Deletion of zeros needs to be catalyst for success; Gradual reduction plan offered by economist

Posted: December 31, 2013 in Iraqi Dinar/Politics

Experts: Delete the zeros project needs to be catalysts for success

31/12/2013 0:00

The views of experts and specialists on the importance of the project to delete the zeros from the currency, despite the objections put up by some of the impact on the market at the moment.

He described the competent Jihad al-Khalidi delete the zeros step reform, but it will not come to fruition is a partial positive unless accompanied by other radical reforms.

He also stressed the importance of making changes in the banking system in order to cope with the rapid changes and policies and banking systems and credit according to the modern sophisticated mechanisms for hiring and capital investment of government and private banks.

It is said that the project’s central bank proposed to delete the three zeroes from the currency (the dinar) for the purpose of restructuring the currency and its management has sparked heated debate between the circles all, and this is what filled government officials, economists and financial, but in spite of this controversy broad not everyone agrees on determining the time limit specified To implement this project, which led to a split these into two supporters and opponents.

According to Khalidi, what encourage the central bank to implement this project and there are applications for the successful testing of a number of states, for example: Turkey, which achieved positive results reflected in the purchasing power of their national currencies (lira) as well as Germany.

As pointed out “the need to find radical solutions to address the imbalances in the economic system by issuing legislation and economic laws and rehabilitation of basic infrastructure, as well as work on the re-sectors and factories productivity and agricultural government and private production and development of Iraqi exports, which continue to suffer from neglect and decline and begin the practical steps.”

He said al-Khalidi, “to legalize imports of unnecessary and luxury and reduce damage in the policy of dumping of the commodity (unequal) exercised by the states and foreign companies and reduce the exit of foreign currencies for the purpose of investment to finance development programs and projects in order to fit in with the requirements of the new phase and the success of the project to delete the zeros”, so require phase Current efforts sincere and bold than any other time of our national economy such as the return to normal for commensurate with the potential of the country and its natural resources, mineral and human resources and strategic geographical location to interact with its regional and international levels. ”

In turn, confirms the researcher Louay Hamidawi that “According to the constitution, the cabinet is painted Economic Policy upper of the country [Central Bank] which is responsible for improving the purchasing power of the Iraqi people.” And suggested a mechanism for the deletion of zeros by reducing the price of the dollar against the dinar gradually, to ensure that no damage retention in dollars, as the central bank begins to reduction by ten dinars at each reduction from 1180 dinars to the dollar to 1170 and then to 1160 then 1150, and so during the short period of time to reach its exchange rate to 1,000 dinars, and proves this price as a first step because it is the basis for the next step, noting that it will improve the purchasing power of the citizen Iraq’s 20 percent.

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