Coined money serves internal business dealings
Recent parliamentary votes have been raised calling for the reintroduction of coins (coins) and their reintroduction into circulation, as well as a review of the project to remove the three zeros from the Iraqi currency, at a time when economists have counted it as part of the country’s major economic reform process.
Strategic plan
“The Central Bank decided earlier to draw up a plan to develop coins as part of the currency restructuring plan, which requires the approval of the House of Representatives as a strategic plan that will support the value of the Iraqi dinar in trading,” said Academic Economist Dr. Essam Mohammed Hassan.
“The change of currency means that a new currency will replace an old currency, with a fixed exchange rate and the zeros of the old currency will be removed or the decimal levels are moved to the left,” he said. for financial trading to support the national economy.”
“The coin project, launched in 2004, did not succeed because of the absence of comprehensive economic reforms to support the financial value of the dinar in the world market,” Hassan said, adding that coins will be important intermediate currencies that will be used for trading and trading.
“The deletion of zeros and the reintroduction of the coin have to do with economic reforms because the coins, and because of their durableness, are longer than the paper currency that is quickly damaged,” he said. 2004,” he said, adding that this requires the dissemination of a culture to raise public awareness of the economic feasibility of the coin.”
Delete the zeros
Dr. Abdul Hussein Al-Daby, an economic academic at the Faculty of Management and Economics/ Kufa University, said: “The process of changing the currency is not only about eliminating zeros, but it can be done by adding a number of zeros or moving the decimal levels to the right, as happened in South Africa in 1961, but the situation The prevailing over the past 50 years in most countries is the elimination of zeros due to excessive inflation experienced by many countries, which necessitates adding zeros to their currencies in those circumstances, and then getting rid of zeros at the end of
“The change of currency does not affect productivity, and this change does not affect the purchasing power of money, because the strength of the currency comes from increasing demand for it against the monetary supply, and as long as the purchasing power does not change, the demand for currency and monetary supply does not change, because the deletion of Zeros do not authorize monetary institutions and the central bank to print more money and pump it into (the) Economy
“The central bank is constrained by the cash that exists in the replacement process, but foreign trade will not be affected as the price of exports will continue unchanged, and import payments are not affected because foreign exchange is done in foreign currency against the local currency, which remains unchanged,” he said. Change because the purchasing power of the currency
Don’t change.”
Multiple benefits
“Currency change and zero deletion bring multiple benefits, including that currency change leads to more efficiency of the local currency by reducing the number of zeros, because the number of zeros amplifies the volume of interactions to millions and billions and trillions, which complicates accounting processes and generates pressures on Accountants and dealers in a way
A year.
“After the change of currency, there will be a serious reduction in the volume of transactions with less money, which will make it easier for all parties to deal with them, especially Accountants.
Cash deception
“The change of currency reduces the phenomenon of monetary deception that people suffer with a large number of zeros that drive inflationary pressures, and the change of currency indicates to the local community and international markets that the government is serious about removing inflation, and that the economy is heading towards a new beginning,” he said.
Inflation-free
“The change of currency leads to greater confidence in the local currency and its credibility, and when there are a large number of zeros in the local currency, people lose their confidence in it, especially those who trade in wholesale markets and importers, as they will replace the local currency with stable international currencies such as the dollar or the euro, This deepens the phenomenon of the dollarization in the domestic economy, which weakens monetary power and reduces the effectiveness of monetary policy.