Cons Edition 100 000
Written by Economic news editor
Date: September 05, 2016
Warned a number of experts and specialists in financial and Economic Affairs, the Central Bank of new edition 100 thousand dinars class and put it on the market, because it will increase prices and raise inflation rates as well as they will reduce the value of the Iraqi dinar and eliminate small groups of currency which will impact directly on citizens.
And Central Bank official revealed on condition of anonymity, the Central Bank's intention to issue a new edition category 100 thousand dinars to the market.
The source told reporters that "Iraq NEN" vassal "category the 100 000 printed creative including model and we will choose the time for placing on the market",
noting that "put on the market to help stimulate the economy through commercial transactions between traders and exchanges between companies, as well as the 100 thousand easy storage and pregnancy and designed along the lines of international currency if that high level security system it is difficult to falsify.
"Put it on the market requires, inter alia, promotional campaign to learn about, and being tied or the affinity (100) us dollars".
The Economist warned, just ask Greg coins with large groups in the market because it would affect citizens and indirectly in terms of increasing prices and rising inflation, as well as the breakdown of parliamentary value national currency.
Greg said in press statements vassal "NEN an Iraq that" time is not appropriate to ask the Edition 100 dinars that the Iraqi economy is at a precarious and unstable, especially given the low oil prices and limited income.
He added that this new class would cancel the deal with small groups gradually and be done the 1000 dinar smaller class instead of 250 dinars.
Finance expert, Nabil Madi, some analysts and economists thinks that selling the dollar on the Central Bank's auction the same amount and enter the new 100 thousand dinars to the market without pulling the equivalent of dinar would collapse",
and in my view it's not a relationship between Central Bank auction, which is sticky nominal exchange rate of the dinar against the dollar, and enter the category 100 thousand dinars dinar's collapse,
but the effect is to increase the number of times the circulation of Monetary Union ( The dinar) within an economy which increase the speed of circulation coins in the Iraqi economy.
He added that "as economic theory, the process of printing large new categories mean increasing the money supply (liquidity) which fits is directly related to increased rotation speed (fast) that speed of trading that proportional speed inflation caused by rising prices resulting from increased demand on the supply of new goods and services as a result of increasing liquidity."
"So if demand for domestic goods, displayed almost constant at the moment for lack of production or the alien comparable galore so that local product and especially satellite from filling a gap increased demand from spamming purchased, and no modern agricultural production techniques in order to provide a new view of agricultural product filling consumer needs leading to Ziad towards consumer demand to the product, which means that the trader to increase the import of foreign product to fill the lack of supply of goods The new application resulting from slippage to raise cash.
"Increasing Iraqi imports from abroad means increased absorption of the dollar from inside Iraq to the outside, which means increasing the desire of traders and speculators on their dollar of increased Central Bank auctions that desire means the dollar markup within the following auctions to increase the proportion of depreciation of the Iraqi dinar in front of other currencies including the dollar, which increases the desire speculators at this time to get the dollar though a higher price than the former price within Iraq to sign them down at a higher rate for the dinar Current time and dollar."
This brings together experts and analysts that it is appropriate to ask relevant currencies large groups because of what he's going through the Iraqi market instability.
The Central Bank has issued a new edition last year 50 000 to local market announced his intention to reprint another new currency category 100 thousand dinars.