Thread: Economists criticize the decision to lift the zeroes from the currency

Economists at the University criticized the strategy has Karbala, the Iraqi Central Bank to lift the zeroes from the process, considering that the time is appropriate for the reduced in others, the process and the possibility of reducing the inflation plaguing the economy. The Head of Department of Banking and Finance Faculty of Management and Economics at the University of Karbala, Dr. Akram Yasseri told (Eure) news reported that "the value of the Iraqi currency is not the number of zeros in them, but at their real value through the cover provided by it."

"There are several points that should be available with the CBI to initiate this process, such as including the first" that the government introduced the new currency and to keep the old currency is available in the local market and leaves the choice to the citizen in dealing with any of the currencies. "The second" deal Iraqi banks currencies with the same value at any time and needs the citizen, "adding that change must be gradual and not surprisingly so does not affect the value of the new currency to be deducted in the local market and to ensure that gain the confidence of the Iraqi citizen." "This process needs the support of senior government and this requires economic stability and political and security, which shall not have him to Iraq at the moment, he said."

It is no different opinion, professor of economics at the University of Karbala, Dr. Alaa Farhan view past when stating that the "hasty decision was made not in accordance with in-depth study of the financial situation of Iraq.

Farhan said that "the Iraqi Central Bank's decision came somewhat hasty not seen by economists in Iraqi universities to demonstrate their point of view about it, saying that the Iraqi economy is still economical Rieia depends on oil revenues, mainly the prices volatile and unstable." "We must promote the economy of Iraq in the first phase before considering to change the currency because we need to strengthen the base of the State Treasury of the hard currency it can print the equivalent of paper currency found in the local market and then become a currency backed by a strong base through which the Bank to take decision to lift the zeroes or raise the monetary value of coins and printing of a new parallel to strength."

Dr Farhan asked about the difference, which can result in the replacement of the new currency to the U.S. currency (dollar). "" This process has a negative impact on the psyche of the Iraqi citizens and the economic situation especially the poor class, and the personal debt and the creditor accepts the receipt of any amount and will, of course, the amount of little consideration in comparison with what people pay for a return which will create problems between the dealers term loan as he put it."

It should be noted that the Iraqi Central Bank Consultant Dr. Mazhar Mohammad Saleh has said earlier to some of the media that this year will see the launch of the new Iraqi currency, which dropped from the zeros and the CBI completed fifty percent of their preparations, which are working on since 2005.

http://www.uragency.net/index.php?aa=news&id22=5561