Bank expert – removing three zeros from Iraqi currency will leave positive impact on the Iraqi economy

[k98nights]

Translated by IRAQdirectory.com - [5/16/2010]

Iraqi bank expert abdul aziz hasoon said in phone call with the Independent that the process of removing three zeros from the Iraqi currency will leave positive impact on the Iraqi economy because this step aims to amend the situation of Iraqi currency in general.

and he added that there were many countries took the same step including Turkey which removed six zeros from it is currency and that is why the Iraqi central bank has the right to amend the exchange rate in this manner. especially that there is huge difference in numbers that no longer reflects the value of Iraqi local production.

Hasoon clarified that if the exchange rate got amended in proper manner then the whole process will be fruitful especially that Iraqi central bank set the mechanisms and the plans to replace the current banknotes with new banknotes that have the new value in appropriate way and period that would allow everyone to replace their banknotes.

Members of the economic committee in the previous parliament had urged Iraqi central bank and Iraqi ministry of finance to address what they called financial flabbiness of the Iraqi money through removing three zeros from the currency.

Hasoon said that removing three zeros from the Iraqi currency will not affect the Iraqi market in large way because one dinar will be equal to one thousand dinar of the current currency and he said that the impact will be positive to support the Iraqi economy through the Iraqi central bank plan to enhance the exchange rate of Iraqi currency.

Iraqi central bank did not specify when it is going to implement the process of removing the zeros while some media sources said that the Iraqi central bank cannot proceed with this step currently because of what this step will exhaust of huge financial resources and economic cadres.

http://www.iraqdirectory.com/DisplayNews.aspx?id=12508

[BIGCG]

Translated by IRAQdirectory.com - [5/16/2010]

Iraqi bank expert abdul aziz hasoon said in phone call with the Independent that the process of removing three zeros from the Iraqi currency will leave positive impact on the Iraqi economy because this step aims to amend the situation of Iraqi currency in general.

and he added that there were many countries took the same step including Turkey which removed six zeros from it is currency and that is why the Iraqi central bank has the right to amend the exchange rate in this manner. especially that there is huge difference in numbers that no longer reflects the value of Iraqi local production.

Hasoon clarified that if the exchange rate got amended in proper manner then the whole process will be fruitful especially that Iraqi central bank set the mechanisms and the plans to replace the current banknotes with new banknotes that have the new value in appropriate way and period that would allow everyone to replace their banknotes.

Members of the economic committee in the previous parliament had urged Iraqi central bank and Iraqi ministry of finance to address what they called financial flabbiness of the Iraqi money through removing three zeros from the currency.

Hasoon said that removing three zeros from the Iraqi currency will not affect the Iraqi market in large way because one dinar will be equal to one thousand dinar of the current currency and he said that the impact will be positive to support the Iraqi economy through the Iraqi central bank plan to enhance the exchange rate of Iraqi currency.

Iraqi central bank did not specify when it is going to implement the process of removing the zeros while some media sources said that the Iraqi central bank cannot proceed with this step currently because of what this step will exhaust of huge financial resources and economic cadres.

http://www.iraqdirectory.com/DisplayNews.aspx?id=12508

GREAT POST WOODY - that 2nd to last paragraph sounds very good to me - is it me or is this the 1st time they have mentioned the INCREASE in value??? Were moving in the right direction - GO IRAQ

[brencorp]

If i read that right one dinar will be worth 1,000 dinar that does not mean the value would go up? Does it, so what would 1,000,000.00 be worth?

[sfredieu]

no that is not a good thing because if they lop 3 zero's off the currency then your 25000 dinar note is worth 25 dinar.if they didnt rv it than it still will take 1170 to 1 usd.we would be screwed unless they rv at the same time.not only that if they did rv at 3+ you would tripple your investment,after taxes you would lose even more.for example,there is 40 25000 dinar in a million for a thousand usd.if each note is only 25 dinar and they rv at 1 usd to 1 dinar you would have a thousand dollars,if they rv at 3+ it would be 3 thousand+.if they lop and dont rv than we are really screwed.

[kaka]

i don't think so because Iraq cannot lop it will be nagitive impact on the Iraqi weak economy.thatswhy cannot lop.and Cbi know it.

[jaq]

excellent article, thank you K98