Zeros Will Not be Removed from Iraqi Currency

There has been much speculation in recent months that the Iraqi dinar would be re-based, knocking off the last three zeros.

The lastest news is that Iraq will not in fact remove the zeros from its currency, because it will not resolve inflation and will create opportunities for corruption, reports AKnews, citing a senior source in Iraq’s ministry of finance and economics.

The Iraqi dinar was largely devalued after Iraq’s invasion of Kuwait in 1991 and the imposition of international sanctions on the country.

While before 1991, one Iraqi Dinar was equal to around $3, now $1 is worth roughly 1170 Dinars, according to Iraqi Central Bank’s exchange rates.

Some experts have suggested that removing the zeros will enhance the country’s currency and allow it to better tackle inflation.

“The Central Bank wanted to remove the zeros three years ago, we alleged that it was impossible. They wanted to do it again last year and we rejected the proposal again. The issue is currently brought up once again, but the Ministry of Finance and Economics insists that Zeros will remain,” said Fazil Nabi, the deputy minister of finance and economics.

Nabi said removing the zeros will not reduce the inflation rates as Iraq’s inflation has been stable and remained low for quite some time.

“Besides, it will create problems for many citizens because it takes time for them to learn to use the new currency,” he said.

Nabi also stated that certain people will be harmed by removing the zeros because their salaries will decrease while it is unlikely that the price of goods in the markets would decrease. It is not clear to IBN how the minister came to this conclusion.

(Source: AKnews)

8 Responses to Zeros Will Not be Removed from Iraqi Currency

  1. [...] Zeros Will Not be Removed from Iraqi Currency There has been much speculation in recent months that the… [...]

  2. kyra katina 20th January 2011 at 14:25 #

    I think they do well not to change it. That will also avoid confusion

  3. LZ 25th January 2011 at 19:10 #

    So it seems that investing in the dinar is a waste of time?

  4. Stew 25th January 2011 at 21:13 #

    Come on LZ… you gotta get with the program. Every article that states they WILL NOT remove zeros means that there will be no lop.
    And ever article that says they WILL remove the zeros also means there will be no lop, just a big RV and take big notes out.

  5. LZ 25th January 2011 at 21:16 #

    HA HA, I just read on dinar daddy that things were in motion for an Rv NEXT WEEK!

  6. Stew 25th January 2011 at 21:31 #

    Just as it has been for the last 6 years. Heck.... They've even announced a number of times that the RV has already happened.

  7. LZ 27th August 2012 at 23:29 #

    I just sold the last of my dinar recently . I feel bad for the dreamer that bought it. What a waste of time and money. It feels good to be rid of the dumbest investment I ever made. I think I'll play the pick six for the next few weeks. At least with the pick 6 I actually have a chance of winning.


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