Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality

Iraq Dinar/News is a popular topic among many topics this board offers.

See the footer of the board for our Facebook and My business pages.

Be sure and join our Dinar Only Newsletter Email list. It is located on the right. Your User Account Email when joining the board is for with in Neno's Place use of board information which you can control in your profile settings.

Neno

NOTES:
For "Advertising" with in my board to our Membership and Visitors see our "Sponsor Ad Info" in the Navbar. Neno's Place receives a low of 50,000 views a week to over 100,000 plus many times thru out the year.

I can be reached by phone or text 7am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.
Established in 2006 as a Community of Reality

Longest Dinar holding Community. Reach Admin by Private Message. Copyright © 2006-2017


Iraqi Officials Divided Over Dinar 'Reset'

Share

Zuzu
Cain't Let Go Investor
Cain't Let Go Investor

Posts : 256
Thanked : 87
Join date : 2012-12-20

Iraqi Officials Divided Over Dinar 'Reset'

Post by Zuzu on Mon 22 Jul 2013, 7:49 pm

Iraqi Officials Divided Over Dinar 'Reset'


Two Iraqi parliamentary committees monitoring fiscal policy in Iraq have held two contradictory positions on the Iraqi currency “reset” project, which would delete three zeros from the currency. There has been much debate about the project's feasibility and the date of its implementation.

While the parliamentary Economic Committee believes that the deletion of three zeros from the Iraqi currency would strengthen it, the parliamentary Finance Committee fears that this project would open the door to counterfeit operations.

In a statement to Al-Monitor, Mudher Mohammad Saleh, former deputy governor of the Central Bank of Iraq, warned against the consequences of such a step if it is not implemented at the appropriate time.

Abdul Abbas Shayya, a member of the Economic Committee in the Iraqi parliament, told Al-Monitor, “Reforming the management of the Iraqi currency now requires the deletion of three zeros. This has been endorsed by the parliamentary Economy and Investment Committee."


Shayya, an MP for the State of Law Coalition led by Prime Minister Nouri al-Maliki, added that the Economic Committee "asked the government and the Central Bank to quickly replace the current Iraqi currency with another that is less [in value] by three zeros."


"The Iraqi currency is weak, and the money supply has amounted to multi-trillions because of the existence of these useless zeros," he said. "The country will witness a significant increase in oil revenues, financial earnings and high budgets. Thus, we need to print new banknotes, as estimated by the Central Bank."

"Iraq would need about 9 billion banknotes in the event of applying the deletion of zeros. Iraq today is dealing with 4 billion banknotes," he said.

MP Nahida Daini of Ayad Allawi's Iraqiya List agrees with Shayya, her colleague in the Economic Committee. In an interview with Al-Monitor, she stressed the need to implement the Iraqi currency “reset” project. However, she said that the government fears money laundering operations in the event of the project's implementation.
She said, "The Economic Committee last week requested to implement the deletion of zeros from the currency, but the Council of Ministers asked to delay the process for fear of money laundering operations."

Daini believes that the government's fears "are mere concerns." She said, "There are regulators in Iraq who can follow up and ensure the integrity of the project."

Meanwhile, the parliamentary Finance Committee believes that channelling resources toward ensuring the stability of the local currency exchange rate is better than the deletion of zeros.


Magda al-Tamimi, member of the parliamentary Finance Committee, told Al-Monitor, "The delay in deleting zeros from the currency was due to fears of possible fraud operations. The Finance Committee is currently focused on controlling the currency auction," which is carried out by the Central Bank to ​​provide merchants with hard currency necessary for import.

Iraq’s fiscal policy has come under criticism due to the fluctuation of local currency exchange rates against global currencies.

According to Tamimi, "Iraq is not ready to control the possible currency fraud that may result from the deletion of zeros." The Finance Committee, Tamimi added, "is now working toward controlling the Iraqi currency auction, which is witnessing a significant fluctuation in the exchange rate of the Iraqi dinar against the dollar."


"Development is the gateway to strengthening the currency. Thus, raising the value of the dinar is more important than the deletion of zeros," she said. 

Saleh told Al-Monitor, "The deletion of three zeros from the currency means deleting three grades from the calculation records of the Republic of Iraq. The decision to implement the deletion of zeros next year is very dangerous and risky. This issue must be done at the appropriate time."

Saleh added, "We need to reform the currency management and accounting systems in the country in general. This can only be initiated in a new fiscal year." 

"There are many encouraging positive factors to reform the currency management system," he said, also noting that the deletion of zeros "does not only involve changing the design of the currency. It implies changing the economic system in the country in general."




Omar al-Shaher is a contributor to Al-Monitor’s Iraq Pulse. His writing has appeared in a wide range of publications including France’s Le Monde, the Iraqi Alesbuyia magazine, Egypt’s Al-Ahaly and the Elaph website.


Read more: http://www.al-monitor.com/pulse/originals/2013/07/iraq-currency-debate-reset-fiscal-policy.html#ixzz2ZpCJo8p7

mochasmom
Till The End
Till The End

Posts : 1943
Thanked : 424
Join date : 2012-12-19

Re: Iraqi Officials Divided Over Dinar 'Reset'

Post by mochasmom on Mon 22 Jul 2013, 7:59 pm

Great article, mere concerns.

GWT54
Cain't Let Go Investor
Cain't Let Go Investor

Posts : 450
Thanked : 45
Join date : 2012-12-19
Location : Arkansas

Re: Iraqi Officials Divided Over Dinar 'Reset'

Post by GWT54 on Mon 22 Jul 2013, 8:15 pm

I don't understand what all the concern is about. They didn't seem to have a problem adjusting when their money was dropped to a mear joke for worth. Are they that afraid to have their money value reinstated so they can flourish once again?

costar01
Getting It Investor
Getting It Investor

Posts : 51
Thanked : 6
Join date : 2012-12-22
Age : 64
Location : Reynolds, Ga

Re: Iraqi Officials Divided Over Dinar 'Reset'

Post by costar01 on Mon 22 Jul 2013, 8:21 pm

"There are many encouraging positive factors to reform the currency management system," he said, also noting that the deletion of zeros "does not only involve changing the design of the currency. It implies changing the economic system in the country in general."

Now this is of a huge thing to me, Am I looking at this in the wrong Light.

Proven
NNP TEAM
NNP TEAM

Posts : 1212
Thanked : 714
Join date : 2012-12-21

Re: Iraqi Officials Divided Over Dinar 'Reset'

Post by Proven on Mon 22 Jul 2013, 9:23 pm

@costar01 wrote:"There are many encouraging positive factors to reform the currency management system," he said, also noting that the deletion of zeros "does not only involve changing the design of the currency. It implies changing the economic system in the country in general."

Now this is of a huge thing to me, Am I looking at this in the wrong Light.

You are looking at this correctly.  Increasing the exchange rate is the result of moving to a market driven economy.  A redenomination would not imply changing the economic system in Iraq.  

Sponsored content

Re: Iraqi Officials Divided Over Dinar 'Reset'

Post by Sponsored content Today at 10:21 am


    Current date/time is Sun 04 Dec 2016, 10:21 am