What does it mean to delete Iraq 3 zeros from the Iraqi dinar?

What does it mean to delete Iraq 3 zeros from the Iraqi dinar?


A. D. Mohamed Ibrahim El Saka announced the Finance Committee in the Iraqi Parliament that the central bank will begin in the current year by deleting three zeros from the local currency, in other words, that the unit of currency category thousand dinars from the old currency will be replaced dinar and only one of the new currency, and so on.

step oldest by Iraq intended to reform the system of local currency which is based on the use of currency denominations are too high, which leads to difficulties in dealing in special accounts transactions, as well as higher prices resulting from the use of monetary units of categories of high, which leads to decline in the exchange rate of the currency and declining purchasing power of the dinar significantly.

during periods of turmoil cash and declining public revenues of the state at a time when increasing the expenditures, resort states often to print more of its currency, leading to higher prices and the occurrence of high inflation, arise the need to currencies classes as high as a thousand and one hundred thousand and one million … Etc.. With each increase in the categories currency enters the economy in the midst of inflation.

one of the means to control the high inflation is a monetary reform, combined with a change in monetary policy by replacing the old currency Pfiadtha high with new categories of currency even lower prices tend to decline. But does he have on inflation? The answer is no, because the elimination of inflation required to follow the state moderate monetary policy.