IN LIGHT OF THE HIGH LEVELS OF INFLATION BANKER: DELETE THE ZEROS FROM THE CURRENCY WILL NOT ADDRESS THE ECONOMIC CRISIS
Banking expert said Samir: 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 fall in the standard of living and the deterioration of services. He said Samir 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.
pointed out that the process of deleting the 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 Pat does not have 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 no longer this deletion benefit, because the Iraqi Central Bank data indicate that the rate of inflation has become only 7%. If the deletion of zeros from the Iraqi dinar does not address inflation, it does not contribute to the rise. The central bank announced last September its intention to delete the three zeros from the currency and altered during the year 2013, indicating that the process comes to ease inflation, and urged citizens to use its currency instead of resorting to the U.S. dollar