Parliament calls on commission to accelerate implementing deletion of zero process; Politicians and economist provide varied opinions

Posted: July 15, 2013 in Iraqi Dinar/Politics
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oooParliament called on the Commission, on Monday, to accelerate implementation of the project “zero” domestic process, indicating that the current currency “unworthy” Iraq’s economic and investment, while expert opinion requires the security situation and politically stable and the banking system “a thorough and impartial”, he stressed that “more convenient” than before to delete zeros from the currency.

Opinion of Abtan: Iraq crisis not money but how to manage it
And the parliamentary Economic Committee member, Abdul Hussein abtan, a (range), that “the economy is now in an advanced position and good because big oil supplier who arrived almost three million barrels a day,” and suggests that “the CBI recently announced that ne e reached 76 billion dollars, a very large sum.”

Abtan, adds that “all Iraqi still suffers from inadequate economic profile management as well as the lack of coordination between the pillars.

The Central Bank of Iraq, (July 3, 2013), that Iraq “controlling funds and Treasury of gold” in the world and is one of the banks Act, denying the existence of frozen funds “outside the control of the Iraqi administration, while Bank reserves reached revealed 76 billion dollars in may, count that out of Chapter VII would give Iraq” more freedom “to act and attract foreign investment.

And calls on the parliamentary Economic Committee member, to the need for “multiple revenue towards reflected on the economy and not on large cash reserves,” follow this “evolution in oil production and reserves, the Central Bank must be reflected on the lives of citizens because the country still has a large proportion of the poor and low-income, high unemployment and the housing crisis and the deterioration of the agricultural and industrial sectors.”

Abtan, believes that “Iraq does not suffer from the crisis of money but how to manage money, causing paralysis of the Iraqi economy” and demands “the Iraqi Central Bank need to take quick steps to delete the zeros of the local currency.

It is a member of the parliamentary Economic Committee, that “reserve in Iraq and the current economic status is not commensurate with the size and value of the domestic currency that contains that number of zeros, and the current currency unworthy place Iraq and strengthen its economy.”

Opinion of Al-daini: out of Chapter VII to make necessary to delete zeros
Meanwhile the parliamentary Economic Committee Member says, Nahed Al-daini, in an interview with the (range), the omit leading zeros from the currency became a reality, especially after the departure of Iraq from Chapter VII of the Charter of the United Nations “.

Remember Al-daini, “the Economic Commission in the Council of Ministers had been reluctant in the past to delete zeros from currency to many considerations,” and found that “out of Chapter VII made it necessary to delete the zeros of the Iraqi dinar have absolute privacy.

And invites the parliamentary Economic Committee member, political forces and others concerned, “leaving no time excuse, the excuse to stop many of the decisions which, if applied to the recovery of the Iraqi economy contributed significantly”, and emphasizes the need to “adjust the border ports and the customs tariff law and eliminated currency and implementing consumer protection law for the promotion of economic reality.”

Opinion of Najeeb Najib Replies: the project would require a genuine will and coherence between legislative and executive powers
So says a member of the parliamentary Finance Committee, najeeba Najib, told the (range), that “the Commission has not been with the Central Bank of Iraq topic delete zeros from the local currency after the Turkish Presidency,” Abdul Basit, and explains that “the parliamentary Finance Committee pending the CBI claim to discuss with him.

Najib, “recalls former administrative body of the Central Bank presented a study on the preparation of the project to delete zeros“, and considers that “the professional and scientific study included companies that agreed to implement the project.”

And Financial Committee Member representative emphasizes that “Iraq needs some salt is currently deleting zeros from its currency because the size of the money supply in circulation phenomenal”, shows that there are “four categories of the Iraqi currency is 1,000 and 5,000 and 10,000 and 25,000 dinars, while the 250 dinar almost worthless and even 1,000 dinars on its way to losing value.”

And Najib continues there is “an urgent need to have the work suitable for the size of funds and investments coming to Iraq,” and draws “the implementation of this project needs a genuine will and coherence between legislative and executive powers and a solid plan for success.”

It adds that “the need to outreach and to make its currency over two years and not limit certain banks and the broad base of Iraq banks in the provinces.”

Economist (Expert) Opinion: require a stable political and security situation and banking system accurate and impartial
On a related level Economist named Antoine, told the (term), “to delete the zeros is restructuring and reducing the use of decimals in the process accounts pose”, and shows that “the other thing is the reduction of fraud occurring in his current consumed significantly and you need to switch”.

Antoine, finds that “the other point is to minimize the dollarization because when you delete the zeros will raise the value of the paper currency is not money for the latter means and not objective,” follow that “reduces the dollarization in business dealings, rather than using a billion local currency cards of these million and will be relegated instead of moving currency bags of buckwheat (alkwani) will be transferred to bags.”

The expert, asserts that this “process requires a stable political and security situation and banking system accurate and honest and educate all security agencies to curb manipulation and counterfeiting of currency,” says, “the Central Bank is ready for this process and not be preoccupied with corruption and others.

Antoine, believes that “the time change currency was appropriate in the year 2012, now is not suitable.”

Economic Specialist: delete zeros from the currency is more apt now

However the head of economic studies at the Center for Arabic studies, Mustansiriyah international Dr. Abdul Rahman Al-Mashhadani, “if appropriate, two years ago to delete zeros from the currency, it today has become more apt to complete”.

Says Mashhadani, speaking to the (range), the omit leading zeros was supposed to expire two years ago that a purely economic issue, “and shows that” the dinar tearing and steals a loss for the Government and the citizen “.

And head of economic studies, that “cash now you need to transfer large banks need protection and great location”, says that “Iraqi currency need to change because according to international standards should not change categories currently circulating and that the Central Bank issued new categories.”

The Parliament’s Economic Committee, called in (6th of July 2013), the Central Bank of “gone” deleting zeros of the Iraqi currency in order to preserve them, and stressed that Iraq is not in the interest of survival of the currency this irregularly, with the deletion process will increase the value of the Iraqi dinar and reduce unemployment and poverty.

The General Secretariat of the Council of Ministers announced on (12 April 2012), wait at apply the deletion of zeros from the national currency, which require stopping all actions relating to the above process until further notice.

Some economists believe that Iraq is now prepared to delete the zeros of the dinar, stating that deletion requires political and security stability alongside economic stability.

The IMF, in (the 23 of March 2013), that fund balances in the Fund for the development of Iraq in 2012 rose to 18 billion dollars, the Central Bank’s reserves of hard currency to 70 billion dollars to the increase came from “unexpected oil revenues”, called on the Iraqi Government to end the dominance of State-owned banks on the banking sector, he stressed the need for Iraq to strengthen fiscal institutions to ensure efficiency and transparency in the use of oil revenues.

According to USAID, (third from last December 2012) leads the Iraqi economy during the five-year Arabic States, asserting that Iraq possessed all the qualifications to be a powerful country economically.

For years, Iraq is trying to attract foreign capital to develop its economy in the areas of private oil industry and housing and oil and gas extraction, and to the need of funds for infrastructure development and reconstruction, but observers say the lack of interest of the State to the private sector, where investment laws are free of significant safeguards for investors and absence of other laws remain obstacles to the development of the economy as intended.

Iraq depends on who owns the fourth largest oil reserves in the world, 95 percent of its annual oil exports, currently produces around 2 million and 900,000 barrels per day, with exports up to 2 million and 200,000 barrels a day.

The Security Council voted, on (June 27, 2013), unanimously adopted a decision to eject Iraq from Chapter VII, after more than two decades of sanctions imposed by the former regime following the invasion of Kuwait on August 2, 1990.


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