A government source revealed today, Wednesday, that the government is seeking to energize the markets and mitigate the effects of regional challenges, calling for reliance on official information. The source indicated that circulating proposals to remove zeros does not mean their approval or setting a date for their implementation, affirming that the government is discussing initiatives to stimulate commercial and productive activity.
The source stated in a press interview with the official agency, which was reviewed by "Video News Agency," that "the government recognizes the slowdown in buying and selling in the markets and the impact it has on citizens, merchants, and project owners, and it places importance on discussing practical solutions to help drive economic activity, protect purchasing power, and enhance trust in the market."
He added that "these challenges are not limited to Iraq but are faced by most countries in the region to varying degrees due to regional tensions and the closure of the Strait of Hormuz, which has led to disruption in trade and supplies, rising transportation, shipping, and insurance costs, and these conditions have reflected on investment and consumption decisions, contributing to an increased state of anticipation and slowed economic activity."
He explained that "the government, while aware of the impact of these conditions, is seeking to address internal obstacles affecting market activity, discussing initiatives to stimulate commercial and productive activity, and exploring ways to facilitate financing for productive projects and support the private sector," noting that "the aim is to formulate applicable measures that contribute to the continuity of business and provide job opportunities, while considering available financial capabilities and maintaining financial and monetary stability."
Regarding news, analysis, and rumors circulating about changing the currency and removing zeros, the source clarified that "proposing any idea for study or discussion does not mean its approval or immediate implementation, and expectations circulating cannot be treated as binding decisions or specific application dates."
The source pointed out that "any action in this regard requires careful study and technical, organizational preparations, and clear mechanisms that protect citizens' rights, and it will be officially announced with details explained prior to implementation, if approved accordingly."
On the matter of currency and removing zeros, the source stated that "removing zeros, in principle, means re-expressing monetary values in a new unit, converting prices, salaries, savings, and obligations at the same rate, and does not in itself mean a decrease in the real value of citizens' money." He emphasized that "it is important to clarify this distinction so that the discussion does not become a source of concern affecting daily transactions or leading to hasty decisions, noting that the issue of changing currency and removing zeros is still in the preliminary discussion phase to determine its economic feasibility, in addition to technical, legal, and operational studies, and no decision has been made on it; all these matters require accurate, clear, and unhurried evaluations, while benefiting from other countries' experiences that have followed this approach, some of which did not achieve the desired results due to the subject's connection to other structural reforms."
The source affirmed that "enhancing trust in markets requires clear information and practical steps, and cooperation between the government, financial institutions, and the private sector provides opportunities to alleviate pressure and improve economic activity," noting that "details of the initiatives that are approved and how to benefit from them will be announced after completing their study and discussion."
He pointed out that "the government is aware of the scale of challenges and seeks to address them, and there is room to improve market activity through joint work and follow-up," calling on "citizens, merchants, and project owners to remain calm regarding circulating news and to rely on official information, which helps stabilize the market and maintain economic activity."