Interesting where we were and are at now.
Central Bank of Iraq is preparing to replace the currency after the cancellation of three zeros from
Friday 12 - 08-2011
Palm - The Central Bank of Iraq completing the preparation of a plan to replace the current banknotes after the cancellation of three zeros, and include 30 trillion dinars (26 billion dollars), is the value of expected cash bloc, stressing that the timing will be determined by the government and parliament, Iraqi.
The expert said the first in the Central Bank of Iraq the appearance of Mohammed Saleh, during a media statement: Our problem lies in the current issue of the timing of replacement of the currency, they must choose a date suitable to implement the project without hindrance.
Before, and the Central Bank announced its intention to raise three zeroes from the Iraqi dinar, after suffering from inflation and the decline during the nineties the past by economic sanctions, its value has tumbled to become the world today, about 1120 dinars per dollar.
The central bank adopted after 2003 a new mechanism to maintain the exchange rate of the dinar, is to create an auction foreign exchange to sell quantities of the dollar, resulting from the sale of oil in world markets, and transferred to the Development Fund for Iraq, which transforms in turn to the bank to sell in local currency, which helped to raise value of the dinar over the past years more than 2000 points.
And as for the size of the money supply or the size of cash flow by more than 30 trillion Iraqi dinars, equivalent to $ 26 billion, noting that the system of cash transactions in Iraq, after 2003, it became Mdolra, any market deal dinar and the dollar both, and this means a mass of cash circulating in the market but in foreign currency.
He continued favor and put in numbered accounts that the Iraqi currency or monetary bloc total traded home and that would be replaced after the cancellation of zeros will be in the range of 30 trillion dinars, but its value against foreign currencies would remain fixed .. This means that the Iraqi dinar exchange rate now would be equivalent to 1200 dinar per one dollar.
In regard to the most important variables that will come after the lifting of zeros, between the appearance of the central bank solid plan to rearrange the currency to reduce the number of banknotes in circulation, and this is positive and the payments system here would be Iraqi easier.
Economists warned that the process of replacing the Iraqi currency after the lifting of zeros Schoppea operations by a major corruption due to structural inaccuracies of Iraqi banks.
They emphasized that the processes of replacement of currency formerly accompanied the operations a major corruption cost the Iraqi economy a lot, but look for answers by saying that the process of replacing the currency in 2004, took place in exceptional circumstances, and the country under occupation and is administered by the Governor of an American civilian, and with this process was successful.
And sells the central bank through its daily auction, between 150 million and $ 190 million per day to clients of private banks and financial companies, a large proportion of them go Khawwalat external payment transactions of foreign trade.
And confirms the expert's central bank that the application of the new project to raise three zeroes from the Iraqi dinar and the currency exchange, will be according to mechanisms scalable in the form of do not feel the citizens, are put quantities in the market and the withdrawal of which is maintained by the government banks of the block and replace it, and it remains only in the possession of the citizens of the trading day, and can make any transactions in both currencies for existing and new, what's goods on the current price of 1000 dinars for example, a customer can give the seller the present paper the category of 1,000 dinars, as well as currency can give him a new category of one dinar.
Banking expert: There are in an economic system in Iraq
On: Friday 12/8/2011 5:17
Baghdad / term follow-up of economic
The Executive Director of the Association of private banks Aziz Hassoun said the problem experienced by the Iraqi economy is the lack of economic system in Iraq has so far. And that banks and international institutions anxious to enter the Iraqi market because of the security situation.
He said Hassoun's Agency (news): financial centers in the world used to rank states according to their financial and political positions which called them on this category (country risk) l ie risk countries, or risk areas, and Iraq, as classified consistently at the top of lists of risks, therefore, banks and foreign capital are braced so much and feel free to enter the areas where turbulence and the risks. "
He Goldfinch: The reasons that fear of banks and international institutions for the entry into Iraq is that foreign capital and Iraq concern from the investment of his money in Iraq because of its classification it is Countries unstable.
He continued: "We are asking for is not Kmusrvien only, but as citizens of the basis that there will be an economic plan in the country and when there is an economic plan and draft specific investment that everyone can contribute to overall economic activity, but the problem there is no economic system in Iraq has limit now stressing the need for a Platform for economic costs and determine the steps implemented and goals achieved, the usual thing with plans laid down by governments and maintained and implemented.