Delete the zeros of the Iraqi currency

Project to delete the zeros of the Iraqi currency at a seminar of the Centre for Regional Studies

Follow-up: Seminar Committee

As he used Center of Regional Studies at the University of Mosul, to witness every Wednesday seminar new shed light on the developments, with regard to economic, historical, legal, saw Hall Library Center for Regional Studies Day seminar new came to dealing with the subject economically entitled: “The project to delete the zeros of the Iraqi currency – the vision of reality “, ….  The researcher, Dr. Hashim Mohammed Abdullah Aercop professor of public finances Mosul University – Faculty of Management and Economics / Department of Economics, workshop, which was attended by Professor Dr. Ibrahim Khalil Allaf director of the center as well as the teaching staff of the Centre and the guests of Altdresen full-time and graduate students and Diploma   In the College of Business and Economics, highlighted the annotated deletion of zeros from the Iraqi currency through economic study.


Raise zeros from the currency .. Benefits and costs

      In the beginning of the workshop noted researcher Dr. Hashem Aercop to talk about the money and changes receives attention in the past, present and future   Because there is no currency exchange, but in everyday life was synonymous with money and that money has been described as a social invention because it is linked to human needs and developments

In Iraq, noted Article 31 of the Law on the Central Bank of Iraq No. 56 of 2004 in Section VII with respect to the national currency (the dinar is a unit of the national currency of Iraq), which means that the standard unit of currency is the Iraqi dinar, but notes that the absence of such a monetary union in trading as well as lack of parts or components which makes the adoption of the deletion of three zeros from the national currency is an urgent need and necessary.


The concept of lifting of the zeroes

Raise zeros or lifiting of the zeros   Rename or delete the zeros or removing for delet zeros   Are terms that refer to actions that would improve the situation of the national currency, by removing or deleting zeros or numbers of the old national currency, for various reasons are different countries.

The expected benefits to raise zeros

Noted researcher Dr. Aercop in talking about the expected benefits to raise zeros by saying:

1 –        It is one justification for the monetary authority (central bank) in the control of the trends display the progress of their performance during a career in the liquidity management

2 –        They achieve the goal of financial stability is the value of the currency and the absorption of the surplus

3 –        They are necessary to keep pace with economic changes and economic reform policies.

Requirements for success to raise the zeros

Researcher pointed out that the economy of any country, including Iraq requires a set of conditions and the factors to be the lifting of the zeroes of a positive impact and contribute to promoting and sustaining economic stability, these factors are b

1 –        The existence of economic policy are clear and specific objectives and tasks

2 –        Optimum use of economic resources (human and material) available scientific and take steps to diversify the economy through the regular update of the agricultural sector

3 –        Provide adequate cash reserves of foreign currency convertible

4 –        External debt to be at acceptable levels and does not constitute a burden on the economy

5 –        Completion of legal and administrative regulations that are related to the process.

Second, the project cost and the lifting of the zeroes of cash transactions

Dr. Aercop indicates that under the economic circumstances and the pressures of inflation that has befallen our country and led to negative effects on the regularity of the commercial market, labor markets and production and living standards have generated distortions in the structures and economic relations among them was the presence of mass   Many zeros little cash value, which requires a solution to these conditions

With price stability and optimism for the future development of Iraq, it became necessary to drastically reform the system of currency management in order to re-structure commensurate with the new pricing structure and different levels of wages and salaries, which differed significantly from the last thirty years.

On this basis, has become a need to reform the system of cash payments through the following advantages

At the horizontal level: Delete the three zeroes   Leads to convert 30 trillion dinars to 30 billion dinars by deleting three zeros from the currency and replace the current in order to facilitate the process of dealing arithmetic

Either on the vertical plane, the deletion of zeros will lead to re-structure and currency composition.

Third, the project raise zeros and its impacts

Researcher pointed out that the process of changing the currency to achieve the following benefits

1 –        Strengthen the confidence of the code symbols of national sovereignty of the country

2 –        Enhancing confidence in national currency, the citizen

3 –        Facilitate trade within the country

4 –        Re-use coins

Either on the justification for the deletion of zeros saw that the researcher   Most prominent of these justifications are

1 –        Exchange rate stability

2 –        High value of Iraqi dinar   25% during 2008-2011

3 –        The stability of the internal value of the currency and integrity of

4 –        Building strong reserves of more than $ 6 billion.

The expected positive effects of the process of changing the currency

Researcher believes that the process of changing the currency is positive and achieve the objectives highlighted

It is an important step to reform the monetary and currency management system reform, as well as enhance the confidence of the citizen and investor in the national economy, especially with the continued effectiveness of monetary policy, as well as from the positive effects of the process of changing the currency is to end the phenomenon of the state in daily transactions, and the introduction of modern techniques in daily dealings

However, research finds that the negative effects that might be achieved in this process he has not achieved the desired results from the change of control of inflation, as inflation could rise at rates greater than the normal rates   Especially with the increasing government spending by big budgets.

This seminar comes within a series of seminars taking place in the center of distinctive regional studies by introducing new developments and developments to put them in a panel discussion and these seminars are the direct support by Prof. Dr. Ibrahim Al-Allaf director of the center and guidance ..