Prof. Mohammad Ibrahim Al-saqqa
According to CNN, said the Iraqi Parliament's Finance Committee that the Central Bank will begin THIS YEAR to delete the three zeros from the local currency, in other words a currency unit class a old currency will be replaced by only one dinar of the new currency, and so on.
The step taken by Iraq to repair local currency system based on the use of work groups is very high, leading to difficulties in handling and transaction accounts, as well as the high price of using monetary units in the categories high, which leads to the currency exchange rate and the low purchasing power of the dinar.
In periods of monetary turmoil and General State revenues while increasing expenditures, States frequently to print more currency, leading to higher prices and inflation rising, the need for currencies with higher categories such as alpha and the hundred thousand and one million ... Etc. And with each increase in currency enter the economy into inflation.
One of the ways to control high inflation is monetary reform, coupled with a change in monetary policy by replacing the old currency to the new currency high categories of categories even lower prices tend to decline. But do you spend it on inflation? The answer is no, because the Elimination of the State required inflation moderate monetary policy.
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