Removing Three Zeros from Iraqi Dinar will Help the Economy

Iraqi banking expert, Abdul Aziz Hasoon, said in phone call with the Independent that the process of removing three zeros from the Iraqi dinar will be positive for the Iraqi economy.

He added that there were many countries that took the same step, including Turkey which removed six zeros from it is currency.

Hasoon clarified that if the exchange rate was amended in the proper manner, then the whole process will be beneficial. The Iraqi central bank would set up the mechanisms to replace the current banknotes with new banknotes, and allow a period for everyone to replace their banknotes.

Members of the economic committee in the previous parliament had urged Iraqi Central Bank and Iraqi Ministry of Finance to address what they called financial flabbiness of the Iraqi money by removing three zeros from the currency.

(Source: Iraq Directory )

Hasoon said that removing three zeros from the Iraqi currency will not affect the Iraqi market significantly because one new dinar will be equal to one thousand dinar of the current currency.

Iraqi Central Bank did not specify when it is going to implement the process of removing the zeros, while some media sources said that the Iraqi Central Bank cannot proceed with this step currently because of the cost.