EXCERPTS FROM ECONOMY NEWS BAGHDAD ABOUT AL-ALAK TALKING ABOUT THE PROJECT OF DELETE ZEROS AS ANOTHER MONETARY REFORM THAT ARE STUDYING TO APPLY SOON
Economy News – Baghdad
The Central Bank of Iraq reduced its dependence on the US dollar in commercial transactions, according to the Governor of the Central Bank of Iraq, Ali Mohsen Al-Alak, adding that the project to remove zeros in Iraq is under continuous review and study in the bank.
Countries delete zeros from the currency to re-evaluate the national currency and simplify financial transactions, and this occurs by removing a specific number of zeros from the nominal value of the currency, making it appear less inflationable and more stable.
Al-Alak stressed, in an extensive interview with Al-Jazeera Net, and seen by “Economy News”, that the Central Bank responded to global economic challenges such as high prices of energy and raw materials, by amending some monetary policies in line with the international situation and to strengthen confidence in the Iraqi dinar and prevent a sharp decline in its value.
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Does the deletion of the dinar’s zeros destake the financial situation in Iraq?
The process of removing zeros from the currency means replacing a new currency with the old currency in order to simplify the calculation process among consumers, and it is often resorted to by countries that suffer from large inflation and have become unable to deal with paper currencies with a very low value.
Many believe that the process of deleting zeros is a process of economic and monetary reform and is resorted to in cases of high inflation and currency collapse, which alleviates the feeling of economic collapse (a process of monetary illusion). However, if this process is not supported by real economic factors and accompanied by radical reforms, it becomes a negative impact.
The project to remove zeros in Iraq is undergoing continuous review and study at the Central Bank of Iraq, taking into account the existence of the volume of an exported currency that exceeded 100 trillion dinars after it was 6 trillion in 2004, which followed the year that witnessed the exchange of currency, which was unwanted and poor in terms of quality.
In addition to the offer of wide cash approaching 179 trillion dinars, which requires specialized cadres, especially in the book accounts process, which government banks continue to suffer from due to the circumstances that the country has experienced.
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