News

Monday, April 18, 2011

BAGHDAD – Adel Mahdi

Iraqi Central Bank announced that it is currently working on the preparation of a law regulating mechanism for the cancellation of three zeros from the Iraqi currency, and the valuation of the currency in circulation economic, external and internal, but he stressed that the House of Representatives is the owner of the final decision.

The adviser said the Central Bank of Iraq the appearance of Mohammed Saleh in a statement to «life»: «Central Bank of Iraq has to submit a law to regulate the process of removing three zeros from the Iraqi currency, sending it to the Council of Ministers, and then to the House of Representatives, to decide then whether there is a need to take such This decision is important and complex», stressing that «the central deal with this issue very carefully, because they may cause economic problems in the case of impulsive or perform any move that could disrupt the economic situation in the country».

The Iraqi Ministry of Finance announced in February (February) the past, that the deletion of zeros from the local currency will liberate the Iraqi economy from the constraints and enhance the value of the Iraqi dinar in the International Monetary Fund, while the CBI believes that this process is complex and in need of a thorough study».

Also showed the International Monetary Fund in August (August) past support for the Iraqi economy in the event of his number of economic measures, including the allocation of banks and raise three zeroes from the local currency and to meet debt and compensation is the responsibility of Iraq.

The news indicated recently that the Iraqi government plans to make changes to the local currency, including raising three zeros in order to reduce inflation suffered by the Iraqi market, triggering a wide reactions and fears in the domestic financial market, particularly with regard to the savings in Iraqi banks, and other issues related to term payments, salaries and pension entitlements and the stock market and bonds, while some observers have found that playing with zeroes would not be a save for the currency as it is critical to address the mentality of a trader Iraqi monetary unit, and try to bring hope in the hearts of Iraqis. They pointed out that the Iraqi economy will not improve under the budgets of financial deficit and balance of payments is suffering from mismanagement, what will make the Iraqi citizen a target for the pitfalls of monetary illusion that his income improved, and the highest value of the former