Editorial: The essence of the deletion of zeros .. Technical or economic?

Posted: February 24, 2012 in Top Headlines
Tags: Central bank, Economy of Iraq, Iraq, Iraqi dinar, Monetary policy, National Bank, Saudi Arabia, World Bank

23/02/2012
There are discussions ongoing about the importance of changing the currency or the deletion of zeros in particular, and most recently told the CBI on the intention to perform this task next year, this issue is a technical matter of form, but in fact is directly related to the general economic situation, it is wrong to the large separation of monetary policy economic policy, there is a close correlation between them.
And if we wish to offer on such a step we have to look at the economic reality and analyzed accurately, the country in a difficult regardless of the talk is much that is said here and there, it’s economy is not uniform and suffers from gaps seriously, the situation in Kurdistan separate cases almost in terms of economic processes and financial and in the provinces are making contacts and initiatives and attempts to declare the so-called federalism here and there.
When we take the monetary policy we have to work out an account of the situation in banking .. The problems of monetary policy in some way highlight the crisis in the banks ..
Us, nearly seven state banks, and nearly 42 private banks (my family) .. Research into this issue in isolation from the problem of banks, a big problem. If we want to be a natural case of banks which is an essential point for monetary policy, it would be wrong to imagine that monetary policy can promote and advance unless there is life sound banking.
Life Banking in Iraq still depends on the state where the two banks large possess About 90 percent of bank deposits and otherwise, the 10 percent return for domestic banks that are really more like houses by private and is a big problem for Iraq .. if we like it that we step forward in this area we have to calculate the account for the reform of the banking sector is justified. I have seen some of the details recently. Said that the National Bank, a bank my family, could not change its location without the
approval of the Central Bank Is this can be true or logically? This is a very serious matter and you need to discuss seriously. That means if you had a site in this area and you want to change to another locality, how to take the time? How many procedures and communications must be made to achieve this goal?
The second task is the state dealing with private banks as a natural way to deal with government banks? I think this is now based in Iraq ..

This is indicated by the World Bank report issued last September on the status of the financial sector in Iraq.
I do not agree with the notion that the issue of art, then it could be only a technical issue and you have a unified economy is structurally distorted and fragmented, and its institutions ineffective.
Now is not the Iraqi economy by the close correlation exists, as in earlier periods or for the economies, led by oil as in Saudi Arabia, Qatar and other Gulf regions, and when looking this issue we have to take into account the situation of the banking sector and the difficulties it faces.
Ask here hoping to discuss the idea is clear: what is the problem that arise on the link between inflation and currency?
I am the truth so far have not fully absorbed Inflation in Iraq is not the case for a separate state of the economy, trade policy in Iraq is now supported on the outside, you can not now be moving in any field unless you think in the import of this item or that. In return for this we note that domestic goods are more expensive than imported goods such as fruits, vegetables and other things similar.
We have another problem related to trade policy, as it is in Iraq, which fails to protect (Protectionism) We have no definitions Kmarkip complete, a rarity in the world and can not to this country to continue in this way remains an open economy and suffers from serious consequences.
And can not control the currency and we can not announce the deliberations of cash are controlled if they were not to have the keys and clear to all the economic situation, there is the banking sector and trade policy, Add to that the fiscal policy, where it is policy based on spending, primarily because the resources are guaranteed and are derived from oil, and if I got no problem now for the oil, the economy depends.
There are more than 5 million people beholden to the state of employees and retirees, and if we assume that the number of family members per 5 people, there are 25 million people beholden to the state (5 million × 5 مليون = 25 million) This is a big problem for Iraq in many ways, economic and livelihood.
Who will speak on the subject of the currency in terms of technical and isolating it from the financial and economic situation in a big mistake Vsika Valmsaltan are interrelated.
The other problem is the unemployment situation in Iraq as it is not a simple matter. Recently it was said that the unemployment rate became 15 percent, I do not know any scales depend, and what criteria are used? Unemployment situation is very bad in Iraq, there are people who Aaoklon and this fact is not exaggerated, but the fact is clear everywhere.
Is there a clear plan of the Central Bank in the field of currency exchange? This is an important question if there was a plan must be discussed. And I like to know what is the case for other areas related to currency.
The other thing is the case of salaries and wages, which are really one and connected per second and this also needs to discuss and clear and explicit, and I think that what happened in Turkey as mentioned began in 2005 and ended in 2009. Pre-2005 Turkish economy rebounded and became another case is different. For this I imagine that the thinking on this issue should be linked to the plan are clear and well thought out so that we can reach a reasonable result, any issues addressed in an overview and interdependent.
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