Delay in omission of zeros from Iraqi currency may harm its economy

Delay in omission of zeros from Iraqi currency may harm its economy


The lifting of the international sanctions from the Iraq government has taken place recently. This led as a chance for the Iraqi government to reduce the difference between Iraqi dinar and other foreign currencies.

There are so many discussions taking place of late and most of the economists favor Iraq to omit zeros from its currencies. The Central Bank of Iraq is looking at this matter with high concern and due to building process of strategies, there are some delays. However, there is a threat that has been clouded around the Iraqi economic scenario, regarding this delay from the end of the Central Bank of Iraq authority. It is assumed that Iraq may lose billions of dollars due to this delay.

Abdul Hussein Al-yasiri, a member of parliamentary Finance Committee, has recently mentioned that lifting of UN sanctions on Iraq has given the country a fair chance to rejuvenate its economy. As the country is receiving high investments from different parts of the world, it is the right time to reconstruct its economic infrastructure and strengthen its economy. For rejuvenating the country’s economy, the first step would be taking the country to a new leap through omitting three zeros from the Iraqi currencies. He also added that it is quite possible to strengthen the Iraqi dinar by raising its value and the present scenario in the country is in favor of that.

He mentioned, “Country’s exit from Chapter VII on the political side, contributed to the liberation of Iraq will on the economic side, give Iraq much room on important issues including banking, on Iraqi and foreign currency trading, as well as investment in Iraq has not been able to attract investment during the previous period.”

He mentioned that there are a few sectors in Iraq which are needed to be developed and have high potentials. Agriculture, tourism, construction, communication, etc. are a few sectors, which have high potentials. However, oil sector is the base of Iraqi economy at present and the nation is building itself, depending on the oil industrial development. As a result, government is also expensing highly on this sector in order to reap out more benefits from this sector of the country.

Mr. Abdul Hussein Al-yasiri also remarked, “The procedures be adopted to increase the value of the dinar currency, requires the Government to pay tribute to all sectors of production and investment to support the local currency.” Updated 16 Aug 2013