Reduction of dollarization is one means of monetary policy reform

by **Ponee** Mon Feb 17, 2014 8:15 am

2/17/2014

Reduction of dollarization is one means of monetary policy reform

Baghdad, Mustafa al-Hashemi represents a reduction of dollarization in Iraq, one of the means of fixing and adjusting the payments system and the pillars of strengthening the stability of the monetary policy in Iraq, which must be accompanied by pronounced in the FAQ, stability and non-volatile, because that would also achieve economic stability.

relates to the subject of the reduction of dollarization strongly Currency local and the extent of public awareness of the use of payment methods the most sophisticated way of cash such as expanding dealing instruments of banking and credit cards, while it was unlikely the deterioration of the value of the dinar in the current time to the presence of a cash reserve.

In this regard called economic expert, Dr. appearance of Mohammed Saleh to take measures that will strengthen the stability of monetary policies in Iraq.

Saleh said in a statement to the (morning) that these measures must be stable and consistent and is not exposed to fluctuations through the clarity of the instructions issued to the economic actors of both the public and private sectors, adding that it would modify the payments system in order to achieve economic stability.

Saleh pointed out that the subject of the reduction of dollarization is the other must be accompanied by the stability of monetary policy as the reduction of insider dollar requires the presence of more freedom in foreign remittances and grants citizens freedom of the acquisition and hoarding of the dollar and limit the deal by the Government of State such as travel, treatment and study. He pointed out that the culture of the public still selected dealing cash (Cache) and limited slice of citizens dealing with cards of Finance or the (credit cards) is also added to encourage the continuation of dealing in foreign currency instead of the dinar. Explained that the panic and uncertainty inherited among the citizens of the former regime encouraged handle internal and business deals in foreign currency instead of the dinar, noting that measures to limit that requires the presence of freedom and liberal high and according to the law to ensure that it not be transfers abroad Kgusal money, and is limited to foreign dealings only in dollars. Saleh said that the dollar coin was covered with reserves of gold Since announcing a global currency after the end of World War II in the forties of the last century, explaining that the cover of the dollar from gold ended in August 1971 because of the dollar printing presses in huge quantities and adoption as a reserve in the world's central banks are summoned to the cancellation of its reserves of gold and convert the value to stability and economic strength the United States as a cover for the dollar substitute for gold.

He said 83 percent of the business dealings World are in dollars as well as he represents the percentage ranging from 55 to 60 percent as reserves official in the central banks of countries., in turn, counting economic expert, Dr. Majid picture that confidence in Iraqi dinars is still strong At present, he enjoys reserve sovereign strong so degradation process value is difficult and they are received in the near future. considered in a statement (morning):

The phenomenon of dollarization in Iraq a natural thing, especially that all imports of external financial relating to oil is in U.S. dollars, so a link the national economy in this currency is very large because of all exports and imports in dollars.

added that the phenomenon of resorting to the dollar and Aktnazha linked to the weakness of the local currency and to go to a strong currency in which the trust to be saved, in addition to the possibility of escape of the local currency by buying dollars abroad, and the spread of the phenomenon of in order to achieve the import process on the one hand and to escape currency abroad for safer conditions Aostaqrara of Nahihakhary.

source

by KayKay Tue Feb 18, 2014 1:55 am

Thanks Ponee! Great article that makes sense. Please continue to keep us informed. Millionday posted a similar article on DR tonight. You guys are the best!!!!! coffee

Reduction of dollarization is one means of monetary policy reform

Reduction of dollarization is one means of monetary policy reform

Re: Reduction of dollarization is one means of monetary policy reform