Iraqi Dinar Discussion Board

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Central Bank confirms Lop
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Central Bank confirms its intention to delete the zeros of the Iraqi currency

BAGHDAD - Iraq votes 09-24-2008 at 23:54:53




The Central Bank of Iraq adviser, on Wednesday, the bank's determination to proceed with the project to delete the zeros of the Iraqi dinar to convert thousand dinars to one dinar, referring to the adoption of long-term plan for the project, which would be reluctant to cash the huge bloc in Iraq.

The appearance of Dr. Mohammad Saleh in an interview with the Independent News Agency (Voices of Iraq) "The Bank will, in any case, long-term plan for the implementation of the project, in order to avoid any disruption reflected in the cash arena, which will move based on studies and slow and accurate resolution of all Problems in the trading bloc committed a result of enormity of cash bulging in the Iraqi market. "

The factors of this action, which he described as very important by saying that "Iraq is one of the countries hit by hyper-inflation in more than two decades ago, reflected in hyperinflation, for example, increased monetary issuance of approximately 25 billion dinars in the early nineties, as in 2003 Six thousand billion. "

He added, "If we add significant structural changes on the size of the budget that is the source of monetary expansion in the bloc, we can say that the country does not have the discussions thus a large amount of cash currency units, a legacy of a hyper-inflation."

And that "many countries of the world suffered from this problem and turned their economies towards relative stability, it must find a solution to curb the enormous mass of cash to facilitate exchange of cash in Iraqi society, which mainly deal Tdaullach cash now rather than the use of means of payment, advanced banking."

He added, "This means we need urgently to the availability of substantial monetary value categories of small-scale return to any sense of the payments system easy to use and lead to facilitate transactions."

He cites the example of the saying that in the category in 1980 was equivalent to 25 dinars then more than $ 75, the largest category of cash at the time, while in the highest category at present is the key category of 25 thousand dinars, and equals only $ 23. "

The "to note the difference .. that Iraq needs to be large groups in value - as we have a small size to facilitate the exchange and perform the functions of the various money."

The interest of clarifying the problems impeding the performance of existing cash, saying: "The problems of one of the" dollarisation "the Iraqi economy, the demand for dollars category per cent to facilitate large transactions paid in cash, which represents about 120 foreign currency thousand dinars, which means that the actual Iraqi economy needs to Category or categories of him cash to facilitate the exchange value of cash, especially in large deals. "

And on the extent of the Bank's approach to the deletion of zeros, the central bank advisor said "it is intended and studies in this regard that any groups are circulating a new progressive and comfortable and not limited to the replacement."

He noted that "this will give a lot of prosperity and stability in the availability of liquidity high and strong and facilitate transactions in line with the stage of growth and economic prosperity optimistic that Iraq will happen in the months or years to come." Available, that "relatively long-term project would be included in the cash economy to gradually add a lot of comfort and harmony in the economic situation."

The "trend is the deletion of three zeroes, instead of cash from the deal even though monetary issuance of $ 18 trillion dinars deal even though the economy of not more than 15 billion dinars, a mass of different categories of comfortable Bsal criticism, circulation and encourages banks to accept cash deposits."

"We know for example that one of the biggest problems at the present time the problem of counting and counting and verification of counterfeit currency or the offense, and this burden to the banking system, the burden on the citizen as well."

The consultant concluded the central bank to say that "low cost counting and counting and other leads to a decline in inflation by an estimated rate of 3%, resulting from the cost of cash transactions of large deals, have citizen in Basra for example, to transfer funds to Iraq through cash into the category of the dollar, Potential burdens and costs and commissions arising from the conversion process. It cost added to the transaction prices inevitably.