Banking Expert: In light of the high levels of inflation, Deletion of zeros from currency would not address the economic crisis

Posted by on Nov 23, 2013 | Leave a Comment

Said banking expert Samir Nasiri: that the process of deletion of zeros, announced by the Central Bank of Iraq will not deal with the economic crisis that has plagued Iraq, particularly with regard to the standard of living decline and deterioration of services.

He added Samir Nasiri that the process of deletion of zeros from the currency “will not address the economic crisis that has plagued Iraq, especially falling standard of living, unemployment and the deterioration of services in all areas.

Alnasiri pointed out that the process of deletion of zeros from the currency will lead to” reduce the money supply concept narrow and will be reflected directly the nominal values of salaries, stock and bond prices. He said it had a ten million dinars now has only ten thousand of them, which may lead to reduced consumption, which reflected negatively on the macro-economic situation of the country.

However, the deletion of zeros dampens inflation is no longer useful for this deletion, because the Iraqi Central Bank data indicate that the rate of inflation has become only 7%. If the deletion of zeros does not address inflation, it does not contribute to the rise.

The central bank announced last September its intention to delete the three zeroes from the currency and replaced during the year 2013, indicating that the process comes to ease inflation, and urged citizens to use its currency, rather than resorting to the U.S. dollar

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