Remove zeros and raise the purchasing power of the Iraqi dinar
Sotal-Iraq News - (Voice of Iraq) - 10/08/2010
By: Dr.. Abdullah Ali Awad
Became known to all and through statements by officials in the Iraqi government and people involved in economic affairs, the Central Bank of Iraq and the other seriously the issue of removing zeros Iraqi dinar, which is now equal to its value (less than fils) compared to the previous value ($ 3.1).
As mentioned by those circles, that the purpose of this procedure is to get rid of the quantities of paper currency many are trading in cash.
It was possible to work on recovery Aldenarabraghi by Bremer Bremer, after the fall of the fascist Baath on 9 - 4 - 2003 directly, which means re-nominal value former Iraqi currency by imposing an international obligation towards it, the fact that currency has a strategic reserve indirectly, which is oil , gas and other natural resources, has been the application of that principle (international obligation) against the Kuwaiti dinar after the invasion of Saddam Hussein remained in the Kuwaiti dinar wallets on its purchasing power has not been subjected to collapse, because Kuwait's oil wealth is the main guarantor, which is unable to pay the accumulated debt of Kuwait plus decisions International, which has become in the interest of revival of the Kuwaiti currency and the economy.
Hence we have a clearer picture, that the purpose of leaving the Iraqi dinar bulk recover automatically and depending on what is owned by the Iraqi Central Bank of strategic reserves of gold and a basket of foreign currencies, is to give more room and more time for the reluctance of the acquisition of the Iraqi dinar and not accepted by the institutions of banking and banks Foreign Affairs, and in this way the dinar currency remains weak and undesirable, which means the dependence of the Iraqi economy, the world's major currencies, which reflects a form of economic dependency.
One reason for the change (high and low) the purchasing power of currency is the degree of demand, the more demand has been (a rare commodity is equivalent to the rest of the goods) and thus increase their purchasing power.
Tzkirandma and put the single currency الأورپي Union - the euro - are pre-established nominal value, which is equal to ($ 1.18) and did not let loose at the mercy of other currencies.
The factors affecting the nominal value and purchasing power of the coin, some concrete material and some other significant but has a very material impact are as follows: -
1 - direct strategic reserve of gold and a basket of foreign currencies.
2 - indirect strategic reserve, which includes natural resources and the branches of the booming economy and developed infrastructure.
3 - psychological factor, and here I mean many areas, including an example of behavior and activity of some wholesalers who refuse to sell their goods in Iraqi dinars to major retailers, as well as with retailers in Karbala and Najaf, who sell their goods to foreign visitors (and conspicuously visible on the dollar).
Because of such activity, which indicates a lack of consciousness and selfishness of the Iraqi traders in how to respect the currency of his country and considered one of the symbols of national sovereignty, and here throw the blame on the Ministry of Finance, which does not make decisions and take deterrent measures that would prevent the phenomenon of trading foreign currencies at the Iraqi market and when you stop this phenomenon will increase the demand for the Iraqi dinar and the currency becomes scarce, and not only show zeros, even if the zeros were removed, it will not affect significantly as long as the process of dollarization of domestic economic activity continues.
http://www.sotaliraq.com/articlesiraq.php?id=70585
Sotal-Iraq News - (Voice of Iraq) - 10/08/2010
By: Dr.. Abdullah Ali Awad
Became known to all and through statements by officials in the Iraqi government and people involved in economic affairs, the Central Bank of Iraq and the other seriously the issue of removing zeros Iraqi dinar, which is now equal to its value (less than fils) compared to the previous value ($ 3.1).
As mentioned by those circles, that the purpose of this procedure is to get rid of the quantities of paper currency many are trading in cash.
It was possible to work on recovery Aldenarabraghi by Bremer Bremer, after the fall of the fascist Baath on 9 - 4 - 2003 directly, which means re-nominal value former Iraqi currency by imposing an international obligation towards it, the fact that currency has a strategic reserve indirectly, which is oil , gas and other natural resources, has been the application of that principle (international obligation) against the Kuwaiti dinar after the invasion of Saddam Hussein remained in the Kuwaiti dinar wallets on its purchasing power has not been subjected to collapse, because Kuwait's oil wealth is the main guarantor, which is unable to pay the accumulated debt of Kuwait plus decisions International, which has become in the interest of revival of the Kuwaiti currency and the economy.
Hence we have a clearer picture, that the purpose of leaving the Iraqi dinar bulk recover automatically and depending on what is owned by the Iraqi Central Bank of strategic reserves of gold and a basket of foreign currencies, is to give more room and more time for the reluctance of the acquisition of the Iraqi dinar and not accepted by the institutions of banking and banks Foreign Affairs, and in this way the dinar currency remains weak and undesirable, which means the dependence of the Iraqi economy, the world's major currencies, which reflects a form of economic dependency.
One reason for the change (high and low) the purchasing power of currency is the degree of demand, the more demand has been (a rare commodity is equivalent to the rest of the goods) and thus increase their purchasing power.
Tzkirandma and put the single currency الأورپي Union - the euro - are pre-established nominal value, which is equal to ($ 1.18) and did not let loose at the mercy of other currencies.
The factors affecting the nominal value and purchasing power of the coin, some concrete material and some other significant but has a very material impact are as follows: -
1 - direct strategic reserve of gold and a basket of foreign currencies.
2 - indirect strategic reserve, which includes natural resources and the branches of the booming economy and developed infrastructure.
3 - psychological factor, and here I mean many areas, including an example of behavior and activity of some wholesalers who refuse to sell their goods in Iraqi dinars to major retailers, as well as with retailers in Karbala and Najaf, who sell their goods to foreign visitors (and conspicuously visible on the dollar).
Because of such activity, which indicates a lack of consciousness and selfishness of the Iraqi traders in how to respect the currency of his country and considered one of the symbols of national sovereignty, and here throw the blame on the Ministry of Finance, which does not make decisions and take deterrent measures that would prevent the phenomenon of trading foreign currencies at the Iraqi market and when you stop this phenomenon will increase the demand for the Iraqi dinar and the currency becomes scarce, and not only show zeros, even if the zeros were removed, it will not affect significantly as long as the process of dollarization of domestic economic activity continues.
http://www.sotaliraq.com/articlesiraq.php?id=70585
