MPs Push for Removal of Zeros on Iraqi Banknotes

[bamastorm]

ERBIL, Kurdistan Region- Kurdish members of Iraqi Parliament’s Finance Committee have denied that there is currently any proposed law regarding the removal of zeros on the Iraqi banknote.

Ahmad Faizulla, an MP from the Kurdistan alliance in Iraqi parliament and member of the finance committee, dismissed claims that their committee has prepared and drafted a law to alter the currency.

“The finance committee cannot make such a decision,” he said. “We can only suggest projects. The drafted projects will be presented to parliament for discussions for voting. This is something that must go through legal channels.”

Heitham Jiburry, a member of the finance committee, announced last week that eliminating zeros on Iraqi banknotes will be implemented early next year. “It is expected that the process of printing new currency will start next August,” he said.

Jiburry also remarked, “The process of replacing the old currency to the new one will continue throughout next year. The old currency will completely be gone in the first 6 months of 2014.”

In April, the chief of staff of Iraqi Council of Ministries suspended the process indefinitely.

Fazil Nabi, Iraq’s deputy finance minister, previously told Rudaw that eliminating zeros on Iraq’s currency will not increase the value of Iraqi dinars.

However, Jiburry said, the process will make the Iraqi dinar more stable and reduce demands for foreign currency among people.

Nabi told Rudaw, “Implementing this process is related to the central bank. I always believed that this wouldn’t work at least at this stage.”

Economists believe Iraq is not ready to eliminate zeros on its currency, and that for the process to be successful security, political and economic stability is needed.

But Shorsh Haji, an Iraqi MP from the Change Movement (Gorran) maintained that there is indeed a proposal to modify the currency.

“Such an idea to eliminate zeros on Iraqi currency does exist,” Haji said. “The process of withdrawing all the old bills and replacing them with new ones needs a special budget, which was not designated from the 2012 budget. It is believed that this budget will be designated in 2013.”

Regarding possible economic benefits of a currency change, Haji said, “The benefit would be more in appearance. Currently, the value of the Iraqi dinar has dropped and is unstable. After removing zeros instead of saying 123,000 IQD is equal to US$100 we will say 123 Dinars is equal to US$100. It is just to show that Iraq has a strong economy.”

Making changes in Iraq’s banknotes may add to already heightened tensions between Baghdad and Erbil. Kurdish MPs in Baghdad say that if such a law is passed in parliament, the new bills must have Kurdish alongside Arabic script on them, as stipulated by the constitution.

“So far, there has not been any designs for the new bills,” Haji noted. “Without a doubt, having Kurdish written on the new bills will be our pre-condition.”

According to Article 4 of the Constitution, Kurdish and Arabic are the official languages of Iraq and both languages must appear on Iraqi banknotes.

Section two of the article says, “Use of both languages is enjoined by the principle of equality such as banknotes, passports, and stamps.”

Haji is optimistic about the future use of the Kurdish language on Iraqi official documents.

“I don’t expect that this constitutional right will be ignored or cause more tensions between Baghdad and Erbil,” he said. “This is a legal and constitutional subject. There are also Kurdish-Arabic interpreters in Parliament. Kurdish MPs can speak Kurdish if they want. However, it has become a habit for them to speak Arabic in the Parliament.”

MP Faizulla is more skeptical, saying, “Many constitutional articles and rights have already been violated. This will depend on agreements between the political parties. If the political parties don’t agree, it most likely won’t happen.”

Does mean an exchange rate of 0.81 ??? 123 Dinars equal 100 dollars?

LINK

http://www.rudaw.net/english/news/iraq/4770.html

[zigmeister]

What strikes me as odd or maybe a contradiction is the statement there is no proposal of deleting zero's on the currency. For the longest time I was under the impression since last summer there was a proposed law for deleting of zero's and printing new currency. Or maybe they are implying no one has given CBI the go ahead to continue with the project.

I would say the exchange rate of 123 dinars equal to dollars would be about right at .81.

[Niteflyer]

i'll take that

[Markinsa]

Good find thanks!

-

[fnbplanet]

Don't ya just love it when an MP, who hasn't shown up for the last six months, shows up and says : "What plan?" or even: "We should form a committee to study this!" ?

[keepmwlknfny]

What strikes me as odd or maybe a contradiction is the statement there is no proposal of deleting zero's on the currency. For the longest time I was under the impression since last summer there was a proposed law for deleting of zero's and printing new currency. Or maybe they are implying no one has given CBI the go ahead to continue with the project.

I would say the exchange rate of 123 dinars equal to dollars would be about right at .81.

I sure hope that its because no one has given the CBI the green light.....

[willy1der]

What strikes me as odd or maybe a contradiction is the statement there is no proposal of deleting zero's on the currency. For the longest time I was under the impression since last summer there was a proposed law for deleting of zero's and printing new currency. Or maybe they are implying no one has given CBI the go ahead to continue with the project.

I would say the exchange rate of 123 dinars equal to dollars would be about right at .81.

thats 8/10 of a cent zig?

[yota691]

I sure hope that its because no one has given the CBI the green light.....

You might want to read Article 4 Functions of the CBI they don't need a Green Light from anybody!! Article 4 Functions

1. The functions of the CBI in achieving the objectives set forth in Article 3 and as further

described in this Law, shall be to:

a. formulate and implement monetary policy, including exchange rate policy, for Iraq

in accordance with Section 6;

b. hold and manage all official foreign reserves of Iraq, other than working balances

of the government, in accordance with Article 27;

c. hold gold and manage the State reserves of gold;

d. provide services as advisor and fiscal agent to the Government in accordance with

Section 4;

e. provide liquidity services to banks in accordance with Articles 28 and 30;

f. issue and manage Iraqi currency in accordance with Section 7;

g. compile and publish data on the banking and financial system and the economy in

accordance with Article 41; - 7 -

h. establish, oversee and promote sound and efficient payment systems in accordance

with Article 39;

i. issue licenses or permits to banks and to regulate and supervise banks as further

specified in this Law and in the Banking Law;

j. open and maintain accounts on the books of foreign central banks and international

financial organizations;

k. open and maintain on its own books accounts for foreign central banks, foreign

governments and international organizations; and

l. carry out any ancillary tasks or transactions incidental to the exercise of its

functions under this Law.

2. In addition, the CBI may take whatever action it deems necessary to: (i) counter money

laundering and terrorist financing, and (ii) regulate and supervise lending companies,

microfinance companies, and any other non-bank financial institutions not otherwise

regulated under Iraqi law.

3. The CBI shall have the power to issue regulations for the purpose of implementing this

Law and carrying out its functions under this Law. Regulations issued under this Law, and

any subsequent amendments thereto, shall be published in the Official Publication.

4. If the CBI proposes to issue a regulation pursuant to this Law, it shall publish a draft of the

proposed text of the regulation in a form and in a manner determined by it to be best

calculated to bring the proposed regulation to the attention of the domestic financial sector

and the general public. The draft shall be accompanied by an explanation of the purpose of

the proposed regulation and a request for comments within a specified time of not less than

one month after the date of publication of the draft. The CBI shall have regard to any

comment received and issue the final text of the regulation accompanied by an account in

general terms of the comments. The procedure set out in this paragraph shall not apply if the

CBI determines that the delay involved would be a serious threat to the interests of the

financial system or hinder the effective conduct of monetary policy, provided that such

decision by the CBI shall be explained in the preamble to the regulation.

5. In carrying out its functions in accordance with the provisions of this Law, the CBI shall

have the power to issue legally-binding orders addressed to specified individuals or entities

and directing such persons or entities to undertake specific actions which are in accordance

with this Law.

6. The CBI shall have the power to issue internal rules or guidelines on the organization and

administration of the CBI. http://www.cbi.iq/documents/CBILAW-EN_f.pdf

[icfaith]

You might want to read Article 4 Functions of the CBI they don't need a Green Light from anybody!! Article 4 Functions

1. The functions of the CBI in achieving the objectives set forth in Article 3 and as further

described in this Law, shall be to:

a. formulate and implement monetary policy, including exchange rate policy, for Iraq

in accordance with Section 6;

b. hold and manage all official foreign reserves of Iraq, other than working balances

of the government, in accordance with Article 27;

c. hold gold and manage the State reserves of gold;

d. provide services as advisor and fiscal agent to the Government in accordance with

Section 4;

e. provide liquidity services to banks in accordance with Articles 28 and 30;

f. issue and manage Iraqi currency in accordance with Section 7;

g. compile and publish data on the banking and financial system and the economy in

accordance with Article 41; - 7 -

h. establish, oversee and promote sound and efficient payment systems in accordance

with Article 39;

i. issue licenses or permits to banks and to regulate and supervise banks as further

specified in this Law and in the Banking Law;

j. open and maintain accounts on the books of foreign central banks and international

financial organizations;

k. open and maintain on its own books accounts for foreign central banks, foreign

governments and international organizations; and

l. carry out any ancillary tasks or transactions incidental to the exercise of its

functions under this Law.

2. In addition, the CBI may take whatever action it deems necessary to: (i) counter money

laundering and terrorist financing, and (ii) regulate and supervise lending companies,

microfinance companies, and any other non-bank financial institutions not otherwise

regulated under Iraqi law.

3. The CBI shall have the power to issue regulations for the purpose of implementing this

Law and carrying out its functions under this Law. Regulations issued under this Law, and

any subsequent amendments thereto, shall be published in the Official Publication.

4. If the CBI proposes to issue a regulation pursuant to this Law, it shall publish a draft of the

proposed text of the regulation in a form and in a manner determined by it to be best

calculated to bring the proposed regulation to the attention of the domestic financial sector

and the general public. The draft shall be accompanied by an explanation of the purpose of

the proposed regulation and a request for comments within a specified time of not less than

one month after the date of publication of the draft. The CBI shall have regard to any

comment received and issue the final text of the regulation accompanied by an account in

general terms of the comments. The procedure set out in this paragraph shall not apply if the

CBI determines that the delay involved would be a serious threat to the interests of the

financial system or hinder the effective conduct of monetary policy, provided that such

decision by the CBI shall be explained in the preamble to the regulation.

5. In carrying out its functions in accordance with the provisions of this Law, the CBI shall

have the power to issue legally-binding orders addressed to specified individuals or entities

and directing such persons or entities to undertake specific actions which are in accordance

with this Law.

6. The CBI shall have the power to issue internal rules or guidelines on the organization and

administration of the CBI. http://www.cbi.iq/documents/CBILAW-EN_f.pdf

AND THATS A FACT JACK LOL

[uncirculd]

Way to go Yota!

[Sk 1962]

Way to go Yota!

I'll second that motion!!

[keepmwlknfny]

If the CBI didnt need approval to issue a new currency they wouldnt have sent the bill to parliament.....this would have been done already.....

Its in the constitution....that the govt is needed for approving issuing a new currency and for monetary policy changes. Besides that, by what you highlighted in that section, this is far from an "emergency".....that would be closer to how the CBI changed the way the auctions were running because it was going to start dipping into its reserves so they acted quickly and on their own to fix the situation because lord knows it would take 3 years for the govt to fix it lol.....

Article 110:

The federal government shall have exclusive authorities in the following matters:

First: Formulating foreign policy and diplomatic representation; negotiating,

signing, and ratifying international treaties and agreements; negotiating, signing,

and ratifying debt policies and formulating foreign sovereign economic and trade

policy.

Second: Formulating and executing national security policy, including

establishing and managing armed forces to secure the protection and guarantee

the security of Iraq’s borders and to defend Iraq.

Third: Formulating fiscal and customs policy; issuing currency; regulating

commercial policy across regional and governorate boundaries in Iraq; drawing

up the national budget of the State; formulating monetary policy; and establishing

and administering a central bank.

[sandstorm]

If the CBI didnt need approval to issue a new currency they wouldnt have sent the bill to parliament.....this would have been done already.....

Its in the constitution....that the govt is needed for approving issuing a new currency and for monetary policy changes. Besides that, by what you highlighted in that section, this is far from an "emergency".....that would be closer to how the CBI changed the way the auctions were running because it was going to start dipping into its reserves so they acted quickly and on their own to fix the situation because lord knows it would take 3 years for the govt to fix it lol.....

Article 110:

The federal government shall have exclusive authorities in the following matters:

First: Formulating foreign policy and diplomatic representation; negotiating,

signing, and ratifying international treaties and agreements; negotiating, signing,

and ratifying debt policies and formulating foreign sovereign economic and trade

policy.

Second: Formulating and executing national security policy, including

establishing and managing armed forces to secure the protection and guarantee

the security of Iraq’s borders and to defend Iraq.

Third: Formulating fiscal and customs policy; issuing currency; regulating

commercial policy across regional and governorate boundaries in Iraq; drawing

up the national budget of the State; formulating monetary policy; and establishing

and administering a central bank.

Correct. to replace the currency it needs approved. to just rv it doesnt.

its all perspective. and from i can tell, people have different perspectives about what deleting the zeroes is. why i have no clue. deleting zeroes has happened many times. What it is, theres no question. the context the cbi is using would be expected, but how its applied, well thats the whole investment. Whether they do it in a classic sense, or if theyve used the cover of deleting zeroes to prepare for a straight rv.

Edited May 25, 2012 by sandstorm

[keepmwlknfny]

Correct. to replace the currency it needs approved. to just rv it doesnt.

its all perspective. and from i can tell, people have different perspectives about what deleting the zeroes is. why i have no clue. deleting zeroes has happened many times. What it is, theres no question. the context the cbi is using would be expected, but how its applied, well thats the whole investment. Whether they do it in a classic sense, or if theyve used the cover of deleting zeroes to prepare for a straight rv.

Exactly....they can move the exchange rate by themselves....no approval needed....but issuing a new currency is completely different....

And your right about deleting the zeros....if you research other redenominations and other countries that performed this (like Turkey) and then read what the CBI is saying they are planning on doing, its pretty clear that its the opposite of what we want to happen

[yota691]

Yall are right, I can just see the CBI of Iraq asking permission to RV the currency!! This part you highlighted is worded for the Government, when in turn it desginated the job to the CBI

Third: Formulating fiscal and customs policy; issuing currency; regulating

commercial policy across regional and governorate boundaries in Iraq; drawing

up the national budget of the State; formulating monetary policy; and establishing

and administering a central bank.

Edited May 25, 2012 by yota691

[PTguy]

Yota amazing, great posts.

[keepmwlknfny]

Yall are right, I can just see the CBI of Iraq asking permission to RV the currency!! This part you highlighted is worded for the Government, when in turn it desginated the job to the CBI

Third: Formulating fiscal and customs policy; issuing currency; regulating

commercial policy across regional and governorate boundaries in Iraq; drawing

up the national budget of the State; formulating monetary policy; and establishing

and administering a central bank.

Im not saying that the CBI has to have permission to raise the value of the dinar....cause they dont....

The govt has the final authority over issuing a new currency....thats not the same as raising the value of the dinar.....but the constitution specifically states that the govt does have authority in the matter of issuing a new currency...which is why this process is taking so long to get a final answer. If they didnt need the consent of the govt, there would be no purpose for them to present a bill to the parliament for doing so. The CBI would handle the process of issuing a new currency, but they do require the approval of the govt....

[Crow]

I'm all back of the bus anymore!! SOME JUST YELL RV WHEN IT HAPPENS!

[yota691]

Im not saying that the CBI has to have permission to raise the value of the dinar....cause they dont....

The govt has the final authority over issuing a new currency....thats not the same as raising the value of the dinar.....but the constitution specifically states that the govt does have authority in the matter of issuing a new currency...which is why this process is taking so long to get a final answer. If they didnt need the consent of the govt, there would be no purpose for them to present a bill to the parliament for doing so. The CBI would handle the process of issuing a new currency, but they do require the approval of the govt....

The delay is no GOI, Erbil, HCL (MR. M). Lets see we have in the past 2 weeks the CBI has change duties to the Rashid Bank 80% of some banking duties, now we see 4% deal between the traders, Warka what else, I know I'm leaving something else out. But anyway you understand my point, they made all these changes not once have they had to get approval from the government, They did on the design and what language's. Did they get approval to buy 10 Da la rue machine!! Oh i remember what i was about to leave out, the attempt to sabotage and takeover of the CBI by MR. M.!! (from a few articles) But anyway we both can agree you have your interpretation on your reading and I have mine into these article!! We wait and see who eats the crow the Historians (loppers) or the Go RV (bunnyears)!!

[keepmwlknfny]

The delay is no GOI, Erbil, HCL (MR. M). Lets see we have in the past 2 weeks the CBI has change duties to the Rashid Bank 80% of some banking duties, now we see 4% deal between the traders, Warka what else, I know I'm leaving something else out. But anyway you understand my point, they made all these changes not once have they had to get approval from the government, They did on the design and what language's. Did they get approval to buy 10 Da la rue machine!! Oh i remember what i was about to leave out, the attempt to sabotage and takeover of the CBI by MR. M.!! (from a few articles) But anyway we both can agree you have your interpretation on your reading and I have mine into these article!! We wait and see who eats the crow the Historians (loppers) or the Go RV (bunnyears)!!

None of that has any restriction on Iraq raising the value of their currency......I know it makes it easier to have a list of things to hang on and rely on for when things dont happen but its really not as complicated as that. Your taking what I was saying and adding your own assumptions I guess because Im not even inferring that the CBI has its hands tied on everything and cant do anything without the govts approval.

Thats just not the case.....I was simply explaining that it all makes sense why the CBI had to submit this plan for approval, mostly just for issuing a new currency. And according to the constitution, the govt does have the final say on deleting the zeros....which is the delay only for the plan to RD....which Im hoping it stays on the backburner and eventually gets ripped up and tossed out.

Its not even about who is right lol....everyone here is pro-rv...everyone wants to make a killing on this, its just some seem to be more realistic about this then others....all we have really is what the CBI is telling us and we can only hope they are full of sh*t right now....

[Halo9678]

The funny thing is you both, Yota and Keep, cited the same constitution (rather eloquently, I might add) and came up with very different points of view. Personally, I admire the skill in which you both handled yourselves. I was concerned that things might have gotten a bit 'less than amiable'. All of that aside, I can see why things are so muddled in politics. Everyone has a point of view and everyone wants to win.

[GotSix]

Its not even about who is right lol....everyone here is pro-rv...everyone wants to make a killing on this, its just some seem to be more realistic about this then others....all we have really is what the CBI is telling us and we can only hope they are full of sh*t right now....

"Everyone here is pro-rv" ....not sure about that....I've seen some bad guys ....have you ..

[keepmwlknfny]

"Everyone here is pro-rv" ....not sure about that....I've seen some bad guys ....have you ..

Even the ones who seem like they want it to lop, are all for making big money....who isnt? Those particular individuals have apparently taken a lot of information in, learning the dynamics of this investment and just want to know how this can happen and there are no solid answers that they feel are credible.....everyone wants a straight up RV to a buck at least.....its just not as feasible as we all probly once thought....

I cant speak for everyone but thats just a thought...a different perspective I guess...

Edited May 26, 2012 by keepmwlknfny

[R2d2dc]

After removing zeros instead of saying 123,000 IQD is equal to US$100 we will say 123 Dinars is equal to US$100.

When you take the sentence as a whole it looks like it says they are bunny earring to me. Don't neg me I'm not a lopster at all I'm just reading it in context, not pulling the piece I like out of a sentence because it makes me feel good.

I hope I am really wrong here!! What do you all think? Again it is just one of many articles and they won't be showing their hand, and it could also be smoke and mirrors as well.

Please don't kill me off,

r2

[uncirculd]

Glad I didn't help beat this one up. Heck, we are close. We can finally say we are close to the end of this wild ride. The journey has been awesome.