Cabinet Secretariat: Government seeks to have the exchange rate at 1,000 dinars to the dollar

Monday, 04 February 2013 10: 39
Excluded the General Secretariat of the Council of Ministers to replace or cancel three zeros currency at this stage, it is seeking to raise the value of the dinar against the dollar.
And the Secretariat’s statement quoted Ambassador News Agency received a copy of it today its Secretary-General on improved relations, as saying that “the project currency substitution and cancel three zeroes discussed during the last period of the Council of Ministers, the Council stressed that this project is not a priority for the Government at the moment, there is no real problem in this area.”
“The Exchange itself requires significant tuning process, there are still issues concerning this aspect after the fall of the dictatorial regime, with limited currency block, it now has doubled from what it was at the time, and pull this block is a difficult task.”
He added that “some have wrong impression involves deleting zeros will reduce the volume of cash in circulation as the quantity, and the fact that it does not diminish, even by 1% despite the Government believes that the currency is a good thing if there are suitable conditions for its application, but does not give them priority when providing stable conditions”.
He noted that “the Iraqi dinar to rise the price of the dollar, and economic and financial viability of dinar was able to be stronger than it is currently, and that the chances of higher value are available, especially with the growth of the accumulated reserve at the Central Bank which exceeded [65] billion dollars, rising steadily along with high economic growth in Iraq, and is now one of the most developed countries in the world thanks to the expansion of oil production“.
Confirmed that substantive and economic components available in the direction of the rising dinar exchange rate against the dollar, noting that “the Government is seeking to have 1000 dinar exchange rate against the dollar, meaning that the price of the currency class 100 $ 100,000 Iraqi dinar”, stating that “any improvement in the political situation can contribute to achieve this faster.”
The Cabinet decided in its meeting held on 10 April, wait in the application deleting zeros from the local currency to further notice.
The Iraqi Central Bank, the Bank Adviser Mohammad Saleh appearance, has confirmed to IGN need Iraq to an administrative reform of the currency, and the deletion of zeros is the step comes within the country’s administrative reform process, in order to reduce the cost of cash transactions in the economic process, in addition to the need to provide small groups currency used in trade transactions of small daily.
Officials at the Central Bank, in addition to some politicians and economists urged the Government to delete the zeros from the currency and issued new currency large cash categories, in addition to having small coins.
Observers say that the Government intended to delete zeros from the currency as a step towards improving the purchasing power of the Iraqi dinar, but economists underestimated the importance of this step, saying that the cost of raising the zeros will be greater than the benefit of raising the zeros.