Dr. Shabibi answering IRAQ revaluation and redenomination questions
Date: Abril 19, 2011
Location: US Chamber of Commerce Washington, DC
Former Central Bank of Iraq Governor Sinan Al-Shabibi addresses two key topics related to the Iraqi currency. First, he explains that any decision to revalue the Iraqi dinar depends largely on maintaining price stability and controlling inflation.
While other factors—such as trade, the balance of payments, and overall economic development—also play a role, stabilizing inflation remains the Bank’s top priority before considering an exchange rate adjustment.
Second, Shabibi discusses plans to remove three zeros from the currency (often called “redenomination”).
He emphasizes that this move is not intended to devalue or weaken the currency, but rather to simplify financial transactions, calculations, and record-keeping.
This step, he notes, must be accompanied by public education, careful planning, and coordination with various government agencies, including security forces.
Ultimately, the goal is to streamline the currency system in a more stable economic environment.
