Iraq to revalue dinar and introduce new notes in September 2012

[patriotic party girl]

You lost me at "THIS CAME FROM AC THIS MORING...." Red Bull or Starbucks, PPG?

both im sorry another site sent this article out this morning i got a copy of it so i was saying who oknows what it really means

[dvforumuser]

Oh, it was very clear what both, but mainly what Mr. Selah, on behalf of Mr. Shabibi said.

Of course I disagree, I think its only how such statements are interpreted at sites like this that puts an RV spin on it. Most people agree that an RV would under no circumstances be announced, yet they also claim all this articles are doing just that. You can't have it both ways.

[ISAAC88]

the article is stating that the new denoms will be released in september and valued at 1:1 ...but the old 25k denoms will be worth 25 RV'd new denom dinar..if you want to get 12 2 dinar coins and a 1 dinar coin to make change..that is up to you...

[keepmwlknfny]

This is more than a little confusing. The opening paragraph states that they will release the new lower denoms in September 2012 ,and they will be used in "parallel" with the current notes for 1 year. If they are, in fact, used in "parallel" then they are at 1:1( by my understanding of the word parallel) not 1:1000 as stated at the end of the article. Maybe I'm just missing something here I guess.

Uncle Barkie

No your not missing anything.....the two currencies (old and new) will in fact run with eachother......what they are saying is that the exchange rate between the old and getting new will be 1000 to 1.....it will take 1000 current dinar, to equal 1 of the new....this is definately not what we want....

It basically means that the dinar we hold now would never see a higher rate....only the new dinar will be on par with the USD....

[fastang1111]

I cant figure out all the hoopla ? this artical is from "

A money trader in Erbil

The Kurdish Globe

I personaly don"t care what he thinks.

[Rayzur]

Printer-friendly Version

Saturday, 25 February 2012, 07:58 GMT

New banknotes to be introduced in September

A money trader in Erbil

The Kurdish Globe

Views differ on financial and socioeconomic impacts

Despite fears of a negative economic impact, the Central Bank of Iraq will remove three zeros from Iraqi dinar notes and print new banknotes in 2013.

The Central Bank of Iraq has agreed with the Economic Committee of the Iraqi Parliament to introduce the new banknotes in September 2012, which will be used in parallel with the current banknotes for a year. The CBI will completely withdraw the old banknotes by September 2013.

Abdul-Hussein Abtan, Economic Committee Member of Parliament in Baghdad stated in a press conference that there is an initial agreement between Parliament and the central bank to start the process of removing three zeros in September, and it will take a year to complete. The new banknotes will be printed in Arabic, English and Kurdish.

The CBI will introduce three new banknotes: 50 dinars, 100 dinars and 200 dinars. For smaller transactions, the CBI will also issue 1-dinar and 2-dinar coins which Iraq currently does not use.

MP Abtan says "The grant agreement is to ensure that during the one year process, the old banknotes are traded in the market and replaced by the new one."

The CBI expects this move to positively impact the country's economy; however, some parties say the negative consequences will be more serious.

The Security Commission says deleting the zeros will have a negative impact on financial trade in the stock market. Other opponents of the move argue it would pave the way for money laundering and want the government to reconsider its decision.

Supporters of the idea believe the introduction of the new banknotes will help reduce inflation, strengthen the Iraqi dinar in the international market, facilitate trade with international banks and other financial institutions, as well as reduce the social gap between classes.

"The process of removing zeros from the currency will contribute to dealing better with inflation, facilitate economic cooperation with international banks and reduce the differences in [standards of] living in society," Abtan explained. Mahma Khalil, another Member of the Iraqi Parliament and official spokesperson of the Economic Committee says an agreement has been reached about the mechanisms of introducing the new banknotes after a series of meetings and discussions with the CBI Governor Dr. Sinan Al Shibibi.

"According to the agreements, the new bill will be printed by a European company and introduced to the market gradually and in a well-planned schedule to ensure it will not result in shocks and would not have a negative impact on the market," explained MP Khalil. He added the exchange rate between the new banknotes and the old ones would be 1:1,000.

The objective behind this move is to appreciate the value of the Iraqi dinar against the U.S. dollar, which would in turn increase the balance of the Iraqi dinar and there would be sufficient reserves of that currency," explained MP Khalil. "Additionally, the economy of Iraq would grow and oil sales would also increase." Khalil added that Iraq has a reserve of $60 billion in the CBI.

The CBI previously stated it would consult with Parliament and representatives to see whether there would be a need for a law to be passed for this shift. The Economic Committee announced on 19 February it was introducing new legislation for the purpose and would also address the inflation issue in the country.

The introduction of new banknotes and withdrawing the current ones from the market is generally expected to reduce and control the number of dinars in circulation and would also help facilitate payment systems and control the banking transactions in the country.

http://www.kurdishglobe.net/display-article.html?id=3CBF63FA930E6C8FF6BBF1EDC3B7D027

PLEASE dont shoot the messenger...... I think this suks if true.... And please debate why it is not true.... and be my hero...... please....

[keepmwlknfny]

Thats everyones exchange.....

[Rayzur]

Thats everyones exchange.....

Keep!!! Buddy O'mine..... PLEASE nooooooooo banging head on keyboard.... nooooooooo

[RobLe]

Well, if this is true... how will Iraq pay their bills? If they create a new currency and it is exchanged one to thousand of the old, but this still doesn't create a sound base for Iraq to get development deals in their country. I believe either they need to RV or continue using the US dollar. Well, they certainly don't want to continue using the US Dollar. They need their own currency and this currency has to have value. Just my opinion of course. Time will answer all questions.

[waterman13]

in the first paragraph it states that the new currency will be printed in 2013 then there is a contradiction in the second paragraph that the new currency will be introduced in September 2012 - so which is it?

Exactly:

Despite fears of a negative economic impact, the Central Bank of Iraq will remove three zeros from Iraqi dinar notes and print new banknotes in 2013.

The Central Bank of Iraq has agreed with the Economic Committee of the Iraqi Parliament to introduce the new banknotes in September 2012, which will be used in parallel with the current banknotes for a year. The CBI will completely withdraw the old banknotes by September 2013.

Read more: http://dinarvets.com/forums/index.php?/topic/106999-new-banknotes-to-be-introduced-in-september/#ixzz1nQopj38m

This article makes absolutely no sense to me from the get go!

And as someone else pointed out it is from a currency dealer in Erbil.

Lends no credibility with me, IMO the lower denoms are already printed and in Iraq. (JMO)

WM13

[cajunrescuemedic]

I can't see this happening. If it does, like RobLe says, how will Iraq pay their bills. It has to RV at a higher rate. GO RV !!!

[Rayzur]

STOP…..IT…IS…THE…WEEKEND….A LOP….ARTICLE…IS…OUT….

EVERY….WEEKEND….THIS…..HAS….HAPPENED….IN….THE…..

LAST…..FEW….WEEEKENDS…..THIS….MEANS….WE….ARE….CLOSE

Folks, let’s not go down this path again, save yourself a weekend of trying to defend this investments and let the lopsters have their fun to themselves.

He added the exchange rate between the new banknotes and the old ones would be 1:1,000.

The objective behind this move is to appreciate the value of the Iraqi dinar against the U.S. dollar,

………..1:………………….1,000.

Iraqi dinar against the U.S. dollar

HERE IT LOOKS LIKE THE dinar 1 : dollar 1,000.

HERE’S MY POINT…DON’T TRUST THIS ARTICLE, WHY IS IT THESE CLEAR OR MAYBE NOT SO CLEAR ARTICLES COME OUT JUST IN TIME FOR THE WEEKEND WHEN EVERYONE IS OFF WORK AND THE LOPSTERS WILL BE ALL OVER THIS......DO NOT SCREW UP YOUR WEEKEND....FIND THE ARTICLES THAT CAN SHOW US SIGNS THAT WE ARE THERE

THEY WILL BE ALL OVER THIS ARTICLE…I’LL SAY IT, IT LOOKS LIKE A LOP OR DOES IT…..?

IT WILL BE WHAT IT IS… WHEN IT HAPPENS....BOTTOM LINE....IT IS WHAT IT IS.....

EVERYONE KNOWS WHAT I THINK AND MY GROUP SEES IT THE WAY I DO, SO DON'T WASTE YOUR TIME....HAVE A GREAT WEEKEND FOLKS……. WE ARE ALLMOST THERE....

Thanks Stryker!!!!..... Standing down and going into chill mode

[Rayzur]

Appears this is the subject of another news post as well...

Stryker also has a great reply which I am posting here:

Thanks Stryker!

STOP…..IT…IS…THE…WEEKEND….A LOP….ARTICLE…IS…OUT….

EVERY….WEEKEND….THIS…..HAS….HAPPENED….IN….THE…..

LAST…..FEW….WEEEKENDS…..THIS….MEANS….WE….ARE….CLOSE

Folks, let’s not go down this path again, save yourself a weekend of trying to defend this investments and let the lopsters have their fun to themselves.

He added the exchange rate between the new banknotes and the old ones would be 1:1,000.

The objective behind this move is to appreciate the value of the Iraqi dinar against the U.S. dollar,

………..1:………………….1,000.

Iraqi dinar against the U.S. dollar

HERE IT LOOKS LIKE THE dinar 1 : dollar 1,000.

HERE’S MY POINT…DON’T TRUST THIS ARTICLE, WHY IS IT THESE CLEAR OR MAYBE NOT SO CLEAR ARTICLES COME OUT JUST IN TIME FOR THE WEEKEND WHEN EVERYONE IS OFF WORK AND THE LOPSTERS WILL BE ALL OVER THIS......DO NOT SCREW UP YOUR WEEKEND....FIND THE ARTICLES THAT CAN SHOW US SIGNS THAT WE ARE THERE

THEY WILL BE ALL OVER THIS ARTICLE…I’LL SAY IT, IT LOOKS LIKE A LOP OR DOES IT…..?

IT WILL BE WHAT IT IS… WHEN IT HAPPENS....BOTTOM LINE....IT IS WHAT IT IS.....

EVERYONE KNOWS WHAT I THINK AND MY GROUP SEES IT THE WAY I DO, SO DON'T WASTE YOUR TIME....HAVE A GREAT WEEKEND FOLKS……. WE ARE ALLMOST THERE....

[armondtoth]

Printer-friendly Version

Saturday, 25 February 2012, 07:58 GMT

New banknotes to be introduced in September

A money trader in Erbil

The Kurdish Globe

Views differ on financial and socioeconomic impacts

Despite fears of a negative economic impact, the Central Bank of Iraq will remove three zeros from Iraqi dinar notes and print new banknotes in 2013.

The Central Bank of Iraq has agreed with the Economic Committee of the Iraqi Parliament to introduce the new banknotes in September 2012, which will be used in parallel with the current banknotes for a year. The CBI will completely withdraw the old banknotes by September 2013.

Abdul-Hussein Abtan, Economic Committee Member of Parliament in Baghdad stated in a press conference that there is an initial agreement between Parliament and the central bank to start the process of removing three zeros in September, and it will take a year to complete. The new banknotes will be printed in Arabic, English and Kurdish.

The CBI will introduce three new banknotes: 50 dinars, 100 dinars and 200 dinars. For smaller transactions, the CBI will also issue 1-dinar and 2-dinar coins which Iraq currently does not use.

MP Abtan says "The grant agreement is to ensure that during the one year process, the old banknotes are traded in the market and replaced by the new one."

The CBI expects this move to positively impact the country's economy; however, some parties say the negative consequences will be more serious.

The Security Commission says deleting the zeros will have a negative impact on financial trade in the stock market. Other opponents of the move argue it would pave the way for money laundering and want the government to reconsider its decision.

Supporters of the idea believe the introduction of the new banknotes will help reduce inflation, strengthen the Iraqi dinar in the international market, facilitate trade with international banks and other financial institutions, as well as reduce the social gap between classes.

"The process of removing zeros from the currency will contribute to dealing better with inflation, facilitate economic cooperation with international banks and reduce the differences in [standards of] living in society," Abtan explained. Mahma Khalil, another Member of the Iraqi Parliament and official spokesperson of the Economic Committee says an agreement has been reached about the mechanisms of introducing the new banknotes after a series of meetings and discussions with the CBI Governor Dr. Sinan Al Shibibi.

"According to the agreements, the new bill will be printed by a European company and introduced to the market gradually and in a well-planned schedule to ensure it will not result in shocks and would not have a negative impact on the market," explained MP Khalil. He added the exchange rate between the new banknotes and the old ones would be 1:1,000.

The objective behind this move is to appreciate the value of the Iraqi dinar against the U.S. dollar, which would in turn increase the balance of the Iraqi dinar and there would be sufficient reserves of that currency," explained MP Khalil. "Additionally, the economy of Iraq would grow and oil sales would also increase." Khalil added that Iraq has a reserve of $60 billion in the CBI.

The CBI previously stated it would consult with Parliament and representatives to see whether there would be a need for a law to be passed for this shift. The Economic Committee announced on 19 February it was introducing new legislation for the purpose and would also address the inflation issue in the country.

The introduction of new banknotes and withdrawing the current ones from the market is generally expected to reduce and control the number of dinars in circulation and would also help facilitate payment systems and control the banking transactions in the country.

http://www.kurdishglobe.net/display-article.html?id=3CBF63FA930E6C8FF6BBF1EDC3B7D027

PLEASE dont shoot the messenger...... I think this suks if true.... And please debate why it is not true.... and be my hero...... please....

Well there is one problem with this article, they already have a 50 dinar note so why would they spend money to reprint it, And if they are only removing the 3 zero notes what about the 250 and 500 notes. You could not redenominate without drawing in all the notes and reprinting otherwise I will go out and buy the 500 note and wait till they draw in the 3 zero notes and raise the value.

[idplzr]

This reads like an opinion peace. At least I am hoping that.

[unirod]

Why would their be fear of money laundering? Would their be a black market effert to get IQD smuggled outside the country where it would be worth a higher rate of exchange internationally?If the value is lopped in country, could citizens sell their Dinar or launder it to get a better rate on the black market? how much will the underground market be willing to pay 750;1, 500;1, 250;1, 100;1 ?

IMO; none of this makes any sense. You have to value each Dinar equally whether in currency form (old or new) or electronic.

[one2one]

if true---this would be the same as no RV ???

:blink:

[thegente]

Only way we will really know what will happen, is when they actually do it...worrying/arguing about it won't change a thing either way...nobody knows for sure.

[RobLe]

Wow Razur, after reading your post... I left the this forum and then had to come back. It does sort of let you down and leave you a little depressed to read a LOP article. But maybe this is all smoke and mirrors again. You know, they want confusion. it is either that or it will be what it will be. I always say.... time will answer all questions and all of this up and down mood swings with the different articles that come out won't change a thing. So... I guess that we just sit back and wait.

[Alex38]

IF this is true, they will NEVER get rid of their people using the dollar. End of story. We'll see ....

[fastarnie]

Only way we will really know what will happen, is when they actually do it...worrying/arguing about it won't change a thing either way...nobody knows for sure.

Perfectly stated.

[Markinsa]

The CBI Law does say they would have to exchange old dinar for new dinar at equivalent amounts (1:1). That being said, the would have to issue a NEW law that would allow them to exchange old dinar for new dinar in different amounts (1000:1). I agree this article is smoke.

-

[ftruck7]

I don't understand why a lot of people on this forum believe everything that they say good or bad.

[bamagirl]

The CBI Law does say they would have to exchange old dinar for new dinar at equivalent amounts (1:1). That being said, the would have to issue a NEW law that would allow them to exchange old dinar for new dinar in different amounts (1000:1). I agree this article is smoke.

-

Thanks Mark, I didn't know there was an actual law. Makes me feel better, lol!

[mrref]

DId Shabibi make that statement??? NO. The only person that I pay attention to in regards to the future exchange rate is the man that's going to pull the trigger and that is SHABIBI. Everone else is just throwing there opinion around..

Edited February 25, 2012 by mrref