Iraq Central Bank to remove three zeroes from Iraqi Dinar

Iraq Central Bank to remove three zeroes from Iraqi Dinar

Wednesday, April 13, 2011 09:58 GMT
Iraq’s Central Bank announced on Tuesday that the project of Iraqi Dinar re-denomination consisting of removing three zeroes is close to completion.
The re-denomination project is believed to be a strategic plan that will be passed to the ministerial council and Parliament once complete.

The plan to remove three zeroes from the Iraqi Dinar is a strategic plan that the central bank is currently finalizing, Central Bank’s advisor Mothahhar Mohammed Saleh said in a statement to Alsumaria News.

This plan aims to alleviate transactions cost and help people carry less money, Saleh said noting that Iraq seeks to produce 6 to 12 oil barrels which is expected to increase the value of Iraqi dinar and boost development, he said.

Iraq’s central Bank has managed during the past five years to reduce inflation rates from 34% to 3 or 4% and stabilize Iraqi Dinar exchange, the Central Bank’s advisor told Alsumaria News.

In an earlier statement to Alsumaria News, Iraq’s central Bank adviser Mothahhar Mohammed Saleh affirmed that the bank plans to remove three zeroes from the Iraqi Dinar noting that the zeroes which were added to the Iraqi currency previously constituted a large money supply estimated at 27 trillion Iraqi Dinar.

Saleh revealed on the other hand that Iraq engages for the first time in banks payment system as it moved from manual to electronic clearance. The system includes six banks in addition to electronic deeds exchange, he said adding that the smart and credit cards will be bound to the central bank system.

The Central Bank will form after three years what is known to be as the payments council which sets forth Iraq’s banking protocols and infrastructure, the central bank’s adviser said.

Iraqi economists believe the re-denomination of Iraqi Dinar will not have a major influence on the purchasing power of the Iraqi Dinar which the government has hopes high on it.