Iraqi Coins May Return in 2013

[yota691]

Iraqi Coins May Return in 2013

By Richard Giedroyc, World Coin News

September 10, 2012

Some Iraqi economists are less than thrilled with the idea of a new currency being introduced during 2013, but if the financial committee in Iraq’s Parliament has its way not only will there be new bank notes, but coins will once more be seen in circulation.

The currency reform being planned for next year will include removing three zeros from all existing currency denominations.

According to Iraq Central Bank Deputy Governor Mazhar Salih, “We are determined to change the Iraqi currency because the biggest bank note in Iraq is 25,000 dinars, which is the equivalent of $21. This has forced Iraqi merchants to resort to U.S. dollars. Besides omitting the zeros from the currency, we will redefine the Iraqi currency and have bank notes larger than 25,000.”

Najiba Najib is a financial committee member. According to Najib, the new currency would circulate simultaneously with the older bank notes for three years before the notes being replaced would be demonetized.

The committee has presented proposed designs for seven bank notes ranging from 5- to 200-dinar denominations as well as coins in 50-fils to 2-dinars denominations to the central bank. Details of the proposed coins were not immediately available, but it was learned through Najib that the waterfall of Geli Eli Beg is among proposed vignettes for the new notes. It appears the proposed vignettes will attempt to appease all major ethnic groups within Iraq since three of the proposed designs have Kurdish themes. It was also learned the notes and presumably the coins will include legends in Arabic, Kurdish and English.

Kurdistan Economic Forum Vice President Faysal Ali is among those opposed to a currency reform at this time. According to Ali, “The political situation in Iraq is very unstable and it is economically weak.”

Ali continued, “Therefore, it is not possible to change the currency now because in order to do so we would need more than a trillion bank notes and coins. Exchanging new bank notes with older ones being used by citizens will greatly harm the economy.”

Ayub Anwar Simaqayi is a lecturer in economics at Salahaddin University in Erbil. He added, “It [iraq] depends entirely on oil which it exports for U.S. dollars. So, if they [iraq government] change the currency of Iraq and the price of oil goes up it will have no impact on the value of Iraqi currency. But, if the oil prices go down the currency of Iraq will lose value as well.”

Following World War I, what is now Iraq was a British mandate that used the coins and bank notes of British India as its official currency. Iraqi coins in denominations of 1, 2, 4, 10, 20, 50 and 200 fils were introduced in 1931 and 1932, with a 100-fils coin being introduced in 1953.

Coins continued in use during the Iraqi Republic period, with the introduction of a new series in denominations of 1, 5, 10, 25, 50, and 100 fils. In 1970 a 250-fils coin was added to this mix. In 1982 the 500-fils and 1-dinar denominations were introduced; however, coin production ended after 1990 due to inflation.

A series of coins in denominations of 25, 50, and 100 dinars was introduced in 2004 by the Coalition Provisional Authority that replaced the dictatorial government of Saddam Hussein; however, these coins proved to be unpopular and were withdrawn.

Bank notes used during the Saddam regime are nicknamed “Swiss dinars” because they were printed in Switzerland for Iraq. When the Saddam government was cut off from its Swiss suppliers in 1991 due to an international embargo, Iraq began printing its own bank notes, known in Kurdistan as “fakes” or “prints” due to their lack of anti-counterfeiting security devices.

In 2003 the coalition governor of Iraq, Paul Bremer, following the collapse of the Saddam government, authorized new bank notes to be printed by the De La Rue security printing company. These notes are dubbed “Bremers” by Iraqi citizens. Counterfeits of the Bremer period notes have been a problem due to the interest in selling physical Iraqi dinars overseas to investors speculating on their appreciation should the Iraqi economy improve.

http://www.numismaster.com/ta/numis/Article.jsp?ad=article&ArticleId=25737

Edited September 12, 2012 by yota691

[seabee64]

Iraqi Coins May Return in 2013

By Richard Giedroyc, World Coin News

September 10, 2012

Some Iraqi economists are less than thrilled with the idea of a new currency being introduced during 2013, but if the financial committee in Iraq’s Parliament has its way not only will there be new bank notes, but coins will once more be seen in circulation.

The currency reform being planned for next year will include removing three zeros from all existing currency denominations.

According to Iraq Central Bank Deputy Governor Mazhar Salih, “We are determined to change the Iraqi currency because the biggest bank note in Iraq is 25,000 dinars, which is the equivalent of $21. This has forced Iraqi merchants to resort to U.S. dollars. Besides omitting the zeros from the currency, we will redefine the Iraqi currency and have bank notes larger than 25,000.”

Najiba Najib is a financial committee member. According to Najib, the new currency would circulate simultaneously with the older bank notes for three years before the notes being replaced would be demonetized.

The committee has presented proposed designs for seven bank notes ranging from 5- to 200-dinar denominations as well as coins in 50-fils to 2-dinars denominations to the central bank. Details of the proposed coins were not immediately available, but it was learned through Najib that the waterfall of Geli Eli Beg is among proposed vignettes for the new notes. It appears the proposed vignettes will attempt to appease all major ethnic groups within Iraq since three of the proposed designs have Kurdish themes. It was also learned the notes and presumably the coins will include legends in Arabic, Kurdish and English.

Kurdistan Economic Forum Vice President Faysal Ali is among those opposed to a currency reform at this time. According to Ali, “The political situation in Iraq is very unstable and it is economically weak.”

Ali continued, “Therefore, it is not possible to change the currency now because in order to do so we would need more than a trillion bank notes and coins. Exchanging new bank notes with older ones being used by citizens will greatly harm the economy.”

Ayub Anwar Simaqayi is a lecturer in economics at Salahaddin University in Erbil. He added, “It [iraq] depends entirely on oil which it exports for U.S. dollars. So, if they [iraq government] change the currency of Iraq and the price of oil goes up it will have no impact on the value of Iraqi currency. But, if the oil prices go down the currency of Iraq will lose value as well.”

Following World War I, what is now Iraq was a British mandate that used the coins and bank notes of British India as its official currency. Iraqi coins in denominations of 1, 2, 4, 10, 20, 50 and 200 fils were introduced in 1931 and 1932, with a 100-fils coin being introduced in 1953.

Coins continued in use during the Iraqi Republic period, with the introduction of a new series in denominations of 1, 5, 10, 25, 50, and 100 fils. In 1970 a 250-fils coin was added to this mix. In 1982 the 500-fils and 1-dinar denominations were introduced; however, coin production ended after 1990 due to inflation.

A series of coins in denominations of 25, 50, and 100 dinars was introduced in 2004 by the Coalition Provisional Authority that replaced the dictatorial government of Saddam Hussein; however, these coins proved to be unpopular and were withdrawn.

Bank notes used during the Saddam regime are nicknamed “Swiss dinars” because they were printed in Switzerland for Iraq. When the Saddam government was cut off from its Swiss suppliers in 1991 due to an international embargo, Iraq began printing its own bank notes, known in Kurdistan as “fakes” or “prints” due to their lack of anti-counterfeiting security devices.

In 2003 the coalition governor of Iraq, Paul Bremer, following the collapse of the Saddam government, authorized new bank notes to be printed by the De La Rue security printing company. These notes are dubbed “Bremers” by Iraqi citizens. Counterfeits of the Bremer period notes have been a problem due to the interest in selling physical Iraqi dinars overseas to investors speculating on their appreciation should the Iraqi economy improve.

http://www.numismaster.com/ta/numis/Article.jsp?ad=article&ArticleId=25737

Yota

Thanks for bring this. + 1 for you.

[CompSCI]

Ali continued, “Therefore, it is not possible to change the currency now because in order to do so we would need more than a trillion bank notes and coins. Exchanging new bank notes with older ones being used by citizens will greatly harm the economy.”

Interesting seeing that there is about (4) trillion in paper IQD circulating now (http://www.alsabaah.com/ArticleShow.aspx?ID=31223)

...

Edited September 12, 2012 by CompSCI

[dontlop]

Ayub Anwar Simaqayi is a lecturer in economics at Salahaddin University in Erbil. He added, “It [iraq] depends entirely on oil which it exports for U.S. dollars. So, if they [iraq government] change the currency of Iraq and the price of oil goes up it will have no impact on the value of Iraqi currency. But, if the oil prices go down the currency of Iraq will lose value as well.”

Read more:

does this sound like oil commoditys will be backing the dinar in this statement .. or am i seeing this wrong.. kinda like canada or australias commodity backed currencys.. iraq has trillions of dollars worth of oil ..

and a commodity backed currency is only valued of the commodity at its present value ,, so it floats with the commodity price ..trillions in proven reserves are like money in the bank

[jeepguy]

i`m looking too see if they really know what is happening too the currency at all,,,, the 25,ooo =`s 21.oo isn`t that what it is worth now ?? so if they introduce coins and value is changed --- only way too go is --- UP

[Butifldrm]

Thanks yota, great post

[sandstorm]

They are issuing a new currency and demonitizing the current iqd after three years. Obviously a typical rd scenario. lets hope they dont do it.

[keepmwlknfny]

Ayub Anwar Simaqayi is a lecturer in economics at Salahaddin University in Erbil. He added, “It [iraq] depends entirely on oil which it exports for U.S. dollars. So, if they [iraq government] change the currency of Iraq and the price of oil goes up it will have no impact on the value of Iraqi currency. But, if the oil prices go down the currency of Iraq will lose value as well.”

Read more: http://dinarvets.com.../#ixzz26E460RBb

does this sound like oil commoditys will be backing the dinar in this statement .. or am i seeing this wrong.. kinda like canada or australias commodity backed currencys.. iraq has trillions of dollars worth of oil ..

and a commodity backed currency is only valued of the commodity at its present value ,, so it floats with the commodity price ..trillions in proven reserves are like money in the bank

I dont think its saying they are gonna move to a commodity backed currency.....otherwise the statement above talking about the price of oil going up and not affecting the value of the dinar would not be correct....it would fluctuate up and down depending on the price of oil....and I believe from what you posted before on commodity backed currencies, the information mentioned that usually weak economies revert to this type of practice....could be wrong but for some reason that is sticking in my head.

"The currency reform being planned for next year will include removing three zeros from all existing currency denominations. "

That statement right there should tell you that this is not what we want.....

Its clearly not just removing the larger bills from circulation....they are taking 3 zeros from ALL existing currency denominations....

[dontlop]

thanks keep .. i remember reading about commodity based currencys .. and it said .. it could not be worth more than its worth in its currenct commodity value .. but it didnt say it could not be worth less than its currenct commodity value.. they may have it set lower to allow for flexibility .... but if it goes lower than that then it could lose its value .. im not sure about the technicalities of commodity based curencies ,, or commodity backed currencies .. but i found it odd this artical says if the price of oil goes down the dinar would go down too.. as if its tied to oil prices ..

i was reading about the canadian currency and its value flexuates with oil prices as well .. and it is based off of proven reserves .... i guess proven reserves are good as money in the fiat world of commodity based , backed curencies

Edited September 12, 2012 by dontlop

[zigmeister]

According to Iraq Central Bank Deputy Governor Mazhar Salih, “We are determined to change the Iraqi currency because the biggest bank note in Iraq is 25,000 dinars, which is the equivalent of $21. This has forced Iraqi merchants to resort to U.S. dollars. Besides omitting the zeros from the currency, we will redefine the Iraqi currency and have bank notes larger than 25,000.”

This makes no sense to me. They are going to omit the zero's from the currency and have bank notes larger than 25,000?

[CompSCI]

This has forced Iraqi merchants to resort to U.S. dollars. Besides omitting the zeros from the currency, we will redefine the Iraqi currency and have bank notes larger than 25,000.”

After they "remove the three zeros" - they are going to redefine the currency and have bank notes larger than 25,000...?

...

[zigmeister]

After they "remove the three zeros" - they are going to redefine the currency and have bank notes larger than 25,000...?

...

Yeah.....we are on the same wave length.

[keepmwlknfny]

thanks keep .. i remember reading about commodity based currencys .. and it said .. it could not be worth more than its worth in its currenct commodity value .. but it didnt say it could not be worth less than its currenct commodity value.. they may have it set lower to allow for flexibility .... but if it goes lower than that then it could lose its value .. im not sure about the technicalities of commodity based curencies ,, or commodity backed currencies .. but i found it odd this artical says if the price of oil goes down the dinar would go down too.. as if its tied to oil prices ..

i was reading about the canadian currency and its value flexuates with oil prices as well .. and it is based off of proven reserves .... i guess proven reserves are good as money in the fiat world of commodity based , backed curencies

Im not sure of all the details of commodity backed currencies either lol.....was just going off of the little bit of info I have seen on them.....

It would make sense to me anyways that it would fluctuate up or down depending on the price of it...

If the price of oil goes down, I think the dinar would be affected regardless since they use oil revenues to stash away reserves and to balance the exchange rate and inflation through the auctions....so that COULD be what he is referring to...

Do you still have that link you posted in the other thread when the topic of commodity backed currencies came up?

[dontlop]

Im not sure of all the details of commodity backed currencies either lol.....was just going off of the little bit of info I have seen on them.....

It would make sense to me anyways that it would fluctuate up or down depending on the price of it...

If the price of oil goes down, I think the dinar would be affected regardless since they use oil revenues to stash away reserves and to balance the exchange rate and inflation through the auctions....so that COULD be what he is referring to...

Do you still have that link you posted in the other thread when the topic of commodity backed currencies came up?

.. the link is in the rumors section under the pinned topic at top .. currency backing why its in rumors im not sure

i really thiink this is going to come in stages .. at least 2 stages ..

first one with co existing currencys .. the new currency could be temporarily backed by oil reserves under some sort of commodity backed contract with imf .. based on reserves and possibly a 86 dollar a barrel value per barrel ..and a 160 billion barrels of proven reserves .. it could possiblyy also include other commodities like natral gass and other minerals ..

now .. as they sell their oil for dollars .. those dollars would be put into foriegn reserves to build up reserves .. for a short time ..like the 3 year timeline they speak of for both currencies to co exist .. after 3 years they should have over 500 billion in reserves .. just in us dollars ..but at the same time they lost 500 billion in value from the 160 billion barrels of proven reserves"around 15 trillion dollars worth " ...so this may even be figured into the agreement and the reason why it would come out lower than the currenct oil price.. 97 a barrel .. but figured at 86 a barrel ..they like that 86 number for some reason .. the dinar is valued at .00086. . 860 a million .... there budget is based on 86 dolar a barrel oil ..they must have 14% of their currency out of country making up that 14% difference between the dollar .thats another analogy ..

. so this brings me to second stage of currency revaluation .. where i believe the old dinars will be demonitized .after 3 years and the new dinars would convert over to a dollar backed currency ....with a half a trillion dollars as foriegn reserves .. i think the imf will grant iraq new value to continue as a fiat currency .. this has a lot of details missing .. but im trying to get to the point without getting specific with details . im a one finger typist .. and dont really like typing

i dont see any other way this could have any huge revaluing of the dinar without backing it with their proven oil reserves ..

the only other option is a 50 year process of slowly selling oil and building reserves and tucking away a few billion a year and building up trust and credit ratings ..

we often here about fixing iraqs economic problems .. and a 50 year program seems to be way out there .. this is the speculation that got this investment going ..>>>>>>>>>>>> they are going to rv .. look at all the oil they have .. its going to happen ..<<<<<< the hard part is explaining how they could do that ..do they have to sell the oil up front .. or could they base a currency based on or backed by that commodity .. so looking into commodity backed currencys is where ..i believe... we should be looking .. if we think they will have any sort of over night huge gain in this investment ... it would be contractual agreements with world community .. world banks .. and the imf .. and we all know the federal reserve will have their fingers in deep on this one .. "if" .. this takes place

i also read of land based comodity backed currency .. where each acre of land having a value . could be used to back currency ..some land being worth more of course .. like beach front .. or mineral rich ..farm land .. ports .. ect... this way the commodity would not have to be stored .. like gold was ,, that was a big problem as economies grew .. storage of comodities .. .. land is already stored .. like minerals in the ground . its stored already .. the beach is the beach

who knows .. but i dont see them keeping iraq as a 3rd world country .

Edited September 12, 2012 by dontlop

[dontlop]

sorry wrong section .. its in opinions section .. heres the link <<<>>>>

this one will take you to google search on commodity backed currencys <<<<>>> http://www.google.com/#q=countries+with+commodity+backed+currency&hl=en&rlz=1W1ADFA_en&prmd=imvns&ei=wo9FUIeyL6q56AHatoCgBg&start=10&sa=N&fp=1&bav=on.2,or.r_gc.r_pw.r_qf.&cad=b

http://en.wikipedia.org/wiki/Commodity_money

good read on what im talking about

Edited September 12, 2012 by dontlop

[dontlop]

good example .. if i had a truck load of ciggerettes .. .. now you come along and say ill clean your truck for a pack of ciggerettes .. we agree and its done .. .. now that guy doesnt smoke so he takes that pack of smokes and trades them for some pencils .. .. but he doesnt smoke either so he trades those smokes for a box of candy .. and so on ..

now if every day this type of trading was going on .. and instead a paper note was issued for cleanig that truch .. good for one pack of ciggerettes .. .. i could trade that paper for pencils .. and he could use that same note to buy his candy ,,, and the person who does smoke .. walks up to me and my truckload of ciggerettes and hands me that paper that says good for one pack of smokes .. so i take that paper and hand him a pack of smokes ..

ya dont have to carry that pack of smokes around doing all the bartering .. just think if you had a barrel of oil to carry around trading ,, .

so money is issude for comodities and backed by those commoditys .. money doesnt have to be gold .. or sivler or anything ,, just a simple respected promisary note ..needs to be issued .. like the good ole us dollar .. //

we owe alot of dollar .. but that will keep us working for many many years .. thats what people want .. right .. jobs .. fiat currencys are a good thing .. its not a hoax .. its just a simpler way of trade .. or you can carry around a barrel of oil .. see how that is excepted .. i can see that one ..

money is only a contractual agreement made within the imf ..

come on iraq show us your fortune .. you will get your dinars back .. i promise ill send them in soon as you push that button .. and they will all be worth what you say they are worth .. even after you redeem them.. only difference is they will be yours to spend next .. on what ever you want to buy

[RVPleaseToday]

"come on iraq show us your fortune .. you will get your dinars back .. i promise ill send them in soon as you push that button .. and they will all be worth what you say they are worth .. even after you redeem them.. only difference is they will be yours to spend next .. on what ever you want to buy"

But you want U.S. dollars for your Dinar, not oil, not Dinar. So where does Iraq get those U.S. dollars to send you?

[powerpager]

or the month after that !!!

[dontlop]

"come on iraq show us your fortune .. you will get your dinars back .. i promise ill send them in soon as you push that button .. and they will all be worth what you say they are worth .. even after you redeem them.. only difference is they will be yours to spend next .. on what ever you want to buy"

But you want U.S. dollars for your Dinar, not oil, not Dinar. So where does Iraq get those U.S. dollars to send you?

are you going to iraq to exchange your dinars ,, im sure they will cover you ..if ya do .... im going to the bank .. they got plenty of dollars .... if not they know where to get them ..just think all those newly valued dinars sitting in our treasury in the foriegn reserve currency boosting the dollars value .. the dollar will gain strength evertime another one of us show up to cash in another million.. our govt will figure out how to spend them later on .. but for the time being a strong iraqi dinar sitting n the reserves will be quite soothing ..later on they can exchange them for the new notes or .. just keep buying oil .. 20 million barrels of oil a day gets used in the states 7.5 billion barrels a year times a hundred bucks .. ..at least when the economy is going well ..we spend about 600 billion a year on foriegn oil ..those dollars will pile up in iraq as fast as they can pump the oil ..they wont need them in iraq they will be spending the new dinars .. .. im not sure what bank ill be doing buisness with .. but im sure ill pick a good one.... bilateral trade agreements ,, between govts .. world trade dinars all over the world for awhile sitting in foriegn reserves .. remember money is only an agreement ,, a contract .. if iraq holds its end of the bargan and keeps pumping oil .. everything will be fine.. i see iraq as a nato member in the next 10 to 20 years .... once they get a taste of the good life they will want to protect their interests .. ..

[boomer113189]

good stuff

[Dalite]

are you going to iraq to exchange your dinars ,, im sure they will cover you ..if ya do .... im going to the bank .. they got plenty of dollars .... if not they know where to get them ..just think all those newly valued dinars sitting in our treasury in the foriegn reserve currency boosting the dollars value .. the dollar will gain strength evertime another one of us show up to cash in another million.. our govt will figure out how to spend them later on .. but for the time being a strong iraqi dinar sitting n the reserves will be quite soothing ..later on they can exchange them for the new notes or .. just keep buying oil .. 20 million barrels of oil a day gets used in the states 7.5 billion barrels a year times a hundred bucks .. ..at least when the economy is going well ..we spend about 600 billion a year on foriegn oil ..those dollars will pile up in iraq as fast as they can pump the oil ..they wont need them in iraq they will be spending the new dinars .. .. im not sure what bank ill be doing buisness with .. but im sure ill pick a good one.... bilateral trade agreements ,, between govts .. world trade dinars all over the world for awhile sitting in foriegn reserves .. remember money is only an agreement ,, a contract .. if iraq holds its end of the bargan and keeps pumping oil .. everything will be fine.. i see iraq as a nato member in the next 10 to 20 years .... once they get a taste of the good life they will want to protect their interests .. ..

The dinar is an exotic currency

It will not be in any country's foreign reserves.

Until it is accepted internationally, it has as much of a chance of being a reserve currency as yesterday's newspaper.

The common belief that the UST will hold it to exchange for oil is the deceit of the Pumpers; in the largest magnitude possible - a very large, hot, steaming pile...

I think the expression is "You have been Punked".