Economist: delete the zeros is a positive step towards the strength of the currency and the elimination of cash-density

Last Updated: 08/03/2012

Said Husam Obeid, an economist on the need to speed up the deletion of zeros from the Iraqi currency, because such a step of positive returns.

The head of the Board of Directors of the economy to investment banks and finance that the deletion of zeros from the Iraqi currency has become an urgent need to raise the value of the currency and to maintain balance in the market, noting that this procedure need to be a political decision.

Obaid said that Iraq is not the only country that resorted to this option, many of the countries of Europe followed after World War II, including Germany, Turkey has recently embarked on a 6 delete zeros from its currency.

He explained that the move to Atntoa any negative repercussions, as it is a very positive step given the strength of the currency and contribute to the elimination of the negative consequences arising from the density of cash as one of the main problems that we have in the banking business, both in the operations of counting currency, sorting categories and destroy the bad of them and provide security measures necessary for the transfer.

The Central Bank of Iraq and on to San bank adviser appearance of Mohammed Saleh stressed the need for Iraq to the process of 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 the process of administrative reform of the currency in order to reduce the cost of cash transactions in the economic process as well as the need to provide currency cash of categories of small use in the circulation of small transactions daily.    mentioned that 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 new currency denominations large cash in addition to the presence of coins is small.    Observers say that the government intends to delete the zeros of the currency as a step towards improving the purchasing power of the Iraqi dinar is that economists played down the importance of this step, considering that the cost of raising the zeros will be greater than the expected benefit of raising the zeros