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BatmaninIraq
01-17-2016, 10:31 AM
It concerns the application of 'the law of the fish' on the Iraqi dinar categories

With the release paper 50 thousand dinars, analysts reckon depreciation of the currency for reasons related to the Iraqi market mood rather than economic factors.


1/17/16

The money supply goes down, people feel Balglae
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BAGHDAD - The Iraqi Central Bank after the issuance of the currency of the category of 50 thousand dinars, began increasing people's fears of extinction of small currency and rising prices again.
Surprised by Mohammed Mahmoud, a monthly salary received by the existence of a new class of securities, a fifty-thousand Iraqi dinars category and that the Iraqi Central Bank announced its intention to be printed in the atheist th of November last.

Mahmoud owner sees relatively high salary in the presence of this coin is easy for him to carry his salary without draw attention to it especially because it is forced to cut large walk distance from the government department in which it operates and even the place where it leaves his car.

Mahmoud says, "I previously had to hide the salary black bags because the amount that Otzlmh relatively large presence of small groups of five thousand or ten thousand class be dangerous up somewhat because passers-by come to their notice my pregnancy a large amount of Mali while I came out of the circle, which makes me vulnerable to thieves."

But some believe that the new paper would hurt the fifty thousand category Boodall much as their living Abdul Sattar, who works daily wages in the capital Baghdad Secretariat.

Ali young person who earns a daily ten thousand Iraqi dinars allocated amount thousand dinars them to go back and forth from his home to the Secretariat building and vice versa. He fears that the freight rise in the way of one to five hundred thousand dinars, which means doubling the sum earmarked for the transfer with the expected decline in his daily wages, according to the approved by the government to reduce public expenditures, especially salaries and wages of its employees by three percent.

In practical terms there is nothing to confirm fears but he cites the high transport fares from 250 dinars to 500 when the banknote is printed with twenty-five thousand class a few years ago.

Ali says, "we had coins of small categories with 25 categories Coins dinars and 100 dinars no longer exist today essentially."

These currencies disappearance of daily trades directly means a rise in the price of cheap goods to the highest in turn affect the inflation index in the country and that its effects will be clear to those with middle and low income levels mainly.

Valslah that were sold, for example, at 250 dinars price tag could rise to 500 which means a decrease in the value of one thousand dinars, the unit for measuring the approximate price in the local market to a half thousand dinars, and approximately equal to US $ 0.8.

Iraqi Central Bank began distributing small quantities of the new currency on some state departments and some banks to gradually raise the amount even access to the size decision.

Economists and although they do not see a direct correlation between the issuance of large groups of currency and the decline in the value of small groups, but they reckon decline actually check what they describe temperament Iraqi market and the consumer alike.

Says economic researcher Bassam as "the Iraqi market not subject to the standards of their counterparts in the rest of the world is well known that the version of the big groups come to reduce the size of the money supply, especially in the corporate, business and other segments of large trades."

The spokesman adds, "There is a mood in the local market back to the desire of the consumer primarily to the reduction of the value of small groups in the case of large groups have become significantly in circulation and this is what in fact is difficult to explain."

According to the researcher himself, the solution is to keep large groups currencies for the enjoyment of its benefits in the big trade with the continuation of the Iraqi Central Bank in small groups with the issuance of currency to keep it fresh in the daily trading limit and strengthened procedures of any expected price inflation.

The presence of cash and paper category of 50 thousand dinars, equivalent to US $ 42 worth of daily transactions easier in large trades by contributing significantly to the reduction of the money supply by almost half as the banknote top value previously was with a class of 25 thousand.

The continued issuance of small groups on the value of goods and currencies will maintain low prices and prevent high prices.

Central Bank For his part, the domestic market affected by the issuance of a new currency with the fifty thousand class did not rule therefore decided to wait in the same hundred thousand dinars category approved by the former to avoid any inflation, currency issuance, while the aim of the issuance of the fifty thousand class was reducing the size of the currency used in trading daily, which in turn led to the lifting of the rate of inflation, according to the announcement earlier in the bank's governor on the Keywords.

In all cases, the new currency was issued and began to spread in the local market gradually as planned central bank is that the spread of caution reflects to some extent the concerns of traded currencies subject to fisheries law, which feared by middle and low income earners in case I ate big Currency small counterpart and was replaced in the market local.