The Prime Minister’s financial advisor, Mazhar Mohammed Salih, ruled out the government removing three zeros from the Iraqi currency at present, noting that achieving this requires two basic conditions.
Saleh said in a statement reported by the Rudaw media network, and seen by Al-Eqtisad News, that he rules out the possibility of the government removing zeros at present, indicating that “removing three zeros from the currency has nothing to do with the value of the currency, but rather with improving cash payment systems.”
He explained that “the three zeros added price and monetary inflation to the currency, starting with the Iran-Iraq war and passing through the time of the economic blockade (the nineties of the last century), and the conflicts generated inflation in the value of the currency.”
He pointed out that “when prices rise, we need larger denominations of money to maintain the equivalence between price and money. For example, due to price inflation, 25 Iraqi dinars have become 25,000 dinars.”
Saleh pointed out the importance of “reducing the calculations that have reached trillions in recent years, and this has become a tiring matter,” adding that “the process of raising three zeros does not only mean the value of the currency, but also the calculations and statistics, and in order for the method of managing it to be easy.”
The Prime Minister’s financial advisor also said that “the process of issuing large denominations reduces the currency in terms of quantities, and is a process of reforming the cash payments system, especially since this modern and advanced time requires smaller numbers.”
He believed that removing three zeros from the currency, globally, requires two conditions: “political stability and economic stability. When these two factors are available, countries resort to removing zeros from their currency,” adding that “the value is fixed and not affected. Rather, it is a relative change.”
He stated that the project to remove three zeros “we worked on between 2011 and 2012, but there was a delay in the matter, because it requires a change in the accounts of the Republic of Iraq and statistics, and requires cooperation between monetary policy and all government policies.”
It is noteworthy that a number of economists and experts recently called for deleting three zeros from the Iraqi currency, considering that this would reduce monetary inflation in Iraq and strengthen the dinar currency.
Why Doesn’t Iraq Rely On The World Bank To Overcome The “Dollar Crisis”? An Expert Answers
Friday (August 30, 2024), the expert in economic and financial affairs, Nabil Jabbar Al-Tamimi, commented on the possibility of the World Bank helping Iraq in developing its economic and financial situation and resolving the remittance crisis.
Al-Tamimi said in an interview with “Baghdad Today”, “The World Bank is an international financial and banking institution affiliated with the United Nations, but
it is subject to special management related to the influence of some countries according to their banking contribution, as
its tasks are limited to
investment financing for countries,
providing international loans, and
project management
in accordance with its international banking conditions.””. He stated that
“Iraq is currently working extensively with one of the institutions of the World Bank and the International Finance Corporation (IFC) to develop a group of sectors, including the transportation and airports sector,” explaining that
“the World Bank as an important international and financial institution and an international institution at the same time works with Iraq and with other countries in the fields of
Lending and the field of providing
technical consultations, as well as providing Iraq with
economic data and
analyzes within the limits of its work.” The expert in economic and financial affairs stressed that
“it is not within the scope of the World Bank to intervene in the issues facing Iraq, especially with regard to the remittance crisis, local banking failures, or weak procedures to protect funds from suspicions of money laundering and terrorist financing.”
According to specialists, Iraq has more than (70) banks, approximately five of which are government and the remaining number are private banks,
but Iraq relies heavily on financial transfers, especially with regard to the dollar, to various foreign banks, due to the failure of private Iraqi banks to arrange their legal and technical conditions. In the case of financial correspondence.
Earlier, a member of the Parliamentary Integrity Committee, Alia Nassif, revealed that the Iraqi Jordanian National Bank obtained $3.6 billion from the currency auction during the first three months of the current year, which enabled it to obtain a profit of about 40 billion dinars
The Central Bank Announces The Results Of The New York Meeting On The Dollar Crisis
Economy 2024-08-30 | Source: Alsumaria News 3,939 views Today, Friday, the Central Bank of Iraq announced the results of the visit of the delegation headed by Governor Ali Al-Alaq to the United States of America. The Central Bank said in a statement received by Al-Sumaria News,
“The delegation held a series of intensive meetings in New York City, which included the US Treasury and the Federal Reserve Bank, in addition to meetings with a group of companies and banks.” He added:
“Participants in the meetings praised the Central Bank’s control measures on foreign transfers and cash sales of the US dollar currency.” The Central Bank indicated:
“A meeting will take place between officials of the Central Bank of Iraq and its international partners at the end of this year regarding the major shift in ending the work of the electronic platform for external transfers and replacing it with direct banking relationships.” He concluded:
“The meetings in New York City also discussed mechanisms for expanding the network of international correspondent banks and qualifying Iraqi banks to meet the requirements necessary to open their accounts with international correspondent banks.”
Disclosure Of The Main Currency Used In Iran’s Trade With Iraq
Member of the Board of Directors of the Joint Iranian-Iraqi Chamber of Commerce, Shaaban Foroutan, revealed today, Tuesday, that the
bulk of trade between Iraq and Iran at the level of merchants and exporters is carried out through the Iranian riyal.
Forutan said in statements to Iranian media, “Most Iranian exporters now work with the riyal in trade with Iraq, and financial transactions between the two countries will continue without using the Iranian riyal, that is, in the dollar as well.
This does not mean the complete elimination of the dollar, except that a large portion of merchants carry out their transactions.” Without the dollar.
He stated that “the obligation to trade in dollars does not include all product groups, except that the
xchange of riyals for dollars cannot be implemented due to the sanctions imposed on banks, and
riyal traders earn from selling goods in the Iraqi market through their contacts with the stock exchanges of Iraq and Iran or a third country such as the United Arab Emirates.”
“They do not have the possibility of that direct settlement.”
He pointed out that “the supply of Iranian goods faced a problem in the Iraqi market represented by the multiple rise in the prices of goods in Iran within a year, while prices are expected to rise only once a year.”
