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Central Bank: Iraq plans to delete the three zeroes from the currency
Sat Aug 6, 2011 2:19 pm GMT Print this [ - ] Text [ + ]
BAGHDAD (Reuters) - A senior official of Iraq's central bank said on Saturday that Iraq intends to amend the categories of its currency the dinar by deleting three zeros in order to facilitate financial transactions.
Qasim said the appearance of the deputy central bank governor, said he expected the use of categories of the new currency in the market within three years and shall not affect inflation.
He told Reuters that the aim is to facilitate the payment system.
Iraq is recovering after years of war, sanctions and the oil still dominates the economy, accounting for 95 percent of government revenue.
Investors have complained that Iraq's economy, which is still subject to a high degree of central planning suffers from administrative and procedural complexities that most transactions are in cash.
Qasim said the planning and preparation stage of reform has been completed and that the proposal will be submitted to the government next month. It will require the approval of Parliament as well.
The Central Bank of Iraq began to discuss amending the dinar categories last year. And is still a large part of the payments are in cash because of the evolution of the banking system.
Qasim said the restructuring includes the issuance of the highest categories of use of currency and coins for the first time. The highest category of the Iraqi currency is now 25 thousand dinars, worth about $ 21.
Of Aseel Kami
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