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The absence of small monetary categories is detrimental to the stability of the local economy

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ikea


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http://www.alsabaah.iq/ArticleShow.aspx?ID=160746

The absence of small monetary categories is detrimental to the stability of the local economy

29/7/2018 12:00 am
Baghdad


In the middle of the clothing shop, Ali Ali stopped after he was chatting with a customer of the shop and then went to his small table, which he placed at the end of his small shop, and while he was preoccupied with his talk, he opened the drawer of the desk.

The local currency of the category of 250 and 500 and 1000 dinars, he said:

"The small cash groups have come close to our shops, so how can we deal with customers, especially those who give us big categories like 5, 10 thousand and 25 thousand dinars, really it's a big problem."

The expert on economic and academic affairs Dr. Hilal al-Taan said that the existence of small monetary groups leads to a drop in prices, unlike the large groups, which lead to an increase in inflation and high prices, especially with the categories of 25 and 50 thousand dinars.

It is known that any economy in which small groups of cash coins disappear leads to the rule of Large and increase circulation in the market at a small expense.

A notable absence

Not only shops and markets suffer from the absence or lack of small monetary groups, but it applies to banks also, says a bank preferred not to be named:

"We have noticed recently the absence of cash categories of 250 and 500 dinars, as we can no longer provide them and give them both citizens and employees, and that we are equipped with them are very few compared to the real need for them,

and no one knows why the disappearance because we did not notice any new edition in the markets And not in banks, and this poses a threat to our economy because these categories are within the reach of everyone and circulation easy compared to those large existing such as 50 thousand dinars, so banks had to accept the damaged currencies and received from the citizens.

Director General of the Department of Repair and Storage in the Central Bank Agency Abdul Karim Hassan said in an earlier statement to "morning:

"We have instructed the government and commercial banks to receive the damaged banknotes from the citizens and replace them without any fines and to submit them later and in any quantity and banks contrary to those instructions are accounted for, and in terms of currency burned or buried citizen can be delivered to the Central Bank exclusively to be replaced immediately after submission according to certain controls".

Financial cover

While he is busy arranging clothes in his shop, Ali Kamel returns to wonder:

"What is the real reason for the absence of small groups, earlier we would note the existence of modern currency coins are being dealt with, but today is available only old and is almost damaged, is this a harbinger of the occupation of large market groups and how simple citizens can cope with this, which may lead to high Prices of goods and goods?

The bank notes that it is customary to print currency outside the country and provide a cover for printing according to a certain vision and Iraq provides this from the sale of oil and perhaps the lack or disappearance of small cash groups is evidence of the failure of the printing process,

it is known that the former system was the process of printing within the country And are traded by citizens in Iraq exclusively and is not recognized outside of it when the fall of the system is no longer for this money little value and was handed over by the citizens to the competent authorities to benefit them in one way or another,

the current currency is internationally recognized and has a value compared to its counterpart

The Director General of the Department of Repair and Storage that the Central Bank has equipped the Rafidain Bank and Rashid Banknotes and small groups to pay within the salaries of employees, and the bank to sort out the damaged and compensated with new papers, noting that the Bank continues to print banknotes and improve, especially small groups and pumping instead of damaged papers,

Calling for the preservation of the currency and accept whatever its status as a symbol representing the sovereignty of the country and inform the bank in case of refusal of banks to receive the damaged currency of citizens.

The Iraqi Dinar

After the British occupation of Iraq during the First World War, the occupation authority introduced the currency of the Indian Rupee as the official currency instead of the Ottoman lira, and in 1931 it was decided to establish a council of the Iraqi currency, which is responsible for issuing a special Iraqi currency.

The law No. 44 of 1931, Equal to the value of the pound sterling, and divided into 1000 fils, as appeared in the first issue of the dinar during the reign of King Faisal I on the first day of April 1932, and the banknotes in the category of quarter and half dinars and dinars and five and ten dinars and one hundred dinars, and coins of coins it F The Bank of the Iraqi currency continued issuing paper and metal coins until the establishment of the Iraqi National Bank in 1947.

In 1954, the Central Bank of Iraq was established, which became responsible for the establishment of the Iraqi National Bank.

The issuance of the Iraqi currency, and the Iraqi dinar throughout that period linked to the pound sterling, where the value of the rise and fall according to the fluctuations of the British economy.

Coins

The 50-year-old Jamil Hamed believes that the coins that were circulating in the 1950s and 1960s were a form of civilization of different types of monetary categories, of which there were 5 and 10 fils, all of which were accessible to the citizen and easy to obtain.

Economic researcher Laith Ali Bin that it is known that the shape of the currency and its effects on the psychological great consumer,

and this is proved by various scientific studies as increasing pride in his currency and his desire to ration purchase, as well as the need for the coin, which is noted that it did not disappear from trading in different countries of the world, Because it depends on the existence of parts, for example 350 or 450 dinars and we note that the coins disappeared completely from trading in our Iraqi markets, and earlier had a presence as there were devices in the past used this currency, including land phones that were in the mother Be the General Today either has been dispensed for several reasons, including changes that took place in the trading markets, as well as the cost and was replaced by the paper, which is now the lady of trading.

The researcher points out that economic affairs in the matter of the decline of the Iraqi currency against the dollar, it may feel that the citizen's national currency has no value, either when the rise gets great pride by him, begins to maintain and try to legalize the purchase, and

with regard to delete zeros from the Iraqi currency There is a belief that this matter has an impact on the psychological side, when they disappear from the monetary currency will feel the importance of the citizen currency and the need to preserve them,


in addition to the paper that is printed by the currency must be of the type of luxury, as badness has psychological effects and drives the consumer to think The need to abandon
reuse

Employee Shahrazad Mohammed confirmed that her salary for two months completely from the small cash categories, such as 250 and 500 dinars, if found, they are badly damaged and sometimes not received by vendors or even taxi drivers, private and public, which posed a real problem for the citizen.

Al-Taan explained that facing such a problem requires studying the situation of the market and finding a solution either by distributing small cash categories in the salaries of employees or printing small currencies that are easy to trade, while taking advantage of damaged currencies and turning them into dough and using them later.

The small categories are very important because they are easy to trade among citizens stability Economy.

tlm724

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This is a VERY interesting opinion piece ! Bring on the currency reform. Thank you for posting and highlighting ikea !!


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