By Hawre Tofiq, for Draw Media. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.
Iraq Federal Government Considers Removing Three Zeros from Dinar
With the closure of the Strait of Hormuz due to conflict, Iraq's oil export routes have been severely restricted and overall revenues have fallen sharply. The federal government is now facing a serious budget crisis in meeting operational expenditure, including public sector salaries.
In response, the government has already taken the step of printing additional dinars to cover salary payments - a measure that provided a temporary fix but risks causing inflation in the longer term. Two further options are now under consideration: domestic and external borrowing; and the removal of three zeros from the Iraqi dinar.
Under the redenomination plan, for example, 25,000 dinars would become 25 dinars.
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