SUMMARY: Dinar: Dr. Shabibi answering revaluation and redenomination questions
Date: Abril 19, 2011
Location: US Chamber of Commerce Washington, DC
🌍 Iraq’s Economic Outlook
The Central Bank of Iraq is carefully evaluating the future of the Iraqi dinar. While there are questions about a potential revaluation, the top priority remains controlling inflation and maintaining economic stability.
📈 Inflation and Stability
Inflation has slightly increased from 2–3% to around 5%. Although still manageable, the central bank is closely monitoring it to protect purchasing power and public confidence.
🔄 Revaluation?
Whether to revalue the currency depends on multiple factors: inflation, trade balance, and overall macroeconomic stability. It's not a decision taken lightly.
💵 Removing Zeros?
A redenomination is being planned to remove three zeros from the dinar. This does not mean devaluing the currency—it’s meant to simplify daily transactions and accounting.
🕰 Why So Many Zeros?
In the 1980s, high inflation forced Iraq to add zeros to its currency. Now, with a more stable economy, it’s possible to modernize the currency system by removing them.
🤝 A Complex Process
This change requires coordination among the government, security forces, and a strong public education campaign. Everything must be clearly communicated to avoid confusion or mistrust.
📢 Clear Communication
Public awareness is critical. People need to understand this is a technical change, not a sign of economic weakness. It’s a move toward a more efficient and modern system.
⏳ No Fixed Date
While the decision has been made, no exact timeline has been set. The government is waiting for the right economic and political conditions to implement the change properly.
✅ Conclusion
Iraq is preparing for an important monetary update. With inflation under control and a more stable economy, removing zeros aims to make daily financial activities easier without affecting the currency’s real value. It’s a technical step forward—but it must be done with care, planning, and transparency.
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