجديدة بعد حذف الاصفار الثلاث منها. As revealed deputy governor of the Central Bank of the appearance of Mohammed in favor of the existence of safety properties of high-tech and scientifically advanced in the new Iraqi currency after deletion of zeros of the three of them. وقال صالح في تصريح سابق إن البنك المركزي العراقي وصل إلى مراحل متقدمة من الاستعدادات اللوجستية المهمة لمشروع حذف الاصفار الثلاث من العملة العراقية وبعد استحصال الموافقة من الحكومة الاتحادية على تنفيذه سيكون العمل على نطاق أوسع كونه يعد مشروعاً إستراتيجياً يهم عامة الشعب العراقي. Saleh said in an earlier statement that the Central Bank of Iraq has reached advanced stages of preparations for the mission logistics project to delete the three zeroes from the Iraqi currency, and after obtaining approval from the federal government to implement it will be working on a larger scale because it is a legitimate strategic interest to the general of the Iraqi people.




Date: Sunday, 29-04-2012 07: 33 am


Baghdad/term
The parliamentary Economic Committee decision confirmed mohama Khalil further restructuring of the Iraqi currency and delete the zeros.
It was scheduled to begin the process of deleting zeros from currency next month as a step to raise the price of the Iraqi dinar against other currencies.


Khalil said by (Euphrates News) that the draft structure and delete zeros from currency would have considerable economic advantages and reflected positively on the economic realities of the citizen. There were resolute and determined to implement the project as it would contribute greatly to maintain Iraqi funds and value in the world market. He said the Government demanded the wait in the application of the conditions experienced by the country, denying the existence of the intention to cancel the project's importance.
And the Secretariat of the Council of Ministers, the Council issued a decision to wait in the application process of the deletion of zeros from the national currency.
According to a statement by the Secretariat that resolution must stop all procedures relating to the process and to further notice




Central Bank: the project to delete the zeros will not be implemented without the approval of the government and parliament

BAGHDAD / Baghdadiya News / ... After a formal demand that the government of the Iraqi Central Bank to wait in the implementation of the project to delete three zeros from the Iraqi currency,

And members of the House of Representatives objection to this request, said the central implementation of the project will only be by the three parties and the approval of the Central Bank and the government and the House of Representatives.

According to the bill, which raised the Iraqi Central Bank to the government and then chairman of the parliament in preparation for discussion and approval, select the Central Bank of the first of January of the year 2013 date for the start put new dinar after Trchigah any lifting of three zeros from it, preceded by a sensitization of the citizens go on for six months, while continue the process of replacement and handling in both existing and new two-year period. Council of Ministers decided in the atheist th of April the current slowdown in the application to delete the zeros of the national currency.

Deputy Governor of the Central Bank of Iraq the appearance of Mohammed between (l Baghdadiya News) that there is no problem in the patient as called by the government, even though this project is located within the Central Bank's authority and in accordance with its law, passed in 2004, but such projects can not be implemented, but the cooperation of all parties, and here the replacement process will not be until after the bank agrees with the government and also with the Parliament and approved by the government and the parliament among them.

He said the lifting of three zeros means lifting the three ranks of account from the accounts of the Republic of Iraq will become a trillion here and a billion and one billion million, and so on, and this means that the computational system of the country will change and a need for cooperation among all parties, including citizens.

And on the decision to wait Saleh said as I mentioned this project needs the consent of all parties and any rigidity of any party would disrupt the project, and still there is enough time for the understanding among the parties to reach a specific date, it is very possible to keep the old time. "

Project to delete the three zeroes from the Iraqi dinar will cost the state budget the amount of 172 billion dinars / 150 million.

It showed official documents especially the replacement of the Iraqi dinar obtained (Baghdadi News) The new edition will be issued in three languages: Arabic, Kurdish and English, and the drawer of the Kurdish language in government transactions provided for constitutionally, while the cost printing process which will be forwarded to one of four international companies specialized $ 150 million distributed in print, transport, insurance and work outside of office hours for the destruction of the old currency which will be made within this time the Central Bank.

It is noteworthy that the Iraqi Central Bank oversaw the implementation of the decision issued by the former U.S. civil administrator Paul Bremer replaces the currency of the days of Saddam's regime with a new one and lasted for the period between 10.15.2003 15.01.2004, timely and cost $ 270 billion dinars / 200 million .

Deputy Governor of the Central Bank of Iraq between the appearance of Mohammed, "The studies of a new series of printed Iraqi currency has started since 2005, and began correspondence with the Committee on Economic Affairs in the Iraqi government in 2007 around the idea of ​​deleting three zeros from the currency.

He said that printing a new currency characterized by that it will be one of the best security features in the world and the latest role of the printing world, with the addition of the properties of aesthetic, artistic and national benchmarks in Iraq tells the story of civilization of this country since the dawn of history, and will be in three languages.

And if one of the most important pros to be achieved is the feminine dinar shall be there are 30 billion dinars instead of 30 trillion dinars, not to mention that they are not counterfeit, and enhance the confidence of dealers out and raise the value of the direction of other currencies in addition to reduction to the digital financial transactions and accounting.

And that the replacement process will not be quick, as happened in 2003 but will be gradually and naturally to prevent any fluctuation in Okiem currencies, and can last for two years, and keep the old currency accepted during this period and also new until the withdrawal of the old street through Iraqi banks. Member of the Economic Commission parliamentary Nora Albjara noted that "the replacement of the national currency requires the approval of Parliament, can not hide that this project is not without its problems but it will be less than that accompanied the replacement process in 2003, because of the nature of the security conditions at the time, and the weakness of the potential, and accompanied by doubts replace large quantities of counterfeit currency, but now the situation is quite different, there will be strict control on banks, as the long-time replacement and allows examination before the old destroyed.

She said other problems or fears is due to a number of topics including the other members of Parliament suggested that the fees are the new currency with the character of Islamic, but confronted with it objections on the grounds that Iraq's multi-religious and ethnic groups and sects, and despite multi-everyone agrees on the icon of the historic will express Everyone Vhoudarh old Iraq created all Iraqis Sumerians, Assyrians, Akkadians, Babylonians and others, and here would be a beautiful historic drawings.

The forms the other relates to the pre-replacement Everyone knows that the state budget begins to accumulate since the middle of the year to raise in the fourth quarter, and here you have the numbers calculation the current or the next, and there are trading the stock market of Iraq and the price per share Currently, the share price dinars, and only one, less than cents U.S., so how can calculate the after deletion of zeros? If as per Fils, it means that the central bank issued currency at the same value, or value of accountancy Issar only.

It is noted that Iraq is dealing with the currency very sensitive this matter is linked to a close relationship shifts the political and any variable may be occurring in the country, and issued the first national currency mid-year 1921 in Prince Faisal Ibn Al Hussein after his coronation by the British at the time and called the Currency (penny) and before that was dealing two currencies is called the Ottoman Empire (Majidi) the proportion of the Ottoman Sultan Abdul-Majid, and after being expelled by the British Edjlo (Our Father), the Indian army because most members of their origin from India.

After ten years on the coronation of King Faisal I, was established the Iraq Currency Board in London in 1931 and the issuance of Law 44 of the same year, by which printing paper currency in the sixteenth of March 1932 saw the light of the first Iraqi dinars bearing an image of King Faisal I on the right and the name of Kingdom of Iraq at the top and category number in the middle is written in Arabic and the second in English, where the company (Dollarroa) British printing of the dinar was also printed in small denominations of paper (quarter and half) in India and began to expel the Iraqi dinar, the Indian Rupee.

The Iraqi dinar is equal to 1000 fils was also printed Order of the five dinars, ten dinars were then put the Royal Order of dinars per cent.

We have continued the Iraq Currency Board printed Iraqi currency until the issuance of Law No. 43 of 47 and by virtue of which has been established (National Bank of Iraq), and specifically on the twentieth of July 1947 to adopt the theme printed Iraqi currency, did not change the form of the Iraqi currency and continued to print until the establishment of the Republic of Iraq in 1958 The posters of the three kings of all the currencies replaced by (logo Republican) new and changed after the Baath Party took power in 1968.

In the second of August 1990 had evolved in Iraqi politics was overshadowed by the dark on the country in general and the currency in particular, and by imposing (the policy of economic blockade), which led to the disappearance of currency for all original categories and the emergence of currency printed locally Bmtaba newspapers and journals is meager and devoid of controls in place globally .. As the years of the blockade increased the print size and say the dinar exchange rate against the dollar until he arrived in 1995 to 3000 dinars to the dollar, which has produced tons of locally printed currency. / Finished / 27 /





Economic Commission confirms the parliamentary move structuring currency and delete zeros of
28-04-2012 | (Voice of Iraq) -

BAGHDAD - The Euphrates News

Confirmed the parliamentary decision of the Economic Commission Mahma Khalil move structuring the Iraqi currency and delete zeros from them.

And was scheduled to begin the process of removing zeros from the currency in the month of September next step to raise the price of Iraqi dinar against other currencies.

Khalil told the News} {Euphrates that "the proposed restructuring of the currency and delete zeros of which will have significant economic benefits and will reflect positively on the economic reality of the citizen."

He added that "There is a resolve and determination to implement the project as it will contribute greatly to maintaining the Iraqi funds and value in the global market."

He continued that "the government called in the application of the project to wait for the conditions experienced by the country, but there was no intention to cancel that project to the amount of its importance to the economy of the country."

And announced that the General Secretariat of the Council of Ministers that the Council passed a resolution to wait in the application process to delete the zeros of the national currency.

A statement of the General Secretariat that "requires the resolution to stop all actions relating to the operation mentioned and until further notice."

"The decision of the Council of Ministers, which will carry No. {111} for the year 2012 and approved at the regular session of fifteen, which was held on 10 this April was based on that introduced by the Committee on Economic Affairs.

"
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Shabibi: Iraq's reserves $ 60 billion

BAGHDAD - Samer Ibrahim



Posted 22/04/2012 12:00 AM



January 2013: KD without zeros
Detection of the Iraqi Central Bank Governor Dr Sinan Shabibi, in a dialogue with the «weekly» that the restructuring of the national currency, starting with the deletion of zeros from the dinar, a very important step, because they relate to the direct purchasing power and inflation. The Shabibi that the central bank independent, which is directly responsible for monetary policy, exchange rates and foreign reserves management and the organization of the banking sector. The details of the interview:

■ Iraqi Council of Ministers decision, addressed to the Iraqi Central Bank monetary policy adopted to refer to the government for approval and approval, the banking sector has raised concerns the likelihood of government intervention in its affairs. What is your comment on this?
- There is no doubt that monetary policy linked to the central bank that is being questioned by the House of Representatives, and the independence of the central bank does not mean that his attitude from the government which can not afford an explanation of a negative in terms of dealing with the many important issues, and I think that this independence is in favor of the government because it grants the Iraqi Central a great opportunity for the adoption of policies that deal with inflation, and if these policies will be constrained to the negative impact on the state enterprises. I also think that the principle upon which the independence of the CBI is that the authority responsible for printing money is supposed to be independent of the other parties, which holds the spending on state enterprises, by which I mean the executive branch, otherwise it would be able to last and when they need to cash, to resort to Central printing, which leads to increase the amount of inflation or printed. So I see the need for the independence of the central, and this independence of the Central grant the possibility of stabilizing policies, but it certainly requires coordination with the government.
■ Is there nothing to suggest a link between Iraq's central and executive power in the constitution?
- The Constitution confirms that the CBI is responsible to the House of Representatives in the implementation of its monetary policy, and the close relationship between the CBI and the House of Representatives are in favor of the executive branch that need economic stability, who works for it's central. And economic stability is the stability of the currency and prices and inflation, and on this occasion to talk about the need to develop a strategy for the management of fiscal and monetary policies as it provides the opportunity to promote the economic performance better without restrictions shackle workers in these vital sectors and prevent their movement.

Delete the zeros

the project to delete the zeros of the local currency is seen how the «Iraqi Central» and its importance?
- At the outset say that the project to delete the zeros of the new Iraqi dinar, which is expected to see the light at the first of January of next year, is one of the strategic functions of the central, because of its importance in alleviating the lot of suffering faced by economic sectors and wide, in front of the budget and commodity trading day. On this occasion, say that the zeros have been added to Iraqi currency in the early eighties formed a cluster of large cash amounted to 28.5 trillion Iraqi dinars, or nearly five trillion paper money, so it was the Iraqi central line in his new project with its monetary policy based on restructuring and reducing the size of the currency, especially since Iraq is moving towards a market economy stage. As has been initialized supplies required to replace the Iraqi currency and took the Iraqi central accounting measures in order to stabilize the dinar exchange rate so that is expected to facilitate the new dinar cash transactions affected by variation in the currency difference.
■ What are the expected reactions to this move?
- Draft new dinar there, and the Iraqi central monetary authority which is responsible to delete the zeros project is an essential step because this deletion represents a restructuring of the national currency and the initiation of a new currency system.
■ Does the international donor institutions support this move?
- Yes, that institutions support the restructuring of the currency to facilitate the deal.
■ On the other hand we ask about the importance of cash reserves in relation to Iraq, which tends to strengthen its currency?
- For the first time in the history of Iraq, rising foreign exchange reserves of foreign currency to the $ 60 billion and is no doubt that the increase in reserves of the CBI that enhances confidence in local currency, and increases the stability, which helped the CBI to take important steps was the most prominent of trade finance for the sector own and maintain the stability of the market and curb inflation. On this occasion I would say that inflation is no longer a concern for us and it is under control and within the policy of price stability. Hence we can say that the cash reserve forces of the hard currency makes us able to curb inflation quickly, and the Central Bank of Iraq was constantly keen to work towards the reduction of inflation through fiscal policy challenge of rising prices, which confuses the family income and a negative impact on price stability in the country .
■ Experts emphasize the poor performance of Iraqi banks what are your steps to address this imbalance?
- CBI always continually support the Iraqi banks, consider this a priority of his policy, which aspires to take the banking sector role in development and reconstruction, and the advancement of the country's economy, and I think that the decision to raise the capital of private banks to 250 billion dinars in 2013 would help to promote an important role for the sector expands from the Department of banking services, and we are studying proposals that will help to allow banks to expand its circle of activity, in addition to its traditional, so willing to give loans long term, because of their significant impact on the development of investment activity and project implementation strategy.
■ Are there specific steps to seek to achieve in this area?
- I think there is now a need to develop the banking culture, and to the wider use of modern systems that facilitate the trading process and transactions between banks and their affiliates, as well as with foreign banks, and we will work to improve this aspect widely.
■ What is the importance of the Iraqi Central decision pending patent application for the tax levels of foreign remittances to 50 thousand dollars for the expansion of banking activity?
- The decision falls within the framework of personal remittances and in conformity with the tax reform so that it meets the ambition of the market and private banks as part of the market. I believe that this decision will be encouraged to hold a large commercial transactions for companies, especially since the purpose of settling accounts in tax money is not a conversion adapter but on the profits, and the implications of decision-useful to balance the market and sales. On this occasion, I call for a review of some of the tax laws that can create some sort of reassurance to those concerned Balthacb tax.
■ plague the economic and financial circles, sometimes due to fears of price fluctuations of the Iraqi Central sales of the dollar?
- The strength of the Iraqi dinar strengthened the size of reserves of the Central Bank of foreign exchange of 60 billion dollars, this makes the Iraqi dinar and one of the strongest currencies in the region, so I do not see a positive to any fears of rising inflation due to falling sales of the central of the dollar, so that the bank has the possibility of being able to install large financial stability, and has more measures to increase stability in the rates of prices in foreign currency savings.


Central Bank Pledges To Raise The Value Of The Dinar Again

04/22/2012

Central Bank pledges to raise the value of the dinar again


BAGHDAD / JD pledged to the CBI and during a meeting between the Deputy Governor of the Integrity Committee the members of the parliamentary, to promote the value of Iraqi dinar after Mlhaudha witnessed a decline during the last period the cause of the increasing demand for the dollar, and the effect of economic sanctions imposed on Iran and Syria. And met the President and members of the Parliamentary Integrity Committee Mr. Deputy Governor of the Central Bank of Iraq (Dr. Mazhar Mohammad Saleh) and the Director General of the Anti-money laundering have been talking and trading procedures and mechanisms adopted by the Central Bank of Iraq to improve the operations of foreign exchange and improve the exchange rate of the Iraqi dinar to serve the prosperity of the Iraqi economy.




Read carefully as the wording eludes to them needing to do it!

Parliament’s economic committee welcomes the postponement of the deletion of zeros

Posted: April 21, 2012 

On: Sun 04/22/2012 0:59

The head of the Economic Committee in the House of Representatives Ahmed Alwani, a draft decision of the patient as deleting three zeros from the currency issued by the General Secretariat of the Council of Ministers, considering the current time is not ideal, and it needs a long time to implement it.

He said al-Alwani, according to the Agency (news) that the decision issued by the Presidency of the Council of Ministers to postpone the project of deleting three zeros from the local currency is professionally before they be political, because it is an important project and needs to be enough time to study it and stand on the most important Mostagdath, indicating that the dinar is national currency and has no identity of sectarian or national.

said Alwani: The Economic Commission had meetings with the government and the Central Bank on this project was the consensus that this project is important for the local currency and the economy in general, adding that many countries omit zeros from its currency.

He Alwani : that the country is going through during the current period of political and Altazmat differences between the parliamentary blocs, so it needs political stability to the application of the deletion of zeros.

http://bit.ly/Jv738F



Economy


Ministry of Finance has custody of the implementation of the lifting of the zeroes of the Iraqi currency

8
Ministry of Finance has custody of the implementation of the lifting of the zeroes of the Iraqi currency

21-04-2012 Are free -
Detect the Iraqi Central Bank on Saturday, all reservation and the Ministry of Finance of the implementation of the project to delete the zeros of the Iraqi currency, calling on the executive and legislative bodies and all concerned to cooperate with him to accomplish this.

The deputy governor of the Central Bank of the appearance of Mohammed Saleh in a statement to 'Twilight News' that' the Ministry of Finance expressed its opinion on the draft raise zeros from the Iraqi currency and had a reservation of this Order ', pointing out that' the ministry conservative of the timing of the start of the project because all the accounts of the budget will be recorded in accordance with the new currency '.

And the favor of the 'implementation of the project must be cooperation between the central bank and power legislative, executive and all concerned in this matter', pointing out that 'the calculation will be Zleh will not face any difficulty with the deletion of zeros only require some technical measures such as changing computers'.

Salih stressed that the currency in its present form does not serve the requirements of progress and development in the economic side, the fact that the three zeros in each of which represents a decade of conflicts, wars and economic decline in the country '.

The Cabinet decided, in the middle of this month, be patient in the application of the deletion of zeros from the national currency.

The Central Bank of Iraq began to modify the search categories dinar, last year, and is still a large part of the payments being in cash due to the evolution of the banking system.


Central Bank reveals a reservation on the draft Iraqi Finance raise zeros

Saturday, April 21 / April 2012 11:19

Twilight News / detect the Iraqi Central Bank, on Saturday, on the reservation and the Ministry of Finance of the implementation of the project to delete the zeros of the Iraqi currency, calling on the executive and legislative bodies and all concerned to cooperate with him to accomplish this.

The deputy governor of the Central Bank of the appearance of Mohammed Saleh in an interview with "Twilight News" "The Ministry of Finance expressed its opinion on the draft raise zeros from the Iraqi currency and had a reservation of this Order," explaining that "the ministry conservative of the timing of the start of the project because all the accounts of the budget will be recorded in accordance with the new currency. "

And the favor of that "implementation of the project must be cooperation between the central bank and power legislative, executive and all concerned in this matter," pointing out that "the calculation will be Zleh will not face any difficulty with the deletion of zeros only require some technical measures such as changing computer hardware."

Salih stressed that the currency in its present form does not serve the requirements of progress and development in the economic side, the fact that the three zeros in each of which represents a decade of conflicts, wars and economic decline in the country. "

The Cabinet decided, in the middle of this month, be patient in the application of the deletion of zeros from the national currency.

The Central Bank of Iraq began to modify the search categories dinar, last year, and is still a large part of the payments being in cash due to the evolution of the banking system.

J p / m P



Editorial: The implications of low exchange rate of Iraqi dinar (beneficiaries and affected)

Posted: April 21, 2012 

On: Saturday 21/04/2012 15:42

I saw the Iraqi dinar during the past few weeks, a decline in its value falling exchange rate of (

0.0008333) dollar / dinar in early December 2011 to (0.00077) dollars / JD in early April 2012. In other words, the number of dinars per dollar of (1200) JD / dollar in the free market to the (1300) JD / dollar during the period. The exchange rate that was in the seventies Sunni $ 3.20 / JD any more than the current price of more than four thousand times (almost “). (3.2 ÷ 0.00077 = 4155 times).

Reasons for the decline in the new Iraqi dinar exchange rate:

It was still Iraq’s cross-border trade

Cross Border Trade carried out by the sons of his sons with the neighboring countries such as Iran, Syria and Turkey. Was and is the local currency of the Toman JD and SP cover part “regardless” of the trade along with the dollar. What is happening now active trade across the border in the (District of Kalar) and (Haj Omran) in Kurdistan, is a vivid example of this trade. This resulted in the accumulation of large reserves of cash to the Iraqi bankers and traders Iranians, Jordanians, Syrians, Turks and others.

We have enhanced the acceptance of those of the Iraqi dinar their trust in him over the past five years, which did not happen to him before that over a quarter of a century ago. And increased the flow of the Iraqi dinar cross-border done by the Central Bank a few months ago (from step is calculated results) that allowed himself to be a tool and a policeman, “but the taxes to make the enforcement of documentary credits and remittances from importers of Iraqi persuasion” to obtain prior approval from the General Authority for taxes.

Causing the flow of Iraqi currency, increasing towards the neighboring countries and increased in availability outside the border. The cross-border trade in local currencies is a booming trade between the countries of the world, and like her what had passed by the Convention between the Governments of Turkey and Iran from trade in local currency of the two countries, as well as Pim Malaysia and its neighbors using the local currency.

Eight to impose economic sanctions on Iran and Syria could reduce the dollar reserves of these countries walks dealers to get the dollar from the Iraqi market Iraqi dinars users have available in abundance. Thus, increased display of the dinar and exceeded his current stream pumped by the Iraqi Central Bank of dollars over the Mzhadath famous.

One night, the dinar exchange rate in the course of fluid in the pots Almsttriqh dropped inside Iraq to equal the price at the border. With each rise in the dollar exchange rate and lower the price of the dinar at the border to respond levels of exchange rates in the inside of what is happening on the border exchange rate fell from normal adult levels

1200 Danardolar to the low exchange rate, after the flow of large quantities of the dinar, which was towards the two neighboring countries to buy the dollar.

It is worth mentioning that this phenomenon (the phenomenon of the present decline of the value of the dinar) is a natural phenomenon arising from the mechanism of adaptation price in the market and according to the “forces of supply and demand which is not a phenomenon satisfactorily.

But what bone would this phenomenon is that people here in Iraq are still memories of what happened to Danarhm in the nineties are stuck in their minds. People still feel the anguish of what happened in the nineties. lubricate their minds that this could be like Fastbd their concern. seemed many of them moving from the dinar to the dollar, or that documents the rights of it. It is bone of this phenomenon is also “is sintering atmosphere concerns the confrontation between America and Iran and may bring about the repercussions in the Strait of Hormuz, where it passes the bulk of our oil exports and revenues of the dollar. It is bone of this phenomenon also “that all this happened in time vogue campaign led by the Central Bank to cancel the zeros of the Iraqi dinar (increased the panic and uncertainty in the future) at a time encouraged the bank to repay the amounts of money orders (received by the Iraqis from abroad) KD instead of” from the dollar This increased the fears of men, but that the bank’s decision to deal with it the last grant (

10 thousand dollars) for the traveler at (1148) has increased the disorder rather than “that was Ahdih disturbance in the bank like a ladder” to transfer it, but the offer.

As much as it comes to prices of imported goods when the lower exchange rate of the local currency of a country, the price of imported goods in the country devalued its currency rise the other hand, it would require the buyer to pay a monetary units more local than was needed by a drop to get the same amount of purchases.

The depreciation of the currency of the country represented by lower exchange rate against foreign currencies may be a deliberate policy or monetary policy of the destination country on a number of things in order to encourage the country’s exports. An example of this is done by the government of South Korea in

2011 of reducing the value of its currency, L. (Wen Won) benefiting export industries Korean, including the automotive, shipbuilding, electronics, and that was a factor “important” is to enable Hyundai Korean (for example “) that sell a million vehicles in the U.S. market in that year. Which is has not previously achieved in the market before, Vtboat place Nissan, Hyundai Japanese (Zuta exchange rate high) and removed on Tuesday for a count, which was the sixth for the first and fifth of a second in that market. but from the other side, the Korean government was surprised (as a result of this policy), including not not unexpected, “he protests to consumers from time to time in the streets of the capital, Seoul says that Avcthm on the right side of the picture the following (the government was sacrificing the interests of 99% of people in favor of one percent of them). The following two graphs shown in Figures rise of the consumer price index (figure on the left side) against falling purchasing power index of the real wage of the worker Korea in 2011, a period that low exchange rate of Korean currency (figure on the right side).

May take the devaluation of the currency of the country form the “last to force a state wishing to devalue its currency or more other States to raise the value of the currency of that country. Which is what I did during the American trade dispute (

Trade Friction) with Japan and Germany (days of the German mark) dropped the value of the dollar between 1985 and now to a third of what it was the exchange rate before, “of 220 yen to the dollar to 80 yen to the dollar rising value of the yen and the dollar fell. Value of the dollar against the yen today in 2012 is the third value it was in 1985, in the sense that he lost two thirds its value against the yen. today is pressing the U.S. to China in order to raise the latter the value of its currency, thereby increasing American exports to China and the decline in Chinese exports to America. America is pursuing this course Xlk protective of their products and adjust the balance its trade balance with these two the two countries offset the imposition of fees and restrictions Kmarkip protectionism against the exports of Japan and China it, and in turn encourage its exports to those countries. the same goal, which will come to America, if carried out a reduction of “direct” its currency to the dollar (as Korea did), but do not want to ignite the war to reduce currencies. It does not do so for a number of considerations which is carrying the banner of trade liberalization and reduction of customs restrictions. They do not want to prohibit others from the policy is and then come in kind. that will apply when the words of the poet:

Do not end for creating and comes like a shame if you did a great

The irony in Iraq:

While the depreciation of the dinar adds a burden “Klvuja” on consumer prices, the House wants to pass the customs tariff law adds to the burden of “Klfoah other people and generates (pressure” on the pressure), or in other words (Vuk scratched bombed))

Affected and the beneficiaries of the low exchange rate of Iraqi dinar

That the decline of the current exchange rate of the dinar against the dollar, resulting in benefit categories of people and the loss of other groups in Iraq, as follows:

Affected are:

A: Owners of dinar savings:

Having increased the confidence of savers in dinars (over the years Aalakhirh) prompted the confidence numbers “big them to turn in their savings to keep the bulk of their savings in dinars. Of these traders, industrialists and others. When they will need to convert their savings into dollars would receive dollars less than if Enshrined they had their money in dollars.

B: Contractors Bmquaolat prices Ddinria:

They receive dinars. But most or a lot “of their expenses and purchases of local or imported are in dollars usually. Including amounts purchases of imported materials of foreign origin, as is the case with building contractors, construction and what they’re buying from construction materials and building construction are imported. When you have made their presentations they may Arise, the costs of business plans at the exchange rate prevailing before the devaluation of the dinar, and now they have to pay the new rate of exchange in this loss for them. When residues receive benefits after the delivery of work out business plans will receive JD yielding less than a dollar that prevailed “when you get started to work.

C – lessors of their property and rental contracts Ddinria:

While experiencing the normal daily purchases prices “Ddinria high.

D – Real Estate Tenants rents dollar but Doakhlhm Ddinria

: They should now that Astro dollars at a higher price than before.

E – Producers:

They will sell their products at prices Ddinria when they buy inputs in their production at a dollar.

F: But the choice in front of them to raise prices of their products, making it vulnerable to the low volume of sales

G: Pensioners.

H – the poor covered, social welfare programs; What they are implicitly (

Foگ Dred God hit me Bmegnh) as described by the popular poet Mullah Abboud Karkhi.

I: – lenders Dinars:

J: They would recover their loans dinar dollar amounts less than the dollar amounts that were prevalent on lending.

K -Borrowers in dollars:

Where would repay their debts at maturity dollars with less purchasing power Ddinria of its power in the history of lending, Vdolar payment over a dollar lending.

L – Officials and employees of wages and Ddinria Earners:

They are making a basket the size of dollar purchases less than what was achieved by the same amount of salary or wage when converted to the dollar (for the purpose of exchange in the domestic market).

It is known that about

90% of the value of purchases of our people in Iraq are imported products. And you do not enter the grocery store or shopping center only to find at least 90%, which on the shelves of goods are imported goods. These rising prices at the low value of the Iraqi currency and high exchange rate against the dollar. This damage will be greater that a lot, “with the gradual withdrawal of the current state of the ration card system.

Beneficiaries:

A – the owners of private banks and bureaux de change and money transfer companies

: They are buying the dollar from the central bank is limited to the right at their

1148 dinars to the dollar and they were selling the dollar to 1.200, but now they sell 1,300, fall in Iraqi dinar exchange rate here has increased the profit margins of these categories, note that the central bank devoted to banking offices $ 250 thousand dollars a week at the exchange rate in question is 1148, and states that limit the sale of the central bank to these groups without the citizens represents an alliance between money and politics in Iraq (Business-Politics Alliance) where he was able men of the categories mentioned, including their locations and access decision-makers on this feature is limited to sale of the Central Bank to them without the rest of the people.

B -

Owners of dollar savings:

They would be able to buy dinars more numerous “than they were offered the same amounts of their savings.

C

Staff and the measure in dollars the Iraqi

: They will receive the same salary but with a greater local purchasing power and the number of dinars, where the largest number of dinars will increase compared to the amount of dollars.

D -

Borrowers dinar and dollar earnings and savings

: They would repay their debts and amounts of benefits Bdnanar cheaper. “

E – Exporters:

That Iraq’s industries and the activities of export other than oil (and oil to excludes in our research that there is no relation), in the forefront of dates and their derivatives, and wool, leather, Innards and products of rural industries and the household of carpets, rugs, and agricultural products, industrial and services and activities for export again .. For these industries and economic activities, links to background are thousands of workers in the processing of their inputs. Although the amount of the annual export is around 1% of the total exports of Iraq, but also important. “

That a price, “an export” of (2200) dollars per ton of washed wool of Iraq was before the deterioration of the Iraqi dinar exchange rate brings the Iraqi source (2.64) million dinars. But the deterioration of the exchange rate to the (1300 dinars / dollars) became brings (2.88) million, an increase of (240) thousand dinars per ton price for diamonds by the previous decline. The dates and derivatives industry will benefit from the same phenomenon (the phenomenon of rising price of Iraqi exports diamonds).

As well as other export products. Vim does not Mjhezwa these industries and activities to raise prices of their services or wages of their workers. So that the wage levels tend to be influenced by factors in the slower demand and supply of prices there is an interval or the so-called English Time lag between the two variables. Workers in this industry and the processors own inputs are between the hammer and the anvil of the stability of wage inflation caused by the devaluation of the dinar. On the other hand that the purchases of raw materials for the two industries most Tsidireeten two dates, washed wool, two seasonal purchases, and for one season and once per year. Valsof raw in the spring (March / April), a (season cut wool).

Crude and dates in the fall (September / October) harvest dates. This means that these two industries may Astraeta Mdkhlathma material on the dollar exchange rate was 1,200 dinars / dollars. They are now Tstvidan after low exchange rate of the dinar. According to the information available that the bulk of the cash reserves for these two industries, as for other export industries and export of Iraq’s reserves are dollar savings. In the Iraqi Industries tigers (the largest surges in Iraq (mixed, special government)) is the amount of cash reserves of dollar nearly two thirds of the market value of its shares. It is interesting to consider that the Ministry of Commerce has a (40%) of the capital of this company. The Ministry of Trade and the company would benefit from the new exchange rate.

As noted above, the importance of any damage or economic benefit in these export industries unclear

Given the links to the economic background and number of employees and local costs. In general, the low value of the dinar is a comprehensive damage to an audience of people in Iraq, including bump up the cost and value of imported goods which are

90% of purchases ahead of the people as pointed out earlier. “

Notes that the low exchange rate of the dinar in the case of Iraq, people will work “and hurt others.

The continued escalation of the terrible event in prices in the era of the eighties and nineties of the last century in Iraq was not because of the increased amount of the money supply itself. But for the fact that these increases were without balance true offset by the strength of a national economy and national income or GDP supported, as well as “what was from the constraints of trade and the transfer of external was the conduct of the State in the issuance of currency such as the behavior of dealer issued instruments” without balance meets their nominal value, and this reminds us of the Day asked the Minister of Military Industrialization (in the mid-years of nineties of the twentieth century) for the amount of the cost of the establishment of the bridge with a deck in Baghdad, the biggest and the greatest bridge was established in which, he said (it cost a load car Pickup of paper with barrels of ink) – Ya Balash!!!. Otherwise, the amount of cash in circulation in a country such as Japan is more than the amount of Iraqi currency (as the number of absolute) in circulation.

In the postwar period, the balance meets, but the source of the high prices of imported goods is the low value of Iraqi dinar for the reasons that we have mentioned previously, “in addition to the high costs. However, come back and say that the phenomenon of currency depreciation ethnic current is a natural phenomenon and is not satisfactory and feasible to restore balance.

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