Iraqi Dinar Discussion Board

[Panhead]

Low level of inflation in Iraq during 2007 and attempts to delete zeroes from the Iraqi dinar


The adviser Central Bank Governor, the appearance of Muhammad Salih, a decline in annual inflation rate in Iraq to 14% over the past year 2007, compared with annual inflation recorded in 2006, which reached a rate of 77%, according to statistics of the Central Bank to measure inflation, pointing to the bank sought Central to raise the number of zeroes of Iraqi dinars.

Saleh said in an interview with "Uzmatik", "The real estate rents, transportation, a component of President indicator of inflation, the basis for calculating rates of inflation in the Central Bank in accordance with the policy of spending which the bank is responsible."

He added that one of the main reasons for high inflation in Iraq, was the high prices of oil derivatives in addition to a shortage in supply, and said that "the prices of oil derivatives Amendment, the latest shock and one of inflation, but fuel shortages from time to time, causing shocks continuing" as he put it.

Saleh pointed out that due to low inflation central bank decided to reduce the rate of interest at banks governmental organizations from 17% to 16%, having shown a decline in the inflation rate, stressing that raising interest rates in the bank, is one of the monetary policies which led to a reduction in inflation In Iraq.

On the other hand, revealed adviser Central Bank Governor "sought to delete the bank and raising the number of zeroes for the future Iraqi dinars, after the Iraqi dinar rose to 20%" He refused to identify the roof of a timetable for lifting these zeroes, but he indicated at the same time that " This will lift the zeroes are rational, reflects well on the Iraqi society and without negative impact upon "as he put it.

Saleh said that "raise the value of Iraqi dinar, depends on the level of inflation for central bank reserves of foreign currency," which he described as "large for the time being," declining to disclose the amount of these reserves.

The adviser Central Bank Governor, the appearance of Muhammad Salih, in his talk of "Uzmatik" that "the process of lifting the value of Iraqi dinar, will not stop as long as there is a chance to improve its value" as he put it.

It is noteworthy that the Central Bank of Iraq, which had been lifted in 2006 and 2007, the interest rate to cope with the sharp imbalance in prices then, reaching a maximum annual benefit beginning in 2007, to 20 per cent annually.

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