Delete the Zeros of the Iraqi Currency
|November 24, 2010||Filled under All Dinar Trade Articles|
Delete the zeros of the Iraqi currency pending the formation of the government and the parliament’s decision.
by Faris Omar
Over time the Iraqi dinar was one of the strongest currencies in the Middle East. The value of the national currency with the height of the Iraqi oil boom during the second half of the seventies, while the Iraqi dinar exchange rate more than three dollars for dinars.
Today, it seems as if this number belongs to another century and not before one generation only. The international sanctions imposed on Iraq after its invasion of Kuwait in 1990 and the wars that went on Iraq unleashed rampant inflation, came on the value of the Iraqi dinar has become even mobilize citizens Slalhm dinars to buy a loaf of bread.
Despite the improved situation is relatively the Iraqi dinar exchange rate now is still more than a thousand dinars to the dollar. Causing this figure various difficulties in trade prompted the Iraqi Central Bank to think about dropping zeros from the currency. But political and security developments kept the idea to the shadow Phanzot waiting for the right time.
The day after the agreement of the political blocs on a formula for sharing power and functions of the House of Representatives directly work out the central bank idea to delete the zeros of inclusion and shake off the dust to start translating them into reality after the formation of the new government and submitted to the House of Representatives.
The central bank adviser and director of the Department of Planning and Statistics and Studies in the Bank the appearance of Mohammed Salih said in an interview with Radio Free Iraq that the national currency lost value in connection with the phase of economic decline, and it was time to rectify this situation in line with the stage of investment and economic recovery is expected.
The Chancellor stressed that Mohammed Saleh deletion of zeros from the Iraqi dinar is part of the reform of the currency management system in preparation for the next stage, referring to the difficulties caused by the cluster size of cash now.
He said Mohammed Saleh complete preparations for the implementation of the project to delete the zeros of the Iraqi currency, but added that this project of national interest to the country and the people and therefore it needs to support the legislative and executive branches and requires careful procedures.
He pointed out that the decision by deleting the zeros will be followed by a period of awareness to dispel fears and shed light on the fact that the repair procedure is designed to facilitate the exchange will not affect the incomes and wealth.
He acknowledged the central bank adviser retardation Iraqi banking sector in general and need to be developed in a protracted process, calling for reduction of the dominance of government banks.
Counsel noted Mohammed Saleh, said that private banks despite the presence of 37 or 38 banks, including the contribution to the GDP contribution is not significant.
Faced with this situation the central bank adviser said the appearance of Mohammed Saleh, said that the goal of fiscal policy in the next stage is to build a financial and banking system, calling for a competitive private banks merge with each other and raise capital to create a strong banking institutions provide better services and more.
Estimates that the Iraqi Central Bank to the amount of Iraqi dinars in circulation rose from about $ 25 billion in 1980 to about 27 Trillion at the present time it has increased any and eighty thousand times.
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