Iraq is seeking to restructure the currency
Iraq is heading to write off three zeros from the local currency (Reuters - Archive)
In a move aimed at the development of the payments system of Iraq, the Iraqi Central Bank announced recently a plan to restructure the local currency by raising the level of the local currency and the development of new categories of paper.
He justified the appearance of the central bank adviser Mohammed Saleh, a move that the Iraqi dinar has suffered through two decades of significant deterioration.
Speaking of the island, Saleh said that the dinar is now behind a structure is not commensurate with the payments system in the country of Iraq, so it is in need of large currency transactions large and small need to exchange for small transactions.
He added that the value of the dinar is stabilizing, especially after the central bank reserves rose sharply and reached to nearly $ 250 billion, offset by the development in the country's oil exports.
And mechanisms for the implementation of this project, says the benefit would be short blocks large cash in the categories of smaller but the volume of purchases by large, commensurate with the nature of payments in the country, adding that the accounting system and accounting firms, banks and even a general budget of the Iraqi state has become read trillions, of this government is seeking to create mass of small cash, but met with great goods.
He pointed out that the project put forward by the Governor of the Central Bank on the twentieth of this month during a session of the Council of Ministers, has won the approval of the Council, is expected by the issuance of special legislation to be implemented in stages.
He pointed out that the benefit of the new currency will be in three languages: Arabic, Kurdish and English.
And linking financial expert and director of the National Bank of Warka Mohammed al-Samarrai success of the project's political stability and security in the country.
The Samurai of the island revealed that the deletion of three zeros from the Iraqi currency is aimed to get rid of the vast amount of the cash block.
And whether the oil pipeline project, Samarrai said that would address the accumulations of the past and the massive inflation in the country, saying that the adoption of the much-delayed and that its implementation would encourage investors.
And the impact of this project on the performance of private banks, see Samurai that will help improve the performance of banks in terms of the volume of money supply which are traded and transported, as well as in terms of security would be better.
It is noteworthy that Iraq has seen since the great inflation of 1980-1988 war with Iran and the Gulf War of 1991 and the period of the siege, which lasted more than 13 years.
Has seen the annual inflation index for the year 2010, down significantly compared to years that preceded it, where the ratio of the index of 3% in 2010 compared with 53% in 2006, and 7% in 2009.