Replace damaged coins with new ones

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Replace damaged coins with new ones

Saturday 16 October 2021 208

 Baghdad: Mustafa Al-Hashemi

Paper currencies are exposed to damage quickly, especially those of small denominations, due to their frequent circulation and use by children in direct transactions between different shops and markets, in light of the weak education by the Central Bank to replace damaged currencies in the bank, which created an outlet for the weak-minded of Taking a percentage of the money in exchange for replacing the damaged ones with new ones, sometimes up to 50% of its value.

 

Citizen Ammar Basem says that “the shops and markets spread throughout Iraq do not accept dealing with damaged cash denominations, and they try as much as possible to get rid of them by returning them to the citizen or refusing to take them from him, even though it is a valid and non-false currency.”

Bassem added to “Al-Sabah” that the children who destroy the most small denomination paper currency are children, sometimes they put it in their mouths or tear it up, intentionally or unintentionally, especially if it is damaged from the ground up.

Ali al-Bahadli (the owner of markets) says, unknowingly, large numbers of small cash denominations (1000), (500) and (250) dinars accumulate in me, because I left my young son to run the shop during my absence, so the people take advantage of walking their damaged coins on my son, Which compels me to incur an unnecessary loss.”

Al-Bahadli added to Al-Sabah, “A person comes to me from time to time, who collects damaged currencies from the shops and directly replaces them with new ones, in return for a commission that sometimes reaches half its value.”

And he indicated that "this loss should be borne by me because of the culture of inadmissibility of citizens in trading, even though they are currencies officially issued by the Central Bank and are not counterfeit."

In this regard, the expert in economic affairs, Dr. Hussein Al-Khaqani, explained that “the Central Bank is the only authority that is able to issue and print currency notes according to the law.”

Al-Khaqani commented on the condition of the damaged banknotes and the reason for their non-acceptance or rejection by the public, saying: “The reason is due to the refusal of a number of banks to receive such currencies from merchants and shop owners. General refusal to deal with damaged currencies.

And Al-Khaqani stated that “the central bank should urge all banks to accept dealing in these currencies as they are official and not counterfeit, in addition to the fact that banks have the ability to sort out and isolate the damaged ones, and that their acceptance by banks means acceptance of trading in them among the public.” He pointed out that "the ideal solution to this problem is to impose (credit card) or (Visa and MasterCard) cards on shops, markets, filling stations and all parties that deal with cash, as it was imposed on retirees and employees." He stated that "the real application of banking automation realistically reduces the size of the cash block, and thus encourages the public to trade digital currencies when buying or selling, thus reducing their financial losses in small units."

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