Economist: delete the zeros is an urgent need to raise the value of the Iraqi currency in the market

Tuesday, 06 March / March 2012 11:46

[Baghdad – where]

Said Husam Obeid, an economist that the step to delete the zeros of the Iraqi currency has become an urgent necessity in order to raise the value of the Iraqi currency against foreign currencies added to maintain the balance in the market.

Obaid said in a statement received by all of Iraq [where] that “this procedure need to be a political decision,” calling for “the need to speed up the deletion of zeros from the Iraqi currency, because the move from large and positive returns on the Iraqi economy.”

He added that “this step is not involved in 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 damage including the poor and the provision of security measures necessary to move them. “

And 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 six zeros from the deletion of its national currency.”

The Central Bank of Iraq and on to San bank adviser appearance of Mohammed Saleh told Al [where] 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 to the need to provide small groups of coins used in daily circulation of small 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 new currency denominations large cash in addition to the presence of small coins.

Observers say that the government intends to delete the zeros from 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. Ended