About the issuance of a new Iraqi currency .. Soon

Posted: December 21, 2013 in Iraqi Dinar/Politics
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CBI seeks to delete three zeros from the Iraqi currency since 2003. A project that raises many concerns on the street level and the business community of Iraq, and it seems economists are divided between supporters of the project see it as an opportunity to reduce the rates of inflation and unemployment, among forewarned of economic shocks may dominate the Iraqi market due to the application of this project.

The delayed implementation of the project after it has been amended, the central bank, more than once due to concerns based predominantly to the security situation and uncontrolled open market to foreign goods without restrictions and counterfeit currency circulating in the market in addition to the rampant corruption in the country.

The Iraqi News Agency quoted an independent member of the Finance Committee in parliament, Abdul-Hussein al-Yasiri on the fourth of September / September last year, saying that 2014 will see the deletion of zeros from the Iraqi currency, to be done in coordination with the Central Bank. The Yasiri that this project will lead to the reduction of the size of the national currency in circulation than four billion Iraqi dinars to one billion.

For his part, Chairman of the Finance Committee in the House of Representatives Haider Abadi It is possible to delete the zeros from the current currency, but it has been postponed until after the parliamentary elections, pointing out that studies are now to put safeguards in order to reduce fraud or making sure not to trade again currency Current.

The process of removing zeros has been postponed more than once, until called on the Economic Committee in the House of Representatives as provided by the channel “East” on the seventh of July last from the central bank, accelerate the process of deletion of zeros from the Iraqi currency tightly in a press conference held at the the process of deleting the zeros will increase the value of the Iraqi dinar will be reflected positively on the issue of reducing the rate of unemployment and poverty in the country.

But financial adviser in “North Bank” wholesome Elias said that the process of deletion of zeros is just an administrative process, and the equation of cash should remain as it is, namely that the purchasing power of the new currency should be equal to the old currency. Elias added that should the two currencies trading volumes both for a period of up to three years to withdraw gradually from the old market. Elias predicted that highlights the problems yet to be resolved if the creditor and the debtor’s operations or if they hit any defect in reimbursements and withdrawals. But he ruled out the possibility that the impact on inflation rates or poverty.

For his part, Deputy Chairman of the Finance Committee in the Iraqi Parliament, Ahmed Faizullah the view of the wholesome Elias, pointing out that the deletion of zeros will not change the purchasing power of the Iraqi dinar because it is linked to the size of the industrial production and import. He added that what saved the Iraqi dinar is owning the central bank cash reserve of hard currency Osafth has formed a cover of the dinar. He called the iceberg of God to non-application of the project at this time because it would disrupt the market and the Iraqi citizens alike.

Amid those views Director noted Commissioner for “Company breeze North” to trade stocks Inas Mohammed that the stock market will be the biggest hit of changing the currency and delete the zeros. The stock is still sold in dinars, and a thousand dinars currently worth a thousand shares while the new dinar will become one after the deletion of zeros is equal to A shares, which would disrupt the stock market, which is witnessing a confused movement basically because of the security situation in the country.

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