Politicians, experts share views over deletion of zeros as it is expected in 2014; Fears it will disrupt stock market

Posted: October 6, 2013 in Iraqi Dinar/Politics
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Created on Sunday, 06 October 1 / Okrudolf 2013 13:39

CBI seeks to delete three zeros from the Iraqi currency since 2003. A project that raises many concerns on the street level and the business community of Iraq, and it seems economists are divided between supporters of the project see it as an opportunity to reduce the rates of inflation and unemployment, among forewarned of economic shocks may prevail Iraqi market due to implementation of this project.

The delayed implementation of the project yet to enter the central bank, as amended, most of the time because of fears predominantly based on the uncontrolled security situation and the open market to foreign goods without restrictions and counterfeit currency circulating in the market in addition to the rampant corruption in the country.

And was independent Iraqi news agency quoted a member of the Finance Committee in Parliament Abdul Hussein al-Yasiri in the fourth of last September saying that the year 2014 will see the deletion of zeros from the Iraqi currency, to be done in coordination with the Central Bank. The Yasiri explained that this project will lead to reducing the size of the national currency in circulation than four billion Iraqi dinars to one billion.

For his part, the head of the Finance Committee in the House of Representatives Haider al-Abadi It is possible to delete the zeros from the current currency, but it has been postponed until after the (2014) parliamentary elections, pointing out that studies are now safeguards are in place to reduce fraud, and make sure there trading again currency Current.

The process of deleting the zeros had been postponed more than once, even asked the Economic Committee in the House of Representatives of the central bank, accelerate the process of deletion of zeros from the Iraqi currency is tight in a press conference held that the process of deletion of zeros will increase the value of the Iraqi dinar and will be reflected positively on the issue of reducing the rate of unemployment and poverty in the country.

But financial advisor in “North Bank”  Elias said that the process of deletion of zeros is only an administrative process, and cash equivalent should remain as it is, any that the purchasing power of the new currency should be equal to the old currency. Elias said he must التدوال two currencies both for a period of up to three years old to withdraw gradually from the market. Elias predicted that highlights the unresolved problems if the creditor and the debtor or if they hit any defect in payments and withdrawals. But he ruled that affect the rates of inflation or poverty.

For his part, the Vice-Chairman of the Finance Committee in the Iraqi parliament Ahmed Faizullah what went him wholesome Elias, pointing out that the deletion of zeros will not change the purchasing power of the Iraqi dinar because it is linked to the size of the industrial production and import. He added that what saved the Iraqi dinar is owning the central bank cash reserve of hard currency Osafth the cover have formed the dinar. Faizullah called to the lack of implementation of the project at this time because it would disrupt the market and Iraqi citizens alike.

Amid the views Director noted the High for “North breeze Company” to trade stocks Inas Mohamed to that the stock market will be the biggest hit of changing the currency and delete the zeros. Stock still sold in dinars, and a thousand dinars is worth a thousand shares, while one will become the new dinar after the deletion of zeros is equal to A shares, which would disrupt the stock market where the confused movement in the base because of the security situation in the country.

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