Iraqi Central Bank is planning to redenominate

[bostonangler]

Old story but posted today on Radio Free Europe

Thursday, January 19, 2012

Iraq Planning Currency Redenomination

February 06, 2010

BAGHDAD -- The Iraqi Central Bank is planning to redenominate the national currency in an effort to ease transactions and allow people to carry less paper money, RFE/RL's Radio Free Iraq (RFI) reports.

Mudhhir Muhammad Salih, a member of a Central Bank advisory panel, told RFI that a plan has been made to remove three zeros from the currency and phase out the current banknotes late this year.

Salih said by the end of 2010 the new banknotes will be fully introduced while the old banknotes will be gradually removed from circulation. He did not specify when the new notes would be issued.

Both will be legal tender in Iraq until the old notes are completely withdrawn.

Iraqi officials have had a long-running plan to redenominate the Iraqi dinar. In 2006, the Finance Ministry recommended to the Central Bank that it carry out such a plan.

Salih pointed out that banks are having a hard time accepting cash savings and deposits, but by dropping the zeros it will make it easier for both the banks to deal with their customers and for the general public to carry money. He said some 80 percent of Iraq's money supply is cash in circulation.

Salih added that in 1990 the value of banknotes in circulation was about 25 billion Iraqi dinars but is currently some 25 trillion dinars.

Economic analyst Hilal al-Tahhan told RFI that the bank's move is overdue. He said he expects the currency change to go smoothly because of the decision to allow both the old and new banknotes to coexist, leading to less turbulence in the economy.

The current exchange rate is 1,167 Iraqi dinars to the U.S. dollar.

http://www.rferl.org/content/Iraq_Planning_Currency_Redenomination/1950504.html

B/A

[GotSix]

Yeah ok ...they can't even spell his name right

[Elixirbaby]

Yep weird.

[cgbrown]

If this is an old story, and it is dated in the content, then why post this now..... doesn't matter of Radio Free Europe post it....... we don't need old news here.

[sportfisher]

more smoke LOP articles designed to confuse and discourage speculators.

hang on folks, it's gonna be a bumpy ride

Edited January 19, 2012 by sportfisher

[DinarStudent]

I think what he is trying to point out, and this is just speculation from him highlighting by the end of 2010, that what the Central Bank said was false.

[Bat of Darkness]

Hmmm. This is an old article, one that I practically know by heart. They even printed that same old tired photo of the woman in black, barely seen through the stacks of Dinar kept stacked inside her booth.

But I think it's newsworthy for the simple fact that it has been re-run...not by an Iraqi news agency, but Radio Free Europe. What are they doing with this article? Are they the ones that printed it way back when?

Things are certainly getting interesting!