Central Bank wants Iraqis to drop the dollar in internal commercial transactions and use iraqi currency dinar

August 03, 2012

“The knocking out of zeros from iraqi paper currency will save Iraqis using massive sums of paper money in their money transactions,” said Central Bank Deputy Governor Mudher Saleh.

Saleh, speaking in a seminar on iraqi dinar currency organized by the High Institute of Accounting in Baghdad, assured skeptic Iraqis that the removal of zeros from the iraqi currency “shall not affect your earnings, wealth, financial transactions, financial obligations and duties.”

He said, on the contrary, the Iraqi economy, the dinar and Iraqi citizens were to benefit from the move.

The Central Bank, awash with hard cash reserves estimated at more than $60 billion, is working hard to boost the iraqi dinar’s value against major convertible currencies around the world and should be trading in all markets.

A firmer and strong iraqi currency along with the removal of zeros has been among the central bank of iraq top priorities.

But Saleh said the bank was concerned to see the economy being dollarized and one target behind the new move was to lessen dependence on the dollar in domestic transactions and dealings by Iraqis. A dollar is now worth about 1,166 iraqi money dinars.(Source)CBI