Member of Economic Committee says time is not right for deletion of zeros; Blames security and political situation
Excluded member of the parliamentary economic committee Nahida Daini today that the central bank deletion of zeros from the local currency at the present time because of the instability of the political and security situation in the country.
The Daini told all of Iraq [where] today that “the parliamentary economic committee with the project to delete the three zeroes from the local currency, but not at the current stage because what remains political and security situation in the country is stable,” excluded “the central bank to work with this project at the present time “.
The Cabinet decided in its meeting held on 10 April 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], 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 transaction costs cash in the economic process, in addition to the need to provide small denominations coins used in daily trading 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.
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.