Story thread · 2 reports / 1 sources

Iraq's problems are rooted in corruption, not currency

thenationalnews.com · 1hShare

Deleting zeros from a national currency can make a country’s numbers look better – but it cannot, by itself, make an economy healthier. This is among the primary problems facing Iraq as officials revive discussions to redenominate the dinar , an idea first floated more than two decades ago. For a heavily cash-based society such as Iraq’s, the suggestion has some merit. Removing two zeros could redirect some of the vast quantities of cash held outside Iraq ’s banking system back into circulation. Right now, millions of Iraqis keep their savings at home, in safes or buried. This underlines a profound lack of confidence in the country’s financial institutions. It is not difficult to understand why so many Iraqis prefer to keep their money close to hand. Corruption – Iraq’s Achilles heel – enriches those on the inside but also erodes public belief that the state is on their side. The scale of the wealth being recovered in the country's latest anti-corruption drive will only compound this b

First report: Iraq considers deleting zeros from dinar as officials revive currency overhaul — thenationalnews.com, 1d