Member of Economic Committee says deleting of zeros not anytime soon
Friday, 26 October, 2012 0 Comments and 0 Reactions
Excluded member of the Committee, investment and economic reconstruction hold parliamentary process of deletion of zeros from the Iraqi currency.
Said committee member Nahida Daini told all of Iraq [where] on it was “unlikely to be a process of deletion of zeros from the currency in the near future but for several reasons, notably instability economic conditions and security in the country and the lack of control at the required level and volatility exchange rate against the dollar in addition to the adoption of Iraqi market to a free economy. “
She added, “as that rising prices and falling also linked to the regional situation near Iraq, as this situation also occurs in most countries of the world” excluded “the possibility of fixing the exchange rate of the dollar as a measure to maintain the stability of prices in the local markets.”
The Cabinet decided in its meeting held in April 10 last patient in the application process of deletion of zeros from the national currency until further notice.
The Central Bank of Iraq, and on the lips of bank adviser appearance of Mohammed Saleh, has confirmed to [where] the need for Iraq to process administrative reform of the currency cash, and that the project to delete the zeros is a step comes as part of the country’s need to process administrative reform of the currency, in order to reduce the cost of cash transactions in the economic process, in addition to the need to provide small denominations coins used in daily circulation of small transactions.
The officials at the central bank, as well as some politicians and economists, urged the government to delete the zeros from the currency, and the issuance of a new currency denominations large cash, in addition to a small Coins.
The economic expert described as beautiful, invoke the security and economic situation, and work to delay the process of lifting the zeros from the currency arguments “flimsy.”
Jamil told [Wayne], that “everything in Iraq has become a subject of political decisions and moods, pointing out that” one of the paragraphs of the Central Bank Act, allows him to print and change the currency. “
Observers say the government really intends to delete the zeros from the currency as a step towards improving the purchasing power of the Iraqi dinar, but economists played down the importance of this step, considering that the cost of raising the zeros will be greater than the benefit expected from the lifting of zeros.