Calls for economic reforms before you start deleting zeros currency

lonelyintexas wrote:Calls for economic reforms before you start deleting zeros currency

05/09/2013 12:00 AM

Experts: Revenue diverse sectors raise the value of the Iraqi dinar

BAGHDAD - Farah pumice
Experts called for broad reforms in the economy , such as begin the process of deletion of zeros from the national currency , stressing the importance of diversifying the local economy with all his joints and sectors.

This comes at a time which saw the parliamentary Finance Committee that the process of deletion of zeros will have a positive effect , as it will lead to improvement in the economy , low inflation and ease of currency trading .

Economic expert Dr Akram Abdel Aziz told the (morning) : "This trend makes possession of fewer securities , any monetary union ease of carrying and conducting transactions for billing , accounting , and ease of trading ."

An accounting

But practically saw Abdul Aziz that the process of deletion of zeros from the currency will not reflect the strength of their value in the future because it is an accounting only , noting that the currency's strength derives from the diversity of the economy in all sectors so that the fiscal revenue derived from these sectors is a permanent revaluation and non- reliance on unilateral economic .

She said she needs financial resources may be expensive while the country needs to state resources can be served in the directions of development , indicating that inflation is currently located has several reasons including that "Iraq is an importing country, as the goods come with a margin of the Fed from the exporting country , as well as some of the industries and services reflected in the economic inflation because they suffer from high cost of production . "

Diversified production
She drew Abdul Aziz that Iraq 's position strongly reinforced when he has and diversify production and tourism actors , accompanied by stability in the economic environment .

It is said that the CBI had revealed in August 2011 seeking to raise three zeros from the currency , noting that he conducted an extensive study concluded that this process will strengthen the value of the Iraqi currency, but the General Secretariat of the Council of Ministers announced in April 2012 , to wait in the application process deletion of zeros from the national currency which had to stop all actions related to the mentioned process until further notice.

Necessary preparations
Parliamentary , confirmed a member of the Finance Committee MP Jaber Al Jabri need to conduct a study and prepare for this process, and the central bank has taken steps in this direction , especially that there are previous experience in this area and at the level of neighboring countries and international countries .

He added Jabri in his speech for the (morning ), " in the long term will have (the process of deletion of zeros ) positive impact on the Iraqi economy because previous experiments led to effect positive , including improving economy , low inflation and easy exchange trading , and all it requires courage in the decision" .

And member of the Committee stressed that this process is accompanied by economic reform and the reform of the banking system , as it has to be the fact procedures in order to start to be no negative impact on the local economy.

And Jabri said the International Monetary Fund ( IMF ) supports this decision, but there are plenty opposed to its impact on personal interests , saying that currently are not allowed to take this step because of the proximity of the legislative elections .

Fell justifications
In turn, the decision of the Commission of Economy and parliamentary investment Mahma Khalil : "The project delete the zeros Old and there were objections , and demanded the government to wait until the provision of an appropriate time , and after coming out of Chapter VII fell all the justifications for the implementation of this project."

Khalil added that "Iraq is not the only country that deletion of zeros from its currency Turkey succeeded stability and economic status when you delete zeros from its currency ."

Economic identity
And between Khalil that " the Constitution between the need to change and delete currency are required by the economic situation of the country, and for the benefit of the Iraqi people ," calling on parliament and the government to support the identity of the country's economic , expected at the same time that the witness budgets next increase and prosperity after the entry of investment companies to Iraq.

Negative effects
The Head of Department of Banking and Finance at the Faculty of Management and Economics at the University of Mosul, Bashar Alchukrgi said in a press statement : "The application of the decision to delete the zeros from the currency Iraqi shadow of the current circumstances of the country would have a negative impact big in the Iraqi economy ," adding that this decision will address the economic inflation and financial happening in the country are pro forma . "

He Alchukrgi to delete the zeros will not contribute to re-evaluate the Iraqi dinar to what it was before 1980 , when it was equal to the U.S. dollar , pointing out that the resolution will increase the rate of inflation rates , unexpected and significant beyond the ability of the bank the central Iraqi government and borne by ordinary citizen .

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the process of deletion of zeros from the currency will not reflect the strength of their value in the future because it is an accounting only--- permanent revaluation and non- reliance on unilateral economic .
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LIT